They Offered Me a Settlement — Should I Take It?

The insurance adjuster called with a number. Maybe it sounded reasonable. Maybe it sounded low. Either way, you’re wondering: should I take it?

The short answer for most people: not yet.

Why the First Offer Is Almost Always Too Low

The first settlement offer from an insurance company is a test. They’re measuring whether you’ll accept the cheapest number they think you might take.

Here’s what the offer typically covers: a portion of your current medical bills. That’s it. It rarely accounts for future medical treatment you might need, lost wages beyond what you’ve already missed, reduced earning capacity if your injuries are long-term, pain and suffering, emotional distress, or loss of enjoyment of life.

The insurance company makes the offer quickly — often before you’ve finished treatment — because they want to close your file before you know the full extent of your damages.

The Danger of Accepting Too Early

When you accept a settlement, you sign a release. That release permanently closes your claim. You can never go back for more money — even if your injuries turn out to be far worse than anyone expected.

This is why we tell every client: do not settle until you’ve reached maximum medical improvement (MMI). MMI is the point where your doctor says your condition has stabilized — you’ve recovered as much as you’re going to. Until you reach that point, neither you nor anyone else knows the true cost of your injuries.

How to Evaluate a Settlement Offer

Ask yourself these questions:

Have I finished treatment? If you’re still seeing doctors, going to physical therapy, or waiting for test results, it’s too early to settle.

Does it cover all my medical bills — past and future? Add up every bill, including what your health insurance paid. Then consider whether you’ll need future treatment.

Does it include lost wages? Count every day of work you missed and every dollar of income you lost. If your injuries will affect your ability to work long-term, that needs to be factored in.

Is there anything for pain and suffering? Arizona has no cap on non-economic damages. A legitimate offer accounts for the physical pain, emotional distress, and disruption to your daily life.

Does it account for subrogation? If your health insurer paid your medical bills, they may have a right to be repaid from your settlement. If the offer doesn’t account for this, your actual take-home amount will be even lower.

What a Fair Settlement Looks Like

There’s no formula — and anyone who gives you a specific multiplier (like “3x your medical bills”) is oversimplifying. But a fair settlement accounts for the full picture: all medical costs (past and future), all lost income, pain and suffering proportional to the severity and duration of your injuries, and the impact on your daily life and relationships.

Online settlement calculators are marketing tools, not legal advice. They exist to collect your phone number, not to evaluate your case.

What to Do Right Now

Do not sign anything. Not the settlement check, not a release form, not a “receipt” — nothing. Once you sign, it’s permanent.

Do not feel pressured by a deadline. Adjusters often say the offer expires in 30 days. Arizona’s statute of limitations gives you two years to file a lawsuit. You have time.

Get the offer in writing. If the adjuster made the offer verbally, ask them to send it in writing so you can review it.

Consult an attorney. This is the single most impactful thing you can do. A personal injury attorney can evaluate the offer against the actual value of your case and negotiate for significantly more. Studies consistently show that represented accident victims recover more money — even after the attorney’s fee — than those who negotiate alone.

We’ll Tell You the Truth

Bring us the offer. We’ll review it for free, compare it to what we believe your case is actually worth, and give you an honest assessment — even if that means telling you the offer is fair. We’d rather earn your trust with honesty than sign a case we can’t improve.

Call (833) DTF-IGHT for a free, no-obligation consultation.