If you sustain a severe personal injury as a result of a car accident, a defective product or any other neglectful act from another party, the aftermath can be life-changing for you. Pursuing financial compensation through an injury or liability claim can be your first step toward a return to normalcy.
When the insurance company offers you a settlement for your claim, however, it is important to think twice before accepting right away. Though you might wish to take the money and put the incident behind you, there are risks when it comes to accepting the initial settlement after an injury.
The insurance company might be lowballing you
It can be a red flag when an insurer offers you a settlement for your claim very quickly after an accident, particularly if it is before a medical professional has a chance to evaluate your injury. The settlement you receive should at least cover your medical expenses, and anything less might be an attempt to lowball you. Knowing how to read and understand your insurance policy will help you recognize the signs that your insurance company might be in violation of your agreement.
You can pursue a more favorable settlement
If you and your legal team come to the conclusion that the insurance company is offering you an unfair settlement, then you have the right to pursue more favorable compensation through legal action. You might even choose to take the matter to court if your insurer refuses to offer the amount you deserve as per your insurance policy.
Accepting the first settlement offer from your insurance company allows you to quickly move on from a potentially traumatic period of your life. The risk, however, is that you might be missing out on the full amount of compensation you deserve.