Insurance companies are quick to offer early settlement offers to car accident victims. They know you may be in dire need of immediate financial relief soon after a crash. However, settling your claim too early can have undesirable long-term consequences.
First, you may not understand the extent of your injuries. What if your condition gets worse in the coming weeks or months? You risk receiving inadequate compensation for ongoing medical treatment, rehabilitation and other damages like pain and suffering.
Additionally, accepting a settlement offer legally closes your claim. This often involves waiving your right to pursue further compensation with the car accident claim. As such, it’s essential to take your time and consider the finality of your decision – you may unknowingly settle your claim for less than you deserve.
Have you reached maximum medical improvement?
It’s advisable to wait until you reach maximum medical improvement (MMI) before settling your claim. MMI is when your condition is stable and is unlikely to improve with further treatment. Settling before reaching MMI could mean underestimating the extent of your injuries and the cost of your recovery.
Other important considerations before settling your claim are whether the settlement covers all your damages, like the total financial impact of your injuries, loss of enjoyment, pain and suffering. These damages should inform the value of your claim.
You do not have to accept a settlement offer
Insurance companies might downplay the severity of your injuries or imply that the offer made is the best offer you can get. However, it’s not the case. Understanding your rights and seeking legal assistance can help you navigate settlement negotiations, which can go a long way in recovering a fair settlement for your car accident claim.