After a crash, it can feel like a relief when the insurance company reaches out with a settlement offer. It seems very simple to just take the money, move on, and put the accident behind you. But according to Attorney Matthew McLain of Turner-Monahan, PLLC, that first offer is rarely fair and hardly considers the full story of an accident. We spoke with him about why accepting it too quickly can cost accident victims far more than they realize.
Dishonest Tactics That Insurance Adjusters Use
According to Mr. McLain, one of the most common tactics he sees involves timing. “Adjusters contact an injured individual within a day or two of a motor vehicle crash and offer a small settlement before the injured individual has had the opportunity to consult a lawyer and often before the person knows the extent of her injuries,” he explains.
This timing is not a coincidence. In the days immediately following a car accident, injuries are often still developing, and the full scope of necessary medical treatment is not yet clear. Soft tissue injuries, concussions, and other common accident-related conditions can take days or even weeks to fully present themselves. An offer made before that process has played out is, by nature, based on incomplete information, and it’s usually built to favor the insurance company, not the injured person.
A Real Example: $2,000 Versus $30,000
Matthew McLain shared a recent case that illustrates how far off that first insurance offer can be. Earlier this year, he represented an individual whose pickup truck was struck from behind by another pickup truck. The injured driver underwent two months of medical treatment and then attempted to negotiate directly with the insurance company on his own. The insurance company offered him $2,000 and told him that was all they would ever pay for his injuries.
After he hired Mr. McLain, the outcome looked very different. Without ever filing a lawsuit, Attorney Matthew McLain negotiated a settlement for the full policy limits of $30,000, fifteen times the amount the insurance company had originally called final.
This case is a clear example of something we see time and again: an insurance company’s first offer often reflects what they hope you’ll accept, not what your claim may actually be worth.
The Insurance Company Isn’t on Your Side
When we asked Mr. McLain what advice he would give to someone currently negotiating with an insurance company on their own, his response was immediate: “Stop!”
“The insurance company is not trying to help you,” he continued. “The insurance company is in the business of making money, and everything they do is focused on that goal. The insurance company will use the information you provide them to try to drive down the value of your claim or to completely deny it.”
That advice applies well beyond car accidents. Anyone pursuing a personal injury claim, regardless of how the injury occurred, should understand that the party on the other end of the phone has a financial incentive to pay as little as possible.
What to Do Instead
If you’re currently in communication with an insurance company following an accident, Attorney Matthew McLain’s insight suggests you should:
- Pause further communication with the insurance company until you’ve spoken with an attorney.
- Avoid giving a recorded statement, even if it’s requested.
- Do not sign any settlement agreement or release of claims before having it reviewed.
- Wait until your medical treatment is far enough along to understand the full extent of your injuries.
- Let an experienced attorney handle negotiations on your behalf going forward.
These steps won’t guarantee a specific outcome, but they can help you make decisions based on complete information, at least.
Talk to Us Before You Talk to an Insurer
If you’ve received a settlement offer after being in a crash and aren’t sure whether it reflects what your claim is really worth, don’t sign anything yet. Instead, come to Turner-Monahan, PLLC. Our Texas car accident attorneys are ready to review your situation and give you honest, experienced guidance before you make any decisions. Call us at (817) 623-0129 or contact us online to schedule a free consultation today.
