5 Reasons to Refuse an Initial Settlement Offer After an Accident

If you have been involved in a car accident in Chicago, you may be surprised to get a fast settlement offer from the at-fault party’s insurance company. You may be even more surprised to find that the offer is nowhere near what your demand letter stated.

Insurance companies do this to tempt you to resolve the claim before you fully understand the extent of your injuries and damages. This means you will not be allowed to sue for further damages once you have accepted the low offer, which will not cover all your expenses.

For this reason, you are allowed to refuse a settlement offer if it is too low. This is also not the only reason you should refuse an initial offer. Keep reading to learn when to accept and when not to.

Initial Settlement Offers Are Typically Lower Than You Deserve

If someone’s negligent actions cause an accident, resulting in you getting injured, you deserve compensation. Insurance companies do not see things this way. Insurance providers are businesses first. Their goal will always be to settle claims for as little money as possible.

Therefore, that first offer you get is calculated to minimize their client’s (at-fault party) liability. This directly results in you not being fully compensated for your injuries and losses.

The insurance company may offer to cover your immediate medical bills and minor vehicle repairs. Offers like this do not consider future medical expenses. Your injuries may have long-term effects that need long-term medical treatment.

The offer also will not consider the likelihood that you will be unable to work for a while. This means you will not be compensated for lost income or future earning capacity. If your injuries limit your ability to work in the future, your compensation settlement should cover this loss.

These low first offers also never consider pain and suffering (non-economic damages). You will not be compensated for pain and suffering, emotional distress, or a decreased quality of life.

You must be compensated if non-economic damages severely impact your life after an accident. So, if the initial offer you get from an insurer does not cover these damages, you have every right to refuse to accept it.

You Need Time to Determine How Serious Your Injuries Are

In the days and weeks following an accident, you may experience new symptoms related to your injuries. Conditions like whiplash and traumatic brain injuries often take weeks to manifest fully.

If you accept a lowball offer before determining the severity of your injuries, you are doing yourself an injustice. If you accept the low offer, you will not be able to claim for serious health conditions related to the accident later on.

The same applies to emotional trauma and PTSD. It may only become apparent much later that your mental or emotional health has suffered a severe blow. If you accept the insurance company’s unfair offer, you cannot claim for these non-economic damages.

Insurance Companies Often Use Pressure Tactics

Insurance providers are not above pressuring victims of negligence into accepting lowball offers. They may say things like, ‘This is your final offer’ or ‘It is in your best interest to resolve this claim quickly. This will inevitably make you feel pressured to make a decision.

The insurer may also imply that refusing an initial offer could lead to an extended claims process or less compensation.

These tactics are designed to protect the insurer’s profits. Nothing about this process is about you and how to protect your interests.

This is why it is important to remember that you cannot be forced into accepting an offer. You have the legal right to negotiate and sue for fair compensation after an accident.

While the claims process may take a while, working with a lawyer can help speed up the process. You also have a better chance of receiving a fair offer if you have a lawyer.

Refusing the Initial Offer Gives Your Lawyer Time to Investigate the Accident

You likely have proof of the accident and your injuries, which you would have presented to the insurance company. However, your lawyer would ideally want to do their own investigation into the accident. If you settle too soon, your lawyer will not be able to do this.

It is crucial to fully investigate the accident before deciding to settle. Your lawyer may identify multiple at-fault parties. This means more than one driver may be to blame for your injuries. If poor road conditions mainly caused the accident, the city or state may also be to blame.

Your lawyer also needs to examine the police report, your medical records, and witness statements. They must also ensure that all your losses, damages, and injuries are accurately included in your claim.

Hiring a Lawyer May Mean a Higher Settlement

There is still a misconception that handling a personal injury claim alone is the cheapest and fastest approach. The problem with this thinking is that it becomes very unlikely that you will receive a fair offer from the insurance company.

Lawyers know exactly what type of insurer tactics to look out for and how to counter them. They can calculate the full value of your claim and present your demand to the insurance company.

When the negotiations begin, your lawyer can argue for a fair settlement based on evidence and personal injury law. If the insurer refuses to amend the offer to a fairer amount, your lawyer can initiate a court case on your behalf.

Sometimes, just the threat of a trial spurs an insurance company into making a better settlement offer. If this does not work, your lawyer will present the evidence to a court and argue for a fair settlement.

Never Be Tempted to Settle for the First Offer

Hiring a lawyer to help you is crucial after an accident caused by negligence. If you are under financial stress because of your injuries and because you cannot work, you may be tempted to accept the first offer you get. Your lawyer will explain why this is a bad idea and work with you to get the compensation you deserve.

While reaching a final settlement may take a while, it will be worth the wait when you receive a payout covering all your expenses and damages.