After a catastrophic car accident, you must rest and focus on your recovery. But that’s hard to do when you have bills to pay but are unable to work. When the other driver’s insurance company comes to you with a settlement offer, it can seem like a windfall and a solution to your financial problems.
However, that money likely won’t go as far as you think, especially if you are still undergoing treatment. And, by accepting that initial offer, you could be leaving money on the table.
Initial settlement offers are low
Insurance companies are businesses with a focus on their bottom line. One of the ways they maintain profitability is by minimizing the amount they pay out for claims. They are betting that you are facing urgent financial pressures such as medical bills, vehicle repairs and lost wages. Your vulnerability opens you up to a quick but insufficient settlement offer.
Insurance adjusters may try to underplay the extent of your losses. They may focus on visible, immediate needs, such as vehicle repairs and initial medical costs. They ignore other less obvious factors, but just as important, including:
- Ongoing medical treatment and future medical expenses
- Lost earning potential if you can’t go back to work
- Pain, suffering and emotional stress
By accepting the insurance company’s first offer, you run the risk of waiving your right to further compensation. Settlements often include a clause that releases the insurer from any future liability, which means you can’t go back for additional funds if you have more medical issues or your recovery is taking longer than you expected. You may need to drain your savings, tap into your retirement funds, take on debt or even declare bankruptcy without a sufficient settlement.
Working with a legal professional is vital – they understand the true value of your claim and will use their negotiating skills to present evidence-backed arguments for higher compensation. If you or someone you know has been injured in an auto collision, please contact The Law Office of Aman N. Shah for a free case evaluation.
