Why Quick Settlement Offers Can Be Risky

When you are involved in an accident, it’s not unusual for the insurance company to contact you within a few days. The adjuster may sound friendly on the phone, offer sympathy, and ask questions about how the accident happened. They may then offer a settlement to assist you during this difficult time.

While the offer on the table may sound like quick relief, the number likely falls far below what your claim is actually worth. Accepting this settlement can put your financial future at risk.

You May Not Know the Full Extent of Your Injuries Yet

Some injuries do not show their full symptoms or long-term effects right away, especially soft tissue damage, concussions, or back and neck trauma. In the days after the accident, your injury may appear far more minor than it actually is.

If you accept an offer before you have completed treatment or before your doctors have a clear diagnosis, you risk losing compensation for the medical care you may need in the future. You would have to pay for any additional surgeries, hospitalizations, medications, or therapies out of pocket.

Early Offers Rarely Account for Long-Term Costs

A fair settlement is intended to cover more than your current expenses. In addition to the future medical care discussed above, you also have the right to recover compensation for any changes to your earning capacity, the pain and suffering you have endured, and any home modifications or disability accommodations you need. Offers made in the first days after an accident are usually based on your immediate, obvious costs, leaving the harder-to-predict, longer-term expenses out of the total entirely.

Accepting a Settlement Waives Your Right to Pursue More Compensation

Signing a settlement agreement means giving up your right to pursue additional compensation later, even if new issues occur. These documents typically feature a comprehensive release that legally binds you to the terms. It is critical to be absolutely certain that your settlement is fair before you accept, and an attorney can help you decide what to do next.

Insurance Companies Often Use Quick Settlements Strategically

When an insurance company offers an early settlement, they are not being generous. They are protecting their bottom line by trying to close the case as quickly and as cheaply as possible. In many cases, the company hasn’t thoroughly investigated the accident or determined how serious it actually was. If a more thorough investigation would point to greater liability on the company’s end, settling quickly allows them to offer a lower amount.

Insurance Companies Do Not Want an Attorney to Get Involved

Once a personal injury attorney is involved in a case, the insurance company knows that the process of settling a claim can become much more complicated. A lawyer protects a client’s interests by negotiating for the highest possible award, not the first number the company offers. This directly contradicts the company’s goal. By offering an early settlement, the insurer hopes you will accept before hiring a lawyer.

Don’t Accept a Settlement Offer Before Speaking with an Attorney

Accepting a quick settlement offer without having a lawyer analyze it first carries significant risk. Conversely, there is no risk in declining the offer and telling the insurance company that you need to speak with your attorney first. If the insurance company calls while you’re in the hospital or recovering at home, politely and firmly decline. Then, contact a St. George personal injury lawyer to discuss your next steps.