Should I Accept the Insurance Company’s First Offer After a Car Accident?

By Ben Gobel on October 14, 2024

After a car accident, dealing with insurance companies can be a daunting experience. One of the key questions you may face is: Should I take the insurance company’s initial offer? 

While it might be tempting to accept a quick payout and move on, doing so without realizing the broader implications could result in leaving significant compensation on the table. Rather than engage directly in settlement negotiations with the defendant’s insurance company, it is prudent to schedule a free consultation with a car accident lawyer as soon as possible. 

Insurance Companies Will Only Pay When They Believe a Jury Will Make Them Pay Even More

Insurance companies are for-profit entities, which means their primary goal is to protect their bottom line. When they know you have a strong insurance claim, they may quickly come up with a car accident settlement offer, hoping that you will accept an amount that is much lower than what you might be legally entitled to. 

Insurance adjusters are not in the business of offering fair settlements; they are not on your side. They will only agree to settle fairly when they realize you have seasoned trial attorneys on your side who are not afraid of taking your case before a jury, and who will not back down from a courtroom battle.

Why Is the Insurer’s First Offer Generally Too Low?

Accepting insurance company’s first offer after a car accident, especially without representation from a personal injury lawyer, is generally ill-advised for these reasons:  

Incomplete Understanding of Damages 

Immediately after the accident, the full extent of your injuries, medical expenses, and other damages may not be clear. You may still be undergoing medical evaluations or facing future treatments that have yet to be factored into the settlement. Insurance companies take advantage of this uncertainty by offering a lower amount, hoping you will settle before you achieve maximum medical improvement.

Pressure to Settle Quickly 

Many accident victims face financial strain, especially if they are unable to work or have mounting medical bills. Insurance companies are aware of this and may try to exploit your situation by offering a quick but inadequate settlement.

Avoiding Legal Involvement 

An insurance adjuster knows that if you consult with a personal injury attorney and take your case to court, you are likely to receive a higher car accident settlement. By offering a low amount upfront, they attempt to avoid the personal injury lawsuit, which could ultimately cost them more.

The Risks of Accepting the First Offer

Waiving Your Right to Future Compensation 

When you accept an insurance company’s settlement offer, you will be required to sign a release form, which waives your right to pursue any additional compensation related to the accident. This means that if new medical issues arise or if your injuries are more severe than initially thought, you will not be able to claim additional compensation.

Underestimating Future Expenses 

Many car accident injuries, such as concussions, back injury, or traumatic brain injuries, may take time to fully manifest. If you settle too early, you might not account for long-term treatment, rehabilitation, or lost earning capacity.

Ignoring Non-Economic Damages 

Insurance companies may focus on the tangible, economic costs of an accident, such as medical bills and vehicle repair costs. However, you may also be entitled to non-economic damages like pain and suffering, emotional distress, or loss of enjoyment of life, which are harder to quantify but equally important.

Tactics Used by Insurance Companies

Downplaying the Severity of Your Injuries 

Adjusters may argue that your injuries are not as severe as you claim or that they do not require extensive treatment. A personal injury lawyer can counter this argument with medical evidence and expert opinions.

Disputing Liability 

If there is any ambiguity about who caused the accident, the insurance company may try to shift the blame to reduce the personal injury claim amount they owe. A car accident lawyer can find the evidence to counter the insurance company’s strategy and prove liability of the negligent party.

Offering a “Take It or Leave It” Deal 

Insurance adjusters may present their first offer as non-negotiable, implying that rejecting first insurance offer car accidents puts you at the risk of receiving nothing. This is often a scare tactic meant to pressure you into settling for less.

Our Pittsburgh Car Accident Lawyers Can Take on Powerful Insurance Companies

To avoid the pitfalls of accepting a lowball settlement from insurance adjusters, you should get legal representation from our top-rated Pittsburgh car accident attorney at Ogg, Murphy & Perkosky. We have the skills, resources, and experience to take on large insurance companies and level the playing field. 

Our attorneys have recovered over $250 million for injured victims over the past 35 years. If you have suffered injuries due to someone else’s negligence, don’t settle for less — let our experienced trial lawyers fight for the highest compensation you deserve. To schedule your free consultation, call us at (412) 203-8159 or contact us online.