A settlement can seem like an attractive way to put a difficult experience behind you. But once you sign, you typically cannot go back for more money, even if your injuries worsen or you incur new expenses. Before you accept any settlement offer, make sure it accounts for all your losses, past and future.
A personal injury lawyer from the law firm of Bayuk Pratt can compare the offer to the true value of your claim and give you an honest picture of whether it is in your best interest to accept. We are ready to review the unique facts of your situation now. Contact us for a free consultation.
What Is an Insurance Settlement Offer?
When you file a personal injury claim, the at-fault party’s insurance company may offer you a certain amount of money to resolve the case. That is called a settlement offer. The idea is that, if you accept the payment, you are doing so in exchange for releasing the insurer and the defendant from any further liability.
It can seem like a straightforward solution to a stressful situation, but you should always be sure that you understand what you are agreeing to before you respond.
Why Do Insurance Companies Make Settlement Offers So Quickly?
Insurance companies make speedy settlement offers as a strategy, not a courtesy. They are motivated to close claims as quickly and cheaply as possible, which means adjusters will often reach out with an offer before you have had time to fully assess your situation.
The adjusters want you to settle before you understand the full extent of your injuries, before you have spoken with an attorney, and before you have had time to add up all of your bills. Initial offers from insurance companies are usually worth far less than a claim’s actual value.
Why Should You Not Accept the First Settlement Offer Without Legal Advice?
There are three main reasons to pause and get legal help before responding to any initial offer:
- It is usually a low offer. Initial offers are typically a starting point designed to minimize what the insurer pays out, not to fairly compensate you for your losses. Insurance adjusters are trained negotiators working in the company’s interest, not yours.
- You might not know the full extent of your injuries. Some injuries are not fully apparent until long after the accident. Others may worsen over time. If you accept a settlement offer before your condition stabilizes, you might not have the funds you need for any future treatment.
- You cannot renegotiate after signing. A signed settlement agreement is legally binding. Once you accept it, you forfeit your right to pursue additional compensation, even if your condition gets worse or new injuries come to light. Only very narrow circumstances can allow the reopening of a settlement.
What Are Your Options If the Settlement Offer Is Too Low?
You do not have to accept an offer you believe is unfair. An experienced personal injury attorney from Bayuk Pratt can evaluate the offer against the actual value of your claim and advise you on the best path forward. We might suggest submitting additional evidence of your losses and negotiating a fair counteroffer. If the other side will not budge, we might recommend filing a lawsuit and letting the courts determine what you are owed. In many cases, the simple decision to involve our attorneys is enough to prompt insurers to reconsider.
What Questions Should You Ask Before Accepting a Settlement Offer?
Before you sign anything, ask yourself the following questions:
- Have you reached maximum medical improvement? Maximum medical improvement (MMI) is the point at which your condition has stabilized enough that your doctors do not expect you to recover any further with additional treatment. If you settle before you reach MMI, you might not yet know the full cost of your past and future care needs.
- Is the total amount of the offer enough to cover everything? The gross settlement figure is not what you will take home. You’ll need to factor in things like medical liens, attorney’s fees, and any other deductions to calculate your actual payout.
- How does the offer compare to what you could get at trial? A settlement guarantees a specific outcome. A trial involves no such guarantee but could lead to a larger payout. It could also result in a lower payout or none at all. Our lawyers can provide a realistic range of what the courts might award to help you decide whether the certainty of a settlement is worth the potentially lower amount.
- Will accepting the offer release the defendant from future liability? Nearly all settlement agreements include a release-of-liability clause. Make sure you understand exactly what you are giving up before you sign.
What Common Mistakes Do People Make When Settling a Case?
One common mistake claimants make is accepting personal injury settlement offers before reaching MMI. Other common errors include failing to account for reduced future earning capacity, overlooking non-economic losses like pain and suffering, and signing release agreements without fully reading or understanding the terms.
If you settle without legal guidance, you significantly increase the likelihood of making a mistake that could cost you a significant amount of money.
What Should You Do Before Making a Final Decision on the Settlement?
Do not act on any offer until you have taken several important steps:
- First, make sure you have completed medical treatment or reached MMI, so you have a clear picture of your total medical expenses.
- Second, gather thorough documentation of all your financial losses, lost wages, medical bills, and records of how your injuries have affected your daily life.
- Third, and most importantly, consult a personal injury attorney from Bayuk Pratt before you commit to anything. Our experienced personal injury lawyers can evaluate whether an insurance company’s settlement offer genuinely reflects the value of your claim.
How Long Do You Have to Accept or Reject a Settlement Offer in Georgia?
Georgia law generally gives you two years from the date of the injury to file a personal injury lawsuit, according to GA Code § 9-3-33. The two-year deadline is critical even if you never intend to take your case to court. That is because you would have no real leverage in settlement negotiations if the insurance company knows your window to file a lawsuit has closed.
Insurers are well aware of statute of limitations deadlines and sometimes use delay tactics to run out the clock. Our attorneys can help you take action while all of your options are still on the table.
Contact a Georgia Personal Injury Lawyer
A settlement offer is worth accepting only if it genuinely reflects the value of your claim, and that is not always easy to assess on your own. The lawyers at Bayuk Pratt spent years representing corporations in high-stakes injury cases. That experience gives us an insider’s perspective on how insurers think. Let our personal injury law firm put our experience to work for you as you seek fair compensation.
To date, we have recovered more than $2 billion for clients who deserved better than the lowball initial offers they got from insurance adjusters. The right legal representation could make all the difference in your case.
Contact us today to arrange a free initial consultation and find out what your case is actually worth.
