After getting injured in a car accident, it’s only natural to expect that you’ll be adequately compensated for your losses. Therefore, you might feel tempted to take the first offer from the insurance company, assuming it’s a fair one. Sadly, this isn’t always the case.
Below, learn why accepting the first car accident settlement offer may not be wise. Then consult a New York car accident lawyer to understand the value of your case and gain the skills of an experienced negotiator.
Understanding the Car Accident Settlement Process
According to the Insurance Research Council, only about 7% of motor vehicle lawsuits filed between 2014 and 2023 were disposed by judgment, meaning the court made a final ruling. Approximately 50% settled out of court, and the others were withdrawn voluntarily (15%) or dismissed due to some other reason, such as surpassing the statute of limitations,
Only a small percentage of car accident cases ever make it to court. The majority settle out of court, either during mediation, sometime before the trial, or even during the trial. If you are pursuing legal action after a car accident, you can assume that your case will likely settle as well.
A settlement involves the defendant offering you a sum of money in exchange for you avoiding further legal action. By accepting a settlement, you agree to not pursue the legal case any longer. This can allow both sides to avoid legal fees and the hassle of going to court. For the defendant, settling could mean paying you less money than they potentially would through a lawsuit.
During any stage of your car accident lawsuit, the insurance company or other defendant may approach you hoping to settle out of court. They may present you with an offer that seems appealing or may be more than you were expecting to win in a case. But before accepting it, always consult a New York car accident lawyer to understand whether doing so is in your best interests.
Why You Shouldn’t Blindly Accept the First Settlement Offer
When the defendant presents you with a settlement offer, you may feel that you have come out of the case on top. But if you want to maximize your car accident settlement compensation, pausing before accepting this offer is wise.
Here are a few reasons why accepting the first offer may not be in your interests:
- The first settlement offer is rarely the last: Settling out of court usually involves negotiations. The defendant is likely prepared to negotiate a final offer with you, meaning they probably won’t present you with the initial offer and refuse to budge. You could be able to increase the offer by negotiating.
- You may not have the capacity to approach the offer with a clear head: You may be overwhelmed by the legal process or still reeling from the traumatic accident that caused your injuries. All of these variables can impact your ability to properly evaluate the offer. It’s worth having a New York car accident lawyer evaluate it as well.
- A fast settlement is in the defendant’s favor, not yours: Insurance companies often want to settle as quickly as possible because the case is costing them money. Meanwhile, plaintiff’s attorneys often operate on a contingency basis, meaning you may not need to pay legal fees unless you win the case. Settling quickly may benefit the defendant more than you.
- The settlement may only represent your current damages: If you are suffering from serious injuries after a car accident, your medical expenses likely won’t end just because you’ve accepted a settlement. You need to ensure that the settlement reflects your ongoing and future expenses as well. The initial offer may not account for these costs.
Pressure Tactics From Insurance Companies To Watch Out For
Resisting an initial settlement offer may be more challenging than it sounds. Insurance companies use pressure tactics to encourage plaintiffs to accept lowball settlement offers. Watch out for the following tactics that may interfere with your ability to make a clear, level-headed decision:
- Urgent language that indicates the offer will expire soon, such as “We need a decision by tomorrow.”
- Final-offer framing that suggests this is the insurer’s only offer. In reality, insurance companies are often extremely motivated to settle, which means they are likely open to negotiations.
- Downplaying your injuries, or suggesting that you do not need as much compensation as you are asking for.
- Dissuading you from hiring a lawyer by suggesting that your case is simple or that a lawyer is a waste of money.
Having an injury lawyer in New York on your side is a good idea if you want to maximize your compensation and make an informed decision about your settlement.
Contact an Auto Accident Lawyer in New York Today
If you’ve been presented with an offer from the insurance company, now is the time to speak with a New York car accident lawyer. Our attorneys at Ross & Hill can help you understand the car accident settlement timeline, confidently evaluate your settlement offer, and explore your options for moving forward.
Call (646) 351-6222 today for a free consultation.
Frequently Asked Questions
What are the signs of a good settlement offer?
Good settlement offers are often comprehensive and fair, providing full coverage of all past and current medical bills and additional compensation for other damages. Your New York car accident lawyer can help you understand whether you have received a good settlement offer.
What is the statute of limitations for car accident lawsuits in New York?
The New York car accident statute of limitations is generally three years from the date of the accident. This window closes more quickly than you might think, so it’s advised that you act sooner rather than later.
Can you change your mind after accepting a settlement offer?
Whether or not you can change your mind after accepting a settlement offer depends on whether you have signed a formal release. Always speak with an attorney before signing anything.
