Taking the initial settlement offer from an insurance company may be tempting, especially if you have suffered an injury that requires expensive medical treatment. But it’s important to recognize the risks associated with accepting a settlement offer that doesn’t cover the full cost of your injury now and in the future. Following are some important things to consider:
Insurance companies are businesses
The first consideration is a reminder that insurance companies are businesses. Their primary goal is to make a profit. Insurance company adjusters routinely make “lowball” settlement offers in hopes of saving the company money. Depending on the circumstances, your personal injury claim may be worth much more than the insurance company offers at first.
The costs may include more than medical expenses
Before you accept an insurance company’s initial settlement offer, consider the full range of costs resulting from your injury. Those costs may include medical expenses, as well as lost income, lost earning capacity, physical therapy and rehabilitation, loss of the duties and care you might have provided to your family if not for your injury, and much more.
Get legal counsel first
If you have been injured due to someone else’s negligence or wrongdoing, do not accept an initial settlement offer before consulting a personal injury attorney who can assess the full cost of your injuries now and in the future. A personal injury lawyer can also represent you and handle all negotiations with the insurance company. For more on these matters, please see our Maryland Personal Injury FAQ.