Should I Settle With the Insurance Company?
When Insurance Companies Get Involved in Personal Injury Claims
After an accident or injury, it’s almost certain that an insurance company will be involved at some point. Whether it’s your own insurer or the other party’s, settlement negotiations often begin soon after a claim is filed. Insurance companies are typically responsible for paying compensation, so they will move quickly to try to close the claim on their terms.
Types of Cases That May Lead to Settlement Offers
Settlement offers are common across a wide range of personal injury claims, including:
- Car accidents: settlement offers may come from your own insurer or the other driver’s.
- Slip and fall accidents: property owners’ insurers may be responsible for compensation.
- Dog bites: the dog owner’s homeowner’s insurance is often involved.
- Other injury claims: product liability or workplace injury cases with a third-party claim.
Regardless of the type of case, insurance companies are highly motivated to minimize the amount they pay out.
Understanding How Insurance Settlements Work
A settlement is an agreement between you and the insurance company to resolve the claim without going to trial. You accept a sum of money in exchange for releasing the insurer and their policyholder from further liability. While this can save time and avoid the stress of litigation, it’s essential to understand that once you accept a settlement, you cannot go back and request more, even if your injuries turn out to be worse than expected.
Why the First Settlement Offer Is Rarely the Best
Accepting the insurance company’s offer might be in your best interest, but keep in mind that insurance defense attorneys are highly motivated to settle the case for the lowest amount possible. But in reality, first offers are rarely fair. They are often “lowball” offers designed to save the insurer money and settle your claim for as little as possible.
How Insurance Companies Try to Minimize Payouts
Insurance adjusters and defense attorneys are trained to protect the insurer’s bottom line. Common tactics include:
- Offering quick, low settlements before the full extent of your injuries is known.
- Questioning or disputing medical treatment to reduce claim value.
- Delaying the claims process to pressure you into settling.
- Using your statements against you if you don’t have legal representation.
These strategies are meant to reduce the amount you recover—not to protect your best interests.
The Benefits of Having an Experienced Injury Lawyer in Reno
Deciding whether to accept a settlement can be overwhelming, but you don’t have to face insurance companies alone. At Matt Dion & Associates, we have over 30 years of experience negotiating with insurers and taking cases to trial when needed.
You shouldn’t feel pressured into accepting a low offer. With the right lawyer on your side, you’ll know when a settlement is fair and when it’s time to push back.
FAQs About Insurance Settlements
Should you take the first settlement offer?
In most cases, no, the first settlement offer from an insurance company is typically not their best. It’s common for insurers to make a series of lower offers, particularly if you’re without experienced legal representation.
How do I negotiate a cash settlement with an insurance company?
You have to understand your claim’s value, present a strong case, and be prepared to reject low offers. Retaining experienced legal counsel, like Matt Dion and Associates, can also increase your chances of being awarded a fair settlement.
Do insurance companies always offer a settlement?
While not guaranteed, it’s safe to assume that insurance companies will likely make a settlement offer in injury claims. The nature and timing of this offer can vary case by case.
What happens when you reject an insurance settlement offer?
Rejecting a settlement offer allows for further negotiation, but it may lead to a prolonged process or even a court case. It’s advised to consult with a seasoned attorney before making such decisions.
How long does it take for an insurance company to offer a settlement?
It may take weeks or even months. The timeframe can vary widely depending on the specifics of the case. Having a skilled attorney can help expedite this process and ensure your interests are well-represented.