If you receive a low settlement offer after filing a Tennessee car crash claim, you may be unsure what to do next. Some crash victims may accept the offer, thinking they are lucky to get any amount of money. Others may believe the insurance company when they say it is the best offer they will get. The fact is the initial settlement offer is likely far less than what your claim is actually worth.
Below, our experienced Chattanooga car accident lawyers discuss low settlement offers, including why insurance companies make them and why accepting these offers could leave you paying for thousands of dollars in damages out of your own pocket.
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Why Is the Settlement Offer From My Insurance Company So Low?
This is a question we get quite often. The fact is your insurance company is a for-profit business. The way they maintain their bottom line is by finding ways to reduce the amount of payouts they make on a claim.
No matter how friendly an insurance adjuster may sound, your insurer’s goals and objectives do not align with yours. From a purely business standpoint, if they paid the full value of a claim without any pushback, they would not be able to sustain a profitable business.
How Insurance Companies Try to Minimize the Value of Your Claim
As a policyholder, it is important to understand your legal rights and how the personal injury settlement process works in Tennessee.
If the insurance adjuster assigned to your case makes an initial offer, especially one made only days or weeks after your crash, you may think they have accurately valued your claim. However, it is important to understand that is almost never the case.
Insurance companies use various methods to minimize what they pay you, and they are relying on you, the crash victim, not fully understanding your legal rights.
Here are some of the methods insurers may use to devalue your claim
- Use statements you make against you to cast doubt on your credibility
- Shift blame for the crash onto you, the victim
- Question the severity of your injuries
- Cast doubt on whether your injuries were caused by the crash
- Scrutinize your medical records for inconsistencies in the claimant’s statements
How Do I Know if the Settlement Offer After My Tennessee Car Crash Is Too Low?
That is a great question, and the answer is not as complicated as you might think. To start with, if you suffered any injuries, damage to your vehicle, missed time from work and are still getting treated, then any offer they are making to you is too low. The reason we know this without knowing other facts about your case, is this:
- If you are still getting treatment for your injuries, you are still incurring more medical costs
- Until the damage to your vehicle has been estimated, the cost to repair or replace it is unknown
- Even after you car has been repaired, the value will remain diminished – you can claim that reduced value
- Need surgery, emotional counseling, physical therapy? Those costs also need to be added to your claim.
- Emotional distress, anxiety, depression, PTSD and other damages should all be calculated and added to the value of your claim
There are many other damages that should be added to the value of your claim. Until you have finished your treatment and reached your maximum medical improvement point, the full value of your claim cannot be known.
What Is the Maximum Medical Improvement (MMI) in a Car Crash Claim?
The Maximum Medical Improvement (MMI) is a critical milestone in any personal injury claim, such as a claim resulting from a car crash.
MMI is the point when your medical condition has stabilized and no further improvement is expected. Accepting a settlement offer before reaching MMI is a significant mistake because it likely does not take your ongoing or future medical costs or lost earnings into consideration.
If you settle too soon, you risk accepting an amount that does not fully cover your long-term needs.
What If I Accept an Early Settlement? Can I File for More Damages?
Unfortunately, no, you cannot. The injury claim process allows victims to file for damages, negotiating with the insurance company for an offer that fully compensates the victim for damages directly caused by the defendant’s negligence. Once you accept an offer and it is finalized, you will likely have no ability to recover further damages.
What Steps To Take Before Accepting a Settlement Offer After a Crash
Before accepting any settlement offer from an insurance company, you should consider hiring an attorney to discuss your situation and review the offer.
Here are some other key steps to know about before accepting any settlement offer:
- Gather Comprehensive Evidence: Document all damages, including medical bills, lost wages, property damage and any other expenses related to the accident. This will help determine how much compensation you deserve.
- Consult with a Personal Injury Attorney: An experienced lawyer, who has a proven track record of obtaining compensation for crash victims will know how to guide you through the legal process and negotiate on your behalf to secure a fair settlement.
- Be Patient: Do not rush into accepting the first offer. The insurance company may try to tell you that first offer is the best you can get, but it is simply not true. Speaking to an attorney first means you have someone who understands the law protecting your legal rights.
- Negotiate: Your attorney is prepared to negotiate with the insurance company on your behalf. The first offer is never the final offer. It is just a starting point for negotiations.
By following these steps, you can increase your chances of receiving a fair settlement that accurately reflects the value of your claim. At Massey & Associates, we are skilled negotiators, and we are deeply committed to holding at-fault parties accountable for their negligent.
Injured in a Chattanooga Car Crash? Call Massey & Associates Today
If you have been involved in a car accident and are struggling with the insurance company’s settlement offer, Massey & Associates is here to help.
We have decades of experience and a history of proven results. Contact us today for a free consultation and let us guide you through the claims process.
Gary Massey, Jr., is a well-known courtroom advocate practicing law in Chattanooga, Tennessee. Gary is a native of Tennessee who began practicing law in 1998. He graduated from Cumberland School of Law where he was ranked in the top 3% of his class and was an editor of the Cumberland Law Review.
