The Pros and Cons of Settling a Car Accident Insurance Claim

If you’ve been involved in a car accident then you’re likely dealing with an auto insurance company. In most cases, the insurance companies would rather settle the case as soon as possible, to both minimize their costs and to avoid going to trial. The question you have to answer is whether the settlement they’re offering you is enough to cover your damages.

The vast majority of cases settle without a lawsuit but that’s not always best for the injured party. You need an experienced auto accident attorney who can help you decide if you should file a lawsuit or accept the insurance company’s settlement offer.

The advantages and disadvantages of settling with the insurance company

In some cases, it makes the most sense to take the settlement offer. Perhaps you didn’t suffer from significant damage to your car, or you were hurt but the injuries were just minor. In a situation like this, it may make the most sense to simply accept what the insurance company is offering. On the plus side, this will mean getting a check much faster than if you take the case to court, and you won’t have to deal with the stress of the court. Finally, a big advantage is that if you lose your case, you won’t be compensated for your damages at all.

That may seem convincing, but remember that, generally speaking, insurance companies offer the lowest settlements as their starting offer. When you work with an attorney, they may encourage you to reject the offer and keep negotiating or to file a lawsuit. This can lead to an insurance company increasing what they’re offering because they want to avoid a lawsuit. Either way, it’s almost always true that accepting the first offer is not in your best interest.

What happens after a case is rejected?

When the first offer is rejected, your personal injury attorney will work to prepare a counter demand. It will include information about your side of the story and it will explain your damages. The purpose is to give a complete picture of your injuries and damages.

If the insurance company doesn’t agree to the counter demand and doesn’t increase their settlement offer, then it may be time to consider filing a personal injury case. This doesn’t mean that there will necessarily be a trial. When an insurer looks at these situations, they consider the risk of going to trial and winning versus going to trial and losing, and they consider that they’ll have court costs either way.

As a result, in most cases they’ll increase their offer when a lawsuit is filed. Of course, in some cases, an insurer won’t budge and you’ll move forward with your case. If that’s the direction your case goes, you’ll want the experienced professionals at Law Offices of Fernando D. Vargas fighting on your side. Call us today at 909-982-0707 for more information.