Should You Take an Insurance Company’s First Offer?

The primary goal of any insurance company is to minimize their costs and protect their bottom line. They are for-profit companies with shareholders and a bottom line. Therefore their first offer will not be in your best interest—this is just basic negotiation tactics. In order to be taken seriously by an insurance company and truly get paid out for the value of your claim, you need a New Orleans personal injury attorney in your corner. Without a lawyer on your side, research shows you will be less likely to get a settlement, and, if you do get one, it will be significantly lower.

The Risks of Accepting an Early Settlement Offer

Insurance companies offer early settlement offers to minimize their financial liability and take advantage of vulnerable individuals. While accepting an early settlement offer may be tempting, it is highly unlikely to be enough to cover the full cost of your injuries and losses. Consider the potential long-term consequences before making a decision. Once you accept an offer, your case is closed, and you cannot pursue additional compensation.

Furthermore, know that rejecting an insurer’s initial settlement offer does not forfeit your right to claim compensation. In fact, it can open the door for negotiations, which is good. By presenting a counteroffer, you signal to the insurance company that you are not willing to accept less than what you deserve. This can lead to a back-and-forth process, which is best handled by an experienced, knowledgeable, savvy New Orleans personal injury lawyer who can advocate for your rights, knows which of the insurance company’s buttons to push, and will protect your interests.

Moreover, insurance adjusters are trained to undervalue claimants’ losses and make early lowball offers. They often try to trick you into giving recorded statements that they intend to use against you later in the claims process. Remember all they do all day long is try to pay claimants the least amount possible.

Factors to Consider in Evaluating a Settlement Offer

To determine if a settlement offer is fair, several factors need to be evaluated. These include the type and severity of your injuries, your financial losses, and any potential defense based on contributory negligence. As New Orleans personal injury lawyers, we always advise our clients to avoid accepting a settlement offer until they have fully recovered or received a firm medical prognosis. This ensures that you have a clear understanding of the extent of your injuries and the potential long-term impact on your life.

Additionally, here are five tips to help you negotiate a reasonable settlement:

• Gather all necessary documents: This includes photos, witness statements, police reports, medical records, and bills. Having a strong case with supporting evidence will give you leverage.
• Know the worth of your claim: A well-informed attorney can assess the true worth of your case based on factors such as medical expenses, lost wages, pain and suffering, and future medical needs. Armed with this knowledge, you’ll be in a better position to negotiate for the settlement you deserve.
• Keep a record of all communication: Document every interaction you have with the insurance company. Keep a record of phone conversations, emails, and letters exchanged. A clear and organized record of the negotiations can serve as evidence if there are any disputes later on.

How a New Orleans Personal Injury Attorney Can Help

If you receive a low settlement offer (and you will because it is their policy) or feel treated unfairly by an insurance adjuster, you have nothing to lose by reaching out to a New Orleans personal injury attorney. We can assist you in calculating the true value of your claim, negotiate with the insurance company on your behalf, and ensure that you are not taken advantage of. Insurance companies are not on your side and will try to settle for as little money as possible. Having a knowledgeable and experienced attorney in your corner can make a significant difference in the outcome of your case.

Calculating Damages and Demanding Fair Compensation

Before accepting a settlement offer, you need a complete understanding of the value of your losses. This includes calculating both economic and non-economic damages such as medical expenses, lost wages, pain and suffering, and future costs for any on-going medical needs. A diligent New Orleans personal injury attorney can accurately calculate your damages, demand fair compensation, and negotiate with the insurance company on your behalf. We work on a contingency basis, meaning we only charge a percentage of the settlement we recover for you. You do not have to worry about upfront legal fees while pursuing the financial compensation you are legally entitled to.

In some cases, it may be necessary to sue the at-fault person if the insurance company denies your claim or does not offer a fair settlement. Again, you’d want to take that step with a lawyer. Lawsuits are time-consuming and costly, so we do try to settle whenever possible. According to the Bureau of Justice Statistics: 

• The average medical malpractice lawsuit lasts 31 months
• The average tort lawsuit lasts 23 months
• The average intentional tort lawsuit lasts 25 months
• The average premises liability lawsuit lasts 24 months
• The average car accident lawsuit lasts 20 months

Nevertheless, we can guide you through each step of the process, protect your rights, and fight for the compensation you deserve. A study from Nolo found that 70% of those who negotiated for a better settlement ended up with $30,700 more than those who accepted the insurance company’s first offer. They also found that victims who had personal injury lawyers got payouts about three times higher than those without lawyers. Don’t settle for less—let Egenberg Trial Lawyers help you get the maximum compensation possible.

Your Trusted New Orleans Personal Injury Lawyer

If you have been injured because of someone else’s carelessness, expect a lowball settlement offer, then lawyer up with the best! The detail-oriented, eager, and accomplished New Orleans personal injury attorneys at Egenberg Trial Lawyers are passionate about getting injured parties the financial compensation they are legally entitled to. To set up a time to have one of our lawyers answer your questions free of charge, contact our office today.