If you were involved in an accident and sustained injuries or other damages, the negligent party’s insurance company may offer you a settlement. While you may feel lucky that they are willing to pay so easily and quickly, accepting a settlement offer too fast can lead to serious financial and legal consequences later on. Understanding the settlement process and potential pitfalls to look out for is crucial in protecting your rights and future. Continue reading for more information and work with a New York injury lawyer during your case.
What is a Settlement?
An insurance settlement is a financial agreement that an insurance company offers to resolve a claim. When an accident and damages occur, the negligent party is responsible for covering the victims’ associated costs, often through liability insurance.
After evaluating your losses and damages, the insurance company may offer you a lump sum to cover your costs in exchange for you forfeiting your right to pursue further legal action. Once you accept a settlement and sign, you cannot ask for more money or file a new claim or lawsuit.
What Should I Do if the Insurance Company Offers Me a Settlement?
Although a settlement offer may seem like a blessing as you face a mountain of bills or a loss of income, it is risky to accept without fully evaluating the offer and situation. Insurance companies are in the business of making money, meaning that their goal is generally to minimize the amount they pay out to others. The first offer you receive may be much lower than what your claim is really worth.
If the insurance company offers you a settlement, it is important to take your time and not rush. Fully review the offer, even asking for more time if needed. It is highly recommended that you consult with a skilled personal injury attorney. Your lawyer will be able to help you understand the full scope of your damages and evaluate the amount of compensation that is fair and reasonable to cover your economic and noneconomic damages, as well as potential future expenses or losses.
It is important that you are aware of the tactics that insurance companies use to try to get you to settle early. They may pressure you to sign, refuse to respond, try to convince you that it is the best offer you will get, delay your claim, and more. Avoid falling for these traps, as they can result in you accepting an insufficient settlement.
You should generally negotiate with the insurance company for a higher settlement amount, especially after having a lawyer evaluate your claim. Work with your attorney to counteroffer and negotiate for a settlement that is fair to you.
It is crucial that you consider all of your options and future needs before signing a settlement offer. Reach out to a skilled lawyer at Mitchell J. Schroeder, P.C. for more information today.
