Should I Take the First Offer of a Car Accident Settlement?
Car accidents are very common—in 2022, 42,514 people died in automobile crashes in the US, and a further 2,383,000 people suffered injuries. Mississippi has the highest car accident fatality rate at 23.9 deaths per 100,1000 people, and the District of Columbia has the lowest at 1.33 deaths per 100,1000 people. California recorded 4,428 deaths in 2022, and there are around 250k injuries each year from car accidents.
Deciding whether to accept an initial settlement offer after a car accident can be a difficult decision. There are pros and cons to accepting the first offer, and factors to consider before agreeing to settle your claim. This article explores strategies on how to approach settlement negotiations and when it might make sense to accept or reject an initial offer.
Assess Your Injuries and Damages
Lots of people ask the question should I take the first offer of a car accident settlement? Before entering any settlement negotiations, you need to fully understand the value of your car accident claim. Take time to calculate both your economic and non-economic losses. Economic damages include things like medical bills, lost wages, and damage to your vehicle. Non-economic losses are for your pain and suffering, emotional distress, and impact on your quality of life.
Document all of your accident-related costs and losses so you know the full scope of what you are entitled to recover.
Consult with a Personal Injury Attorney
A car accident lawyer Long Beach can provide invaluable guidance at this stage. A vehicle accident lawyer from Karns & Karns Personal Injury and Accident Attorneys will help objectively assess the value of your claim based on your documented losses and injuries. They can advise you on a reasonable settlement range to aim for. Motor vehicle accident lawyers from Karns & Karns Personal Injury and Accident Attorneys negotiate and review settlement offers full-time. Their expertise can give you confidence that an initial offer is fair or when to push for more compensation.
Does the Offer Seem Reasonable?
With your automobile accident lawyer’s input, compare the initial settlement number to what you believe your claim is truly worth. Factors like the severity of your injuries, length of medical treatment, extent of vehicle damage, and policy limits will impact the potential value. If the initial offer falls within an acceptable range based on these factors, it may make sense to consider accepting it or making a counteroffer. However, if the offer seems unreasonably low, you may need to decline and prepare for further negotiations.
Consider the Strength of Your Case
Assessing liability and fault is also key. The strength of your case will influence your position in settlement talks. If liability is disputed or you might be partially at-fault, it can negatively impact what you recover. In these situations, if an insurer makes a decent offer upfront, accepting it might make strategic sense compared to a protracted legal battle. However, if liability is clear-cut in your favor, you have more leverage to negotiate.
Think About the Time Value of Money
Money received today is worth more than money received months or years later after drawn-out litigation. This is called the time value of money principle. If you accept an early settlement, you get paid sooner when you likely have pressing expenses for medical bills, vehicle repairs or replacement transportation. You can then invest the money right away. Compare this to waiting 1-2 years or more to reach a trial verdict. This time value concept often favors resolving car accident claims early.
Evaluate the Insurer’s Reputation
Research the reputation of the at-fault driver’s insurance company. Companies known for making fast, fair initial offers may indicate accepting their first settlement proposal is reasonable. However, insurers with reputations for dragging out claims and undervaluing cases frequently start with very low offers hoping claimants will accept. Their first offer is often just a starting point. Be wary of early offers from these companies. This is why it is essential to speak to car accident attorney from Karns & Karns Personal Injury and Accident Attorneys, as they will handle the insurer on your behalf.
Weigh the Emotional Toll of Negotiations
There is an emotional price in the uncertainty, delays, and effort required to negotiate with insurers. Accepting an early fair offer can help you move on from the accident faster. But if negotiations frustrate you, and you’re willing to be patient to maximize your payout, rejecting an initial low offer might make sense. Discuss your priorities with your attorney.
Consider Consulting a Settlement Officer
If you are wavering on an initial offer, one neutral option is hiring a professional settlement officer. These third-party mediators objectively evaluate car accident claims and provide their assessment of a fair settlement number. Getting an independent opinion on what your claim is worth can provide reassurance to accept or reject an insurer’s first offer. Mediation can also facilitate further settlement discussions.
Get Settlement Offers in Writing
Any settlement offer, whether you plan to accept it or make a counteroffer, should be received from the insurer in writing. Verbal settlement discussions are non-binding. The written offer protects both parties and legally memorializes the proposed settlement terms and amount. Having documentation is essential if negotiations stall and you need to proceed to trial.
Don’t Feel Forced to Accept
Remember that unless you have signed a release, you are not required to accept any settlement offer, even if you previously verbally agreed. As long as a claim has not been finalized in writing, you can decline the offer and continue negotiations. Never feel pressured into settling early if you are not comfortable with the amount.
Consulting with an experienced Long Beach car accident lawyer from Karns & Karns Personal Injury and Accident Attorneys and carefully weighing all the above factors will help you make an informed decision on whether accepting that first settlement offer is the right move after a car accident. Being strategic and patient in settlement talks often results in greater compensation. Assess your particular situation carefully before agreeing to settle your claim early.
Call us today on 800-4THE-WIN (800-484-3946) for advice.
