Sometimes, an insurance company will shock victims of auto accidents by offering a settlement soon after the incident. The insurance adjuster may claim that they want to make sure you get compensation you deserve as soon as humanly possible.

Sadly, some accident victims will accept the offer and are just happy they got anything at all. That's the wrong mentality. When the money you received runs out and you are still left with unpaid medical bills and other damages, it can put victims in a bad situation.

In reality, the settlements insurance companies offer so quickly are typically too low and do not cover the losses of the victim. Why do they do this? Read on to understand the reasons why they make such low offers and why you shouldn't rush to settle.

A NY personal injury attorney can help you understand your rights and seek fair compensation in your case. Brandon J. Broderick, Attorney at Law has assisted accident victims in obtaining compensation for years. We promise to actively seek the highest possible reimbursement.

Initial Settlement Offers: Why They Are Low

There are several reasons why insurance companies will offer to settle quickly for a low amount. Reasons why include:

Protecting Profits

Companies that provide insurance are businesses, and in order to be profitable, they must generate revenue. They collect premium payments and invest them to generate income. They make billions of dollars a year in profits by paying out as little as possible and keeping the rest.

Paying as little for claims as possible allows them to keep their money invested for a longer period of time, optimizing earnings.

Injury Victims Accept Early Settlement Offers 

Sadly, some victims will accept an early settlement offer, even though they are entitled to more. Insurance companies are aware that this will often work, so they employ this strategy. The insurance company makes even more money if the injured party accepts the low offer.

The issue is that the majority of victims are unaware of how much their claim could be worth. They might undervalue the value of their claims on their own, thinking their injuries are not severe enough, or fail to realize that even a "Policy Limit" offer might not be accurate. Additionally, insurers are aware that some victims may be in need of money badly, so they are hoping you'll just accept the offer.

Insurance companies are aware that some accident victims will find it stressful to negotiate a settlement or retain the services of a NY car accident lawyer.

Insurance Companies Don't Believe You'll Retain A Lawyer

Many accident victims opt not to hire a lawyer. Because of this, insurance companies believe that victims won't retain counsel. Without legal representation, a victim is more likely to accept a low compensation offer. After the insurance company makes its initial offer, some victims might not even submit a counteroffer, which makes things much easier for the insurance company.

Furthermore, insurance companies do not want victims to retain counsel. When a car accident claim is tried in court, a jury may award much more than the insurance company would have paid in an out-of-court settlement with a lawyer.

Without representation, the insurance company is less compelled to make a better offer that will cover your losses. This is why it's so important to consult with a lawyer after an accident.

The Insurance Company Doesn't Believe You Have a Strong Case

The insurance company may be more likely to make a lowball offer if they believe the victim is somewhat to blame or does not have a strong case. If the insurance company believes your case is weak, they won't feel any pressure.

The insurance company may question the merits of your claim for a number of reasons, including:

• You missed doctor's appointments
• Your account of the crash differs from the accounts of other participants or witnesses
• You have pre-existing injuries
• You have made statements suggest you are at fault or that your injuries are not serious

Your Claim's Value Could Be Much Higher Than You Think

The claim's value may be fairly large if the accident results in serious damages or injury. That implies that the insurance company would incur significant financial losses. They are motivated to attempt and settle it for the least amount possible, and as soon as possible.

Insurance companies are concerned with their bottom line even when the initial offer for these claims is significantly less than the worth of the victim's damages. They may be more willing to pay for the whole amount of your damages if your claim is just worth a few thousand dollars. Insurance companies like to undercut the victim when a claim is worth tens of thousands of dollars or more and hope the victim would take the deal.

Brandon J. Broderick, Attorney At Law Can Help You Get The Right Settlement Offer

It's up to you to decide whether or not you need a lawyer to help you with a personal injury claim. However, it is in your best interest to retain their services, because an insurance company is far more likely to pay a fair settlement if a NY car accident lawyer is negotiating with them.

Working with a lawyer will give you the best chance at getting the compensation you are entitled to. The team at Brandon J. Broderick, Attorney at Law has helped countless clients get a resolution that works for them over the past decade.

For a free consultation, get in touch with our office today. Let us help you bounce back from this setback.