Should I Accept the Insurance Company’s First Offer After an Accident?

When you get injured in an accident and file an insurance claim, the insurance company’s first offer may look very tempting. This means that the insurance company has accepted responsibility; and, if you accept the offer, you will be able to put the accident behind you. 

Right?

Not necessarily. When you have an insurance claim, you need to be very careful about deciding when (and if) to accept a settlement. While it might be okay for you to accept the insurance company’s first offer, there is also a good chance that more money—and potentially much more money—is on the table. 

5 Factors to Consider Before You Accept the Insurance Company’s First Offer 

With this in mind, there are several important factors to consider before you accept an insurance settlement for your car, truck, or motorcycle accident. Some examples of these factors include: 

1. Is the Insurance Company Claiming You Were Partially At Fault? 

One of the first factors to consider is whether the insurance company is claiming that you were partially at fault in the accident. Under Arkansas law, being partially at fault can reduce the amount you are entitled to recover, and the insurance companies routinely use allegations of partial fault to try to mitigate their liability. 

If the insurance company is improperly alleging that you were partially at fault, then accepting the insurance company’s first offer could mean settling for far less than you deserve. 

Determining whether you were partially at fault requires a comprehensive assessment of the facts under Arkansas law. To make sure you receive a comprehensive assessment with your best interests in mind, you will want to discuss your accident with an experienced attorney as soon as possible. 

2. What Losses Does the Insurance Company’s Offer Cover?

Another key factor to consider when weighing the insurance company’s first offer is the specific losses that the insurance company’s offer covers. If you were injured in an accident that was someone else’s fault, you may be entitled to compensation for your:

• Vehicle repair or replacement costs
• Medical expenses 
• Lost earnings
• Pain, suffering, and emotional trauma
• Other financial and non-financial losses

The only way for the insurance company to learn about many of these losses is to obtain the relevant information from you. As a result, if you have not provided clear evidence of all of the losses you are entitled to recover, then the insurance company’s first offer almost certainly does not represent the full value of your claim. 

3. How Much Money Will You Need to Cover Your Financial Losses Long-Term?

Beyond simply knowing what types of losses you are entitled to recover, you also need to know how much you are entitled to recover in each category. If you don’t know how much you are entitled to recover, then you can’t make an informed decision about settlement. 

How much money will you need to cover your medical expenses in the future? How long will you be out of work? What other losses do you need to make sure your insurance settlement covers? If you don’t know the answers to these types of questions, accepting the insurance company’s first offer could prove to be a very costly mistake. 

4. What Constitutes “Just Compensation” for Your Non-Financial Losses? 

The same is true regarding your non-financial losses. Do you know what constitutes “just compensation” for your pain and suffering? The insurance company most likely isn’t factoring these losses into its offer; and, if it is, it certainly isn’t going to do so with your best interests in mind. Here too, if you haven’t worked with a lawyer to accurately calculate the value of your claim, you will want to talk to a lawyer before making any decisions. 

5. What Are Your Chances of Recovering More if You Reject the Insurance Company’s First Offer? 

When you hire a lawyer to represent you, your lawyer will be able to help you determine your chances of recovering more if you reject the insurance company’s first offer. Ultimately, this is the most important factor you need to consider. If fighting for more is likely to significantly increase the amount you take home, then rejecting the offer might be the right choice for you and your family.  

Discuss Your Insurance Offer with an Experienced Accident Lawyer in Rogers, AR

Just because they have offered a settlement, it is not necessarily in your best interest to accept the insurance company’s first offer without seeking the guidance of an experienced attorney. At Oliver Law Firm, we know that insurance companies are in the business of making profits, not payments. Insurers notoriously do everything possible to delay, devalue, and deny claims of the wrongfully injured. We have spent our careers fighting insurance companies and protecting the rights and best interests of our clients. We may be able to help you, too.

Contact Oliver Law Firm today online or at 479-202-5200 for a FREE case evaluation. We serve clients throughout Arkansas and throughout the United States from our office in Rogers, AR.