If you have been rear ended in an auto accident, you may have already been offered a settlement amount by the other party or the other party’s insurance company. Deciding whether or not to accept a settlement offer is a personal decision that must be considered in light of the facts of the case and the damages and injuries you sustained. However, below are some things to consider when deciding whether to accept a settlement offer.
The Amount Is Fair
A fair offer will cover an injured party’s expenses, such as medical expenses and vehicle repair costs, and include an amount for anticipated future medical costs. If the offer covers your medical expenses and property damages, consider accepting it and ending your claim.
If you have a settlement offer from an insurance company, keep in mind that the insurance provider making the offer is not necessarily working on your behalf. The job of the claims adjuster is to minimize the amount of money that the insurance company has to pay out. It does not matter if the insurance company is your own or the other driver’s. In all situations, the adjuster is working to reduce the claim amount that the insurance company must pay.
The Cost of Litigation
Bringing a case to court rather than settling outside a courtroom is expensive and can often result in a long delay before there is a final resolution. Courts are overwhelmed with litigation and charge high fees for their services. Additionally, hiring legal representation to handle your claim in court is more expensive than hiring legal representation for your settlement. Before you reject a settlement offer, factor in the additional cost of going to trial versus settling the case.
The Likelihood of a Better Offer
If the amount offered is unacceptable, think about the likelihood of obtaining a better offer either in a courtroom or through another settlement offer. Be realistic in your expectations and understand that the value of your case might not be as high as you believe. Remember that there is no guarantee that the other party or insurance company will raise their offer or that you will prevail in court.
Your Attorney’s Recommendation
While attorneys will never tell their clients directly to take a settlement because that is the client’s decision to make, they will advise clients as to whether they think the offer is reasonable. If your attorney states that he or she believes the offer is fair, seriously consider whether accepting it is your best option. However, if your attorney expresses doubts about the fairness of the offer or whether the offer will compensate you for all of your damages, consider rejecting the offer or making a counteroffer.
Getting Legal Advice
A lawyer can assist you with your claim and advise you about the reasonableness of an offer you received. If you have been involved in a car accident and are considering accepting an offer, seek legal advice.
