Why You Shouldn’t Accept the First Insurance Settlement Offer

After suffering an injury in a car accident or another incident due to another party’s negligence in Tennessee, it is understandable to want to settle your case as soon as possible and move on with your life. When the at-fault party’s insurance company reaches out with a settlement offer, you might feel tempted to accept it. A quick settlement offer might feel like a relief because accepting the offer means you don’t have to deal with the hassle of a lengthy legal process. However, accepting the first offer without taking time to consider it is never a good idea. Keep reading to find out why it is never a good idea to take the first insurance settlement offer.

Insurance Companies Are Focused on Saving Money

The first thing you need to know is that, no matter what an insurance adjuster tells you, insurance companies are businesses like any other. Their primary goal is to generate profits, and this is usually at the top of their priority list when handling insurance claims. Insurance companies use several tactics to maximize profits, including trying to convince you that they are on your side and just want to settle matters quickly so you can move on with your life. Don’t fall for it. Protect your rights by consulting a skilled personal injury attorney.

The First Offer Is Always Low

It is almost a guarantee that the first offer from the insurance company will be lower than the actual value of your claim. Usually, the first offer is low to leave room for negotiations and counteroffers. Insurance companies also offer quick, low offers with the hope that claimants quickly accept the offer without seeking legal guidance.

You May Not Know the Full Extent of Your Injuries Yet

Some injuries take time to show how serious they are, such as brain injuries, soft tissue injuries, and back injuries. If you accept the first settlement offer before reaching maximum medical improvement (MMI), you could end up with far less compensation than you will need for future damages.

The Initial Offer Rarely Includes Non-Economic Damages

Another reason not to accept the first insurance settlement offer without speaking to an attorney is the possibility that the offer doesn’t cover non-economic damages. Often, initial settlement offers only cover obvious losses and out-of-pocket expenses, such as medical expenses, lost income, and vehicle repairs. However, you may be owed more than these economic damages. You may also be eligible to recover compensation for non-economic damages, such as:

• Emotional distress
• Pain and suffering
• Loss of enjoyment of life

Non-economic damages can significantly increase the value of your personal injury claim.

An Experienced Attorney Can Help

Before accepting an offer from the at-fault party’s insurance company, it’s best to consult an experienced Tennessee personal injury lawyer. An attorney can;

• Assess the true value of your claim
• Review the offer to determine if it is fair
• Gather evidence
• Communicate with the insurance company on your behalf
• Negotiate aggressively for a fair settlement

If the insurance company refuses to make a reasonable offer, your attorney can take your case to court to fight for the compensation you deserve.

Contact Us for Legal Help

If you’ve recently been injured due to another party’s negligence and are seeking compensation from an insurance company, contact our experienced Knoxville personal injury attorney at Reynolds, Atkins, Brezina & Stewart, PLLC for help ensuring you recover the compensation you deserve.