A serious accident can upend your life, making it difficult to participate in your regular activities and work. While it can be tempting to quickly take the first settlement offered to you by an insurance company to get a quick check, it is imperative to wait until you are sure the amount is fair. You cannot reopen your case or renegotiate for a higher amount once you settle.
You Have the Right to Reject a Settlement
Many claimants say yes to the first settlement offer because they are unaware that they have other options. Insurance companies may use language that makes it seem like the claimant has to accept or lose the chance to recover forever. An insurance adjuster may tell you that a settlement is the company’s “best” or “final” offer. This is not always true. You have the right to reject a settlement and negotiate for a better value without losing your right to recover.
First Offers Are Often Intentionally Low
Do not make the mistake of assuming that an insurance company is on your side and wants you to recover as much money as possible for your injuries and losses. The opposite is true; insurers are for-profit businesses that will do what they can to save money on client payouts. They also have a duty to protect their insured and defend against your claim. The adjusters are not bad people, but work within a system they do not control. One tactic often used is to offer a claimant a lowball initial settlement.
Insurance companies will capitalize on the fact that a claimant is injured and inconvenienced by an accident. They will pressure the victim to accept a quick settlement that is often set much lower than the claimant deserves. They know that many claimants are eager to resolve their cases and get paid or do not realize they have the right to submit counteroffers.
Your Injuries May Worsen Over Time
Not all injuries heal quickly or completely. Serious and catastrophic injuries after a motor vehicle accident can affect a victim for life and worsen over time. It is important to fully understand your medical situation and prognosis for recovery before accepting a settlement offer. Otherwise, you could risk saying yes to an amount that does not account for long-term impacts, permanent disability and foreseeable medical expenses you will have later in life due to your injury.
Settlement Agreements Are Legally Binding
In general, you cannot change your mind, take back a settlement offer and reopen your case once you have accepted. Settlement agreements are final and legally binding. You cannot pursue any additional compensation, even if you discover that the settlement you accepted is too low or your injuries will require more medical care than you thought.
Most agreements are made in writing by asking the claimant to sign a release of liability waiver. Verbal agreements, however, can also be legally binding, in some circumstances. Do not succumb to pressure from an insurer to make a quick decision or accept the first settlement. You can politely decline and ask an attorney to review your case before accepting.
A Lawyer Can Determine if a Personal Injury Settlement Is Fair
Going up against an insurance company and negotiating for a fair and full settlement may not be easy. The insurer will do its best to convince you to rush into a fast settlement. To protect your rights and ensure you are treated fairly, hire a personal injury lawyer to represent you.
Your lawyer can evaluate a settlement offer to determine if it is a just amount based on your situation and injuries. If not, your lawyer can take over negotiations on your behalf to fight for a greater value. If necessary, an attorney can take your case to trial to achieve the best possible outcome.