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Why You Should NOT Accept The First Offer from The Insurance Company After A Car Accident Claim

Written by: Dale G Casares Portrait Dale Casares
Car Accident Photo Taken

It is almost never a good idea to accept the first offer you receive from an insurance company after being in a car accident. Your claim is likely worth far more than the insurance company is offering.

You do not want to put your settlement in jeopardy or risk being taken advantage of during this devastating time in your life. So why hire a car accident lawyer at Mountain States Injury Law?

Not only can you ensure you are awarded fair compensation for your damages, but our contingency fees are competitive, and you will never need to put your personal finances on the line to demand justice.

The Insurance Company is Not On Your Side

Insurance companies are only in business because people know it is necessary to protect themselves against any type of disaster. Insurance policies are offered for business owners, renters, homeowners, and even pets.

Auto insurance companies use skillful marketing tactics to make you believe they are on your side and working for you. However, when you faithfully pay your insurance premiums and file a claim, you should be able to rely on the insurance company to compensate you fairly based on your policy terms.

Unfortunately, this does not always happen because insurance companies are not on your side. They have teams of insurance adjusters looking for opportunities to reduce settlements or deny claims.

Insurance companies can only make money by paying as little as possible on claims and bringing in as much as possible in premiums. In fact, insurers will often go to great lengths to deny claimants the compensation they deserve.

How Insurers Take Advantage of Colorado Car Accident Victims

The strategies insurance providers use to take advantage of Colorado car accident victims can be unscrupulous. One of the ways to protect yourself is to work with a knowledgeable personal injury attorney who will prove fault and establish liability for your accident. Some of the tactics insurance adjusters use include:

  • Asking you to give a recorded statement and then manipulating your words
  • Accusing you of exaggerating the impact of your injuries
  • Making quick settlement offers that are less than your damages are worth
  • Undervaluing your losses
  • Failing to continue processing your claim
  • Refusing to investigate your car accident insurance claim
  • Misrepresenting the policy terms

How to Protect Yourself From Profit-Motivated Insurance Companies

Do not lose hope when you learn that insurance companies could go to great lengths to reduce your payout. You can take control of your insurance claim by hiring a dedicated car accident attorney with extensive experience handling insurance claims. Mountain States Injury Law has extensive experience working for and with insurance companies, so we know what insurance adjusters will do to minimize claimant’s settlements.

We will use our knowledge of the insurance industry to fight back when insurance adjusters attempt to utilize these tactics against you. We will never allow the insurance company to trick you into settling for less than your claim is worth when we could renegotiate the settlement terms or file a bad-faith insurance lawsuit.

Oftentimes, insurance companies are less likely to take advantage of you when you have an experienced personal injury lawyer on your side.

Photo of Fatal Car Accidents by State (2020)

 

Source: www.policygenius.com

How to Recover Maximum Compensation After a Colorado Car Accident

It is not unusual for insurance settlement amounts to be insufficient. Not only do insurance companies attempt to reduce payouts, but your compensation will be limited to the amounts and types of coverage the policyholder carries.

Colorado is a fault insurance state, so instead of filing a claim against your personal auto insurance policy, you will file a claim with the liable party’s insurance provider. According to Colorado auto insurance laws, all motorists are required to carry a minimum of $25,000 per person and $50,000 per accident in bodily injury liability coverage, and $15,000 in property damage liability coverage.

Comprehensive, collision, rental car coverage, and uninsured or underinsured motorist coverage are all optional add-ons.

This means if the driver that hit you only has the minimum amount of coverage, but your medical bills exceed $50,000, the insurance company will have to pay up to $50,000 for your medical expenses. Any remaining medical bills or other damages can only be recovered if you file a personal injury lawsuit against the at-fault party.

However, if you opted to carry no-fault insurance coverage as part of your auto insurance policy, you may be able to file a claim with your insurance company. This may not always be in your best interests, as filing a claim with your insurance company will likely increase the amount you are required to pay them in premiums when it is time for policy renewal.

This is another way insurance companies can take advantage of injury victims. Fortunately, when you file a personal injury lawsuit against the liable party, you will not face the same limitations. There is no cap on the amount you can recover in economic damages, but the maximum you can recover in noneconomic damages is set at just under $600,000 as of January 1, 2022.

Benefits of Hiring a Car Accident Lawyer in CO

Working with a car accident attorney has several advantages. Your lawyer protects you from the insurance company and helps you heal emotionally and physically by ensuring you have access to the support and resources you need.

Our team will also be responsible for closely evaluating the extent of your injuries and the future impact they may have on your life so we can account for every loss as we calculate the value of your car accident insurance claim or civil lawsuit.

Colorado Car Accident Insurance FAQ

Car accident insurance claims in Colorado can be complicated. We recognize you may have many questions about how insurance claims work and what to expect from your case.

For that reason, we have addressed some of the most frequently asked questions regarding car accidents and insurance claims below. Any additional questions you might have can be discussed in greater detail during your free consultation.

Should I take the first offer on an insurance claim?

It is almost never a good idea to accept the first offer you receive for an insurance claim. If you work with a car accident attorney, they should be notified when the insurance company makes an offer. The amount they offer will likely be significantly less than your claim is worth, so your attorney will negotiate and make a counteroffer.

Inspector Examining Vehicle After An Incident

Should I accept the insurance offer?

Unfortunately, until we have reviewed the insurance company’s settlement offer, we cannot say whether you should accept. It is critical that you review insurance offers with your attorney to ensure you are not being lowballed by the insurance company.

Is the first offer always low?

Yes, in most cases, the insurance company will initially make a low car accident settlement offer. They do not want to pay out the full value of your claim, and they know how financially hard-pressed you may be after the accident. They believe you will accept less than you are entitled to so you can cover your necessary and outstanding expenses as soon as possible. This is why it is important to continue negotiating after receiving your initial offer.

When does an insurance company offer a fair settlement?

Insurance companies will generally offer a settlement after completing an investigation into your claim. They will have insurance adjusters reviewing claim details and potentially assigning an investigator to your case. Once they have reviewed vehicle repair quotes, medical records, and analyzed your claim, they will typically make a settlement offer swiftly, hoping you settle for the minimum.

What to avoid saying when talking to an insurance adjuster
You should not say anything to an insurance adjuster without our personal injury lawyers present. Some of the most important things not to say when talking to an insurance adjuster include:

Anything that expresses guilt
“I’m sorry”
“I feel so bad”
“I feel OK”
You should never say anything that indicates your injuries are not as severe as you have expressed. You should also avoid saying anything about the car accident on social media or to anyone other than your personal injury law firm.

How do I haggle with an insurance adjuster?

You do not need to worry about negotiating with the insurance company at this time. Your car accident lawyer will handle the negotiations process on your behalf. This way, you do not need to worry about additional stress associated with your insurance claim.

Is it good to accept a settlement offer?

It is only good to accept a settlement offer if the settlement offer in question is fair and reasonable. Otherwise, you are letting the insurance company get away with paying out less on your claim than you deserve.

Are insurance adjusters incentivized to deny claims?

Of course. Although these incentives may not be bold, insurance adjusters are made fully aware of the incentives they could obtain if they pay out as little as possible on claims. Insurance companies may offer their insurance adjusters bonuses, gifts, promotions, and prizes in some instances.

Get Help From a Colorado Car Accident Attorney Today

Car accident cases are already challenging enough without profit-hungry insurance companies taking advantage of you in your time of need. Protect your rights from the start. Connect with an experienced Colorado car accident lawyer at Mountain States Injury Law, and maximize the financial compensation you recover not only from your insurance claim but also from your personal injury lawsuit.

Are you ready to find out how much your case is worth? Are you prepared to fight back if the insurance company attempts to trick you into settling for less than you deserve? Take action against those responsible and hold them accountable for their financial obligations when you contact our Castle Rock office for a free consultation.

You can reach us through our convenient contact form or by phone to get started as soon as today.

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Dale G. Casares Attorney

Dale G. Casares

Colorado, Idaho, and Montana
Personal Injury Attorney

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