
Full Answer
Should I accept a settlement offer from an insurance company?
You do not have to accept an auto insurer’s settlement offer, let alone the first one. Insurance companies want to reduce what they pay you. They will encourage or even pressure you to accept the first offer despite this actually being a negotiation. They will not say this.
Do I have to accept the insurance company settlement?
You are never required to accept a settlement offer of any kind. Some insurance adjusters try to create a false sense of urgency, making you feel like it’s a “now or never” chance to get paid. They might even make you feel like early settlement is your only option, but that isn’t the case. You may have a number of options at your disposal.
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.
Does your case make the insurance company want to settle?
The bottom line is that an insurance company is more likely to settle when your case will cost them a lot of money in future workers’ compensation benefits and when settling now will save them money in the long run. Work With An Experienced Workers’ Compensation Attorney

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.
Why would an insurance company want to settle?
When an insurance company offers you a settlement, they are essentially acknowledging their client's fault in the accident. They want you to settle to avoid litigation or going to court. Insurance companies usually do not want to get legal help involved.
How do insurance companies negotiate cash settlements?
Let's look at how to best position your claim for success.Have a Settlement Amount in Mind. ... Do Not Jump at a First Offer. ... Get the Adjuster to Justify a Low Offer. ... Emphasize Emotional Points. ... Put the Settlement in Writing. ... More Information About Negotiating Your Personal Injury Claim.
How long does it take to negotiate a settlement?
The average settlement negotiation takes one to three months once all relevant variables are presented. However, some settlements can take much longer to resolve. By partnering with skilled legal counsel, you can speed up the negotiation process and secure compensation faster.
Why would an insurance company not want to settle?
Insurance companies are businesses. Settling a claim often means paying out more than they want to. Their goal is paying as little as possible and limiting their liability in the event of an accident. For this reason, insurers may refuse to settle because they want to try to lessen how much they pay, if anything.
Why do insurance companies take so long to settle?
Generally, the money an insurance company receives in premiums goes into investment accounts that generate interest. The insurance company retains this money until the time they pay out to a policyholder, so an insurance company may delay a payout to secure as much interest revenue as possible.
Do insurance companies try to get out of paying?
Insurance companies will seek to decrease or eliminate payments for injuries caused by an insured person's actions. After becoming injured, victims of accidents want nothing more than to move on from the traumatizing experience.
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.
How long does it take to receive compensation after accepting offer?
In some cases, insurers will process the compensation payout within a few days. In most cases, though, you will have to wait between two and four weeks to receive your compensation.
What is the usual result of a settlement?
After a case is settled, meaning that the case did not go to trial, the attorneys receive the settlement funds, prepare a final closing statement, and give the money to their clients. Once the attorney gets the settlement check, the clients will also receive their balance check.
What is the best way to negotiate a settlement?
Use positive, respectful and generous negotiating behavior to engender it in return and make it easier to influence the other side into accepting settlement proposals. Express a desire to meet the needs of the opposition so that they can repay the favor by meeting your needs.
How much should I offer in a settlement agreement?
The rough 'rule of thumb' that is generally used to determine the value of a settlement agreement (in respect of compensation for termination of employment) is two to three months' gross salary.
Should I settle my claim?
Have You Reached Your Maximum Recovery? An important part of your settlement is compensation for medical expenses, including for treatment you need in the future. You shouldn't settle a claim unless you're confident you know all your medical expenses.
Is Geico good at settling claims?
Fortunately, most GEICO claims are settled quickly and never result in a lawsuit. However, if you are sued, don't worry—just notify GEICO immediately.
How long does it take Liberty Mutual to settle a claim?
In general, it can take Liberty Mutual an average of ten weeks to respond to a demand package. After reaching a settlement, it can take anywhere from two to six weeks to receive a settlement check.
How long does it take Geico to respond to a demand letter?
In a sample of 10 cases, Erie's average time to respond to our demand letter was 86 days....How Long Does It Take the Insurance Company Take to Respond to a Demand Letter?Ins. Comp.GEICONo. Cases29Avg. (Days)52Shortest (Days)5Longest (Days)20011 more columns
Why do insurance companies settle cases outside of court?
The most important reason is that it will result in a predictable payout that they have control of. Insurance companies don't like “the unknown” and that is just what going to court will bring. While it is possible that the insurance company would win a case, it is also possible that they will be made to pay out a lot in damages.
Can you accept an offer to settle a personal injury case?
If you have been in an auto accident, or otherwise experienced a personal injury, you may be contacted by the other person or entity's insurance company with an offer to settle the case. This offer could come before you even file a personal injury suit, which can make it very tempting to take the deal. Accepting an insurance company's offer to settle the case, however, eliminates your right to pursue litigation down the road, so deciding whether to accept the offer or not requires some careful consideration.
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 Should I do When an Insurance Company Offers Me a Settlement Check?
When an insurance adjuster offers you a settlement right after your accident, you should decline it under the very reasonable assumption that it is a low-ball offer. It’s very important to understand that once you have accepted a settlement offer, you can no longer negotiate, even if you end up incurring more damages from the accident. Your acceptance is seen as a binding agreement; its case closed, so to speak.
How to get a fair settlement for a car accident?
They can assess your case and identify a fair settlement for your accident claim that will cover your out-of-pocket expenses, lost wages, and the pain and suffering you endured.
What is a demand letter for an insurance company?
Your attorney will help you write a formal response to the initial offer to notify the insurance company that you are rejecting their offer; this is called a demand letter. You will want to include a list of any false assumptions that were made by the insurance company that may have contributed to their low offer. Evidence about the accident, your injuries, and any expenses or lost wages you are dealing with should also be included in the letter.
What does an attorney do for an accident?
Your attorney has the training and experience to handle all negotiations and get you a favorable settlement for your accident. They know all the tricks used by the insurance industry and how to counteract them, which levels the playing field.
What does it feel like to have a low settlement offer?
A low settlement offer can feel like a punch in the gut. Calmly write down the amount of the offer and let the adjuster know that you are not ready to settle. The adjuster will understand this response because the initial offer is always the lowest offer the company feels they can get away with; it should be seen as a jumping off point for negotiations.
How long do you have to settle an injury claim in Washington?
In Washington State, you generally have three years from the date of the accident to bring an accident claim and that means you can wait to settle your case up until the statute of limitations expires. This gives you time to understand the full extent of your medical bills, lost wages, and the pain and suffering you will endure during your recovery.
Can you negotiate a settlement offer after an accident?
It’s very important to understand that once you have accepte d a settlement offer, you can no longer negotiate, even if you end up incurring more damages from the accident. Your acceptance is seen as a binding agreement; its case closed, so to speak.
What is an initial offer from insurance company?
It’s important to understand that the “first offers” from insurance companies usually come after a demand for a certain amount has been made by your attorney. Therefore, in most cases, what the insurance company poses as an initial offer is actually a counteroffer to the initial demand. Often, this first offer (or, more accurately, ...
What happens if an accident causes pain that no longer allows a person to do that?
If an accident causes pain that no longer allows a person to do that, the value of that experience has been taken from them. The same is true for all experiences hindered, warped, or denied in full to people because of accident-derived pain or immobility. This is true whether or not a person is fully disabled.
Do insurance companies know about personal injury settlements?
Insurance companies know this. In fact, they track every personal injury attorney and they know what kind of initial demands they make, as well as the type of demands they make when they’re negotiating , and the type of settlements they ultimately accept. They use that information to evaluate what an offer might actually mean at any given stage in ...
Do personal injury attorneys bluff?
There are a lot of personal injury attorneys out there who are essentially bluffing. During these first stages, they will work a case up, trying to get their demands as high as possible. Eventually, though, they will settle for whatever amount the insurance company is willing to offer. Insurance companies know this.
Do insurance companies give fair offers?
Sometimes, insurance companies do give a fair offer the first time around. However, more likely than not, they’re not going to give you a fair offer at that point. In fact, oftentimes when they do give ...
What percentage of settlement is offered?
For example, the insurer may require that the first offer be 40% of the value of the case. There is no industry-wide standard on this. Different insurers have different procedures. Learn more about factors that determine personal injury settlement value.
What do adjusters think about in a personal injury case?
In order to value the case, the adjuster has to think about two things: 1) what are the claimant's chances of winning at trial if a personal injury lawsuit is filed in court, and 2) how much might a jury award the plaintiff in damages?
What does an insurance adjuster do?
Just like an attorney, an insurance adjuster will want to investigate and get a full understanding of the facts of the underlying accident and the claimant's injuries and other losses (called " damages " in legalese).
What is a claim adjuster?
If you're negotiating a personal injury claim with an insurance company, you'll probably be dealing with a "claims adjuster.". It may be helpful to understand how the adjuster typically operates before you put together a written demand letter, and certainly before you accept (or reject and counter) a personal injury settlement offer.
What documents do you need to file a personal injury claim?
The adjuster will usually request documents such as medical bills, proof of earnings, tax returns, and proof of property damage.
What is a third party claim?
If you're making a claim with the insurance company of the person you think is responsible for your accident, you're making a "third party" claim. The first thing the adjuster will want to find out is what the policyholder (that's the person you're saying is at fault for the accident) has to say about what happened. Besides talking to the insured person to hear his or her story firsthand, the adjuster will read any police report or accident report related to the incident.
Is there an industry wide standard for personal injury settlements?
There is no industry-wide standard on this. Different insurers have different procedures. Learn more about factors that determine personal injury settlement value. One very important point is that adjusters often have leeway to adjust the first offer depending on who they are dealing with.
