Finance

Why You Should Not Accept the Initial Settlement Offers from Insurance Companies

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By Eva Adm

Insurance providers are for-profit businesses, so they prioritize their bottom line. This means that they will try to save money on your claim by reducing your payout or not paying you compensation altogether. When insurance companies make their initial settlement offers, these are usually low-balled. This is the reason you should not accept these offers. You need to speak with RSH Legal – Iowa Personal Injury Lawyers, first to know your options and how much your claim is worth. Your attorney will advise you to wait until you have reached maximum medical improvement to settle your claim. 

Can You Still Be Compensated if You Don’t Accept the Initial Offers?

Insurers take advantage of the uncertainties in the claims process. If you are in shock and recovering from your injuries, you may agree to something you don’t fully understand. Keep in mind that accepting an insurer’s first settlement offer won’t accelerate the claims process. If you reject the offer, you can still recover damages for the injuries you have sustained. If the settlement offer is too low, refuse it outright and make a counteroffer. You should speak with your attorney first before you speak with a representative from an insurer. 

Settlement offers are made in the best interest of insurance companies. These companies want to resolve your claim as quickly as possible; however, their offer won’t fully compensate you for the damages you have suffered, leaving you with expenses you need to cover out of pocket. Although a personal injury lawyer cannot guarantee an outcome, they can represent your best interests, negotiate a fair settlement with the insurer, and protect your claim’s full value. 

Reasons to Consult with an Attorney

Accepting a settlement offer from an insurer means reaching an agreement with them. In exchange for the compensation they offer, you release the company from further liability. Thus, you can’t ask for additional compensation from the company later. This can be a problem since some injuries take weeks or months to appear. When you sign a settlement agreement with the insurer, you cannot request compensation for injuries that may show up later. Also, the initial settlement offer won’t fully cover your current injuries and future losses.  

Personal injury attorneys understand the law and can assess claims thoroughly. This way, you don’t miss out on important compensation that can cover your damages in the accident. Your attorney will take into account different factors to come up with accurate and fair compensation to demand from the insurance company.