After you have contacted your insurance company about your car accident, it is not uncommon for the insurer to quickly make an offer to settle the claim. Usually, the insurer tries to negotiate a settlement within the first two or three weeks. They do this as a way to save their company money.
The first offer is always a low-ball offer, and anyone who receives this type of proposal should immediately decline the insurer. If you have already contacted an attorney, the car accident attorney will most likely recommend that you decline the offer. If you have not contacted an attorney at this time, it would be in your best interest to start looking for one now.
What Happens After the First Offer?
In most cases, the insurer will most likely come back with a second offer that is still very low in comparison to your actual losses. At this time, you will be working closely with your attorney in building a case for complete compensation. Your attorney will compile the following information to present to the insurer as part of the negotiation process:
• Complete information about the accident and the establishment of fault for the event
• Complete costs for your current medical care for injuries received
• Anticipated costs of future medical care for the injuries
• Financial losses you have endured as a result of the accident such as lost wages
• A detailed description of how the accident and the injuries have impacted your life
• A counteroffer for the compensation package
Once the insurance company receives your Demand Letter and Counteroffer, the negotiations process will begin. Y
our attorney and the insurance adjuster will begin trying to come to an amount that is beneficial to the injured party and fair to all parties involved.
Who Decides When The Settlement Offer Is Correct?
During the negotiations process, your attorney will contact you with the newest offer made by the insurance company. At that time, they will give you a legal recommendation on if they think you should accept the offer or wait for a new offer.
It is important to remember that you hired your attorney because of their expertise and knowledge in this area of law. They have worked many cases and will be able to tell you when a fair settlement has been reached.
Important Fact to Remember
It is very important that you refrain from accepting any offers from the insurer before reaching your maximum medical improvement (MMI). Your injury may still require treatment after this point, but the MMI is a point where your doctor states that there will be no further improvement to the healing of your injuries.
The importance of waiting until you receive your MMI rating is because once you have agreed to a settlement, the insurer will no longer cover your medical expenses or financial losses.
Speak to a Car Accident Attorney Today
Insurance adjusters are trained to settle cases for the lowest possible amount. It is the desire of insurance companies to pay out as little as possible for any claim, regardless of the losses endured by the injured party.
Having a car accident attorney managing your case and negotiating with the insurance company is very beneficial. The attorney has the skill set necessary to secure a fair compensation package. Having an attorney manage this part of the insurance claim also provides you with the time you need to focus on your recovery.
Also worth reading: Calculating Car Accident Compensation