What to Know Before Accepting an Insurance Company’s Settlement Offer


If you were injured in an accident, you may be incurring expensive medical bills, losing money from not being able to work, and dealing with painful injuries. You’re likely anxious to put the accident behind you and settle your claim with the insurance company so you can get money to get back on your feet. The day may come when the insurance company makes you a settlement offer – but there are things you should know before you accept it.

Your Injuries Are Probably More Serious Than You Know

Many accident victims want to believe that they have not suffered serious injuries. They convince themselves that they can work through the pain. However, it may take time to truly realize the full extent of your injuries and their impact on your life and ability to work.

Before you attempt to settle your insurance claim, you should reach maximum medical improvement, which is the point at which you have healed as much as can be expected. Only then can you and your lawyer accurately estimate the future impact of your injuries on you. Far too many personal injury victims leave money on the table by settling their accident claims before they consider their future medical expenses, diminished earning capacity, and pain and suffering.

The Insurance Adjuster Is Not Your Friend

Insurance companies train adjusters to deny and minimize the value of as many claims as possible. This protects the companies’ profit margins. Insurance adjusters may express concern or seem friendly, but they are ultimately there to protect the insurance company – not you. Some ways they try to do this are by:

  • Getting you to agree that you’re fortunate that your injuries are not serious
  • Asking you to give a recorded statement so they can later use it against you
  • Convincing you that you were partially at fault for the accident so your compensation is reduced
  • Delaying your claim so that you get desperate and accept any settlement or give up on your claim altogether
  • Getting you to sign a medical release form so they can blame your injuries on a previous accident

Working with an experienced lawyer who can help level the playing field against the insurance company is vital.

The First Offer Is Not the Best

The insurance adjuster may posit that a settlement offer must be accepted or it will be immediately rescinded, creating urgency and desperation. You might accept because you’re afraid you will get nothing if you reject the offer.

However, the insurance company’s first offer is hardly ever the best offer. As your lawyer uncovers additional evidence to establish fault and the full extent of your injuries, your claim may become more valuable, not less. Additionally, parties are free to settle their claim all the way up to immediately before the verdict, so there may still be opportunities to negotiate for more compensation down the line.

An Experienced Personal Injury Can Help

Because settlement agreements are final and binding, it’s crucial that you work with an experienced personal injury lawyer. The lawyers of Caruso Law Offices, P.C. can investigate your accident, gather evidence of liability, compile documentation regarding your injuries, and fight for maximum compensation on your behalf. It is ultimately up to you whether you wish to settle, but working with an experienced lawyer will help ensure you make an informed decision. Call (505) 883-5000 or contact us online for a free case review.