If you’re tempted to utilize the typical bargaining strategy of rejecting the initial offer, countering with a higher offer, and hoping for a compromise, you’re not alone. However, this isn’t always the wisest course of action. Legal settlement guidelines in some states may even require that you pay.
You may have to pay the defendant’s legal fees and court costs if you reject a settlement offer, go to trial, and are awarded less than the settlement sum. Avoid rejecting a decent first settlement offer out of hand.
Consider the Settlement Offer’s Timing
Another important consideration is the timing of the initial offer. If you accept a settlement offer before consulting with an attorney and building your case, you’re likely to receive a lowball offer from the insurer. You may get a lower offer if the other side understands that you’re in need of money or if you don’t understand how to file an insurance claim.
To be sure, your settlement offer from the insurance company will be less than what you could collect in court if you don’t have legal representation and your case hasn’t been fully explored yet.
With the help of a personal injury attorney, you can get the justice you deserve
Attempting to handle a personal injury claim on your own may seem like an appealing option at first. If your injuries are mild and the opposing party isn’t fighting over important matters like who was at fault for the accident, this may be a good option. The exception to this is if your claim includes serious injuries or complex legal difficulties, or if you’re simply not comfortable going up against the insurance company on your own.
Attorneys, like anybody else in the workforce, come in all shapes and sizes. Some lawyers routinely put forth very little effort into a case. As an alternative, they advise their client to accept a low settlement offer and then collect their third of the contingency fee due. While this may be advantageous to the lawyer, it is not always in the best interest of the client. Always look for attorneys like Norris Injury Lawyers Vincent AL who actually care and put effort into cases.
Insurance Coverage Provided by the Other Party
As a general rule, the insurance company for the party liable for your injuries has the last say in how much money you get in a settlement. If an insurance company goes bankrupt, your claim will be covered by state-mandated “insurance guarantee” funds, so you don’t have to be concerned about that.
The limits of the other party’s insurance policy can have a major impact on the settlement choices you have available to you. Despite the fact that it is possible to receive compensation over the policy limit, the person or firm responsible for the accident will have to pay out of their own pocket for any damages that exceed the limit. This means that if the policy limit is low and the other party is broke, a pretty cheap settlement offer might be the best you can get.
There’s no need to think about how much money is available while deciding on a settlement if the policy maximum is high. Your attention can be diverted to anything else.