While you may be entitled to compensation if you suffered damages in a crash caused by another party’s negligence, it’s ill-advised to settle your car accident claim as early as possible. It’s a common mistake many victims make in the aftermath of an accident, perhaps due to the mounting medical bills and lost wages or a lack of information.
Understanding the potential risks of settling a car accident claim too soon can help you make an informed decision and recover a fair settlement for your damages. Below are some of the undesirable consequences.
You could settle for less
Accepting a quick settlement offer may leave you shortchanged. You might end up with inadequate compensation that does not fully cover all the harm and losses you suffered. You may, for instance, underestimate future medical costs or overlook non-economic damages like emotional anguish, reduced quality of life, pain and suffering.
It could mean paying out of pocket for bills or expenses your settlement should have covered, which can leave you in a financially difficult situation and prolong your recovery.
You waive your rights to pursue additional compensation
When you settle a car accident claim, the insurance company will likely require you to sign a release form waiving your right to pursue additional compensation related to the crash. In other words, it releases the negligent party and the insurer from further liability.
You cannot reopen your claim or take legal action when this happens, even when you discover additional injuries or your condition deteriorates. It can be particularly problematic if your injuries turn out to be more severe than diagnosed, yet you’ve already accepted a settlement offer and closed your claim.
While it can be tempting to settle your car accident claim as soon as possible, take the time to assess the scope of your injuries, understand the damages you are entitled to and familiarize yourself with how the settlement process works. Remember, you do not have to accept a settlement offer from the insurer. Reaching out for legal guidance can go a long way in helping you make the right call and increasing the odds of a favorable settlement.