If you get a call within the first few days after an accident and there’s a settlement check waiting for you, this can be very enticing. But it’s better to hold off on signing anything. The first offer is most likely an opening settlement offer, which is designed by insurance companies to close your case before you have a chance to evaluate what your case is actually worth. Every personal injury attorney in Salt Lake City warns their clients not to sign any paperwork at this stage.

The Early Bird Offer and the Data Behind It

Insurance companies are businesses and, as such, want to make money on claims. Insurance adjusters get trained on how to minimize a company’s exposure to claims. More importantly, adjusters get years of data on claims to know how much to offer you to settle with a claim without your push-back. According to the Insurance Research Council, initial offers are made at an average of 30% to 70% less than the documented value of a valid claim.

The reason for the quick offer is that insurance companies take advantage of the uncertainty around your injuries. With no settled diagnosis and medical bills starting to arrive, and your income potentially affected, fast cash becomes a solution. As you can imagine, it is a very effective tactic by insurance companies, and it relies on your financial needs.

What First Settlement Offers Hide

First offers don’t consider almost all the costs you’ll incur as a result of the accident. Typically, first offers do not consider:

• Cost of future treatment. Treatment is not a one-time event and may require follow-up, physical therapy, and prolonged treatment.
• Lost income. You will need to be compensated for the injury if it negatively impacts your ability to work.
• Pain and suffering. The biggest component of your claim is your non-economic injury losses.

Settling your case before you reach Maximum Medical Improvement (MMI) locks you into a settlement. The court cannot award you damages. After you sign the settlement papers, your case is closed. An experienced personal injury attorney in Salt Lake City understands the time factor.

What You Should Do Next

First offers should never be accepted. Medical treatment documents, reimbursement requests, and a wait-and-see approach are all you need. Work with a personal injury attorney in Salt Lake City until your attorney is able to determine the full value of your claim, instead of what the adjuster provides. The IRC documents that claimants who work with an attorney recover 2-3 times as much as those who do not retain an attorney.

Artificial Urgency Shouldn’t Dictate Your Decisions

The deadlines adjusters create don’t matter. The only true deadline is the statute of limitations. For an offered settlement in Utah, you should meet with a Salt Lake City personal injury attorney to assist you prior to responding to the offered settlement. Typically, insurance offers are significantly increased once an attorney becomes involved.