Do You Have to Accept the First Offer an Insurance Company Gives After an Arizona Car Accident?

No, you don’t have to accept the first offer. It’s often too low. Even if the insurance company tries to pressure you into accepting their initial offer, wait. It’s your right to consult an Arizona car accident attorney who could work to negotiate a fair settlement. Your attorney can review your case, gather evidence, and counter the initial offer with a well-supported demand for higher compensation.

What Are Some Reasons to Not Accept the First Offer?

After you submit a car accident claim, an insurance adjuster typically reaches out with an offer to cover your medical expenses and related losses. There are several reasons why you should think twice before accepting the first offer from an insurance company:

• Insurance companies count on your lack of medical knowledge — Rushing to accept a first offer is not advisable because you might not yet know the full extent of your injuries. Their initial offer probably won’t cover future medical expenses or long-term care. It takes time to get a comprehensive medical evaluation.
• First offers won’t include all damages — Although medical expenses are often a big part of your bills after a collision, you could also recover compensation for pain and suffering, lost wages, and property damage. If you take a low offer that ignores these other losses, you’ll miss out on compensation for all the harm you’ve suffered from the crash.
• Insurance companies play on your emotions — Car wrecks are painful and disruptive. An insurance adjuster knows that most people want to be done with the accident and the claims process. Once you accept an offer, you can’t seek more money, even if you discover more expenses later on. Don’t rush into an unwise decision.

Why Do Insurance Companies Make Low Initial Settlement Offers?

Insurance companies are businesses focused on their bottom line. Here’s why they often start with low offers:

• Save money — Insurance companies are notoriously stingy. They make money by collecting premiums and lose money by paying settlements. Their goal is to settle as cheaply as possible. They’ll try to tell you it’s the best they can do and hope you’ll accept it without questioning or negotiating.
• Time crunch — An insurance adjuster guesses that you have pressing medical expenses and other bills. They’ll promise a fast, if low, payout so you can avoid more financial pressure.
• Blame game — If you are pursuing compensation from the policyholder who caused the crash, they might suggest that you are also partly at fault. Arizona is a comparative negligence state, which means you can pursue compensation for your accident-related losses even if you are partly at fault for the collision. However, any compensation you get will be reduced in proportion to your share of the blame. The insurance company might want to drag on the accident investigation because the more liability they can put on you, the less they have to pay.
• Legal intimidation — Insurance companies have lawyers who can throw confusing legal jargon at you that’s meant to intimidate you into taking their first offer. Many insurance adjusters try to rush you into accepting a low first offer before you understand your legal rights or consult with a car accident attorney who can help you.

How Do You Negotiate with the Insurance Company for a Higher Settlement?

Negotiating with an insurance company can be challenging. It also might be difficult for you to keep everything straight if you are still recovering from your injuries and have no experience with insurance claims. Here are a few tips for negotiating for fair compensation:

• Keep detailed records of your medical treatments, expenses, lost wages, and other accident-related costs. This documentation strengthens your case.
• Take your time to evaluate the offer. You don’t have to respond immediately.
• Make a counterdemand based on your documentation and the full extent of your injuries and expenses. Be prepared to justify why you deserve a higher amount.
• Stay calm and professional during negotiations. Avoid getting emotional or aggressive.
• Get legal representation. An experienced car accident lawyer can negotiate on your behalf, often with greater success than you could on your own.

How Long Does an Insurance Company Have to Settle a Claim in Arizona?

Arizona law requires insurers to attempt to settle claims promptly when liability becomes clear but does not set a specific deadline for settling a claim. However, insurance companies generally must:

• Acknowledge receipt of your claim within 10 business days
• Finish investigating the collision within 30 days
• Make a decision within 15 days of receiving proof of loss forms

What Happens If the Insurance Company Doesn’t Want to Settle?

Many car accident claims are settled without going to court. If the insurance company doesn’t want to settle or offers an unfair amount, you have a few options:

• You should hire an attorney to continue negotiating if you have not yet secured legal counsel. Car accident lawyers are skilled negotiators who understand how to maximize your compensation. They can also gather and present evidence to strengthen your case.
• You may agree to mediation or arbitration, which are alternative dispute resolution methods that can help you and the insurer reach a fair settlement without going to court. These processes are typically faster and less costly than litigation.
• Filing a personal injury lawsuit can push the insurance company to offer a fair settlement or let a judge or jury decide.

Contact an Arizona Car Accident Lawyer

You don’t have to accept the first offer from an insurance company after a car wreck. But, dealing with insurance companies can be complex and stressful. An experienced Arizona car accident lawyer can help.

At Mushkatel, Gobbato, & Kile, P.L.L.C., we understand the tactics insurance companies use to deny, delay, or downplay your claim. Let us fight for every dollar of the compensation you deserve. When it comes to negotiating a fair settlement, don’t accept any payment until you talk to one of our car accident lawyers. Call Mushkatel, Gobbato, & Kile, P.L.L.C. today for a consultation.

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