After an injury, you may feel as though you want to return to normal life as quickly as possible. You might even want to resolve your claim right away. The other party’s insurance company may reach out with a settlement offer and the lump sum seems tempting. However, it is in your best interest to negotiate that settlement instead of accepting the first offer.
Here are a few reasons why negotiation is important.
Insurance companies try to settle low
The other party’s insurance company hopes to settle the claim for as little as possible to save the company money and preserve its profits. That means the initial settlement offer is traditionally much lower than you qualify for. Counter that offer with an alternative that considers not only your actual medical expenses but lost work time, future effects of the injuries and your pain and suffering.
Settlement offers may come too early
Your medical care team needs time to assess the full extent of any injuries you sustained. Sometimes this takes time as the doctors need to monitor progress and watch for certain complications. While you may want the case resolved as quickly as possible, accepting a settlement agreement without the full scope of your diagnosis, treatment costs and long-term prognosis could result in insufficient compensation.
A settlement offer often seems attractive at first glance because it provides you with a large amount of money when you feel as though you need it most. Settling too soon can cost you valuable compensation in your case. Consider these points before accepting the first offer from the insurance company.