Those going through a road traffic accident (RTA) will want to get compensation for their losses. If this is your first compensation claim, then you might be tempted to accept the first offer they send your way. However, there are several reasons why that may be a mistake. This article will help you understand why.
Insurance Companies Usually Make Low Offers
Someone who never had to deal with insurance claims before might think the insurance company works for your best interest. After all, you are paying the insurance, so it’s just natural, right? Wrong.
Insurance companies don’t always have your best interest in mind. So, if they give you a full load of money, they may not be able to make a profit off of you. For this reason, they may want to settle the issue fast and cheaply, without considering all the damage that you go through.
Not All Insurance Companies Consider Long-Term Needs
Remember, insurance companies want to get the problem settled as fast as possible, and as cheaply as possible. So sure, they will take the short-term needs in mind, such as buying the parts for your car or taking care of the medical bills you had to pay immediately after the accident.
However, not every company takes long-term needs in mind. It is not in their best interest. Insurance companies get intel on you just enough so that they can avoid the expensive stuff. This can be bad for someone who suffered a severe injury, like a spinal injury that causes them to need long-term care. This may not be included in their first offer.
You Can Make a Counter-Offer
You might think that it’s a bad idea to reject their first offer, thinking that you will not get any better deals. In remote and isolated areas, this can happen. However, in Texas, the Consumer Bill of Rights allows you to reject any offer made by an insurance company and propose a counter-offer.
The first offer should only be seen as the starting point for a negotiation. The insurance company may even try to convince you that this is the best deal that you could get. Many people in Dallas are actually fooled by this, thinking that they cannot get more out of the settlement. However, before accepting anything, it is much better to consult with a Dallas personal injury attorney. They’ll be able to advise on whether the offer is fair or not.
Insurance Companies Don’t Usually Retract Offers
Many victims of an RTA might feel pressured to accept an offer, simply because they believe that if they don’t, the insurance company will retract the offer. That being said, while insurance companies are not under any legal obligation to stick to their first offer, they don’t usually retract it either.
This is because they keep the hope that you will change your mind. They will still try to make you think that there won’t be any more offers, but that is rarely the case. It is just a technique they use to make you accept.
If they retract the offer entirely, then they’ll know you will appeal for a bigger compensation, maybe even a retrial, if your lawsuit compensation is low. For that reason, they will keep the offers on the table – and in the meantime, you can take all the steps with your lawyer to see if you can get higher compensation.
Insurance Companies Don’t Usually Like Lawsuits
An insurance company will usually want to avoid a trial for as much as possible because they know that it can be expensive. If their data collection determines there is a good chance you might win a potential lawsuit, they will make better offers once you reject the first one. They will likely make you several offers until you are satisfied with the compensation that you are getting.
In case the settlement offers are still too low, you have every right to file a lawsuit. This is usually the point where insurance companies may get desperate and can be more than willing to start doing proper negotiations. Until that point, their purpose will be to discourage you – but they usually know trouble when they see it. This can help you get more money.
The Bottom Line
If you received a settlement offer for your accident, it may be in your best interest to sit on it for a while. Call your lawyer and see if your case would allow you to get a much better settlement.