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Should I Accept the Insurance Company’s First Offer?


In order to recover financial compensation to pay for medical treatment, property damage, and lost income stemming from a car accident, an injured party must file a claim with the at-fault driver’s insurance company.

Due to the financial burden of a car accident, receiving an initial offer from the insurer can seem like a huge relief. However, accepting the first offer can be a huge mistake.

The following are several reasons why you should avoid accepting an insurer’s initial offer:

  • The initial offer is most likely low – Insurance companies make money from the premiums covered drivers pay on a monthly basis, which they will do their best to pay them as little as possible in the event of a crash in order to protect their bottom line.
  • The insurance adjuster has the company’s best interests in mind—not yours – Although the insurance adjuster acts friendly in every interaction, you must remember that they work for the insurer. Any decision the adjuster makes is in favor of the company.
  • You are not aware of the full extent of your injuries – If you accept the insurer’s initial offer and later discover another injury related to the accident, you cannot seek additional compensation for the same accident. Sometimes, knowing all your injuries and the required treatments can take months.
  • The offer doesn’t take into account your pain and suffering – Not only can a car accident lead to economic damages (e.g. property damage, medical bills, lost wages, etc.), but it can also result in noneconomic damages such as pain and suffering, emotional distress, or loss of enjoyment of life. Unfortunately, the insurer’s first offer only covers your basic expenses.
  • You need to hire a lawyer – If your injury is serious in nature, having an experienced lawyer on your side can ensure your rights and best interests are protected throughout the legal process. Your attorney can investigate the accident, gather evidence, negotiate with adjusters, and maximize your entitled award.

If you have been injured in a car accident in Anchorage, contact The Law Offices of David Henderson today at (888) 295-6566 and request a free case review.