If you’ve been in a severe car accident, you’re likely facing a mountain of medical bills. In addition, your car is probably totaled, and if you are at home, recovering from severe injuries, you don’t have a source of income.
So, when the insurance company approaches you with an offer, you may be tempted to accept it. After all, in addition to medical expenses, you need to pay your utilities and mortgage and put food on the table. However, before telling the insurance company to cut that check, you should read this.
The bottom line
We need insurance companies. They provide an essential service by managing risk and providing a financial safety net to protect against significant losses. Still, they’re in business to make money. The way to do that is to spend less than you earn. Therefore, insurance adjusters will try to settle claims for as little as possible, thus closing the case quickly and cost-effectively.
You should look at the first offer as a starting point for negotiations, especially if you consider the following:
- The offer might be based on preliminary assessments, and additional damages or injuries may not have come to light.
- If the adjuster uses generic calculations and a standard formula, it doesn’t consider your situation’s unique circumstances, such as specific medical needs.
Before trying to negotiate a better settlement, you will want to ensure that you have all relevant documents supporting your claim, including medical records, repair estimates and any other evidence that could be relevant to your claim. You should present your documentation and initial settlement offer to someone who can provide insights into whether the offer is fair and help you navigate the negotiation process.