What should I do if my insurer offers a settlement?

It’s crucial to seek legal advice before accepting an insurance settlement offer to ensure that the amount offered is adequate for your recovery, particularly if you’ve sustained catastrophic injuries that may necessitate long-term medical care and impact your earning potential.

After an accident, it’s important to focus on recovery, but once you’re stable, you may want to resolve your personal injury or property damage claim. The at-fault party’s liability insurer may offer a settlement quickly, but it’s not always wise to accept it without legal advice. Rushing to accept the initial offer could lead to a lower settlement amount. Consulting with a Houston personal injury lawyer and learning about your legal options can increase your chances of getting the maximum compensation for your claim.

Rushing to Settle: Why Insurance Companies Do it

Receiving a settlement offer from the insurance company may come as a surprise, but there may be a reason for the swift action. One reason could be that the insurance company wants to settle your claim before you become aware of the full extent of your damages and injuries. This is particularly true for car accidents, as some injuries may take time to diagnose and treat.

By accepting a settlement agreement, you release all parties from any further liability, which could save money for the at-fault driver’s insurance company. This is because you waive your right to seek additional compensation in the future, even if you later discover that your injuries are more severe than initially thought.

Another reason why an insurance company may offer a quick settlement agreement is to prevent you from consulting with a personal injury lawyer. This tactic is often used in cases involving auto accidents and other types of injuries.

By speaking with a lawyer, you may discover that you are entitled to additional compensation beyond just your medical expenses and lost wages. Your attorney can help you pursue damages for the pain and suffering you have experienced due to the injury.

When Should I Accept a Settlement Offer from the Insurance Company?

Do not accept a settlement offer until your medical treatment is complete, as the full extent of your injuries cannot be known until then. A permanent impairment rating from your doctor after treatment could increase the value of your injury claim.

If your injuries are minor, complete your medical treatment and assess the value of your damages before negotiating a settlement with the claims adjuster. Request a complete breakdown of the settlement offer and review each item to determine the amount of compensation for each of your damages before accepting. A personal injury claim can include various types of damages, such as:

• medical expenses
• personal care
• nursing care
• lost wages and benefits
• pain and suffering
• travel expenses for medical appointments
• help with household chores
• loss of enjoyment of life

Don’t forget that you are not required to accept the first settlement offer. You can counter with a higher amount, but make sure to back up your claim with evidence of damages and keep your counteroffer reasonable.

When Should I Hire a Lawyer?

Before accepting a settlement offer, it is advisable to seek legal advice from a personal injury lawyer. If you are unsure about what to do, it’s better to err on the side of caution and consult with an attorney.

Keep in mind that the insurance claims adjuster works for the insurance company, not for you. Their goal is to protect the interests of the insurance company. The company is not required to settle your claim or offer you a fair amount for your damages. It is your responsibility to protect yourself.

Consulting with a lawyer may be necessary in the following situations:

• Severe injuries were sustained
• Medical bills and expenses are high
• Insurance company denies liability or alleges partial fault
• Significant time away from work due to injury
• Permanent impairment or disability
• Pressure from claims adjuster to accept settlement offer
• Lack of knowledge about damages.

Some insurance companies use an algorithm to evaluate the value of your case, but your case may not fit into a standard formula. Many factors can impact how much you can expect from an accident settlement.

To value your claim accurately, an attorney may need to hire one or more expert witnesses to project the cost of future medical care and loss of income. They work with your physicians to document the extent of your injuries to maximize your recovery. With this evidence, your attorney can demand a higher settlement amount.