Initial Offers From Insurance Companies: What You Need To Know
Posted on: 31 July 2019
An injury due to negligence of another person or party is upsetting and frustrating. While you have to deal with the pain of physical injuries, you also have to contend with insurance companies to receive adequate compensation. In some cases, an insurance company may offer you a lower amount to settle your case than what you need. In this case, you will need an attorney to help you receive a higher payout. Here are some things to keep in mind.
Why Would an Insurer Offer a Lower Amount?
An insurance agency is a for-profit business. Like in any other business, they want to save as much money as possible. Some accident victims accept an initial low offer without realizing they can negotiate a higher settlement. The insurance company wants you to be happy with a settlement, but also save enough money on claims to meet their profit goals for the year.
When you are working with an insurance company, you should fully understand your rights as an injured party. If you think the initial offer from the insurance company is too low to meet your needs, you can request a different amount. If the insurance company does not want to budge on your initial settlement offer, you need your attorney to step in and handle the negotiation.
Why Should You Be Careful When Speaking to Insurers?
When it comes to your initial settlement offer, you should be careful if and when an insurance company contacts you after the accident. You do not need to go into great detail about the accident, your injuries, and anything else pertaining to your claim.
The reason for this is because anything you say to the insurer about your claim can essentially lock you into a lower settlement. If you give away too many details, you leave yourself no room to negotiate. Plus, you may not have all the answers yourself. Your condition may be more severe than you realize, leaving you with a need for more money than you originally realized. You may also have higher repair rates for any property damage as a result of the accident.
If you are contacted by an insurance company, it is best practice to refer the call to your lawyer. However, if you do choose to speak to the insurer, you should stick to the facts. Tell them an accident occurred, you were injured, and you are requesting compensation. If you are too detailed, the insurance company will only provide you an offer based on your statement, making it difficult to go back and negotiate a higher settlement after the fact. For more information, reach out to injury lawyer referral services in your area.
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