Shaaban & Biedgoly
When you’re involved in a car accident or motorcycle accident, it’s common for the at-fault driver’s insurance company to offer you a settlement to resolve the claim. While this might seem like a quick solution, accepting the first offer can be a costly mistake. Insurance companies often try to pay out as little as possible, and their initial settlement offer may not cover all your expenses, especially if you have long-term medical needs or missed work due to injuries.
You have the right to reject a low settlement offer and negotiate for the compensation you truly deserve. Here’s why you should think twice before accepting the first offer, what happens if you reject it, and how a Folsom accident attorney can help you navigate this process.
Insurance Companies and Their Goals
It’s important to understand the role of insurance companies. Insurance adjusters work for the insurance company—not for you. Their job is to minimize the company’s losses, which means paying you as little as possible.
Here’s why their settlement offers tend to be low:
- Quick Resolution: They want to settle claims quickly to avoid lengthy legal battles.
- Minimized Costs: The less they pay out, the better it is for their bottom line.
- Limited Information: Initial offers are often made before you’ve had a chance to fully assess the extent of your injuries, which can lead to a payout that doesn’t fully cover your needs.
In both car accidents and motorcycle accidents, the financial impact of injuries can be significant. From medical bills to vehicle repairs and lost wages, your true costs may not be fully known right away. By accepting a quick settlement, you might unknowingly agree to a payout far below what your injury claim is worth.
Why You Shouldn’t Accept the First Offer Without Advice From An Attorney
Insurance adjusters count on the fact that most people are unfamiliar with the claim process and might be eager to settle quickly. They might present the first offer as if it’s fair or even generous, but there are several reasons why it’s best to reject the initial offer.
1. Incomplete Medical Evaluation
After a car accident or motorcycle accident, it can take time for your doctors to fully evaluate the extent of your injuries. Some injuries may not show symptoms right away, and you could have long-term or chronic issues that require ongoing treatment.
If you accept a settlement too soon, you won’t have a chance to factor in future medical costs, rehabilitation, or even additional surgeries you might need. The initial offer may not cover these unexpected medical expenses, leaving you to pay for them out of pocket.
2. Underestimated Lost Wages
Injuries from an accident can prevent you from working, either temporarily or permanently. A quick settlement offer might not account for the full extent of your lost wages. If your injuries prevent you from working for an extended period, you need to consider how much income you will lose over time.
Additionally, if you are unable to return to your previous job or if your earning capacity is reduced due to your injuries, the settlement should reflect that. Many first offers fail to consider the long-term impact of your injuries on your career.
3. Property Damage
In a car accident or motorcycle accident, property damage is a significant part of the settlement. Insurance companies often lowball the cost of vehicle repairs or replacement. If you accept their offer too soon, you could end up paying more out of pocket than necessary to repair or replace your vehicle.
What Happens When You Reject an Insurance Settlement Offer?
Rejecting an insurance settlement offer doesn’t mean you’re walking away from compensation—it means you’re negotiating for a fairer deal. Here’s what happens after you reject the initial offer:
1. You Enter Negotiations
When you reject a settlement offer, you or your Folsom accident attorney can negotiate with the insurance company for a better deal. During this process, it’s important to have a full understanding of the value of your claim, including medical expenses, lost wages, and the impact on your quality of life.
Your attorney can help you calculate these costs and present a counteroffer that more accurately reflects what you’re owed. In many cases, insurance companies are willing to negotiate to avoid a lawsuit, which can be expensive for them.
2. You Gather More Evidence
If negotiations stall or the insurance company refuses to increase their offer, you may need to gather more evidence to support your claim. This can include medical records, expert testimony, and documentation of how your injuries have affected your daily life.
The more evidence you have, the stronger your case becomes, and the more likely the insurance company is to offer a fair settlement.
3. You Can File a Lawsuit
If negotiations don’t result in a satisfactory offer, you have the option to file a lawsuit against the at-fault driver or their insurance company. While most personal injury claims are settled out of court, the threat of a lawsuit can be a powerful motivator for insurance companies to settle fairly.
With the help of a Folsom accident attorney, filing a lawsuit can put additional pressure on the insurance company to increase their offer. They know that going to trial can be costly and time-consuming, and they may be more inclined to offer a better settlement to avoid court proceedings.
How a Folsom Accident Attorney Can Help
Navigating the process of rejecting a settlement offer and negotiating for fair compensation can be overwhelming, especially while recovering from injuries. That’s where a Folsom accident attorney can make a big difference.
Here’s how an attorney can help with your personal injury claim:
1. Evaluating the Offer
A personal injury attorney can review the initial settlement offer and advise you on whether it’s fair based on the specifics of your case. They’ll take into account not only your current medical bills and lost wages but also future expenses and non-economic damages like pain and suffering.
2. Negotiating on Your Behalf
Once you reject the offer, your attorney can handle all negotiations with the insurance company. They know the tactics insurance companies use and will fight to ensure that you get a settlement that covers all your losses.
3. Filing a Lawsuit if Necessary
If the insurance company refuses to offer a fair settlement, your attorney can file a lawsuit and represent you in court. While most cases don’t go to trial, having an attorney on your side shows the insurance company that you’re serious about getting fair compensation.
Common Mistakes to Avoid
When dealing with insurance companies after a car accident or motorcycle accident, it’s easy to make mistakes that could harm your claim. Here are some common pitfalls to avoid:
1. Accepting the First Offer
As discussed, the first offer is usually not the best one. Take the time to fully understand the extent of your injuries and other losses before agreeing to a settlement.
2. Not Getting Legal Advice
Without legal representation, it can be difficult to know what your claim is truly worth. A Folsom accident attorney can ensure that you don’t settle for less than you deserve.
3. Talking to the Insurance Company Without Legal Guidance
Insurance adjusters might try to get you to say something that could harm your claim. Before you speak to the insurance company, consult with an attorney to ensure you don’t inadvertently damage your case.
Conclusion
After a car accident or motorcycle accident, rejecting the insurance company’s first settlement offer is often the smart choice. Insurance companies aim to minimize their payouts, and their initial offer may not reflect the true value of your claim. By rejecting a lowball offer, negotiating with the help of a Folsom accident attorney, and possibly pursuing legal action, you can secure the compensation you need to cover medical bills, lost wages, and other damages.
Remember, you don’t have to settle for less than you deserve. Protect your rights and your financial future by understanding your options and seeking legal advice before accepting any offer.
Contact your Folsom injury attorney at Shaaban & Biedgoly today for your FREE consultation!