Why the First Settlement Offer Is Almost Never the Best? (2024)

If you get hurt in a car accident because of someone else’s wrongdoing, you might receive an offer from their insurance company to settle the matter. If this happens, remember that the insurance company’s initial settlement offer is usually not the best one you can get. You have the right to negotiate for fair compensation.

While the insurance company’s first offer might look good now, you might come to realize that the car accident settlement offer does not cover all of your medical bills and injury-related expenses. Initial offers rarely account for future medical expenses related to serious injuries. It’s essential to have a personal injury attorney review the settlement offer and evaluate your legal options before accepting an initial settlement offer.

Should you accept the first settlement offer? Before accepting an initial offer or signing any paperwork presented by an insurance adjuster handling the accident, call an experienced attorney at Morgan, Collins, Yeast & Salyer for a free consultation about what would be in your best interest.

Insurance Companies Want to Minimize Payouts

Insurance companies are businesses with the primary goal of making a profit. An insurance company’s strategy to turn a profit is to tightly control expenses, including the money paid to settle claims. They use various tactics to minimize the amount they must pay when an accident victim files a claim.

One common tactic is undervaluing injuries. Adjusters handling insurance claims might say your injuries are not as serious as you claim. An insurance adjuster’s first offer might be intended to reach a quick settlement and limit the insurance company’s liability.

Insurance companies know that if you’re coping with serious injuries and feeling financial stress, you might accept a lower settlement amount to resolve the matter quickly. Additionally, insurance adjusters often downplay the long-term consequences of your injuries. They focus on immediate costs and ignore potential future expenses, such as ongoing medical care or the loss of future income due to limitations on your ability to work.

These strategies help insurance companies save money but can leave you without the money you need to recover from your injuries and rebuild your life. That’s why it’s essential to be aware of these tactics. If you have serious injuries caused by another driver’s negligence, you should seek legal advice from a knowledgeable attorney at Morgan Collins, Yeast & Salyer before accepting any settlement offer.

Your Claim’s Full Value Takes Time to Assess

Getting an accurate total cost of your injuries is difficult in the immediate aftermath of an injury accident. It’s not just about the medical bills you have now. There are a lot of other costs you might not think of at first. It may take time for the full extent of your injuries and medical expenses to be known.

First, there are future treatment costs. Your injury might require care that goes on for months or even years. Then, consider your income. If you’re hurt, you might miss work and lose money now. But if your injuries are severe, you could lose more than just today’s paycheck. What if your injury means you can’t do the same job in the future or have to work fewer hours? Those future income losses can add up. If the injury affects your day-to-day life or causes you pain and suffering, that matters, too.

All of these factors contribute to the true cost of your injury, and it takes time to determine that cost. Rushing into a settlement without considering all the relevant factors means you might not get enough money to cover everything.

Accepting the First Offer Has Consequences

Accepting the first settlement offer from an insurance company can have significant consequences. Once you sign off on a settlement, getting more money later on is almost impossible, even if new costs arise in relation to the same injury.

For example, let’s say you find out that your injury is worse than you thought, and you need extra treatments or surgery. Or maybe you can’t return to work as soon as you hoped. The insurance company won’t pay for these unexpected expenses if you’ve already accepted an offer. That means you could be stuck paying for them out of your own pocket. This is why it’s crucial to be sure about the settlement before agreeing to it.

What You SHOULD Do When You Get the First Offer?

When you get your first settlement offer after a personal injury, don’t rush to sign it. First, talk to an experienced Kentucky personal injury lawyer. They will know how to figure out what your claim is really worth. They’ll look at all the details of your situation, like future medical needs and how your injury affects your ability to work.

A good lawyer doesn’t just settle for what the insurance company first offers. They use their skills to fight for a fair deal. Further, if the insurance company won’t agree to what’s fair, your lawyer can take them to court. This is where having someone who knows the law makes a big difference.

If you’re settling a personal injury claim, consider reaching out to Morgan, Collins, Yeast & Salyer. We have a strong track record of getting our clients the money they deserve. We have won millions in fair settlements and have the experience to take on even the most challenging cases.

FAQs About First Settlement Offer

The following are some straightforward answers to the most frequently asked questions about initial settlement offers in personal injury claims.

Can I Negotiate My Own Settlement?

Yes, you can try to negotiate your own settlement. Many people think about doing this when they want to save money. However, an attorney can usually get you a better outcome. They know the ins and outs of the law and how to talk to insurance companies to get you a fair deal. This can mean more money in your pocket in the long run, even after accounting for legal fees.

How Long Do I Have to Accept a Settlement Offer?

In Kentucky, you have two years from the date of your wreck to file a lawsuit for your injuries. You can still negotiate toward a settlement after you file your lawsuit, but you cannot file a lawsuit after the statutory deadline passes. It’s important to remember this timeline so you don’t miss your chance for compensation. A knowledgeable lawyer can identify important deadlines and handle your case promptly.

What If the First Offer Seems Fair?

Even if the first offer looks good, it’s best to talk to an attorney before you accept it. An experienced lawyer can look at your offer and tell you if it’s really fair or if you should demand more. An attorney who has handled many similar personal injury cases has the knowledge and perspective to give you a professional assessment of your situation and determine the full potential value of your claim.

Don’t Settle for Less. Contact a KY Car Accident Lawyer Today for a Free Consultation

“Should I take the first settlement offer from the insurance company?” If you’re asking yourself that question, let a personal injury attorney with Morgan, Collins, Yeast & Salyer help you evaluate your options for pursuing maximum compensation. Our attorneys understand insurance company tactics and can handle the settlement negotiations on your behalf, so you can focus on your health.

Our Kentucky Courage law firm has a strong history of helping injured people across Kentucky get the fair compensation they need after unexpected injuries caused by others’ negligence. Contact us today for a free, no-obligation consultation.