Why You Shouldn’t Accept an Insurance Settlement Without Legal Advice
Getting into an accident such as a car crash can lead to serious, painful and expensive injuries. Your injury claim may be worth a significant amount, yet an insurance company may only offer you a fraction of what you deserve. It is critical to speak to an attorney before accepting a settlement if you wish to ensure a fair payout.
Insurance Companies Will Always Protect Themselves
No matter what an insurance company promises, it is important to realize that, first and foremost, insurance providers are for-profit operations. They need to turn a profit to make their investors money. This is at the top of their priority list when handling insurance claims. Unfortunately, this can make it difficult for claimants to get the case results they need.
Insurance companies use many tactics to get away with underpaying claims and even rejecting valid claims entirely. The person assigned to your claim, known as the insurance claims adjuster, will be friendly to try to convince you they are on your side. Appearing sympathetic is a tactic to persuade you to accept the lowest possible settlement. Don’t fall for it. Protect your rights by working with a personal injury attorney in New Jersey.
The First Offer Will Be Too Low
The way insurance companies operate almost guarantees that the first settlement offer sent to a claimant is lower than the true value of the claim. The initial settlement offer is intentionally set low to leave room for negotiations and counteroffers. It is also low in the hopes that a claimant won’t take the claim any further or speak to an attorney, but instead quickly accept the first offer – the one that protects the insurance company, not the client.
You May Not Fully Understand Your Losses
Another reason not to accept an insurance settlement without first speaking to an attorney is the possibility of your damages compounding over time. The initial settlement offer may only address your current losses and medical bills without adequately estimating the compensation you will need for future damages.
You should always wait until you fully understand your situation and what your future will look like before accepting a settlement. Once you say yes and sign a liability waiver, you cannot reopen your case – even if you find out that your injuries are more serious than you initially thought and will require ongoing medical care far into the future.
An Insurer Will Pressure You to Settle Quickly
The insurance company knows that once they get you to accept the settlement and sign your rights away, you will have little to no legal recourse. For this reason, insurers often pressure claimants to rush into fast settlements – before the victim has the chance to consult with a personal injury lawyer and learn the real value of the claim.
An insurance claims adjuster may tell you that you only have a limited amount of time to accept an offer before it expires, for example, or use language such as “best and final” offer. These are misleading statements designed to push claimants into accepting without taking the time to talk to a lawyer, understand the value of the claim or submit counteroffers for a better outcome.
A Lawyer Is Actually On Your Side
Unlike an insurance company that pretends to be on your side while actually benefiting from minimizing your payout, an attorney will work for you and only you. A personal injury lawyer who works on a contingency fee basis will be incentivized to get as much financial compensation for your claim as possible. You can fully trust an attorney to only act within your best interests.
If you’ve recently been injured in an accident and are seeking compensation from an insurance provider, always contact a New Jersey car accident attorney before accepting a settlement. Most lawyers offer free consultations, where you can get legal advice about your specific situation at no cost or obligation to hire the law firm. You have nothing to lose and everything to gain by consulting with a lawyer.