The aftermath of an accident can leave you uncertain about what the future holds. You may be unable to work or provide for yourself, yet you have medical bills to pay and a family to fend for.
Despite your difficult situation, it is advisable to be wary of early settlement offers by an insurer. Yes, you may badly need the money, but is it the compensation you deserve? Accepting an offer to settle out of desperation or need may come back to haunt you, as explained below.
Settling your claim closes your case
When a claim is settled, you cannot reopen it or file a lawsuit later to pursue compensation. For instance, your condition may deteriorate, requiring specialized care or long-term hospitalization. If you accept to settle your claim, you will have to meet such unexpected costs using your money.
When you agree to a settlement offer, it is assumed that you reached a mutual agreement to close the claim and release the negligent party from further liability.
You may get a revamped offer
Usually, an initial offer is well below the settlement you deserve in most cases. It is not by accident. Insurance companies are for-profit companies and will always put their financial interests first. If you reject the first offer to settle, the insurer may revamp it. Still, you need to make the right decision even after receiving a revised offer.
When should you settle your claim?
Only settle a claim after an informed assessment of your damages to ensure you understand what you deserve. Will you require future medical care? Do your injuries have any long-term effects on your life or career? These are some of the questions you should ask yourself before settling your personal injury claim.
Having the necessary information and legal guidance can help protect your interests and inform the decision to accept or reject a settlement offer.