How Do I Know If I Should Accept the Insurance Company’s First Offer?

Auto insurance provides a safety blanket in the event of an accident resulting in property damage or injury. Sadly, claims adjusters are known for intentionally stalling to pay on an accident claim. If you have been getting the runaround from insurance, you may be desperate for compensation, even willing to accept a low settlement to put the ordeal behind you.

Bear in mind that once you take a settlement, you will be barred from future recovery. Before accepting any insurance settlement, you should speak with an experienced Philadelphia car accident attorney. In this blog, the legal team at HGSK Injury Lawyers discuss how to know if an insurance company’s first offer is fair.

What to Know About the Insurance Company’s First Offer

If you have fallen victim to a crash, you may be facing surgeries, physical therapy, follow-up appointments with specialists, and installing modifications to make your home accessible. None of this is easy on a person’s pocketbook. While you may be willing to take the insurance company’s first offer, this figure rarely factors in loss of future earnings and ongoing medical treatment. Estimating future medical costs can be difficult, but your treating physician can prove an invaluable resource. For instance, if your accident caused you to need a hip replacement, the surgeon can provide their opinion if you may require hip revision surgeries moving forward.

Many accident victims who suffer serious injuries are limited in their ability to work, with some being unable to work at all. In some cases, you may be able to recover for future lost earnings and diminished earning capacity. Whereas future lost earnings calculates lost income assuming that you remain at the same job, diminished earning capacity is based on your reduced earnings given a normal career trajectory. A Philadelphia car accident attorney will be able to advise you best on which damages to seek.

Maximum Medical Improvement

Since the insurance company wants to limit how much they pay out, claims adjusters are likely to offer you much less than your case is worth. Be aware that once you accept a settlement offer, you will sign a waiver releasing the negligent driver and their insurance company from further liability. If accident-related expenses crop up in the future, you will be unable to make any further claims for the incident.

No matter the specific future damages you seek, these expenditures can only be calculated with reasonable certainty once you have reached maximum medical improvement (MMI). This is the point at which you will no longer make any meaningful physical recovery despite continuing medical intervention. By waiting to submit your claim once you reach MMI, damages for future medical treatment and lost earnings will be more accurate.

Determining if a Settlement Offer is Fair

In some car accident claims, insurance negotiations may come to a standstill, or a claims adjuster may repeatedly offer you low settlements. In this situation, you may consider litigation. This step should only be taken after determining that the settlement amount will not cover your current and future costs. In cases of severe injury, complex circumstances, or difficulty in proving liability, our legal team at HGSK Injury Lawyers may advise you to take your case to trial. Although costly and time-consuming, it may be the only effective way to secure the compensation you deserve.

Insurance Negotiations Stalled? Speak with Our Philadelphia Car Accident Lawyers

Insurance companies use tried and true tactics to avoid paying the full cost of your claim. In some cases, you may be inclined to accept the insurer’s first offer, putting some much-needed cash in your pocket. If you or a family member have recently been injured in an auto crash, the Philadelphia car accident attorneys at HGSK Injury Lawyers are here to defend your interests. To arrange your free consultation, contact us online or give us a call at (267) 551-8782 today.