Should You Take a First Settlement Offer?

A person with several bills in hand

Experiencing an accident, especially one where you sustained injuries, could be an awfully traumatizing experience. Injured parties may have to go through a lengthy recovery process, all while agonizing over missing work and, in turn, reduced income. Besides that, they may also miss out on quality time with their loved ones. Fortunately, accident victims are entitled to seek compensation for damages via a personal injury claim. But the recovery process could be exhausting and daunting, especially because victims will need to deal with insurance companies doing everything in their power to ensure the compensation amounts to as little as possible. 

The Main Source of Compensation for Personal Injury Claims is Insurance

When an individual’s negligent acts lead to another individual’s injuries, the negligent party may be held liable for losses that the injured party has suffered. However, in most cases, the liable party’s insurance provider will actually be responsible for compensating the injured party. Let’s say that a reckless driver caused a collision that led to your injuries. The driver’s motor vehicle insurance will probably cover the collision accident. Because of this, you’ll need to file a claim against the insurer, which should then decide whether to deny your claim, make a counteroffer, or approve your claim. 

  1. You SHOULD NOT Accept an Insurance Company’s First Settlement Offer

An insurance policy’s primary purpose is to ensure that a person who’s been injured by an insured party’s negligent acts can claim compensation for covering their losses. But in reality, insurance providers are notorious for denying or undervaluing claims of injured victims. Keep in mind that insurance companies are, first and foremost, for-profit organizations. Essentially, this means that they depend on raking in more money in monthly premiums than paying out appropriate settlement amounts to accident victims. This fact is also the reason why you SHOULD NOT accept an insurer’s first offer for your claim.

Basically, profit is what drives insurance companies to engage in underhanded tactics, such as reaching out to injured parties right after the accident to get them to accept a low settlement offer. Let’s say that you slipped and injured yourself in a clothing store while looking around. The store then reports the accident to its insurance provider. You can expect the insurer to reach out to you, maybe even before you’ve had a chance to investigate the incident and file a claim, so the insurer can offer you a low settlement amount that you’ll hopefully accept. 

In reality, the settlement offer will only be a fraction of what your actual damages or losses are. And unfortunately, injured victims might accept these unfair offers because they’re desperate to pay their medical bills or are intimidated by, don’t know, or don’t want to deal with insurance companies. 

Contact Salam & Associates for a Free Consultation

Were you injured in an accident? You have options. By working with one of our personal injury attorneys here at Salam & Associates, you won’t ever have to deal with an insurance company on your own. We can assess your claim, estimate the fairest settlement amount for your claim, and negotiate with intimidating insurance companies, so you don’t have to. Call us now at 866-640-8998 or reach out to us through our online channels or [email protected] and arrange your free case review. Our attorneys are licensed in Texas, New Mexico, D.C., and Michigan.


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