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Insurance Company Personal Injury Settlement Offers

5 Reasons Not To Accept The Initial Personal Injury Settlement Offer From Your Insurance Company

After an accident, many people are eager to obtain  closure around the insurance claim so they can move forward with property repairs or paying medical expenses. To move the process forward, they often accept the initial personal injury settlement offer that is made to them by the insurance company. This is a mistake.

An insurance company is a for-profit business. It is in their best interests to pay out as little as possible. It is very common for insurance providers to offer a low amount, hoping you will take the personal injury settlement offer, allowing them to close the claims file  and move on with as little loss as possible. Unfortunately, this approach puts the injured party at a disadvantage, providing them with less compensation than they may need to recover from the accident.

It is well within your rights to reject the settlement offer made by the insurance company. Below, we share five reasons why you may decide to say No to that initial offer.

Reasons Not to Accept The First Offer

  1. You can still recover damages later, even if you reject the initial. In fact, rejecting that first offer actually protects you. When you accept a personal injury settlement from an insurer, it becomes a binding agreement. In exchange for the settlement payment, you agree to release the insurer from liability. That means you cannot go back later and ask for more compensation, even if you incur additional expenses.
  2. Accepting the initial offer will not speed up the claims process. The insurance company will still follow their same procedures and schedules to process your claim, but you may be missing out on additional compensation by accepting the initial offer.
  3. You can respond with a counteroffer. Counteroffers are particularly effective when you can provide proof of your expenses or loss, such as medical bills or proof of loss of income due to time off from work.
  4. You may have injuries that have not presented themselves yet. Some injuries take weeks or months to appear. Early acceptance of a settlement can prevent you from obtaining compensation for those late-appearing injuries.
  5. You may not be in an appropriate frame of mind to accept the offer. You may be suffering from shock, be in pain, or be overwhelmed with changes in your life after an accident. All of this stress can make it hard for people to comprehend the offer and what its’ acceptance means or to fully understand all of the damages they are entitled to.

A Personal Injury Attorney Can Help You Determine A Fair Personal Injury Settlement Offer

Early acceptance of personal injury settlement offers always favor the insurance company, not the injured person. Insurance companies count on victims needing early access to settlement money to make lowball offers.

Remember, you have the right to speak with an attorney before accepting an offer. A personal injury attorney can help you determine all of the damages suffered and the appropriate claim amounts and will handle negotiations on your behalf. They are also very practiced at dealing with insurance company tactics.

When calculating fair compensation for accident injuries, an attorney will consider many factors, including:

  • Past, present, and future medical expenses
  • Prescription medication costs
  • Related transportation costs
  • Vehicle repairs
  • Lost wages
  • Loss of future earnings
  • Associated costs to help with household tasks during recovery
  • Pain and suffering
  • Loss of enjoyment of life
  • Loss of companionship
  • Emotional and psychological injuries

Using the list above as a guide, it is easy to see how an early settlement offer could not possibly include all of the potential costs incurred by a victim due to an accident injury.

The personal injury attorneys at Eisenberg Law Offices help accident victims throughout Wisconsin obtain fair and accurate compensation for their injuries. We use our experience with insurance company practices to maximize compensation for our clients, handling negotiations for them and representing them in court, if need be.

We offer free case consultations and do not charge our clients any fees unless we win a personal injury settlement for them. If you were injured and have been presented with a settlement offer from an insurance company, or expect to receive an offer, contact our team in Madison, Wisconsin to discuss your situation.

Call 608-256-8356 or email to arrange your free consultation.



Eisenberg Law has successfully represented our clients in thousands of Personal Injury, Criminal Defense and Family Law Cases during our 30-plus years in business.