If you’ve been injured in an accident, dealing with the aftermath can be overwhelming. Between medical bills, lost wages, and the stress of recovery, the last thing you want is a drawn-out fight with the insurance company. So when the adjuster calls with a settlement offer, it might be tempting to accept it right away—after all, they’re offering you money, and you need it.
But here’s the hard truth: accepting the first offer is rarely in your best interest. Insurance companies are businesses, and their primary goal is to pay out as little as possible. That’s why it’s crucial to understand your rights and what your claim is truly worth before making any decisions.
Why Insurance Companies Lowball Their First Offer
Insurance adjusters know that accident victims are often in a tough financial spot. You may be unable to work, medical bills are piling up, and you’re feeling the pressure to move on. Insurers take advantage of this by making an initial offer that is much lower than what you may be entitled to.
The first settlement is often a test to see if you’ll accept a quick payout. Many people don’t realize that once they accept a settlement, they waive their right to seek additional compensation. If new medical issues arise or you realize the settlement doesn’t cover all your expenses, there’s no going back.
Your Claim Might Be Worth More Than You Think
Most people don’t have a clear understanding of what their claim is actually worth. An insurance company might offer to cover your immediate medical bills and a small amount for pain and suffering, but what about future medical expenses? What if your injuries prevent you from returning to work for months—or even permanently?
A fair settlement should cover:
- Current and future medical expenses – This includes surgeries, therapy, rehabilitation, and any ongoing care you might need.
- Lost wages and loss of earning capacity – If your injuries prevent you from working now or in the future, you deserve compensation for that lost income.
- Pain and suffering – The emotional and physical toll of an accident is real, and you should be compensated for it.
- Property damage – If your car or other personal property was damaged, the cost of repairs or replacement should be included.
By accepting the first offer, you may be settling for far less than what you actually need to recover fully.
The Power of Negotiation
Insurance companies expect negotiations. That’s why their first offer is rarely their best. If you reject their initial offer and provide evidence of your damages—such as medical records, doctor statements, and proof of lost wages—they may come back with a better deal.
Having a skilled personal injury attorney on your side can make a huge difference. Experienced lawyers, like those at Harrell and Harrell, understand the tactics insurance companies use and can help negotiate a fair settlement on your behalf. They know how to calculate the true value of your claim and won’t let you settle for less than you deserve.
When to Consider Taking a Settlement
While you shouldn’t rush to accept the first offer, that doesn’t mean you should reject every settlement outright. A reasonable offer might come after negotiations, and sometimes settling out of court is the best option.
However, before agreeing to anything, make sure you:
- Have a clear understanding of your medical prognosis and future treatment costs.
- Know exactly how much income you’ve lost and whether your injuries will affect your ability to work long-term.
- Have spoken with an attorney who can evaluate whether the offer is fair.
Final Thoughts
The aftermath of an accident is stressful, and it’s understandable to want to move on as quickly as possible. But rushing into a settlement can leave you financially vulnerable in the long run. Take the time to assess the full extent of your injuries and losses, and don’t be afraid to push back on lowball offers.
If you’re unsure what to do next, consulting a personal injury attorney can provide clarity and help ensure you receive the compensation you deserve.
