Should I Take the Insurance Company’s First Offer?

After an injury, the pressure mounts quickly. Medical bills arrive in the mail, you might be unable to work, and the desire to put the entire ordeal behind you is strong. So, when the insurance company calls with a settlement offer, it’s tempting to accept it. A quick check could mean immediate relief from financial stress. But is that first check really in your best interest?

At Lafferty Gallagher & Scott, we have been working with injury victims since 1973. In our experience, the first settlement offer is almost never the best. Before you accept, it’s critical to understand what’s really behind that initial offer.

Why Accepting the First Offer May Not Be in Your Best Interest

It’s important to remember that insurance companies are businesses. Their primary goal is to protect their bottom line, which means paying out as little as possible on claims. The first offer is a calculated tactic designed to quickly close your case for a minimal amount.

Here’s why those first offers are typically low:

• Profit Motive: Insurance adjusters are trained to minimize payouts. A quick, low settlement is a financial win for their company.
• Pressure Tactics: They know you are in a difficult situation. A fast offer is designed to make you feel pressured into settling before you have a complete understanding of your injuries and long-term needs.
• Lack of Information: An early offer is made before the full extent of your damages is known. It likely doesn’t account for future medical costs, the total amount of lost wages, or the ongoing pain and disruption to your life.

What Do You Risk by Accepting Too Soon?

Accepting a premature offer can have serious long-term consequences. Once you sign the settlement agreement, you give up your right to seek any further compensation for your injuries, no matter what happens in the future.

You could be left paying for significant costs out of your own pocket, including:

• Future Medical Costs: The first offer may cover your initial emergency room visit, but what about future surgeries, physical therapy, or long-term medication? Many serious injuries require ongoing care that may not be apparent in the first few weeks.
• Lost Earning Capacity: Your injuries might prevent you from returning to your previous job or limit your ability to work in the long term. A quick settlement rarely accounts for this loss of future income.
• Non-Economic Damages: Compensation isn’t just about medical bills. It should also cover your pain, suffering, and the emotional toll the injury has taken on you and your family. These damages are often completely ignored in an initial offer.

What Are the Signs an Offer Is Too Low?

How can you tell if that first settlement offer is unfair? There are a few red flags to watch for.

The offer is likely too low if:

• It comes very quickly after your injury, often before you’ve even finished your initial medical treatments.
• It only covers your immediate, documented medical bills and ignores anything else.
• The adjuster doesn’t ask about or consider your pain, suffering, or how the injury has impacted your daily life.
• You feel pressured to make a decision immediately.
• Your gut tells you that the amount just doesn’t seem fair for what you have been through.

What Should You Do Instead of Accepting?

Patience is your greatest ally. Don’t let an insurance adjuster rush you into a decision that you might regret for the rest of your life.

Instead, take these steps:

1. Don’t Rush: Give yourself time to understand the full extent of your injuries. Follow your doctor’s treatment plan and see how your recovery progresses.
2. Document Everything: Keep detailed records of all your medical appointments, bills, and out-of-pocket expenses. It’s also helpful to keep a journal detailing how your injuries affect your daily life.
3. Consult a Personal Injury Lawyer: An experienced attorney can evaluate the true value of your claim. They know how to calculate long-term costs and will handle all communications and negotiations with the insurance company for you.

Protect Your Future

Accepting the insurance company’s first offer provides short-term relief but often comes at a significant long-term cost. You have only one opportunity to get the compensation you need to recover fully. Having a dedicated legal team on your side can make all the difference.

Before you say yes to the insurance company, talk to an injury attorney at Lafferty Gallagher & Scott. We can protect your rights and fight for the compensation you truly deserve.