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Oftentimes, immediately after an accident, and prior to the injured person talking to a lawyer, the insurance company for the at-fault party will contact you and make an offer to settle your claim/case.
Typically, the offer is in the amount of $1,500 to $3,000 to resolve your injury claim. Several companies, like Progressive and Geico, are notorious for doing this as it is their business model. The insurance approach is in a friendly, “we care about you” manner, thus lowering your guard and gaining your trust. At the time, it seems like a very nice gesture on their part, but beware, it is not to your benefit nor in your best interest to accept it at that time. If you do, your potential injury case, if you had one, will be concluded because in return for the money you will be required to sign a release, releasing the at-fault party, which is the insurance company’s insured and the insurance company itself, from any further injury claims as it relates to that accident. In other words, you will have entered into an enforceable contract with them. A very smart tactic on their part!
Now, don’t get us wrong, the money they offer you, the injured party, may have been fair once you determine the extent of your injuries, what treatment you’re going to need, whether those injuries are going to fully heal, and the out-of-pocket expense to you for the medical care you receive. However, only the passing of time and the investigation and treatment of your injuries will give you the information needed to weigh that offer against your medical condition to determine the fairness of it.
Sarah and I advise our clients to wait until they know the value of their case before agreeing to a settlement with the insurance company, because you don’t have a crystal ball, and thus the majority of the time, the early settlement of the claim only benefits the insurance company and their insured, Not You!
We have met with people who we could not help because they had taken a minimal early offer from the insurance company before our involvement and thus, had entered into an enforceable contract of settlement, to later find that their injuries and treatment were more significant than they originally thought and the money accepted was not even enough to pay their out-of-pocket medical bills.
So, beware of the wolf in sheep’s clothing, as the Devil is in the Details! If the money offered by the insurance company early on ends up being fair once you have finished your course of care, then it should still be there for the taking at the end.
Our recommendation is to call us if you have any questions concerning an early offer made to you by the insurance company, as it could make a big difference in the outcome of your claim. We will be honest and frank with you!
Chuck and Sarah
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