Should I Accept a Settlement From An Insurance Company?

Insurance companies want to pay as little for your personal injury claim as possible. Before you accept a settlement check and sign a final settlement agreement, make sure you know what the settlement means.

Be aware that when you sign a settlement agreement, you give up the right to sue anyone for more money. In other words, the amount you receive from the insurance company is the only money you will recover for your claim.

Suppose you realize that you have a permanent disability or you have more damages after you sign a settlement agreement. You gave up your right to pursue a claim when you settled with the insurance company. Therefore, you cannot file a lawsuit or pursue a legal claim.

Before accepting the insurance settlement offer, consult with a lawyer. The lawyer may advise you to accept the settlement offer if:

• The insurance company accepted total liability for your injury claim

• You recovered fully from all injuries

• The settlement offer compensates you for all damages

• You are not entitled to future damages

• The amount offered is the best offer you are likely to receive based on the facts of your case

• You did not sustain any permanent impairments that are not included in the settlement offer

However, if none of these apply, the lawyer may advise you to decline the settlement offer.

Insurance companies make their settlement offer by using computer programs to evaluate claims. The programs calculate the value of an injury claim based on specific data entered into the program. However, these programs do not consider other factors that could impact how much a claim is worth.

Hiring a lawyer to prepare a demand letter for your injury claim means you have someone who understands personal injury laws. Furthermore, the attorney understands the value of damages. In other words, you have someone with experience handling the negotiation process with the insurance company on your behalf.

Insurance companies typically deal fairly with personal injury attorneys. The companies know which attorneys do not hesitate to file a lawsuit and take the matter to court if the insurance company does not negotiate in good faith. In some cases, an attorney may even pursue a bad-faith claim against an insurance company.

Do You Know How Much Your Personal Injury Claim Is Worth?

It is not wise to accept a personal injury settlement from an insurance company if you do not know the value of your damages.

Many people are familiar with economic damages. These damages represent the financial losses you incur because of an accident or injury. They include:

• Medical expenses

• Loss of income

• Out of pocket expenses

• Diminished earnings capacity

• Nursing care

• Personal care and household services

Some injured parties may not realize they can recover reimbursement for out-of-pocket expenses. They may not realize they can receive compensation for ongoing medical treatments, long-term nursing care, and future lost wages.

You may also be entitled to compensation for your pain and suffering. Insurance companies downplay non-economic damages. If you do not know you are entitled to these damages, the company may not include the damages in the settlement offer.

Non-economic damages include:

• Decrease in your quality of life

• Permanent impairments and disabilities

• Loss of enjoyment of life

• Mental, physical, and emotional suffering

• Scarring and disfigurement

Placing a value on pain and suffering can be challenging. The value of financial damages equals the actual monetary loss. However, there is not an “invoice” or “bill” to prove how much your pain and suffering are worth.

Therefore, if you are unfamiliar with how to calculate these damages, the insurance company could undervalue your injury claim.

Do not trust what the insurance adjuster tells you what the damages are worth. Remember, the claims adjuster works for the insurance company, so the value the adjuster places on the claim is in the insurance company’s favor.

If you do not know how much your damages are worth, talk with a lawyer before accepting a settlement offer.

Do Not Let the Insurance Company Drag Out Your Claim

The California statute of limitations sets deadlines for filing personal injury lawsuits. For most injury claims, the filing deadline is two years from the injury date. However, there are exceptions.

Medical malpractice claims have a one-year deadline from the date you knew or should have known about the injury or three years from the injury date, whichever date comes first. There could be other exceptions depending on the facts of your case.

An insurance company might try to drag out your claim past the filing deadline. It knows if you miss the deadline to file a lawsuit, you give up your right to pursue a legal claim.

The statute of limitations is another reason you should not delay seeking legal advice about a personal injury claim.

Call Us to Schedule a Free Consultation With Our Los Angeles Personal Injury Lawyers

Before accepting a settlement offer from the insurance company, meet with our lawyers for a free case evaluation.

Book a Free Consultation with a Personal Injury Lawyer

Find out what your case is worth.