When you get injured in a car accident, you will typically file a claim with the at-fault driver’s insurance company. Upon receiving your demand letter, the insurer will investigate the case and send an offer.
Here is what to know about that initial offer:
It’s rarely fair
An insurance adjuster’s work is to protect the interests of the company. Thus, most try to minimize payouts by offering a quick, lowball settlement. Insurers understand that settling earlier, before a claimant has adequate knowledge of the damages they have incurred, allows them to pay less than the claim’s true value.
When you are involved in an accident, some injuries may be hidden. This is because often symptoms are masked by adrenaline. And some injuries only show symptoms after they reach a threshold of pressure or inflammation, such as soft tissue injuries, organ damage and herniated discs.
A doctor needs to examine you immediately after an accident to identify and treat hidden injuries, and continue observing you until you reach maximum medical improvement (MMI), which can take weeks or months.
By this time, several treatment options may have been administered, such as surgery, physical therapy and medications, to help you return to your pre-injury health status. And if this can’t be achieved, your doctor may assign a permanent partial disability rating. Note that you may also still need ongoing care even after reaching MMI.
Most insurance adjusters do not want a claimant to obtain such knowledge. When you accept an offer, you sign a release of liability agreement that prevents you from seeking further compensation. This means if you discover hidden injuries after you are compensated, you will have to handle additional expenses out of pocket.
It can be unwise to accept the first settlement offer from an insurer. You need to first know the true value of your claim before settling.