After the insurance company receives all the information about your claim, it will usually issue an initial settlement offer. This first offer — in most cases — is way too low for you to make a full recovery, and it is crucial to consider consulting with a qualified personal injury attorney before accepting any settlement offer.
If you or a loved one has been injured and is going up against a big insurance company, it is important for you to reach out to a qualified Houston personal injury lawyer at West Loop Law and the Law Office of Nhan Nguyen for help on your claim. Nhan Nguyen, MD, JD, and Nader Rabie, JD, can explain the factors that the insurance adjuster uses to make the first settlement offer and why it is usually much lower than what you really deserve.
How Do Insurance Companies Determine the Value of Your Claim?
After you file a claim, the insurance provider will assign an adjuster to investigate who will evaluate the claimed damage and evidence submitted. The initial settlement offer is usually determined using the following factors:
- Information about the plaintiff
- The victim’s account of the accident
- Relevant documentation
- Pain and suffering
- All other factors related to the accident
The adjuster will gather information about the plaintiff and evaluate the account he or she provided about the accident. In most cases, the insurance adjuster will interview the plaintiff and attempt to get a contradictory story. Relevant documentation can include doctor recommendations, treatment options, and medication needed for recovery. The insurance company can determine how all these factors come together to impact pain and suffering to provide an initial offer.
How to Handle the First Settlement Offer
Many crash victims will suffer financially when recovering after an accident. This can result in desperation and cause the victim to accept the first settlement offer in order to pay off bills or replace lost wages. However, it is key to consider holding off because the initial offer is often inadequate to cover all the expenses during the recovery period. Remember that you do not need to accept the first settlement offered, and it is advised to consult with a personal injury lawyer before making any decisions. The company will often offer the lowest figure possible in order to save money and resolve the claim quickly. If the insurance provider sends a check, you should avoid cashing it right away before contacting your attorney.
What Happens If You Turn Down the First Settlement Offer?
The initial offer is often not the last or best that will be provided. If the victim chooses to turn down the offer, there are some steps to follow. After consulting with your Houston car wreck attorney, you can do the following:
- Turn down the first offer because it is likely far less than the true value of the claim
- With the lawyer, respond with the complete demand letter and ask for a value close to or exactly what the claim is likely worth
- Exchange letters with the insurance adjuster and communicate over the phone to negotiate the settlement
- Arrive at the final settlement amount that is satisfactory to both sides and sign a release of liability so the insurance company will cut a check
When Should I Accept a Settlement Offer?
You need to understand the full scope of medical care required before accepting any settlement offer, including rehabilitation, future treatment, and additional costs.
As the crash victim, you should not consider any offer until you have already started your path toward recovery. If your case is unique, there may be more factors to consider. With research and time, you can fully explain the compensation you need to recover, and after all the damages are clear, your lawyer and the adjuster can reach an agreement.
Houston Personal Injury Lawyers
West Loop Law and the Law Office of Nhan Nguyen, MD, JD has the knowledge and experience to make sure your case is treated fairly and that the liable party is held responsible. When you have been injured in an accident, your focus should be on healing yourself physically, emotionally, and mentally so you can return to your normal life. Contact our offices today at 713-840-7200 to discuss your case with a qualified Houston personal injury lawyer.
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