After an accident, you probably need money to pay medical bills and cover other expenses. Injuries often prevent people from returning to work, so your family’s budget is immediately squeezed. However, the other driver’s insurance company seems sympathetic and wants to make things right. Should you accept their first settlement offer?
No, you should not immediately accept the insurance company’s first offer without reviewing whether it covers your losses. The initial offer may be too low and may fail to account for future medical care, lost income, and pain and suffering. Instead of signing an agreement, contact Miracle Law. We have more than 25 years of combined experience guiding injured clients through the claims process.
Key Highlights:
- Avoid the first settlement offer: Initial insurance offers are often too low and fail to account for future medical care, lost income, and pain and suffering.
- Understand the full scope of damages: Wait until you have a complete picture of your medical recovery and financial losses before agreeing to a settlement.
- Recognize negotiation strategies: Insurers often use low opening offers to leave room for negotiation rather than presenting the final value of your claim.
- Account for comparative negligence: Your share of fault can reduce your recoverable damages under California law, requiring proper liability evidence.
- Keep track of filing deadlines: California generally enforces a two-year statute of limitations for personal injury lawsuits, with some claims subject to shorter windows.
- Beware of claims releases: Signing a settlement agreement typically includes a release of claims that prevents you from seeking further compensation later.
- Consult an experienced attorney: Working with Miracle Law can help you properly calculate your damages, gather evidence, and evaluate settlement fairness.
Why Might the First Car Accident Settlement Offer Be Too Low?
The first settlement offer might be too low for various reasons. Your full damages may be unknown early in the claims process. Also, the insurance company may be leaving room for negotiation. If you accept the first offer, you could receive less than the full value of your claim.
Here is a closer look at why the first car accident settlement offer may be too low.
Incomplete Information on Damages
A settlement should account for applicable economic and noneconomic damages, including:
- Medical care to treat your injuries;
- Lost income or wages if you are too injured to work;
- Damage to your property, including damage to your motor vehicle; and
- Pain and suffering.
Someone with serious injuries could need medical care for six months or longer. If the insurance company makes a settlement offer after one month, you may not know the full extent of your medical damages.
The same is true of lost wages. If you negotiate while still hurt, you may not yet know how much you will lose in income.
Avoid accepting an offer too quickly, before you fully understand the economic and noneconomic consequences of the accident. Contact our law firm if you have questions about your economic damages.
Insurance Company Strategy
The initial offer may also reflect the insurance company’s negotiation strategy. Insurance companies negotiate settlements. A low initial settlement offer leaves room for further negotiations. The initial offer may represent an opening position, not a final offer.
If you quickly accept the first settlement offer, then you might be leaving money on the table. If the evidence supports a higher amount, a counteroffer may be appropriate.
When Should I Accept an Insurance Offer?
The key is to wait until you have a complete picture of your damages. There is no standard waiting period. You need enough medical information to assess your recovery and reasonably anticipated future losses.
One reason to work with a lawyer is to help you avoid accepting a settlement offer too quickly. A lawyer can help to document your full medical expenses and lost income.
The negotiation timeline differs for each person. Someone with minor injuries might be prepared to accept a settlement once they have recovered and understand their losses. They could have fully healed by that point, so their economic damages, such as medical bills and lost income, are known. Someone else might need more time to assess future treatment and income losses.
You don’t necessarily need to wait until treatment is complete before negotiating, but you must protect filing deadlines while evaluating an offer. California generally allows two years to file a personal injury lawsuit; some claims have shorter deadlines.
What Is Miracle Law’s Strategy for Negotiating a Car Accident Settlement?
Miracle Law uses our knowledge of California car accident law to prepare for negotiations. We gather evidence of fault and document your losses to support a settlement demand.
Finding Evidence of the Crash to Determine Liability
Effective negotiation requires a full understanding of the accident and who caused it. Under California law, your own share of fault can diminish the value of your settlement. As an example, if you are 60% at fault for the accident, then you will receive 60% less in recoverable damages to account for your share of fault.
If the defendant’s insurer believes you are partially to blame, it may offer less compensation. We need evidence of liability to determine whether the offer is fair.
Finding evidence related to the crash takes time. We might visit nearby businesses or homes to ask if they have a surveillance camera or Ring camera. Video of the crash helps us see how it unfolded and can be persuasive evidence.
Calculating Damages Correctly
We understand what damages an injured motorist can request, including reasonably certain future losses.
We begin by learning everything we can about your injuries and their impact on your life. For example, we want to calculate the full cost of medical treatment. You can help your lawyer by providing copies of any:
- Insurance statements,
- Medical bills, and
- Receipts for prescriptions or assistive devices (such as a wheelchair).
Based on your diagnosis and recovery so far, we can assess whether you will need ongoing care. Someone who has suffered permanent brain damage might need an at-home attendant for the rest of their life. We do not overlook future medical expenses.
We also want to understand how these injuries have changed your life. Pain and suffering damages can make up a significant part of a settlement.
Researching Past Settlements
Our firm has negotiated with large insurance companies in California. We can research how much injured motorists with similar injuries have received in a settlement. This step can help avoid settling for too little.
Past settlements can provide context, but they do not establish what your claim is worth. The evidence, available insurance, and circumstances of your case factor into the value of your claim.
What Happens If I Accept the First Settlement Offer?
Should you accept the first settlement offer, you probably can’t sue for more compensation on the claims you release. Instead, you are generally bound by the terms of the settlement agreement.
Most personal injury settlements include a release of claims, an agreement not to sue the defendant in the future over claims covered by the settlement. Insurance companies demand that you sign this release in exchange for the settlement. A valid release is generally enforceable, and setting it aside can be difficult. California law generally protects certain unknown claims from a general release, but a settlement agreement may expressly waive that protection. Review the release carefully before signing because it may cover injuries or claims you haven’t discovered yet.
If you accept a small settlement, this release of claims can bar you from receiving more from the defendant. At Miracle Law, we can review whether a proposed settlement adequately covers your damages.
What Should I Do If an Insurance Company Makes a Settlement Offer?
You should first pause. Do not verbally agree to the settlement. Tell the claims adjuster that you need time to review the settlement. Then contact Miracle Law to schedule a consultation. We can answer your questions, including “Should I accept this settlement offer?”
How Do I Know If the Settlement Offer Is Fair?
You should show any settlement offer to an experienced car accident lawyer. Miracle Law has decades of experience negotiating on behalf of injured clients. We can discuss your memories of the accident and review medical records related to your injuries.
You might be surprised by the size of the check the insurer offers, which may appear generous. But you need to be sure the offer covers reasonably anticipated future losses, including ongoing pain or disability.
Ideally, you should work with a lawyer from the start of your case. An attorney can offer tips for what evidence to save to support your claim. A lawyer can also present the evidence supporting your losses and respond to the insurer’s reasons for offering less.
How Much Can I Receive for Future Medical Expenses or Loss of Earning Capacity?
That is a factual analysis that depends on your medical diagnosis and how much progress you have made in your recovery.
Future Medical Expenses
Generally, someone with significant injuries or permanent disabilities can request the reasonable costs of future medical care, which might include:
- At-home help with cooking, cleaning, bathing, or getting dressed;
- Care in a nursing home or long-term care facility;
- Modifications to your home or vehicle to accommodate a wheelchair;
- Future surgeries or ongoing rehabilitation; and
- Future doctor’s visits.
Our office can work with medical experts to determine the cost of future care, including anticipated increases in those costs.
Loss of Earning Capacity
Some injuries prevent a person from returning to an old job. They might need to take a lower-paying job or work fewer hours. Some clients are not able to work any job going forward. The amount you can request will depend on various factors, including the jobs you worked before the accident and what you could have earned without the injury compared with what you can earn now.
Contact Miracle Law to Review a Proposed Settlement
After a car accident, you deserve more than a quick settlement and unanswered questions. At Miracle Law, your concerns and priorities matter. Our legal team offers individualized attention to clients who are hurt in car accidents and are worried about the future. If you have a question, you can call 24/7.
Negotiating a car accident settlement is a complicated undertaking. Miracle Law can break down the process into understandable steps. We help with evidence collection and can negotiate with the at-fault party for a fair settlement. We offer consultations in both English and Spanish. Take the next step forward by contacting our office to schedule a free case evaluation.
Legal References Used to Inform This Page
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