The major reason why insurance companies exist is to protect their policyholders from financial ruin in the event they cause an accident that results in injuries. An insurance policy provides financial compensation to the accident victim in the form of bodily injury, property damage, and payment of medical bills. After an accident, the insurer may offer a lump sum amount to cover the medical bills and other damages in something known as a settlement. Settlements are intended to make an accident victim walk away with a seemingly generous dollar amount, along with preventing them from suing for further damages. An insurance adjuster is authorized to offer a certain amount for each section of the settlement, then issue a check for the final amount once the accident victim signs the release. Meanwhile, the adjuster puts a lot of pressure on the accident victim to sign. Why? The insurance company wants to close the claim as cheaply as possible while eliminating the accident victim's ability to sue further. The following is a look at six reasons why you shouldn't accept a settlement offer and why you should first consult a Houston personal injury lawyer instead.
1. Insurance Adjusters Aren't on Your Side
One of the people you interact with after an accident is the insurance adjuster. They often seem friendly, approachable, and seemingly helpful. What you need to remember is that the insurance adjuster isn't working for you and isn't interested in helping you any more than they should. The insurance company has a vested interest in paying out low settlements after accidents in order to save money. That means the insurance adjuster is under orders from their employer to do what it takes to get you to settle. Insurance companies are in the business of making profits. Paying out large settlements, even when warranted, to accident victims eats into those profits. In turn, the insurance companies put limits on how much the adjuster can offer, encourage lower settlements, and authorize the adjuster to put pressure on an accident victim to accept a lower settlement. Any conversation you have with an adjuster is recorded in case you say something that can be used against you during the claim process or in court if a settlement can't be reached. You may not be aware that the insurance adjuster is under no obligation to be honest with you at any time. An adjuster can lie and say anything they like to get you to say something that can lower the amount or disqualify you from getting a settlement. You should say as little as possible when you talk to the adjuster, and don't let their amicable tone trick you into thinking they're on your side. The best course of action is to retain a personal injury lawyer as soon as possible, then let the lawyer take over the communication with the insurance adjuster on your behalf. A lawyer has the training and experience to negotiate a settlement that's more favorable to you and your damages.2. Settlement Offers are Always Lower Than They Should Be
The insurance company wants to be done with your claim as soon it can. They operate on the assumption that they can make a claimant go away by offering them what sounds like a large lump sum of cash. You'll get offers through the adjuster that sound generous on the surface, but won't come close to compensating you for your economic and non-economic damages. The insurance adjuster will take full advantage of your lack of knowledge of the value of your claim by giving you a lowball settlement offer. If your response is "that's not enough," the adjuster may increase the offer, but it won't be anywhere near the amount you need to cover your damages.3. Do You Know What Kind of Compensation You're Entitled to?
A personal injury claim can request compensation for multiple issues that arise after an accident. In the event someone was killed in an accident of some kind, the surviving family and loved ones can make a wrongful death claim on behalf of the deceased. You can ask for economic and non-economic damages in either type of personal injury lawsuit including:- Medical bills
- Property replacement costs
- Ongoing medical bills
- Loss of income
- Disfigurement
- Pain and suffering
- Loss of companionship.