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Most people should not accept the first settlement offer provided by the insurance company after filing an accident claim. Initial settlement offers tend to be low, often a fraction of what your claim is and what the company should pay you.
Instead, provide documentation to verify losses to increase the claim value. Insurance companies want you to settle for less so they do not have to pay as much.
Insurance claims for personal injury matters will typically offer a settlement on your claim that could be 20, 30, or even 40% of the value you submitted. That lowball figure is their way of trying to reduce what they pay out, hoping you will agree to it and move on. However, there are several reasons why you should not accept that offer.
The insurance company’s tactic of sending a lowball offer is putting pressure on you to settle out of court for less than they owe you. They want you to see a big number and agree to settle your claim. Yet, that may be far from what they actually owe you in these cases.
Sometimes the insurance company will send a settlement offer before you know what all of your losses are, putting you at risk of settling for far less than what they owe you. For example, if you have yet to reach your maximum medical improvement. That means you do not know how much more you will improve. You may need additional care, long-term support, and future medical procedures that the insurance company should pay for.
If you settle early, you may be unable to go after these larger claims. That could make your financial future far more challenging than it should be.
The insurance company may be taking this step to get you to either settle your case or drag out the process. Remember that you have to file a lawsuit within the statute of limitations within the state (that is, two years from the date of the injury in California, for example). If they enter into negotiations with you and that delays the recovery of damages before you have the opportunity to file a lawsuit, they may prevail.
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Before you settle your claim, at any time, meet with a personal injury or work injury attorney to discuss your accident and losses. Your attorney will build a claim with evidence that makes it challenging for the insurance company to refute your claims and deny you. Then, when the insurance company sends in a settlement offer to you, it is likely to be more in line with expectations.
If not, your attorney will not allow you to settle prematurely. Your personal injury attorney’s guidance can make an incredible difference in your case. Their presence makes it clear to the insurance company that your claim is serious and that they need to take action.
Before you settle your accident claim, speak to your attorney. It is rarely beneficial to file a claim and accept a low settlement offer. Instead, fight for the compensation you deserve after this accident.