When is the best time to accept an injury compensation offer?

Most insurance companies make a low initial compensation offer, hoping you'll accept quickly. Some may start with a high offer and reduce it later as the case progresses. So, how do you know when to accept?

It's not a guessing game. Your solicitor will advise you based on the full details of your case, ensuring you receive fair compensation that covers all your losses and injuries.

How early in the process can I settle my claim?

As a claimant, you are entitled to accept an offer as soon as you receive one.

If you have instructed a personal injury solicitor you might receive the offer during the claims process. If you are dealing directly with the insurer, you may receive an offer directly.

Are there any insurance company tactics I need to aware of?

Making a pre-medical offers

In some cases, insurers may make a pre-medical offer, providing compensation before any medical evidence is presented. If you accept this before you have a medical assessment, you're agreeing to a settlement without knowing:

• The full extent of your injury
• The medical treatments you'll need
• The prognosis for ongoing care

Pre-medical offers are controversial and have been criticised in Parliament. So, why do insurers still use this tactic?

For claimants, the idea of a quick, hassle-free settlement can be tempting. Insurers know this and often make lower offers in these cases. According to a recent article in the Law Society Gazette, the real reason is that insurance companies aim to 'buy off' victims quickly to save money.

Read more:

Should I accept a pre-medical offer in an injury claim?

Making an early-stage offer

Accepting an early-stage offer can be tempting, just like with pre-medical offers. Insurers may offer a quick pay-out to encourage you to settle for less than your claim is worth.

Even if you've had a medical assessment, you might not yet know how long your recovery will take.

Accepting early is a risk:

• If you recover quickly, you may come out ahead.
• If recovery takes longer, you can't claim more compensation later.

While an early offer might seem appealing, your solicitor may advise waiting and negotiating for a better outcome.

Your solicitor should:

• Understand the tactics of specific insurers
• Show you're prepared to go to court if needed
• Provide guidance on the likely compensation you can achieve.

Read more:

How often do injury claims go to court and what if they do?

Giving you misleading advice

A common tactic used by insurance companies is to advise claimants not to instruct a solicitor, claiming this will allow them to pay more.

If an insurer contacts you with this suggestion, it's important to speak to a solicitor right away to ensure your rights are protected.

Offering you a panel solicitor

If an insurer knows you're seeking legal advice, they may suggest you use one of their panel solicitors. However, these solicitors rely on ongoing work from the insurer, creating a clear conflict of interest.

How can they offer you truly independent advice when their business depends on the insurer? It’s always best to choose your own solicitor to ensure your interests come first.

Read more:

Do I have to use the insurance company's solicitor?

What are the financial benefits of instructing a solicitor?

Research by the Financial Conduct Authority (FCA) found that claimants who instruct a solicitor, rather than accepting the first offer from an insurance company, receive 2-3 times more compensation.

This striking statistic highlights how much the insurance industry benefits by steering you away from independent legal advice.

Read more:

How much compensation I could receive?

So when should I settle my claim?

Your solicitor will provide you with the facts: how much your claim is worth, the risks involved, and the steps needed to secure the best possible compensation.

Even if you choose to work with a personal injury solicitor, you're still in control. You should settle your claim on your terms, not under pressure.

Independent legal advice from Quittance's panel of solicitors keeps you in control, not the insurance company.

Have you already received a compensation offer?

If you've received a compensation offer and are unsure whether to accept it, you can compare it using our injury compensation calculator. The calculator below provides an accurate estimate of what you could expect to receive in both general and special damages:

I'm not happy with my personal injury settlement, what can I do?

If you haven't accepted the settlement yet, discuss it with your solicitor. They can explain how the settlement was calculated and whether there's room for further negotiation.

If your injuries haven't fully healed, consider delaying acceptance in case your recovery takes longer than expected. Once you accept an offer, you can't claim more compensation if your injuries worsen or your recovery is slower than planned.

If you've already accepted a settlement, you can't claim additional compensation, even if your injuries turn out to be more serious. For this reason, it's important not to accept an early offer before a full medical exam

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Author:
Howard Willis, Personal injury solicitor

About the author

Howard Willis qualified as a solicitor in 1984 and has specialised in personal injury for over 25 years. He is a member of the Association of Personal Injury Lawyers (APIL) and is a recognised Law Society Personal Injury Panel expert.