Following a serious car accident, it is perfectly normal to feel confused and overwhelmed. You are trying to handle the pressure of paying your medical bills, the pain of your injuries, and the apprehension of what you are supposed to do next in terms of collecting financial compensation. Unfortunately, a common misstep in personal injury cases is agreeing to an early settlement offer from the insurer without fully understanding its implications. Although it may seem like a good idea at first, this choice is often accompanied by adverse and long-lasting consequences. The National Association of Insurance Commissioners warns that early settlement offers are often made before the full extent of your injuries and damages is known, which can lead to undercompensation.
The insurance adjuster’s job is to save their employer as much money as they can, which means they are not going to make you a fair offer. The Norfolk car accident lawyers at Shapiro, Washburn & Sharp can make sure that the insurance company does not push you into making an uninformed and hasty decision. We will review your case, determine the value of your losses, and help you assess whether the settlement offer you received is fair. Call us today to schedule a free case review.
What Is the Insurance Company’s Strategy and How Does It Affect Your Claim?
After being injured in a Virginia Beach car accident, the at-fault driver’s insurer will reach out to you fairly quickly about your potential accident claim. They will show concern for your health and well-being and make you a settlement offer that meets your immediate expenses. However, it is important for you to understand that the adjuster’s goal is not to help you; it’s to reduce their company’s financial liability.
Insurance companies are for-profit businesses. Their adjusters are trained to settle claims for the smallest amount possible. When they offer you a quick, lowball settlement, they are hoping to close your claim before you understand the full extent and severity of your injuries and the long-term expenses related to your recovery. This tactic is particularly effective if the victim is unaware of their rights or if they are under a great deal of stress and pain.
What is Maximum Medical Improvement?
One of the most crucial reasons not to settle too quickly is the concept of Maximum Medical Improvement. MMI is vital when it comes to properly assessing your medical costs as well as your pain and suffering damages. MMI is the point where your medical condition has pretty much leveled off, and your doctors don’t expect you to improve much more, even if you keep getting treatment.
Before MMI is reached, it isn’t possible to accurately assess the full degree of your accident-related injuries and, by extension, the true value of your injury claim. For instance, an injury that initially seems minor could gradually grow into a more serious condition, potentially even one that requires surgery or ongoing medical treatments.
If you accept a settlement offer before you reach Maximum Medical Improvement, you could end up without enough money to pay for future medical care, time away from work, and other lasting effects related to your accident.
What is Virginia’s Three-Day Rule?
There is a statute in Virginia that offers a small safety net for victims who have agreed to a settlement offer in the absence of legal representation. According to state law, if a victim accepts the settlement offer and signs a waiver, they have three days to revoke the agreement. To do so, however, the settlement money must be repaid in full.
If the insurance company’s settlement offer is inadequate, you will most likely need to file a lawsuit to pursue full and fair financial compensation. While this law provides a small degree of protection, it does not ensure full security.
This three-day window, while helpful, is not a lot of time. If you’re trying to manage injuries, pain, and other complications, you may not have the ability or clarity to take action within that window. Also, getting the funds together to return the settlement money can be difficult, as most victims will have already spent some on urgent expenses.
When Should I Consider Accepting a Car Accident Settlement?
Although it’s usually best to wait until you’ve reached Maximum Medical Improvement before you settle your claim, there are some circumstances where settling earlier is a more reasonable option.
For example, if you are in financial dire straits and need money right away, your Virginia Beach car accident lawyer can advise you on viable alternatives that do not include consenting to a low-ball settlement offer. If, however, you are confident the offer reflects a typical settlement and sufficiently covers all your damages, it could be worth considering.
Even in these types of cases, it is essential to speak with an experienced lawyer before you make a decision. A skilled attorney will be able to help you consider the pros and cons of approving a settlement offer and ensure that you are not trading long-term security for a quick fix.
What Tactics Are Commonly Used by Insurance Companies?
Knowing how insurance companies operate can help you avoid being shortchanged in a car accident settlement.
Tactics commonly used by insurance companies to lower your settlement include:
- Pressure to Settle Right Away: The insurance adjuster will attempt to persuade you that settling your claim as quickly as possible is in your best interest. They understand that your injuries will probably worsen, and they want you to accept their offer before you realize it as well.
- Lowball Offers: Insurers often make a lowball opening offer in the hopes that you will accept before your claim’s full value is realized.
- Weaponizing Recorded Statements: If you give a recorded statement, the insurance company might use it against you in an effort to pay you less.
- Deceptive Statements: Most insurance adjusters will tell you that you do not need to work with a lawyer or that their legal fees will significantly reduce your overall settlement.
- Downplaying Your Injuries: Insurance companies love to imply that your injuries are not as serious as you are making them out to be. They may also question whether your medical treatments were truly necessary.
By understanding and being aware of these underhanded insurance company tactics, you can protect yourself and your right to financial compensation.
All We Do Is Injury Law
If you suspect the settlement offer you received is unfair, or if you have hit a wall working with your insurance company, speak with a trusted Virginia Beach car accident lawyer from Shapiro, Washburn & Sharp as soon as possible. We will review the circumstances of your accident and advise you on whether the settlement offer fairly acknowledges your losses. That is what we did in one recent case when we achieved a $150,000 jury verdict for a client whose insurer refused to compensate him equitably for a pre-existing medical condition that was severely aggravated by a reckless driver.
To schedule a free case review with a Virginia Beach car accident lawyer from our firm, call (833) 997-1774 or fill out our short online contact form. Our offices are located in Virginia Beach, Norfolk, Hampton, and Portsmouth.
