If you have been involved in a collision and receive a settlement offer from the other party’s insurance company, you could be tempted to take it and settle the case right then and there. Before you do that, it’s very important to make sure that the settlement offer is fair and will cover your needs as a victim of a serious collision.
Making it a habit never to accept an insurance company’s first settlement offer will help you avoid making a decision that could negatively impact your finances. When you do choose to settle, it should only be once you know how much money you have spent and will spend on your injury and other needs following a crash.
What happens if you refuse a settlement offer?
When you receive a settlement offer, you will review it with your attorney and discuss if it’s enough or if you can get more. Negotiating a personal injury case is normal under the circumstances, especially if you aren’t sure about the total cost of your medical bills or other expenses related to the collision.
When you refuse, you’ll get the opportunity to negotiate. If the insurance company absolutely refuses to budge on what they’re offering despite not maxing out a policy limit, you may even have a bad-faith insurance case that you can take to court.
How easy is it to negotiate a settlement?
It’s a little tricky, which is why people need to understand their legal rights. When you negotiate a settlement, you have consider the money already spent as well as future costs. You should also think about issues like missing work or the loss of enjoyment of your life and how much that is worth to you.
If you are able to come up with a number that you’d be satisfied with based on the costs associated with your case, then you can pitch that to the insurance company. It’s extremely important, however, that this number is not too low. If you ask for too little or accept a settlement below the true value of your case, then you will limit your recovery from the insurance company.