how to accept an insurance settlement offer

6 Tips for Getting the Best Possible Settlement Offer from an Insurance Adjuster.

• Hire an attorney. The most important thing you can do to ensure you receive a fair settlement offer from an insurance company is hire an attorney who ...
• Provide your attorney with extensive documentation and evidence. The more evidence your attorney is able to present to the insurance adjuster with ...
• Seek care for emotional distress. If you are seeking insurance settlement compensation for emotional distress, you need to have quantifiable proof of ...
• Make the adjuster justify the offer. Insurance companies will commonly low-ball you with their settlement offer because, as we previously mentioned, ...

Full Answer

Should you accept a settlement offer from an insurer?

When it comes to settlement offers from an insurance company, you should only accept the right offer. Settling the case puts money into your bank account faster than going to trial. You also avoid the risk of getting an unfavorable verdict from a jury. But what makes an offer fair? An offer should fairly compensate you for your damages.

How to counter offer an insurance settlement?

How to Counter-Offer an Insurance Settlement. From the standpoint of procedure, you will need to make a counter-offer in writing. Be sure you send your letter to the appropriate person, whether that be an insurance adjuster or an attorney. Make it clear that you are rejecting their initial offer and include your reasons for doing so.

What to know before signing an insurance settlement?

Before you sign a car insurance settlement agreement, keep the following things in mind: Know the value of your claim: Before you agree to receive insurance money after a car accident, you will need to be confident that the insurance money satisfies the value of your claim. Include in your calculations your medical bills, property damage, lost ...

Should you accept a settlement offer?

You can accept the settlement offer and pay the settlement account in full. This is the easiest and fastest way to deal with the debt, assuming you’ve received a legitimate settlement offer.

Is it good to accept a settlement offer?

It is not in your best interest to accept a settlement offer without speaking with an attorney. The initial settlement offer from the insurance company is probably not fair. The offer may be much lower than the value of your damages. If the insurance company sends you a check, do not cash the check.

How do you respond to a settlement offer?

Steps to Respond to a Low Settlement OfferRemain Calm and Analyze Your Offer. Just like anything in life, it's never a good idea to respond emotionally after receiving a low offer. ... Ask Questions. ... Present the Facts. ... Develop a Counteroffer. ... Respond in Writing.

What does it mean when an insurance company offers a settlement?

Insurance companies often issue quick settlement offers to victims that are not represented by an attorney. The company hopes that the victim accepts the settlement offer before the victim understands how much the personal injury claim is worth. Once you agree to the settlement, you cannot go back for more money.

Is an insurance settlement negotiable?

Even if the offer seems reasonable at first glance, you should always negotiate. After you research the value of your car, come up with a number that you feel is fair for a settlement. It should be the absolute minimum you are willing to accept.

Should you accept the first offer of compensation?

Unless you have taken independent legal advice on the whole value of your claim, you should not accept a first offer from an insurance company.

How do you decline a low settlement offer?

Always reject a settlement offer in writing. Type a letter to your contact at the insurance company listing the reasons you think that their offer is too low. Back up these reasons with concrete evidence attached to the letter. Finally, provide a counteroffer of a sum you think is more reasonable.

Do insurance companies like to settle?

People often ask us, as attorneys, if insurance companies want to settle cases out of court and the answer is always yes. Much like plaintiffs, insurance companies don't want to spend the time and money involved in going through a trial if there is a chance they can come to a settlement agreement with the plaintiff.

How do you ask for more money in a settlement?

Send a Detailed Demand Letter to the Insurance Company Because the insurance company will likely reply with an offer for an amount lower than what you've asked for in the demand letter, you should ask for between 25 and 100 percent more than what you would be willing to settle for.

Do insurance companies want to settle quickly?

Insurance companies want to settle cases right away, because they don't want you to have an opportunity to speak to a personal injury lawyer. If an insurance company is offering you any money, it is always advisable that you at least have a consultation with an attorney.

What should you not say to an insurance adjuster?

Never say that you are sorry or admit any kind of fault. Remember that a claims adjuster is looking for reasons to reduce the liability of an insurance company, and any admission of negligence can seriously compromise a claim.

Can you negotiate total loss value?

A vehicle is legally considered a total loss if the cost of repairs and supplemental claims equal or exceed 75% of the fair market value – which, again, can typically be negotiated. If your car is a total loss, and the insurance carrier accepts liability, they are required to pay fair market value for the vehicle.

What happens if insurance doesn't pay enough?

Most insurance companies will do anything to increase their profits. When the vehicle insurance company refuses to pay, you may need to threaten them with something that will put their profits at risk. To do this effectively and in the right way you require an insurance lawyer.

What percentage should I offer to settle debt?

When you're negotiating with a creditor, try to settle your debt for 50% or less, which is a realistic goal based on creditors' history with debt settlement. If you owe $3,000, shoot for a settlement of up to $1,500.

What is a Rule 49 offer to settle?

Rule 49 is a self-contained scheme containing cost incentives and penalties designed to encourage litigants to make and accept reasonable offers to settle. [3] An “offer to settle” is the term used for a written offer made by one party to another party to resolve one or more claims in a proceeding.

How do you counter offer a settlement letter?

Countering a Low Insurance Settlement OfferState that the offer you received is unacceptable.Refute any statements in the adjustor's letter that are inaccurate and damaging to your claim.Re-state an acceptable figure.Explain why your counteroffer is appropriate, including the reasons behind your general damages demands.More items...•

What happens if you pay a settlement offer?

As long as your creditors accept your offer – i.e. agree to sum of money in the settlement offer – they will accept partial settlement of your debt in exchange for writing off the remaining amount you owe. If the settlement offer is big enough, the money will be shared equally among all of your creditors.

Should You Accept the First Offer?

Car accidents are stressful and can take up a lot of your time. With all the frustration you experience, it can be tempting to accept the first offer that’s offered by the insurance company. This is usually the wrong move.

What If You Get a Low Offer?

It’s typical for the insurance adjuster to try to get you to accept a settlement amount that’s lower than what your case is actually worth. Insurance companies don’t want to deal with injured parties and wish to resolve the matter as quickly as possible.

What Happens Next?

You are entitled to make a counteroffer to the insurance company after rejecting the first one they make. As previously mentioned, it’s wise to include that in your demand letter addressed to the insurance adjuster.

Why You Need a Lawyer

Dealing with an insurance company requires the knowledge and experience to get the best possible settlement. This is why you need a lawyer to handle things for you. You are also personally involved due to your injury, but an attorney can handle the injury claim objectively without being stressed or emotional.

What Do You Do If You Get Offered a Settlement?

There are three things that need to happen for you to be able to get a settlement and cash your check:

Why do insurance companies offer low settlements?

When medical bills, reduced paychecks, and other financial pressures start building up , it is easy to be taken advantage of by insurance companies who offer a low amount (because they know your case is worth more) in the hope that you’ll accept without hesitation. That’s why it’s crucial to contact a personal injury lawyer as soon as possible before you send in a write a demand letter.

How long does it take to get a settlement check from a car insurance company?

Once you’ve signed the release, send it back and wait 2-3 weeks for your settlement check. If it takes any longer than that, be sure to reach out to the insurance company and document your interactions.

What is Dixon Injury?

The Dixon Injury Firm helps injured victims and their families deal with insurance claims and in-court lawsuits. We also don’t charge anything for legal representation unless we win the case or claim. If you’ve injured in the Greater St. Louis area or Southern Illinois, contact the Dixon Injury Firm today for a free consultation and help to settle your insurance claim.

Can you get a settlement if you are injured?

If you or a family member are injured and have submitted a claim to the negligent party’s insurance company, a settlement offer can be a big relief. After negotiating a settlement, the insurer will likely give you a verbal confirmation over the phone. You, who may be hospitalized or otherwise stressed due to the incident, could say “Yes” to a $10,000 settlement when your claim is actually worth several times more.

Can you go back after a car accident?

The release will verify the settlement amount and make clear that you’re unable to pursue more compensation for the original accident. You can’t go back and request more if a medical condition worsens, for example. And liens or other expenses are off the table after you sign the form and cash the check.

Can insurance companies send a check with a release form?

On the other hand, some insurance companies won’t send a check until you actually send in the release.

What is a settlement offer?

Since a settlement offer is essentially a contract between the parties , you can feel free to suggest -- and agree to -- terms that might not have been available if you tried your case in court. For example, some settlement agreements require one party to make a formal apology to the other for the wrongs committed.

What does it mean to make a settlement offer?

A settlement offer during trial might mean that the other side thinks it’s going to lose and wants a more predictable way out of the situation.

How to guarantee a settlement doesn't include any terms that violate the law?

The best way to guarantee your settlement doesn’t include any terms that violate the law is to hire an attorney. Attorneys are bound by professional ethics rules and bar regulations to alert you to illegal terms and have them removed.

Why do you need a settlement?

2. Use a settlement to avoid risk. Whether you’re a plaintiff suing someone else or a defendant who’s been sued, a settlement provides the same opportunity to avoid the financial and emotional costs of litigation and create certainty in the outcome.

Why do plaintiffs prefer an open settlement agreement?

Aggrieved plaintiffs may prefer an open settlement agreement because they want the public to know about a particular injustice. Allowing a settlement’s terms to be made public also allows attorneys to adequately ascertain the value of similar cases that may arise in the future.

How many times should you read a settlement agreement?

Carefully read terms. Whether your side or the other side drafts the settlement agreement, read it several times and make sure you understand everything in it.

What to do if you don't like your chances of winning at trial?

If you don’t like your chances of winning at trial, though, a settlement may begin to look more attractive. Take the opportunity to get creative. A settlement offer allows you to craft terms that actually fit the nature of the issue and come closer to satisfying the needs of all involved.

What Is the Point of a Settlement Offer?

Before you even think about accepting, we should take a few moments to talk about what your settlement offer is designed to do.

You Need An Attorney!

It is difficult for a lawyer to give blanket advice that’s true for everyone, but in this circumstance, we can: Please discuss your case with a personal injury attorney before you accept ANY settlement offer!

A Real Life Example

Recently, one of our clients was offered $4,000 from his insurance company as compensation for a back injury. He can no longer sit on the floor to play with his kids nor spend as much time on his feet as he could before the accident.

Never Accept the First Settlement Offer!

Sure, that settlement offer may seem generous, but there are things that make your claim worth more than that…things the insurance company doesn’t want you to know. And the only way to be sure that your settlement offer is fair is to consult with an attorney.

How to receive a settlement offer?

You may receive a settlement offer in a phone call or email, which will be followed by a letter. Once you have the settlement offer letter, you have the right to make a counter demand if you find the offer unacceptable. Compare what the insurance company has offered to your record of costs and losses, and the maximum payment provided by ...

What should an insurance settlement account for?

An insurance settlement should account for all of these losses as they apply to you and your situation, up to the limits of the applicable insurance coverage.

How to prepare for an insurance company offering less than you deserve?

Prepare for the real possibility that the insurance company will offer less than you deserve by keeping a record of your costs and losses related to your accident and injury. Save copies of all bills and receipts and keep a journal of your recovery.

What to do if your insurance is disputed?

You could benefit from the assistance of an experienced personal injury lawyer if your insurance claim is disputed after an accident. Sometimes, just a letter on a law firm’s letterhead helps an insurance company get more serious about responding to a claim.

How do claims adjusters follow up on a claim?

A claims adjuster should follow up on your claim by contacting you and investigating your case. The investigation may include reviewing your medical records, obtaining vehicle repair estimates, reviewing police accident reports, interviewing you and reviewing your initial claim documents.

What to do if insurance company is using delay tactics?

You must also consider how slowly negotiations are going.If the insurance company is using delay tactics, you will need to keep in mind the statute of limitations for filing a personal injury lawsuit. You do not want to let the time limit expire.

What to do after an accident?

After suffering an injury in an accident, you may be able to turn to insurance for coverage of medical costs and other losses. You might file a claim under a policy you hold (e.g., auto collision insurance, homeowners’ insurance, health insurance) or through another person’s liability insurance if he or she was at fault.

The First Settlement Offer from an Insurance Company

It is important to note that when an insurance company offers a settlement, the first offer is not cast in stone but typically no more than an attempt by the insurance company to settle quickly and cheaply. Victims should remember that insurance companies work in their own best interests and will try to preserve their profits.

Negotiating with the Insurance Company

Once an insurance company offers a settlement and you or your attorney provided a counter-offer, the negotiation phase begins. This is where things can become challenging and complex, resulting in many phone calls and letters going back and forth between you and the insurance company.

Mistakes to Avoid When Negotiating with Insurance Companies

Knowing how to negotiate when an insurance company offers a settlement in a way that does not compromise your legal rights can be difficult. However, there are some mistakes you should avoid at all costs as they can have an impact on your final settlement figure.

Giving a Recorded Statement

Insurances often use manipulative tricks and tactics designed to try and trip up accident victims. A recorded statement can provide the insurance company with ammunition that they may try to use against you in an effort to minimize your settlement offer.

Thinking You Do Not Need Legal Advice

Individuals who only suffered minor injuries and property damage can sometimes recover adequate compensation from their own insurer without too much struggle. However, those who have significant medical bills and other losses should consider seeking legal assistance promptly.

Consider Visiting With Our Experienced Attorneys Regarding Your Insurance Company Settlement

Consider visiting with an attorney to learn more about your possible legal protections, especially if the insurance company has already offered you a settlement and you are unsure whether to accept. Accepting a first settlement offer can be a mistake as it may not cover all your damages in the future.

What Happens If I Reject a Settlement Offer?

Some people might immediately accept the first offer because they fear that rejecting it could mean the end of their claim and they will lose out on receiving any compensation at all. However, it is unlikely that declining the initial settlement will stop everything.

How Much Should I Expect from a Settlement Agreement?

The compensation you receive after an accident is important, as you need it to pay your medical expenses, make up for any lost wages, and help you get back on your feet. That said, it is difficult to say how much you should expect to receive. Every case is different, and amounts cannot be based on what someone else got in the past.

What to do if a settlement offer doesn't feel fair?

If a settlement offer doesn’t feel fair, make a counter-offer. Show evidence that backs up your counter-offer, including:

What is the compensation you accept in a settlement agreement?

The compensation you accept in a settlement agreement is all that you will receive. Therefore, it is imperative that you know whether and how your injuries will affect your future employability, mobility, health and enjoyment of life.

Why is speedy settlement bad?

One of the biggest problems with speedy settlements is that some car accident injuries take time to show up or be properly diagnosed. Our bodies are complex systems and the full impact of injuries may not be apparent for weeks, months, or longer. For example, traumatic injuries like a shoulder dislocation or a broken bone can lead to post-traumatic arthritis. Head and spine injuries are also likely to have long-lasting negative effects and take time to develop.

What happens if a driver is found to be 80% responsible for an accident?

So, if a driver is found 80% responsible for the accident, he must pay for 80% of the damages the accident caused . For cases that go to trial, the jury hears all the evidence and then allocates percentage of fault. If a driver runs into your car while texting, you would say that driver caused the accident.

What is a good settlement for a car accident?

A good car accident settlement will compensate you for all your current and future expenses and damages, including: Replacement services for household tasks you perform (like cooking, cleaning, yard work, shopping, child care) Insurance companies want to close your case as quickly and cheaply as possible.

What to do after a car accident?

After the trauma of being in a car accident, it’s natural to want life to return to normal as quickly as possible. You want to regain your health, get your car fixed, and get back to work. So a quick car accident settlement with the insurance company can sound very inviting. Resolving your claim and getting cash quickly can take a big item ...

What happens if an insurance company offers a second offer?

If the insurance company’s second, third or even sixth offer does not feel fair, you still don’t need to accept it. It is an offer, not a demand. If you are not presented with a just offer, you can take the case to trial.