If you have been in an accident and are in an insurance company negotiation, it is important to remember one thing: It is in the interest of the insurance company to settle the legal dispute quickly and as inexpensively as possible. Insurance companies make profits when their intake of premiums each month is much greater than what they pay in settlements.
Thus, accepting the first settlement offer from the insurance company is often a bad idea. This is doubly the case if the settlement involves reimbursement for pain and suffering and serious injury. Rather than taking the first settlement offer, you usually are better served by seeking advice from a personal injury attorney who has ample experience in insurance settlements.
Insurance companies are really looking out for their own financial interests above everything else. A first offer might look good if you are inexperienced in insurance negotiations. After all, it may appear to pay for your medical costs, damage to property etc. But in a serious personal injury case, you could be faced with weeks or even months of costs and pain and suffering.
For instance, a personal injury may prevent you from working full time for months at a time. Also, travel costs to a physical therapy center can mount up as the weeks go by. Making these appointments will affect your ability to earn a living. Did the insurance settlement cover these extra costs? Often this is not the case.
Rather than jumping at the first settlement offer, a better alternative is to obtain a true estimate of the costs of your injury. This could mean you wait until all medical treatments have been completed and there are no future medical or other expenditures. Run the numbers and determine what the true cost is of the injury and see what the insurance company offered you. If there is a big gap, it is advised to get a second opinion from an attorney.