You can ask for more after an insurance settlement offer in Chicago, IL, because the first offer marks the beginning of the negotiation process. The initial offer is often low, and insurance companies hope that you will accept it so that they can close the claim quickly at a minimal cost. You have the right to counter a lowball offer by asking for a higher amount. Accepting a settlement too quickly bars you from pursuing additional compensation in the future. That means you will have to cover any additional costs arising from your injury out of pocket. The best practice is to talk to a lawyer before accepting a settlement, especially if you receive the offer immediately after the accident/incident.
Nothing stops you from asking for more after an insurance settlement offer in Chicago, IL. Our car accident lawyers at Lloyd Miller Law Group are ready to help you negotiate a higher settlement. Call us at 773-838-8100 for a free consultation.
Table of Contents
Can You Negotiate an Insurance Settlement After the First Offer?
You have the right, and it’s advisable to negotiate an insurance settlement after the initial offer. The reason is that insurance companies usually begin with a low amount that cannot cover the full extent of your losses. Some tips to strengthen your negotiation position include:
Understand the True Value of Your Claim
You must know how much your claim is truly worth to negotiate effectively with the insurer. Otherwise, you might end up accepting a lowball payout to pay your immediate bills and be left with no money to cover additional expenses or losses if your injury worsens. So, be sure to account for all your losses and damages when determining your claim value.
Some things to account for include current and future medical bills, lost income and reduced earning potential, physical pain and suffering, and diminished quality of life. You should also include out-of-pocket costs, like travel expenses to and from the hospital, vehicle modifications, and assistive devices.
Politely Reject the Offer
A first settlement offer can be tempting, especially when your bills are skyrocketing, and you are losing income due to missed time from work. The reality is that the first offer is usually low and cannot pay all your damages or losses. Insurance companies know this fact and are just trying to gauge your reaction. Don’t let the temptation overwhelm you. Instead, politely reject the offer and request the insurer to justify the lowball settlement.
Send an Evidence-Backed Counteroffer
Once the insurer responds with an explanation of how your settlement was calculated, use that information to prepare a strong counteroffer. Of course, a car accident lawyer will be a crucial asset in drafting the counteroffer and supporting it with compelling evidence, such as police/incident reports, medical records, pay stubs, and repair or replacement estimates.
What happens If You Accept an Insurance Settlement Too Quickly?
If you accept an insurance settlement too quickly, you will lose the right to ask for more money through either negotiation or taking your personal injury case to trial if your injury worsens. This is because the offer letter you will sign before receiving the payout contains a settlement release clause that officially ends your claim.
First offers typically account for immediate expenses, such as ambulance transportation, emergency room fees, medications, and lost earnings for the first few days or weeks of missing work. They rarely cover future medical bills from ongoing treatment and non-economic damages, such as loss of enjoyment of life.
Settling too quickly also means you lose a chance to negotiate a higher amount that matches the true value of your claim.
When Should You Talk to a Lawyer Before Accepting a Settlement?
An experienced personal injury lawyer can value your claim accurately and counter tactics that insurers use to reduce payouts. That’s why the right attorney makes all the differencewhen it comes to pursuing compensation after getting injured in an accident. You should talk to a lawyer before accepting a settlement in the following situations:
The Offer Is Unreasonably Low or Too Fast
Insurers prioritize their profit margins when settling claims. They quickly give you a low settlement offer soon after the accident and pressure you into accepting it. The less they pay you, the more money they save. Involving a lawyer immediately after receiving the offer can increase your chances of recovering maximum compensation.
The lawyer can review the offer and discuss with you the best course of action. This might involve politely declining the offer, sending a counteroffer, or moving to court. The lawyer will handle negotiations with the insurer and inform you when settling is the best decision. Your lawyer cannot settle your case without your consent.
Severe or Disabling Injuries
Severe or permanent injuries often require medical treatment for a longer period than minor or less serious ones. They may also require ongoing rehabilitative care. The input of an experienced car accident lawyer is necessary to accurately determine how much compensation is enough to cover your future costs.
Disputed Liability
You need a lawyer on your side if the other party tries to shift liability to you. The Illinois modified comparative negligence rule will apply if the other party successfully transfers some liability to you. Under this rule, your recovery will be reduced by your level of liability. You won’t recover anything if you are more than 50% liable. Fortunately, your lawyer will build a strong case and present compelling evidence-backed arguments to show that the other party was 100% liable. That way, you will stand a higher chance of recovering your damages and losses in full.
Accepting the first offer from an insurance company almost always means you are leaving money on the table. Our dedicated legal team at Lloyd Miller Law Group is on standby to review any offer you have received from an insurance company and help you push for a higher amount. Contact us today for a free initial consultation.
FAQs
Can I ask for more money after an insurance settlement offer?
You can ask for more money after an insurance settlement offer by politely declining it and sending a counteroffer that reflects the true extent of your losses. You cannot ask for additional compensation after you accept an insurance settlement offer, even if your injury worsens or you incur extra costs.
Is the first settlement offer from an insurance company final?
The first settlement offer from an insurance company is most of the time not final. It is often a lowball offer meant to settle the claim as fast as possible and for less money than the actual value of your claim. You have the right decline this offer and negotiate a higher payout.
Should I hire an attorney before responding to a settlement offer?
You should hire an attorney before responding to a settlement offer to ensure you are making an informed decision. Your attorney will review the offer to determine if it covers all your damages. If not, the attorney will submit a counteroffer and engage with the insurer in a series of insurance settlement negotiations to secure reasonable compensation for you.
