10 Reasons Why You Shouldn’t Accept Your Insurance Company’s First Settlement Offer

Understandably, after a traumatic car accident, you might want to move on with your life. The unfortunate disruption of an accident throws your life out of balance to the extent that you might feel lonely and desperate. And so, when the first settlement offer hurriedly approaches you, you might likely get tempted to take it. However, this decision may not be right under the current circumstances. This paper, therefore, will explain why you should not hurriedly accept your insurance company’s first settlement offer.

Top Ten Reasons Why You Shouldn’t Accept Your Insurance Company’s First Settlement Offer

1. It is a lowball offer

In most cases, an insurer always wants to pay out a minimum amount covering your basic expenses. For instance, the offer won’t consider your pain or the mental and emotional consequences of the accident. In any case, the insurance undervalues your claim and offer below what your case worth is; it is essential to contact your attorney, and, in such cases, an expert injury lawyer can help. 

2. The adjuster’s appraisal might not cover all of the cost

Usually, when you incur extensive property damage, settlement is made based on a company or independent property adjuster’s appraisal. Their figures include damage description, material costs prevailing labor rates, labor hours, profit, and overhead. If your company adjuster and contractor disagree on the above factors, the insurer may offer what is fair to them.

3. Your injuries may be worse than you imagine

Accepting your insurer’s first settlement offer may disadvantage you. For example, cases such as physical injuries, it may take months to fully determine all your injuries from the accident and the necessary treatments that you may need in the future, such as surgery or physical rehabilitation.

4. You do not have a complete calculation of your costs yet

Quick first insurer settlements may ambush you and lead you into a trap you may regret afterward. It would help if you did not rely on the insurance adjuster’s calculations. Instead, you and your attorney should take time to conduct your investigation; determine the cost of your injuries and the value of your pain and suffering. Make sure to document all the necessary concerns to support these expenses.

5. Depreciation is negotiable

When an insurance company owes Actual Cash Value for your destroyed contents, the amount they offer is still subject to negotiations and thus not fixed. 

6. The offer may not take into account your pain and suffering

In scenarios like an accident, it’s unlikely that the insurance company’s first settlement offer covers the mental and emotional trauma you’ve suffered due to your accident. Yet these are some vital issues to be factored into the settlement offer.

7. There might be hidden damage

Typically, insurance adjusters will only offer a property settlement based on what’s known and can be seen. However, the damages caused by an inferno may be expensive, with many unknown damages that are impossible to discover within a short period. For example, the smoky smell from a fire can leave a lasting odor.

8. The offer might be minimal due to the complex nature of the coverage

An insurance policy is a complicated contract supported by multiple provisions, conditions, and exclusions. Therefore, it can’t be quickly comprehended within the period one feels helpless and desperate for help. Because of the complexity of the insurance policy, it is probable to get played on the first settlement offer.

9. The insurance adjuster works for the insurer

It is common knowledge that insurance companies are in business to maximize profits out of their policies. When you file a claim, your case will be investigated by an insurance adjuster who ironically works for your insurance company, bound to partial reports. 

10. Protecting your legal rights to compensation

it is imperative to obtain legal help from an experienced personal injury attorney who can capture your maximum compensation before accepting any settlement offer. It ensures the insurer doesn’t take advantage of your situation. 


In conclusion, even though having an insurance cover is an essential factor in life. Nevertheless, whenever faced with difficulties such as accidents, or property damage, the first step is to seek a legal advice from a seasoned insurance attorney that will ensure your rights are fully served without biasness. 

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