No, you should not take the first offer you receive for a car accident settlement. The insurance companies are never going to give you their best offer first. You should understand your expenses and losses well and know what your case is worth before you consider any offer.

Talking to a car accident lawyer before you settle your claim is also a good idea. They will offer guidance and assess your case for free. If you choose to hire one to negotiate a better settlement for you, they will work based on contingency. You should not need to pay anything upfront.

You Want to Maximize Your Compensation Following a Car Accident

Car insurance contract, along with calculator and pen, lies on table

Never take the first offer from an insurance company following a car accident. Even when it sounds like a lot of money, the insurance carrier will not offer you more than you deserve. They are in the business of making money. Accepting the first offer generally leaves a lot of money on the table and might not cover your full range of current and future damages.

Maximize your compensation after a crash. You want to recover as much money as possible based on the injuries, expenses, and losses you experienced. This requires you to understand your damages, how the claims process works, and how to negotiate with the insurance company for a fair recovery.

To protect yourself and prepare to seek a full payout:

Document Everything: From the day of your accident, keep careful records. Save all receipts, bills, and estimates. Make note of all communications about the case. Keep records of your medical care, medications, and treatments.
Do Not Give a Recorded Statement: Be aware that insurance companies will not help you. They want a recorded statement about the accident so they can use your own words against you. They may also ask you to sign documents without your full understanding of what is in them. You should never do this without having an attorney review it first.
Consult an Attorney: Having a personal injury lawyer on your side will ensure you navigate the claims process correctly and receive a fair payout. They will protect your rights and fight for the money you deserve.

Understanding the Insurance Company’s Tactics

Insurance companies are not on your side. They do not want you to receive fair compensation. Instead, they want to pay you only what they must to close the case and put it behind them. The adjuster’s priority is to their company’s bottom line, not your best interests.

To this end, insurance company representatives use many tricks and tactics to undercut the money they have to pay.

Some of the most common include:

Offering a quick, low settlement shortly after the crash, hoping you will agree before you know the full extent of your damages
Suggesting that you might not receive any compensation unless you settle quickly
Arguing that you were at fault or partially at fault for the crash and reducing their policyholder’s liability
Downplaying the role their policyholder played in causing the crash
Demanding extensive medical records and documentation to agree to cover treatment costs
Demanding you undergo an exam by a doctor they choose who will not support your doctor’s assessment of your serious injuries
Suggesting any delay in treatment shows your injuries are not severe
Delaying the claims process in an attempt to frustrate you or “force” you to accept a lower settlement offer
Repeatedly asking for more and more information or documentation to delay their payment
Arguing your medical treatment was not necessary or even bringing in medical experts who will testify to this
Misleading you about the policy terms or money available
Monitoring your social media and using it to show your injuries are not as serious as you claim
Recommending you handle the claim on your own to avoid attorney’s fees
Suggesting they will manage the process so you don’t need a lawyer
Sending partial payments for some expenses and hoping you will not continue seeking the full amount you deserve

How Car Accident Victims Get Justice Through Insurance Settlements

Male notary or lawyer discussing contract papers with a client in an office, representing legal services

To get justice in a car accident case, you must hold the at-fault party accountable and recover fair compensation for the expenses and losses you experienced.

This requires:

Understanding the insurance coverage available
Showing the other driver is liable for your injuries
Documenting your injuries, expenses, and losses

You need strong evidence that shows what occurred and how it has affected your life since that time. This investigation takes time, money, and other resources. Injured traffic accident victims often struggle to manage on their own.

Some of the necessary steps include:

Obtaining official reports from police, your doctors, and other parties
Identifying and interviewing eyewitnesses
Securing and preserving video of the crash
Examining the damage to each vehicle
Surveying the accident scene
Hiring experts to conduct accident reconstruction as needed
Working with medical experts
Documenting damages by collecting paperwork

This evidence could allow you to negotiate a fair settlement to recover money for all the expenses and losses you incurred and those you will likely have to pay in the future.

This frequently includes:

Pain and Suffering: Victims can seek and secure money for their intangible losses, such as physical pain and emotional damages, the crash caused.
Medical Bills: Your payout should include compensation for your current medical bills and estimated future care costs if you require ongoing treatment, therapies, or monitoring.
Lost Income: If you cannot return to your previous job or the workforce, you can pursue money for your lost income and diminished earning capacity.
Car Repairs: The car insurance company should cover the cost of your car repairs or replacement of a totaled vehicle.
Other Costs: You can demand compensation for other expenses as long as you have receipts and show how they relate to your accident and injuries.

Understanding How Car Accident Settlement Negotiations Work

Insurance agent reviewing a car crash report and negotiating with a customer, signing the claim form after an accident.

From the time you file a claim with the at-fault driver’s auto insurance provider, you should be aware that they will be trying to reduce the value or deny your claim. They will look for reasons to pay you less. You can expect the insurance adjuster to contact you and ask questions about the accident. They will likely ask for a recorded statement. If you hire a car accident attorney, they will manage this process.

The adjuster serves as the investigator in the crash case for the insurance company. They will interview witnesses, evaluate your medical records, look at the police accident report, and examine other evidence. They could ask you to see another doctor for a medical examination to verify your injuries as a part of this process.

These steps generally occur before you complete your treatment and heal fully or reach maximum medical improvement for lasting injuries. Once this occurs, you should have a good idea how much your injuries cost you and how much you lost because of the accident. This means it is time to send the demand letter.

The Demand Letter

If you have an attorney, they will calculate a fair settlement range for your case and draft a demand letter. If you are handling your case on your own, this is up to you. The demand letter will include:

Details about your case
The circumstances that led to your accident
Details of your injuries
The role of the policyholder
The compensation you are seeking

Your lawyer will include supporting documents such as your medical bills, receipts, proof of lost wages, and other necessary evidence with your demand letter.

The Initial Offer

If the insurance carrier has not tried to get you to accept an early settlement, you may receive your first settlement offer at this time. This is usually well below the compensation demanded in your letter or what the evidence shows your case is worth. It is in your best interest not to accept this offer.

Instead, your attorney—or you, if you are handling your own case—should make a counteroffer. You can support this with additional evidence if necessary. This counteroffer officially kicks off the negotiation process. This could continue for weeks or even months.

Every negotiation is different. Offers could occur frequently or there could be only a few back-and-forth conversations over a few weeks. Some communication is made by phone, some by email, and sometimes in other forms.

If negotiations stall or the local courts require it, mediation can often help parties reach a fair settlement agreement in these cases.

Settling the Case

Once you reach an agreement with the insurance company, you must sign a settlement agreement. This will essentially say you will not try to recover more money based on the car accident case in exchange for the agreed-on amount. If you have an attorney, they will likely participate in the writing of this agreement or at least review it carefully before you sign.

You may want to have an attorney review it even if you have negotiated the settlement on your own.

After receiving your signed agreement, the insurance company will process your payment. This could take a few days to several weeks. If you have a lawyer, they will receive the payment and take their attorney’s fees before ensuring you receive the payout.

When Is Litigation Necessary?

When settlement negotiations do not result in a fair agreement, the deadline to sue is near, or there are significant disputes of fact in the case, a lawsuit may be necessary. You will want to discuss your options with an attorney at this point if you have not hired one already. An experienced car accident attorney is your best resource for managing a personal injury lawsuit in a Texas civil court.

Most lawsuits never go to trial. A settlement is still possible at any time during this process, including after a trial date is on the docket or even after the trial begins.

Handling a Car Accident Settlement Is Often Difficult on Your Own

Man completing a car insurance form and discussing coverage with an adjuster after a car accident

Car accident victims often have a challenging time pursuing and recovering fair compensation after a crash without help from an experienced professional. Having an attorney on your side who frequently handles collision cases in your area makes it possible to focus on your recovery and getting your life back to normal while they take care of your payout.

Crash victims who hire a car accident lawyer often recover much more compensation and have far less stress than those who try to negotiate an insurance settlement on their own.

These cases are difficult for victims for several reasons:

They Need to Focus on Their Injuries

Injured crash victims need to prioritize their health and well-being. Having legal representation to protect their rights, handle their claim, and secure their financial future offers peace of mind.

Building a Case Requires Experience

Knowing what it takes to build a convincing car accident case is crucial. Lawyers who regularly handle crash claims have the knowledge, experience, and skill to develop a compelling argument and win the case.

An Attorney Knows How to Maximize Compensation

Attorneys will identify and document a wide range of recoverable damages and demand compensation for all of them. If the insurance company will not provide the maximum compensation, they will sue and take the case to trial.

A Lawyer Has Proven Negotiation Skills

Personal injury lawyers use proven negotiation techniques to reach a settlement and secure an agreement that fairly compensates their client.

They Lack Resources

Law firms have resources most individuals do not. They have dedicated investigators, time, money, and a network of experts that all make building a compelling case easier and more effective. This means they can build a stronger case for their clients.

Contact a Car Accident Lawyer at The Francis Firm Today

At The Francis Firm, we provide free consultations for car accident victims across our Texas service area. Our headquarters are in Southlake, TX, with additional offices in Dallas and Ft. Worth. Our experienced personal injury attorneys are available to assess your case and discuss your options for settling your car accident case for free today.

Should I Take the First Offer of a Car Accident Settlement?