The vast majority of car accident claims are ultimately resolved through negotiations and settlements with the insurance company involved – not litigation. If you’ve been in a wreck, don’t be surprised if the other party’s insurer offers you a quick settlement fairly soon.
While the prospect of a speedy resolution to your case might seem appealing, especially after all the stress you’ve been through with the accident itself, it’s important to approach a quick settlement proposal with a healthy dose of skepticism.
Here’s why you should be suspicious
Insurance companies lose money when they pay too many dollars on too many claims, so an insurance adjuster is always going to be more concerned with their bottom line than fairness. A rush to settle generally indicates the following:
- The insurer is hoping you’ll take their lowest offer: The initial offer almost assuredly is less than what is customarily paid on claims like yours.
- The insurer thinks (or knows) that you’re going to have long-term consequences from your injuries: This is particularly true when the settlement offer comes before you’ve totally recovered, and it won’t include payment for future medical expenses, diminished earnings capacity or other financial hardships you may face down the line.
- The insurer knows they would lose in court: Insurance adjusters are great at making it sound like they’re being reasonable and kind by making you the offer they do, but they’re fully aware that they couldn’t win against you if you take the claim to court.
It’s wise to remember that every settlement offer comes with a condition: You have to sign a form that releases the insurer from further liability. Before you take that step, it’s wise to find out what your claim is really worth.
