If you live in Southern California and haven’t been involved in a car accident, count yourself lucky. California has more than 31 million registered vehicles on the road–more than any other state–and the average license holder drives more than 12,500 miles every year. With so many cars, trucks, and motorcycles in motion every day, it may come as no surprise that traffic accidents causing injury and death are on the rise throughout California and the country. According to the National Highway Traffic Safety Administration (NHTSA), in 2024, California saw 5,059 motor vehicle deaths, an increase from 2023. Nationwide, traffic fatalities are up 25% over the past decade.
Every year, thousands of Southern California drivers, passengers, motorcyclists, and pedestrians are hurt and killed in roadway accidents, and chances are good that you or someone in your family will be involved in a vehicle accident at some point. If it’s the other party’s fault, you may be contacted by their insurance company and offered a settlement, and you may be tempted to take it. But before you accept any offer, it’s important you understand the ramifications of taking the money and signing the accompanying release.
The best course of action after any accident is to discuss your situation with an experienced California car accident attorney right away, even if your injuries seem minor. At Mova Law Group – Personal Injury Lawyers, we have represented countless injury victims and families and negotiated fair settlements for them, even when the insurance companies don’t want to pay a dime. We’ve also seen firsthand what happens when an accident victim takes an offer too soon without understanding their rights.
Why Do California Insurance Companies Offer Low Settlements After an Auto Accident?
Insurance companies want to pay as little as possible on accident claims, so they’ll sometimes take action quickly to avoid a potentially costly lawsuit. They know if you’re in pain, have medical bills, and have missed work, you may be grateful to get a few thousand dollars right away. After all, the money will not only offset your financial losses but it’s also an acknowledgement the accident wasn’t your fault, so it may feel like emotional relief on top of financial relief.
You might be in pain and worried about money, but never accept the initial offer! Insurance companies are notorious for lowballing at first, hoping you’ll jump at it for quick relief during a stressful time. But the first offer you get from an insurance company is just an opening offer, and while they hope you’ll take it, they actually expect you to make a counteroffer. This isn’t something you should do on your own, however. It’s far better to let a skilled personal injury lawyer handle these negotiations for you. While it’s true your attorney will take a fee for negotiating the settlement, most injury victims receive far more–even after legal fees are paid–than they do when they try to negotiate on their own.
What Is a Personal Injury Release Form?
When you agree to a settlement with a California insurance company, you will have to sign a personal injury release form, sometimes referred to as a release of liability or a liability waiver. When you sign this form, you “release” the other party and their insurer from any future liability which means you can never file another claim or lawsuit against them for additional compensation related to your injury. This is why the insurance company often makes an offer fairly soon after an accident–they want you to release them from the obligation to pay you anything else in the future, even if your injuries worsen.
Some of the injuries that are common with vehicle accidents–for example, back injuries and head injuries–can have relatively minor symptoms at first and then be slow to heal or can even worsen over time. What starts as a few days off from work can turn into months or years of pain that keeps you from holding down a job. A surgery that seems like the solution can fail, and you may find yourself dealing with months or years of physical therapy, medical procedures, medication, and doctor visits. We never know how well our bodies will respond to treatment after an injury, and unfortunately, sometimes the road back to healing is long, and in some cases, full health is never restored.
Because the future is uncertain when it comes to recovering from an injury, it’s important not to give up your right to pursue all the compensation you deserve and may need in the weeks, months, and years that follow an accident. Never sign a personal injury release form without first consulting with a knowledgeable car accident attorney.
Injuries That Seem Minor Can Grow in Severity and Expense
We’ve seen many clients who were involved in car accidents experience very mild symptoms at first. They think they’re okay and they decline medical care the day of the incident. But when you’re involved in an accident of any kind, your body goes into shock and works overtime to help you to cope with the immediate stress. The surge of adrenaline you experience can mask the seriousness of injuries. It’s not at all uncommon for pain and injury symptoms to be minor or non-existent until a day or two after the incident, and sometimes they don’t show up until even later than that.
Even if you think you are walking away from an accident unscathed, you should seek medical care immediately, if for no other reason than to start a record of treatment in case you need it later. Consider the experience of one of our recent clients, “Shelly.”
The day Shelly was involved in an auto accident, she didn’t think she was hurt–in fact, she didn’t go to the hospital or doctor that day. But two days later, she had numbness and tingling in her hands and feet and she went to the doctor. Soon thereafter, she began suffering from severe neck pain and shooting pain down her arms. For the next year she received conservative care including physical therapy, chiropractic care, and epidural steroid injections, but nothing relieved the pain. After three cervical spine fusions failed, Shelly opted to receive a spinal cord stimulator which finally relieved her of the continuous pain, numbness, and tingling she had felt in her arms since shortly after the accident.
Ultimately, our team negotiated with the insurance company who finally paid Shelly $3.6 million for injuries she didn’t even know she had until days after the accident and a year of medical care.
The Right Personal Injury Attorney Can Help You Get a Fair Settlement After an Accident
The team at Mova Law Group – Personal Injury Lawyers has worked with countless clients like Shelly who faced long recoveries and we were with them every step of the way. In many cases, clients were disheartened to face multiple medical complications after an accident, sometimes for years. They worried as medical bills piled up and their return date to work was pushed further and further out. They suffered both physically and financially, and for longer than they had originally anticipated. And in these situations, they were grateful they hadn’t taken the initial offers from the insurance companies, as those settlement amounts came nowhere close to covering their losses.
Following are more real stories about real clients who were involved in roadway accidents and suffered injuries that took longer to heal than expected. These stories serve as important cautionary tales for those who are tempted to take the first settlement offer presented by an insurance company after a car accident.
Rear End Collision and Pre-Existing Condition
Initial Offer $5,000
Final Settlement Offer: $1,750,000
Our client was driving his car when he was rear ended by another vehicle. The impact exacerbated his pre-existing lower back injury and gave him a concussion (mild traumatic brain injury). Unfortunately, his injuries were so severe that he was forced to retire from his career in law enforcement. When there is a pre-existing condition, insurance companies often try to use that as a way to avoid liability, and in this case, they offered our client $5,000, but we knew he deserved much more. We fought for three years and were finally able to secure a substantial and fair settlement of $1.75 million.
Pedestrian Hit by Vehicle in San Diego
Initial Offer: $50,000
Final Settlement: $1,500,000
Our client was walking in downtown San Diego when she was hit by a company vehicle driven by the owner. She was diagnosed with a concussion and released from the hospital within 5 hours. However, over the next 3 years, our client continued to have neck and back pain, and she finally had her own health insurance doctor perform lumbar spine fusion. The insurance company’s initial offer was less than $50,000 but we knew this was inadequate compensation for our client’s losses and we made it clear we were willing to fight them in court. A few weeks before the trial, the insurance company made a fair offer of 30 times their initial offer, ultimately settling for $1.5 million.
Pre-Existing Condition and Disputed Liability Car Crash
Initial Offer: $0
Final Settlement: $1,250,000
Our client was involved in an accident where her car sustained about $5,000 in damage but was not a total loss. Prior to the accident, she had had a lumbar fusion, and after the accident, she experienced pain. She tried everything she could to get better but nothing worked, so she finally went back to her original surgeon who performed a lumbar revision surgery. We were willing to fight for her in court, but we didn’t need to because the insurance company handed over the maximum amount of their policy in pre-litigation for a total of $1.25 million.
San Diego Motorcyclist Hit by Rideshare Car and Tried Negotiating a Settlement on His Own
Initial Offer: $15,000
Final Settlement: $1,100,000
Our client was riding a motorcycle when he collided with a rideshare vehicle. He suffered a unique elbow injury and cervical spine injury. He tried for one-and-a-half years to negotiate with the rideshare company on his own without legal representation, but the company wouldn’t budge past an offer of $15,000. He finally reached out to our firm for help. Over the next year, we helped him obtain appropriate medical care through our network of doctors and we negotiated fiercely with the rideshare company’s insurer. In the end, our team secured the full value of the policy limit plus an extra $100,000 from another party for a total settlement of $1.1 million.
Bicycle Rider Hit by Company Truck in Monterey County
Initial Offer: $0
Final Settlement: $650,000
Our client was riding a bicycle in northern California when he was struck by a truck owned by a publicly traded company. The police report stated our client was 100% at fault for the accident and the company stated they would never give our client a single penny for the brain injury he suffered. This case was litigated for more than 3 years and was a battle, but we knew our client was not in the wrong and that he deserved compensation. We hired an accident reconstruction expert who provided testimony that the truck was at fault. We also allowed their doctors to conduct very limited mental exams of our client (under our strict supervision). Finally, the company did the right thing and paid our client $650,000.
When Should You Accept an Insurance Settlement?
You know you shouldn’t take the first offer, so when can you agree to a settlement from the insurance company? There are several factors that will weigh into your decision, and your trusted personal injury lawyer will give you valuable advice about your specific situation. But here are a few important points to consider before accepting a settlement and signing the release form:
Are you done with medical treatment?
You should be completely healed from your injuries or you should have reached maximum medical improvement (MMI). If you accept an offer before you reach this point, you run the risk of not receiving enough money to pay for future medical treatments and losses that may occur down the road. Remember, if you sign the release form and you have medical complications later, you have no recourse for getting additional compensation.
Have you calculated all your current and future damages?
You should have a clear understanding of all the damages you have suffered and may suffer in the future related to your injury. Beyond medical bills, you should consider other losses such as lost wages, reduced earning potential, property damage, pain and suffering, decreased quality of life, and emotional and mental distress. You may also be entitled to punitive damages if the actions of the other party were particularly egregious or reckless.
Do you understand the available insurance coverage?
You should be aware of the insurance coverage that is available to compensate you. There may be more than one party sharing liability (for example, a driver and the company they work for) and each policy will have a different limit and each company will have to be negotiated with separately.
Have you weighed the risks of going to trial?
If you can’t negotiate a settlement that you are sure will cover your damages, you may consider going to a jury trial, but you need to understand the risks of doing so. If you go to court, there are no guarantees–you may be awarded more than the insurance company is willing to offer, but you may win less, or even walk away with nothing. Trials take time, and you’ll have to consider that as well. It’s very important you have a personal injury lawyer you can trust and who understands your needs and circumstances so you can make the best decision together.
Choose the Right Southern California Car Accident Lawyer for Peace of Mind
Insurance companies are good at what they do, and we don’t recommend you engage in settlement negotiations with them on your own. The team at Mova Law Group – Personal Injury Lawyers knows all their tricks, and we will fight to secure a settlement that covers all your losses. Your job is to focus on healing and getting better; our job is to get you the compensation you need and deserve. Call us today to discuss your accident and injuries–consultations are always free and confidential.
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