Should I Accept the Minimum Settlement Offer?

After you were injured in an accident, insurance companies often come up with a quick settlement offer.  You may be tempted to accept it because you assume that the offer is fair or because you are hard-pressed for cash and you do not want the hassle of haggling with the insurance company.  Don’t make any hasty decisions. The chances are the first offer from the insurance company is a minimum one; if you accept it, you will be leaving a lot of money on the table.

Rather than accepting a minimum offer, it is best to wait, carefully evaluate your damages and consult with an experienced personal injury attorney who can evaluate your accident situation, determine what it is worth, and negotiate for a settlement that fully compensates you for your injuries and covers all your losses.

Understanding “Minimum Settlement” Offers

Minimum settlement offers are usually just that – the minimum amount of money that the insurance adjustor thinks you are likely to accept.  These initial offers are usually low because insurance companies are out for profit and their goal is to settle claims for as little money as possible to protect their bottom line.  Most often the first offer is much less than what your claim may actually be worth.

Insurance companies hope you will accept this offer quickly, before you know the full extent of your injuries and damages, because many injuries worsen over time and require additional medical care. Once you accept their settlement offer, you cannot pursue any further compensation related to the accident or injury. If you discover additional damages or your injuries get worse, you can no longer go back and ask for more money.

Making a minimum settlement offer also allows the insurance company to have a low starting point for negotiations if you reject the initial offer. This makes it seem that they are doing you a favor if they slightly increase the offer amount. They hope you will then be more likely to accept that offer, even if it is still less than your case is worth.

That is why it is advisable to have a personal injury attorney review any settlement to assess the true value of your claim, handle negotiations with the insurance company, and let you know whether an offer is fair, based on the specifics of your case.

Factors That Impact Fair Compensation

How do you know if the compensation you are being offered is fair?  There are several factors to consider that impact fair compensation for an accident. These include:

• Severity and duration of your injuries. In general, you should receive higher compensation for injuries that are more severe, that are permanent or have lasting impacts, that requiring ongoing treatment, or that are visible and result in scarring or disfigurement.
• Costs of your losses. What is the dollar value of the damages from the accident?  This includes:
  • The costs of your related medical and healthcare expenses, including hospital bills, doctor visits, medications, and rehabilitation, the anticipated costs for ongoing treatment or care plans for severe injuries
  • Your lost income and earning capacity from being unable to work
  • Property damage, including costs associated with fixing or replacing damaged vehicles and other personal belongings.
• Your non-economic damages. These are for losses that do not have a specific dollar value but negatively impact your life, such as physical and emotional pain and suffering, loss of consortium and loss of enjoyment of life.
• The availability of the evidence and clear proof of another party’s fault, such as credible witnesses, and video evidence.
• The amount of insurance coverage available for compensation.

Evaluating Your Options

Once you receive an insurance settlement offer, it is important to take the time to evaluate your options before accepting it. You should:

• Assess the offer to see if it covers all your expenses, including the long-term effects for additional medical and rehabilitation treatment, reduced earning capacity, or permanent disabilities
• Review all terms and conditions, looking for any clauses that may be unfair or limit your rights
• Get professional help from a personal injury lawyer to evaluate whether the offer is fair based on your specific case and similar precedents and from medical professionals to evaluate your future costs and needs
• Determine whether there are options besides accepting the offer, such as negotiating with a counteroffer with supporting evidence for a higher amount, utilizing an impartial mediator to work out a settlement, or taking your case to court to pursue fair compensation.

When Accepting a Minimum Offer Might Make Sense

Every accident situation is different, and there may be times when accepting a minimum insurance settlement offer might make sense. You may wish to accept a minimum offer when:

• You have immediate financial needs, such as medical expenses that need immediate payment, risk losing your home due to financial strain, or are unable to meet basic needs like food, rent, and utilities.
• Your damages are small, with only minor injuries that have fully healed, only minor damage to your vehicle or property, and no expected future medical costs or lasting effects.
• You have issues with proving liability. To win a personal injury lawsuit, your attorney would have to show that another party, the defendant, was negligent and at fault for causing the accident. If you did something to contribute to the accident, according to Kentucky Revised Statutes section 411.182, the amount of damages you can recover in a lawsuit is reduced by the same percentage you are found to be at fault for causing the crash. If there is weak evidence to support your claim for higher compensation, or there are potential legal issues that could complicate your case, you may be better off accepting the offer.
• The at-fault party has minimal insurance coverage or the offer is close to the at-fault party’s policy limits, so there is little room for negotiation.
• You are running out of time. Kentucky has a statute of limitations, a deadline for filing a lawsuit for personal injury or wrongful death cases. According to the law (KRS 413.135), you generally have just one year from the date of the accident that led to the injury to file; otherwise, the court system will probably refuse to hear your case.

Get Help Recovering More than the Minimum Settlement Offer

If you or a family member has been injured or someone has suffered a wrongful death in an accident, the experienced attorneys at the Johnson Law Firm  can help you decide whether you should accept the minimum settlement offer. Attorney Billy Johnson can assess the true value of your claim, determine responsibility and the extent of damages, and handle all legal requirements, court filings, investigations, and negotiations involved with recovering the full financial compensation you deserve.

We offer a free consultation to discuss the circumstances of your accident and determine the best way to handle it. Call us today to get started.

GET HELP NOW 606-437-4488