Protecting Yourself from Low-Value Insurance Settlements After an Accident

The aftermath of a car accident can be stressful and confusing for people. Accident victims are often left with high medical bills and may want any support that they can get. It is during this time that many insurance companies swoop in and offer quick, low-value settlements before people are able to consult with legal counsel. Accident victims should understand what is going on in these situations. Insurance companies are looking to settle claims for as little as possible and simultaneously prevent victims from pursuing better deals at a later date.

Understanding the Tactics of Insurance Companies

Insurance companies are for-profit businesses. They make their profit by denying claims altogether. When they are unable to deny claims, a related strategy that they engage in is to minimize payouts by offering quick settlements. It is common for accident victims to be called by insurance providers with settlement offers. In many cases, they may try to have you say that your injuries aren’t particularly severe.

Make no mistake, these operatives are well-trained and will try to get you to undermine your own case on a recorded line. They may use pressure tactics in order to get victims to accept initial offers. This could include implying that their offer is the only one available or the best offer. It is common for them to act as though they are working on your behalf, but the exact opposite is actually the case. Financially, their incentives are in opposite alignment to your own.

An Example of Predatory Tactics by Insurance Providers

Many people are not feeling well enough after an accident to fully understand the type of contract that they are agreeing to. They may have complications down the road and require additional medical procedures. But they could be barred from pursuing additional compensation after inadvertently settling a claim. Consider, for example, the following claim that our office reviewed.

A woman living in Orange, California was contacted by State Farm so that they could settle an injury claim. She was involved in a car accident at 7:45 a.m. on February 27. That very same day at 2:37 p.m., she was on a recorded line with a State Farm claims specialist. In just a few hours after being injured, this woman was already being pursued by this insurance employee.

The entire purpose of the call was to release the defendant from all claims for damages, both “known and unknown.” State Farm offered a paltry $1,057 and a “promise” of payment not exceeding $3,000 for all damages related to the accident. This includes bills for medical expenses, ambulance rides, surgeries, hospital stays, lost wages, and pain and suffering.

The truth of the matter is that $3,000 would hardly cover even an emergency room visit, let alone everything else related to a serious collision. To seal the deal on this horrible arrangement, the claims specialist made sure that this unsuspecting victim agreed to waive her rights to unknown claims, as outlined under Section 1542 of the Civil Code of the State of California.

Most people who are uninjured and thinking clearly would have a difficult time understanding the legal ramifications of agreeing to an early settlement offer like this. Insurance providers are committed to doing everything in their power to avoid paying out a fair settlement. This example is just one of many. It highlights how important it is to seek legal counsel early on before even speaking with an insurance provider.

Risks Associated with Accepting Settlement Offers Without Legal Advice

It can be tempting to accept a settlement offer early on after an accident. But the truth of the matter is that these offers can be risky and may have major unforeseen implications.

Impaired Judgement: Car accidents can leave victims in a state of shock and trauma that impairs their ability to make informed decisions about the future. It is a well-understood psychological principle that it is best to avoid decisions during periods of serious grief, trauma, or injury. Most people simply aren’t well enough during these difficult periods to make clear-headed decisions. Predatory insurance providers take advantage of the fact that accident victims are not feeling well in order to cajole them into making poor financial decisions.
Underestimating Medical Costs: The full extent of a person’s injuries after an accident may not be immediately obvious. Initial injuries could seem minor, but they may have major health implications that require long-term treatments. This is particularly true with respect to any damage to a person’s spinal cord or brain. Initial settlement offers rarely take into consideration all of the health complications that you could experience at a later date.
Not Taking Into Consideration Non-Economic Damages: Quick settlement offers virtually never take into consideration all of the ways that a person has been harmed outside of financial damages and medical costs. The pain and suffering, emotional distress, and impaired quality of life that accident victims may go through should all be taken into consideration.
Finality of Settlement: Once you accept the terms of any settlement offer, it will typically be impossible to seek additional compensation. This is true, even if additional medical costs or other complications arise. If you need an additional surgery or more rehabilitation, you will simply be out of luck.

Accident victims should always consult with legal counsel before accepting any offer. There’s absolutely no cost to have an attorney evaluate your claim and let you know if you could receive more compensation than the offer an insurance provider is currently putting forward.

The Role of a Personal Injury Lawyer

Personal injury attorneys play an important role in the aftermath of a car accident. Here are just some of the steps that they can take in order to help protect your medical and financial well-being.

Expert Evaluation: Personal injury attorneys can accurately assess the full value of your claim, including all current and future damages. They can take into consideration both economic and non-economic damages that you’ve suffered.
Negotiation Power: Personal injury attorneys can negotiate effectively on your behalf in order to help you achieve a fair settlement. They are well aware of the tactics that insurance providers use in order to avoid paying fair compensation.
Contingency Fee Basis: Personal injury attorneys work entirely off of a contingency fee arrangement. You don’t owe them anything upfront. Instead, they get paid by the opposing party after they are able to successfully resolve your case.

Insurance providers will often do everything that they can to put up roadblock after roadblock for accident victims. There’s a tremendous peace of mind that comes with having an attorney handle these obstacles on your behalf and fight to ensure that your best interests are actually being taken into consideration.

Steps to Take After a Car Accident

If you’ve been injured in an accident and are unsure where to begin, you should take the following steps in order to protect yourself.

Medical Evaluation: Car accidents typically leave victims filled with adrenaline that can easily mask the severity of a person’s injuries. It is important for accident victims to seek a thorough medical evaluation, even if their injuries seem minor at the moment.
Document Everything: Keep detailed records of everything related to the accident. This will include all of the medical care that you’ve received and expenses related to your injury. It is also a good idea to keep any records of communications you have with insurance providers.
Consult an Attorney Before Accepting Offers: Before you agree to any settlement offers from an insurance provider, it is always important to seek legal advice from an experienced personal injury attorney. They can help you know if the offer on the table is fair and comprehensive.

There is no risk in having an attorney evaluate your claim. By contrast, there are tremendous risks with failing to seek legal counsel. As mentioned previously, accepting early settlement offers can foreclose the possibility of being fairly compensated if new expenses arise down the road.

Getting Legal Help After a Settlement Offer

There is simply no reason to rush into accepting a settlement offer. You do have time to weigh your options. This should be done in consultation with an experienced attorney that has a proven track record of maximizing claim values. At Samer Habbas & Associates PC, our office has consistently been able to achieve some of the highest verdicts and settlements for our clients. This includes an $11 million settlement following a truck crash in Fontana, a $3.45 million settlement for a motorcycle accident in Orange County, and a $1.7 million settlement for a forklift accident in Los Angeles.

Have you or someone that you care about been injured in an accident in California? You may have legal recourse. Our team of personal injury attorneys is committed to getting accident victims fair and just compensation for everything that they’ve been through. We can evaluate any settlement offers that you receive from an insurance provider and let you know what your claim may actually be worth. There is no risk in having our attorneys evaluate your case free of cost. Whether you just have legal questions or are wondering how an attorney might be able to help with your particular situation, we are here to serve your needs. You can reach out to us anytime at 949-727-9300.