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Why to be wary of the first settlement offer

On Behalf of | Mar 7, 2024 | Motor Vehicle Accidents

Before going to court after a car accident injury, there will often be a settlement discussion. Both sides will negotiate and try to find a solution. The insurance company may offer a specific settlement to the person who is seeking compensation. They can choose to accept it if they want, meaning that the case stays out of court.

But should you actually accept that settlement if you’re in this position? Here are a few things to consider.

Your long-term costs

First of all, you have to think about your long-term costs. The settlement may pay for your immediate bills and the wages you’ve already lost. But will it cover lost earning capacity in the future? What if you need rehabilitation or further medical care? Once you take the settlement, you no longer have a chance to seek additional compensation. It is very important that the offer you accept gives you full compensation for all of your total costs.

The insurance company’s goal

The next thing to remember is that, if you do get a settlement offer from an insurance company, their goal is to make that offer as low as possible. They’re trying to reduce the payout because that is how the company preserves its earnings. So, even if it seems like the insurance company is friendly and that they are on your side, always remember that they are not. They have a financial interest in reducing the settlement offer and paying you less than you actually need.

Thankfully, there are steps you can take during the negotiation process – or a court case, if needed – to seek total compensation. Just be sure you understand exactly what legal options you have at this time.