When you are injured in a car accident in NYC, your insurance policy is your first stop for compensation. Once you’ve notified your insurance company about the accident, they can get back to you quickly with a settlement offer. But is the first accident settlement offer worth accepting? That is the question that we as your accident lawyer in NYC would like to answer. In this post, we’ll be explaining what happens when you accept a settlement, when you should accept, and when you should negotiate to get a better deal.
What happens when you accept an insurance settlement?
In New York, your Personal Injury Protection (PIP) coverage can cover medical expenses, lost wages, and other relevant expenses connected to the accident. You can claim up to $50,000 through your PIP coverage. To successfully claim compensation, a claim must be filed with the insurer within 30 days from the date of the accident.
Once you’ve submitted your claim, the insurance company will review the documents and offer a settlement based on their findings. If you choose to accept the settlement offer, the insurance company will get you to sign a waiver. By signing this waiver you agree to forgo your right to pursue legal action on the matter in exchange for compensation.
Why should you not accept the first insurance settlement offer?
The general rule of thumb is that you should not accept the first settlement offer after a NYC car accident. This is because
- It’s a trap—insurance companies will purposefully offer a lowball settlement. It is the job of the insurance adjuster to minimize your payout by exploiting your immediate financial stress.
- Lowball value – The initial offer is almost always a low offer that does not reflect the true, unique, and full scale of the damages suffered.
- Injuries can worsen—Certain injuries and complications from existing injuries will take some time to manifest. When you accept an early offer, your New York car accident lawyer cannot factor them in when calculating damages.
- Legal finality – Once you accept the offer and sign the release, you cannot reopen the case or attempt to use alternative means to claim compensation.
When should you accept the first insurance settlement offer?
While rare, there are instances when you can accept the first insurance settlement offer. You can consider doing so when:
- Maximum medical improvement is achieved – When a doctor has confirmed that you have fully recovered and there is no danger of further complication.
- Full compensation is achieved—If the settlement offer accounts for all the damages you have suffered due to the accident, then it is worth accepting without delay.
- When your legal counsel approves—If your NYC car accident attorney gives the go-ahead to accept, then it would be quite safe to accept the offer.
Conclusion
When claiming compensation for car accidents, one of the most common and important questions is whether you should accept the first settlement offered by the insurance company. While the general rule of thumb is such offers should not be accepted, there are rare cases where accepting the settlement offer can be a good idea.
Whatever the choice, the team at Alex Yadgarov & Associates is here to help. If you’ve received an offer that doesn’t seem fair and reasonable, we can help make things right. As your accident lawyer in New York, we will help you review the facts and help you make the right choices that help you get the maximum compensation. Contact us today and schedule your free consultation.
