After an accident resulting in personal injury, you need to file a claim with the responsible party’s insurance company. You might assume that the insurance company’s goal is to support you through the process and get you a reasonable settlement. This is not the case. The insurance adjuster’s priority is the company’s profits.
When you understand the facts about how insurance companies manage claims, you can see why you should approach the initial settlement offer critically.
Protecting their bottom line
Insurance companies are businesses, so their primary goal is maximizing profits. Despite any compassion they might express for your situation, their goal is to settle the claim for as little as possible. As a result, your initial offer may seem insufficient for your expenses and needs.
Aiming for fast settlements
Many insurance carriers strive for fast settlements on claims to reduce their costs. The sooner they settle the case, the fewer labor hours they incur on the claim. In addition, when they settle early, they can settle for less than if they wait while you incur additional medical costs and lost wages. These fast settlements may fail to account for the full extent of your losses.
Overlooking future consequences
Most settlement offers include legal restrictions that prohibit you from seeking any further compensation. As a result, when you accept an insufficient settlement offer, you sacrifice the opportunity to seek adequate compensation later should your injury leave you with long-term challenges. Consider your situation carefully and understand what you might give up by accepting any settlement offer.
Forbes reported that the median award in personal injury cases is $31,000. Advocate for your situation to ensure that you get a fair settlement or take your case to court.