Should you accept the first offer from the insurance company after a car accident? There are reasons to consider both rejecting or accepting the first offer, including whether or not it fully covers damages.
Understanding Insurance Settlement Offers
To understand whether or not to accept the first offer from the insurance company, it is important to first have a basic understanding of insurance settlement offers.
An insurance settlement offer is the amount of money that an insurance company is willing to pay to settle a claim. This offer is typically made after the insurance company has evaluated the claim and determined the extent of damages.
Keep in mind that insurance settlement offers are not always final. In fact, insurance companies may issue multiple offers throughout the claims process, especially if new information comes to light. This is why it is critical to carefully consider whether or not to accept the first offer from the insurance company.
An insurance settlement offer is the amount of money that an insurance company is willing to pay to settle a claim. This offer is typically made after the insurance company has evaluated the claim and determined the extent of damages.
Keep in mind that insurance settlement offers are not always final. In fact, insurance companies may issue multiple offers throughout the claims process, especially if new information comes to light. This is why it is critical to carefully consider whether or not to accept the first offer from the insurance company.
The First Offer & Its Implications
When you receive the first offer from the insurance company, it can be tempting to accept it, especially if you are in need of quick compensation. But you really need to carefully consider the ramifications of accepting this offer.
First and foremost, accepting the first offer from the insurance company means that you are waiving your right to pursue additional compensation for your damages. So if you later discover that you have more extensive damages than originally thought, you will not be able to seek additional compensation.
Additionally, insurance companies may offer a lower settlement amount in their first offer in the hopes that claimants will accept it without question. This is why you should consider whether or not the first offer accurately reflects the damages you have suffered.
First and foremost, accepting the first offer from the insurance company means that you are waiving your right to pursue additional compensation for your damages. So if you later discover that you have more extensive damages than originally thought, you will not be able to seek additional compensation.
Additionally, insurance companies may offer a lower settlement amount in their first offer in the hopes that claimants will accept it without question. This is why you should consider whether or not the first offer accurately reflects the damages you have suffered.
Reasons to Consider Rejecting the First Offer
Again, does the offer fully cover the damages you have suffered? For example, if you were in a car accident and the first offer from the insurance company does not fully cover the cost of repairing your car, it may be worth rejecting the offer.
Or you may believe that the insurance company undervalued your claim. Insurance companies may undervalue claims in order to save money, so, once more, carefully review and evaluate the first offer to ensure that it accurately reflects the damages you have suffered.
Or you may believe that the insurance company undervalued your claim. Insurance companies may undervalue claims in order to save money, so, once more, carefully review and evaluate the first offer to ensure that it accurately reflects the damages you have suffered.
Factors to Consider Before Accepting the First Offer
While there are reasons to reject the first offer, there are also factors to consider before accepting it. One important factor to consider is the extent of your damages. If your damages are relatively minor and the first offer fully covers the cost of repairs or medical bills, it may be worth accepting the offer to avoid a lengthy claims process.
Another factor to consider is the time and resources required to negotiate a better offer. Negotiating with insurance companies can be time-consuming and stressful, so it is important to weigh the potential benefits of a higher settlement offer against the time and effort required to negotiate.
Another factor to consider is the time and resources required to negotiate a better offer. Negotiating with insurance companies can be time-consuming and stressful, so it is important to weigh the potential benefits of a higher settlement offer against the time and effort required to negotiate.
Gathering Evidence to Negotiate a Better Settlement Offer
If you decide to reject the first offer from the insurance company, it is important to carefully consider your negotiating strategy. One major tip is to gather as much evidence as possible to support your claim. This may include medical records, repair estimates, and witness statements.
Hiring an Attorney = A Much Larger Award
If you are unsure whether or not to accept the first offer from the insurance company, you should seek legal advice from a personal injury attorney. The odds of you receiving a much larger compensation amount rise considerably when you hire an attorney.
A recent Martindale-Nolo survey reveals that the average award for a claimant who does not use an attorney is $13,900 (with many receiving under $10,000), but the average award for those who used an attorney was $44,600.
Remember, the insurance companies are in the business of denying claims, so any possible way they can find to do that, they’ll do it. For example, not updating your address within 30 days of moving is a violation of the contract. Not disclosing household members is a violation. Not updating information about a newly purchased vehicle within 30 days is a violation - we've actually seen this one happen. A woman bought a new car but waited 2 months to call her insurance company. She wrecked the car, and insurance wouldn't cover the damages.
Simply put, there's a lot that can go wrong and there's a lot you can miss without a trained eye. You'll be glad you hired an attorney in the end.
A recent Martindale-Nolo survey reveals that the average award for a claimant who does not use an attorney is $13,900 (with many receiving under $10,000), but the average award for those who used an attorney was $44,600.
Remember, the insurance companies are in the business of denying claims, so any possible way they can find to do that, they’ll do it. For example, not updating your address within 30 days of moving is a violation of the contract. Not disclosing household members is a violation. Not updating information about a newly purchased vehicle within 30 days is a violation - we've actually seen this one happen. A woman bought a new car but waited 2 months to call her insurance company. She wrecked the car, and insurance wouldn't cover the damages.
Simply put, there's a lot that can go wrong and there's a lot you can miss without a trained eye. You'll be glad you hired an attorney in the end.
Call our Jacksonville car accident attorneys today. We will review your case in detail, investigate every avenue of compensation, and negotiate with the insurance company on your behalf.