VIRK PERSONAL LAW

Should I Accept the Insurance Company’s First Settlement Offer?

Short answer: Almost never — not before speaking to a personal injury lawyer. First offers from insurance adjusters are typically far below what an injured person is legally entitled to, and once you sign a release, the claim is closed for good.

Why do insurance companies make quick offers?

Because early offers save them money. Common reasons an adjuster reaches out fast:

  • Your injuries and future care needs are not yet fully known.
  • You have not yet spoken to a lawyer.
  • You may be under financial pressure and tempted to take quick cash.
  • Once you sign a full and final release, the insurer’s exposure ends — even if your condition worsens.

What are the risks of accepting the first offer?

  • You cannot reopen the claim if your injuries turn out to be more serious.
  • You may not know your future care costs yet. Rehab, surgery, and long-term treatment often surface months later.
  • You lose leverage on income loss, housekeeping, and future economic damages.
  • You waive rights to sue the at-fault driver in tort.

How do I know if the offer is fair?

You don’t — until an experienced personal injury lawyer reviews:

  • Your medical records and prognosis;
  • Your past and projected income loss;
  • Your future care and treatment needs;
  • Whether your injury meets the tort threshold;
  • The impact of the statutory deductible;
  • The interaction between your SABS entitlement and the tort claim.

What should I do if an adjuster calls me?

  • Do not give a recorded statement.
  • Do not sign any release, waiver, or medical authorization without legal advice.
  • Do not accept a cheque — cashing it can be treated as acceptance.
  • Call a personal injury lawyer. Consultations are free and lawyers work on contingency — no fee unless you recover.

Considering an offer? Contact Virk Personal Injury Law for a free, no-obligation review before you respond.

Book a free consultation.

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