If you’ve been in a car accident, you can bet the insurance company of the other party will be contacting you sooner rather than later. They’ll be friendly, even concerned about your well-being. Then, before you have time to draw a breath, they’ll slip in a settlement offer. It might sound too good to be true—especially if you’ve got piles of medical bills and are out of work—but settling quickly is often one of the most expensive mistakes accident victims can make.
Keep this in mind: The only reason they are offering you money is because they know they are or are likely to be found partially liable for the accident and are attempting to settle it quickly and cheaply.
Let’s break down why insurance companies want to settle quickly, what they’re really trying to do, and why you should take a step back before signing on the dotted line.
The Real Reason Insurance Companies Want to Settle Fast
It’s easy to believe that the insurance company is being nice to you by paying you quickly. But really, they’re safeguarding their bottom line—your own interests aren’t of primary concern. The faster they pay your claim, the less they’ll have to pay out. Here’s how they come out ahead:
1. They Know You’re Vulnerable
After you’ve been in an accident, you’re dealing with a lot—pain, stress, doctor visits, lost wages. Insurers are relying on this period of time when you’re stressed and in a tight financial spot. They’re hoping you’ll simply accept the money to get rid of the stress, even if it’s far less than you deserve.
2. They Don’t Want to Pay Out in the Future
Most of the injuries caused by accidents will not reveal themselves in their entirety until weeks or even months later. The whiplash, spinal injuries, or concussions will take some time to manifest themselves. Even if they manage to get you to settle early, you won’t be able to come back later and ask for more money when these injuries become clearer.
3. They’re Avoiding Legal Action
If you do employ an attorney and take some time to build a strong case, you’re probably going to be offered a lot more money in settlement. They know this. By pressuring an immediate settlement, they’re trying to close your case before you can get an attorney on board who will negotiate for you.
4. They’re Lowballing You
The first offer is always lower than what your case is really worth. They come up with a number that sounds good then, assuming you won’t know you can get so much more.
Why a Quick Settlement Can Cost You Big Time
Going along with an initial settlement could come as a breath of relief but ultimately result in financial remorse. Here’s the reason why quick acceptance of the deal could get you in harm’s way someday:
1. You Might Miscalculate Upcoming Medical Bills
It might sound fine at first if you have a few doctor visits and some physical therapy sessions. But what happens when your injuries require long-term care, surgeries, or continuous rehab? Once you settle a case, you can’t return for more money even if your medical expenses skyrocket.
2. Lost Wages Can Add Up
If your injuries force you out of work for weeks or months, the initial settlement may not cover you sufficiently for lost wages. Worse, if your injuries impact your ability to work in the long term, you may be leaving substantial compensation for future lost wages behind.
3. Pain and Suffering Are Frequently Overlooked
Quick settlements focus on initial expenses like medical bills and car repairs. What about your distress, suffering, and reduced quality of life, though? Insurers downplay these damages to reduce payments. A negotiated settlement that considers how the accident actually impacted your life is worth requesting.
4. Once You Take, It’s Over
This is the important thing to remember: once you sign that settlement agreement, your case is over. You can’t bring it back, even if you develop new injuries or the first payment is inadequate. The insurance company is aware of this and employs this leverage to force you to settle when you don’t yet know the full extent of your damages.
How to Protect Yourself from a Bad Settlement Offer
Now that you know why the insurance companies do make a great rush to settle, here is how you can protect yourself:
1. Don’t Rush
No matter how much the insurance adjuster does make it seem like you have to rush, don’t. You don’t have to respond immediately, and you definitely don’t have to accept the first offer.
2. Get a Full Medical Evaluation
Go see a physician, get recommendations from specialists, and make sure you have the full scope of your injuries. Injuries may evolve over time, so don’t settle until you understand what you’re up against.
3. Obtain an Attorney
A personal injury lawyer can examine your case, negotiate with the insurance company, and see that you get a fair settlement. Most accident lawyers, including us, work on contingency, so you don’t pay them a dime upfront—only if you win do they get paid. Having a lawyer in your corner generally means a significantly higher payoff.
4. Don’t Fall for Their Tactics
Insurance adjusters are trained to get you to think that their offer is the best you will ever get. They might say:
- “This is a good settlement.”
- “This is a good offer, and it will not be on the table for long.”
- “You don’t need a lawyer.”
None of these things are true. They want to settle quickly and cheaply, not to get you fully paid.
A quick settlement might feel like the easiest route to getting a car wreck behind you, but it’s never best for you. Insurance companies count on your desperation and ignorance. Now you’re smarter.
Slow down, seek medical care, and talk to a lawyer before settling. The right settlement is not just paying today’s expenses—it’s about protecting your economic future and receiving the justice that you are entitled to.
If you were injured in an accident, call Jaime “Mr. 786Abogado” Suarez today to Get You Paid!