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Three misconceptions regarding insurance settlements

On Behalf of | Oct 27, 2017 | Injuries

If you have been in a car accident, you are not alone. Many people get in a collision that results in injuries and even death. These incidents can be traumatic, and it is imperative that you seek medical attention as soon as possible. Luckily, insurance may coordinate this, and they may even offer a settlement following the accident to compensate you for your damages.

Receiving a settlement is a good thing, of course, but you should be careful not to accept it too hastily. Many people make the mistake of accepting an insurer’s first settlement offer only to find that lawyer’s fees, medical bills and recouping lost income immediately eat it up. Avoid failing for the following common misconceptions.

1. Settling sooner is better

Many people think that settling sooner is more beneficial, but while it may be less time-consuming, it is often the least financially sound of your options. Many insurers offer a lowball settlement at first with the hope that you will accept it immediately. If you continue pursuing your case, you are likely to see the settlement offer inflate — and you do not necessarily have to go to trial for this to happen.

2. You have to accept an offer

You might be under the impression that you must take an insurer’s settlement offer. On the contrary, you are under no requirement to do so, and you should explore all of your options before you choose to accept an offer. Insurers may even use phrasing in their letter that implies you must accept a settlement.

3. Your insurer is on your side

Unfortunately, according to The Balance, it is not uncommon for insurers to engage in settlement practices that are unfair. Whether you are dealing with your own insurer or that of the other person involved in the collision, you should not assume that they are on your side. Hiring a legal representative can help you deal with insurers without fear of unfair treatment.