Should I Accept the Insurance Company’s First Settlement Offer?

If you’ve ever taken a trip to the Mountaineer Casino or the Hollywood Casino and tried your luck at blackjack, there will come a moment when you’re asked if you want to “stay” or take a “hit.” The game moves fast, and it means making a quick decision about whether the next card will bring you closer to 21 or bust you.

There’s simply no telling what the dealer will flip over, so you make the call. Did you win or lose? When it comes to gambling, sooner or later, the house always wins.

After a car accident, you could be faced with the same kind of decision when it comes to the insurance company’s first offer. Should you accept that offer and close out the case or wait to see if you can receive more?

This isn’t so much about being greedy as it is about being practical.

What if your injuries take longer to heal and keep you away from work? What if it is discovered that you can’t go back to the same job and have to take a lower-paying gig? All of a sudden, what looked like a decent offer from the insurance company now turns out to add financial strain to you and your family.

Should you accept the insurance company’s first settlement offer? Not until you discuss all the available options with an experienced Charleston car accident attorney. They will be in the best position to explain all the options, including what you’re entitled to and what your maximum compensation should look like.

Why Insurance Companies Make Low First Settlement Offers

Despite their promises of “being there for you,” insurance companies are really there for their stockholders. Insurance is a business with a decent model. They collect premiums totaling billions of dollars. The only way to make those billions into profit is by reducing the amount of money they have to pay out in personal injury claims. Even if they can save just a few thousand off a claim, they consider it a win.

They also offer that low first settlement to test your resolve. A lump sum payment looks good if you need cash to pay bills and get your life back on track.

The problem is that accepting that first settlement locks you out of pursuing any other funds. You’ll be signing a waiver that precludes you from refiling your claim if your circumstances change.

As challenging as it might be, waiting to see the full extent of your injuries can make a world of difference when it comes to your personal finances.

Common Tactics Adjusters Use to Pressure Accident Victims

In addition to the quick lowball offer, there are some other common tactics deployed by insurance adjusters to get you to sign off on a settlement offer. This is what you have to watch out for:

• Asking for Recorded Statements: In an effort to “settle up,” an insurance adjuster might rush for a recorded interview. What is the harm in that? After all, you’re just telling your side of the story. Actually, there can be a lot of harm. You might inadvertently say something like you looked down at your radio or GPS map just before the accident.
• That might not be the reason for the accident, but it could be used to shift blame onto you and reduce your settlement under West Virginia’s modified comparative fault law.
• Fake Friendliness: When speaking with an adjuster, they might act overly kind and sympathetic. What seems sincere is actually a ploy to get you to casually say things like “I’m doing okay.” If you admit to that, they can use that to downplay your pain.
• Endless Delays: Dragging out responses to your inquiries or not returning calls can add to your frustration and sense of feeling overwhelmed. By the time you do connect, you might accept that low offer just to put an end to the frustration.
• Blaming Pre-Existing Conditions: An adjuster might try to argue that your current pain comes from an old injury rather than the car crash. That will have them snooping around in your medical records.
• Declaring a Final Offer: The adjuster might also try to present the offer as “take it or leave it.” That is their way of saying this is as good as you’re going to get. That isn’t always the case.

When the attorneys at Hendrickson & Long, PLLC agree to support your claim, we take over all the communications with the insurance company. The moment that happens, those tactics drop off because we won’t let them. Before you accept any offer, we’ll ensure that you’re fully informed about all your options.

We’ll also take the time to calculate the full range of your damages, both current and future.

When we suggest that a settlement is reasonable, it’s because it is reasonable. Before you accept an offer, set up a free consultation with our legal team.

One meeting can make a big difference.