Insurance Company Initial Settlement Offer – Accept or Decline?

initial settlement offer insurance company insurance

You may think insurance provides a safety net for you, whether it is yours or someone else’s. It is there to offer peace of mind should you have an accident that seriously injures you. So, when an insurance company comes calling with their initial settlement offer, you may trust that it will compensate you fairly.

But that would be flawed thinking. The reality: you should not accept an insurance company’s initial settlement offer without first obtaining the advice of a personal injury lawyer.


4 Reasons to Question An Initial Settlement Offer

Insurance companies are a for-profit business, meaning they want to make money. This is done by paying out the least amount of money for claims as possible. The insurance adjuster, who is investigating your claim and determining the value of your injuries, works for these guys. Bottom line, insurance companies and their representatives are not usually your ally.

insurance company insurance claims initial settlement offer

An initial settlement offer may not be as “good” as it seems.

Your injuries may be worse than you (or the insurance company) know. If you have been seriously injured, it can take months to determine the entirety of your injuries and the treatments that will be needed now and in the future. Suffering complications not anticipated during recovery can prolong it. Accepting an initial settlement offer can mean expensive future treatments are not covered by what you receive.

Pain and suffering has not likely been considered. The insurer wants to pay the minimum amount that will cover your basic expenses so it is not likely the offer includes anything for pain and suffering or mental and emotional trauma caused by the accident.

Insurance companies tend to give you a “lowball” offer. You may be (and probably are) entitled to more money than what they offer. Best advice: do not rely on an insurance company’s calculation of the cost of your injuries, especially when you do not have the full calculation of your costs yet.

Your best course of action is working with an experienced personal injury attorney to determine the extent of your injuries, the cost of medical care needed and the value of your pain and suffering.




Have you received an initial settlement offer?

Many accident victims accept that first offer because they:

  • Do not know any better
  • Did not know they could get more or how
  • Were tempted by a quick settlement

When you have been in an accident you want an experienced personal injury attorney, someone who will help you make well-informed decisions, who will shoulder the burden and allow you to focus on recovery.

Obtaining experienced legal counsel is the best way to ensure you receive the compensation you deserve. Once you agree to a settlement offer, whether you have the compensation you need or not, there is typically no going back – a very important reason to contact an attorney immediately and take advantage of that free consultation.

Questions? Call us at (877) 284-6600, Chat Online or use our Text Us widget.


If you or a loved one has been seriously injured in a motor vehicle accident, a slip and fall, or some other accident in which you suffered serious injuries due to another’s negligence, contact Nash & Franciskato at (877) 284-6600. We have a successful track record of helping accident victims collect the compensation they deserve.

One of our experienced staff will speak with you personally and will provide you with a free, no-obligation review of your case.

Having an attorney who is your advocate can offer you peace of mind during your recovery.



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