Insurance companies in Virginia have a playbook they like to stick to, and the first play in that playbook is to make a quick settlement offer immediately after a car crash. Many times, the quick offer may feel like a relief to an injury victim. With bills piling up and time missed from work, you may feel like you are finally being offered some help.
Their first settlement offer may feel significant, and the insurance company usually frames the offer warmly, insisting they want to take care of you and help you move forward.
The unfortunate reality is insurance companies make early offers because early offers are almost always in their favor and not yours. They prey on you when you are at most vulnerable, hoping to close your file quickly before you realize just how much you have lost in the car crash.
Why Early Offers Are Rarely Fair
Insurance adjusters are trained professionals whose job performance is measured by how quickly they can close claims and how much money they can save the insurance company. An early offer, before an injured party has even completed their treatment, serves only one purpose: to close your file before the full extent of the injured party’s damages are known.
A full and fair settlement should account for:
- The injuries sustained and their effect on your health according to degree and probable duration
- Physical pain suffered in the past
- Physical pain you may reasonably be expected to suffer in the future
- Mental anguish suffered in the past
- Mental anguish you may reasonably be expected to suffer in the future
- Disfigurement or deformity and associated humiliation or embarrassment suffered in the past
- Disfigurement or deformity and associated humiliation or embarrassment you may be reasonably expected to suffer in the future
- Past inconvenience suffered as a result of the crash
- Future inconvenience you may reasonably expect to suffer from as a result of the crash
- Past medical expenses
- Future medical expenses
- Past lost wages
- Loss of or lessening of earning capacity
- Property damage costs
- Any other out of pocket costs related to the crash
When an adjuster makes an offer immediately after your crash, they do not have your best interests in mind. They don’t have a projection of your future medical expenses. They have not reviewed a life care plan. They do not know whether you may be a candidate for future surgery. They are taking their best guess at the lowest number you might accept before you know your rights.
The Problem with Settling Before Treatment is Complete
One of the most common mistakes people make is settling with the insurance company before their treatment is complete. Even beginning to negotiate at this stage can set a ceiling on your case before you have an idea what your case may be worth.
And further, once you sign a settlement release, you are giving up all future claims against the at fault driver and their insurance company for injuries sustained in the crash. If your injury worsens, if your recovery takes longer than initially expected, or if you end up needing surgery that wasn’t recommended before you decided to settle, you no longer have any recourse against the at fault party.
The only way to protect yourself is to wait. Do not accept an early settlement offer or negotiate with the insurance company until you have a clear picture of your injuries, treatment, and future costs. This may take months in some cases but is always worth the wait.
What a Thorough Case Evaluation Looks Like
Before any of our clients consider settling, the Voelkel Law Firm takes the time to build a complete understanding of the entire picture of the case. This includes:
- A full review of all pertinent medical records, including prior medical records when appropriate
- A complete review of all related medical bills
- An evaluation of any potential lien holder’s rights to your settlement
- Conduct consultations with life care planning experts to develop future medical care cost projections
- A thorough review of wage loss documentation
- Conduct consultations with vocational experts to develop future wage losses as a result of the client’s lessened earning capacity
- Conduct on-going interviews with the client to develop how the crash has impacted their day-to-day life
- Conduct focus groups with mock juries to determine what members of the community believe the case to be worth and what to expect should the case go to trial.
When is the Right Time to Settle?
This is one of the most common questions injury clients have for their attorney. Unfortunately, there is no universal answer. Generally, the right to engage in settlement negotiations is after you have finished your treatment and have reached “maximum medical improvement” (or “MMI”). This is the point where your condition has stabilized and your future medical needs are clear.
Remember, the insurance company’s goal is to close your file as quickly and for as cheaply as possible. Your goal should be to get back to how you were feeling before the crash and have a complete understanding of your damages, or what was taken from you due to the crash. An injured party’s goals are almost never compatible with accepting a quick settlement offer.
If you have received a settlement offer after a car crash in Virginia and you are not sure whether it’s fair, the most important thing you can do is talk to an attorney. At the Voelkel Law Firm, we will help guide you through this difficult process. The consultation is free and may significantly change the outcome of your case.