If you are suffering from injuries sustained in a car accident, you are likely facing mounting medical bills. These are in addition to your everyday living expenses, a damaged car, and possibly a loss of income.
So when the insurance company offers you a settlement, it’s tempting to take it. However, the payment they’re offering is significantly lower than what your claim is actually worth.
Why do insurance companies initially offer a low settlement, and what are your options?
Insurance companies are a business
The main goal of any business is to make a profit, and an insurance company is no different. Their initial settlement offer is likely to be extremely low, with the hope that you will accept it and they can close the claim. But the amount they offer may not even adequately compensate you for your damages and injuries.
When reviewing a settlement, you will need to factor in all of your costs, such as:
- Emergency room visit
- Diagnostic tests
- Prescription medications
- Medical appointments
- Vehicle repairs
In addition, you should also consider the non-monetary costs associated with your accident, including physical pain and psychological trauma. And you may also want to consider any future expenses.
Viewing the initial offer as just a starting point. The insurance company may pressure you to accept their initial offer. Don’t let them rush you. You need to take your time determining what your claim may be worth.
Before making any counteroffer or accepting an offer, you should discuss your case with someone who can guide you. They can review your situation and estimate the potential value of your claim. Someone with experience can negotiate on your behalf and possibly receive a higher settlement.