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Should you take the first settlement from the insurance company?

On Behalf of | Aug 21, 2023 | Car Accidents

According to the Tennessee Department of Transportation, there are over 170,000 car accidents across the state each year. If you have been in a car accident in Tennessee, dealing with insurance companies is often one of the first steps in recovery. They may present you with a settlement offer to cover the damages and injuries you have sustained. This initial offer may seem like a quick and convenient way to put the matter behind you, but is it the best option?

The decision to accept or reject the first settlement from an insurance company is complex. It requires careful consideration of various factors that could affect your long-term well-being and financial stability.

Understand the first settlement offer

Insurance companies are in the business of making money, and one way they do that is by settling claims as quickly and inexpensively as possible. The first offer they make might be tempting, especially if you are in immediate need of funds, but it may not fully cover all your needs.

Consider your damages

Evaluate the extent of the damages to your vehicle and any personal injuries you may have suffered. Ensure that the settlement offer reflects the true cost of these damages, including future medical expenses and any necessary repairs to your vehicle.

Think about long-term effects

Some injuries may have long-term consequences that are not immediately apparent. Remember to consider how these might affect you in the future and whether the settlement offer adequately addresses those potential issues.

Gather evidence

Collect all necessary documents like medical bills, repair estimates and any other evidence that will help you present a strong case for a higher settlement.

Negotiate with the insurance company

You do not have to accept the first offer from the insurance company. Negotiating can lead to a more fair settlement that truly reflects your needs. If you believe the initial offer is insufficient, communicate your concerns to the insurance company. Provide them with the evidence you have gathered and explain why you believe you deserve a higher settlement.

When you understand the nature of the first offer and take the time to evaluate your specific situation, you can make a more informed choice. Each situation is unique, and these guidelines can help you navigate this complex process to reach the best decision for your individual needs.