Greg Prosmushkin
Aug 18, 2021

Initial Settlement Offer from an Insurance Company: What to Consider

Truck accidents can have dangerous consequences and impact the overall quality of your life. Many individuals suffer from accident-related injuries and pain for years which also decreases their ability to enjoy life. Most accident cases are settled outside of court with the insurance companies.

However, many plaintiffs lack knowledge of what their case is worth, which affects their ability to deal with the insurance companies. Because of this, insurance companies try to reduce the overall amount of money they pay you. 

Once the insurance company offers you an initial settlement agreement, you should consider it and investigate the offer. The results of a truck accident can be catastrophic, and you may have substantial medical bills you cannot pay because you can no longer work. You should not accept a settlement offer that does not reimburse you for all your injuries and pain. 

You may not believe you are in a position to demand an increase in the compensation you are owed. That is why making decisions carefully when considering settlement offers is critical. Here, we have laid out specific reasons why it is not considered ideal for accepting an initial settlement offer from the insurance company without first consulting a legal professional. 

  • Insurance companies seek profits – 

Similar to other businesses, insurance companies are in pursuit of a profit. They would value money over your health and look for ways to reduce costs and improve their profit margins. Most insurance companies will try to reduce your overall claim value and settle it for as little as possible. 

Insurance companies will try to settle for less. It is often recommended to review the injuries and damages you have suffered and conduct a full accounting of accident-related expenses. This will help you determine the actual compensation offer you deserve. You can also receive assistance from an attorney to determine the appropriate settlement amount for the damages. 

  • Settlements are final payments – 

As mentioned above, you may lose your right to negotiate with the insurance company after you accept the initial offer. Before you get the payment, you must sign an agreement terminating your right to any additional claims. Most insurance companies have strict agreements that limit your rights to accept payment offers via other mediums.

You will most likely not have the option to reopen the claim later. Therefore, it is important to carefully consider your decision and ensure that you do not accept a settlement offer that is less than what you are owed. 

  • You might be entitled to additional compensation – 

You may receive the initial settlement offer after filing the claim. However, you might be entitled to additional compensation, depending on your injuries and the severity of your condition. When you sustain serious injuries, you may be able to fight for more compensation.

The compensation claim includes current medical costs and future medical bills. Therefore, you must seek immediate medical attention and get yourself treated. Medical treatment will help you determine the severity of your condition and injuries. If you are unwell physically and cannot return to work for a long period, you could be entitled to lost wages as part of your damages. 

  • You may have more than one avenue for recovering compensation – 

If you accept the initial settlement offer, you limit further options. It may impact your ability to recover compensation for other damages, like pain and emotional suffering. Notifying the insurance company of the accident and filing a claim has a time component. It helps to be familiar with the laws of your state and file your claim accordingly. You can even consider consulting an attorney for assistance related to these legal matters. 

What to do with an initial insurance settlement offer?

Determining the correct amount of compensation that you deserve is a critical task. It is often suggested that people should avoid accepting the initial offer without reviewing it properly. 

A legal professional can review your case and assess how much you deserve. They can also assist with negotiating with the insurance company. One should consider contacting a Philadelphia truck accident lawyer to evaluate the value of the damages caused by accident. Having a professional by your side will improve your chances of receiving compensation.

Therefore, to maximize the compensation you recover, you should seek assistance from a qualified legal professional. In addition, collect all the evidence necessary to prove the other party’s liability. It may be difficult to determine liability in truck accident cases. 

A professional can help you evaluate the claim and identify the negligent party that holds legal responsibility for damages caused by accident.