Declining the first offer made by your insurance company: What should you do?

After the car accident, if you’ve successfully filed a claim with the third party insurer, the insurer will offer a settlement to your claim for a few thousand dollars. It is a prevalent practice by insurance companies; it is best to think again and reject the offer, especially the first offer.

The first offer is often the lowball offer

The first offer given by the insurance company is always the lowball offer; the company’s objective is to offer a minimum settlement payment offer. The first attempt to offer settlement is always quick and hurried; people those who handle cases on their own are usually unaware of the insurers’ objectives. The first offer is always a deliberate attempt of the insurance company to escape from fully compensating the payment.

After the first offer

The first offer is never the insurance company’s last offer; they will come back with a slight increase in offer and call you several times. You should always notify your lawyer about the offer made by the company.

If your lawyer thinks it is not worth the case, he will undoubtedly file a formal demand letter with necessary documents.

It can include:

·        A detailed description of the car accident and full evidence of why the other driver is at-fault

·        Detailed information and records about the medical treatment

·        Other side-effects that the accidents may have caused such as distress or impairments

·        Lost wages from absenteeism at work

·        A counteroffer: the amount you’re willing to accept

After receiving the demand letter, the insurer will most likely want to negotiate the offer. Your attorney will get into negotiations with the claims adjuster of the company. During the negotiation, your attorney will keep the numbers close to the proposal, and the adjuster will try to lower the counteroffer.

Settling with the offer

Although, it is up to you to decide if you are happy with the settlement, listening to your lawyer’s advice will ensure a better settlement offer. Lawyers are proficient in their own field of expertise, and they will know when to settle with the proposal. Your lawyer will know the value of your car accident claim.

Never settle before you’re fully healed from injuries

When you and your attorney reach the final point of agreement, you can think of signing for accepting the offer.

When you are recovering from injuries, always make sure that you are fully healed. Insurance companies attempt to make an offer once your claim is liable for settlement, despite the fact that you are still under medical treatment. As the company also pays for the long-term or anticipated future cost of medication, the insurer will always try to make a quick offer.

Some injuries from accidents can worsen over time, and if you accept the offer to settle, your car accident claims will end. And even if you discovered that your injuries are worse than the doctors anticipated. You can’t go back and ask for more money than you’ll be spending on medical treatments.