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If you have been injured in an accident which was not your fault, you may be offered a compensation payout by the party liable (the defendant) or their insurance company. It is important to understand whether and when you should accept an offer of compensation. If you are asking, “should I accept the first compensation offer”, a specialist solicitor could help you.
Key Takeaways
- You can reject the first offer a defendant or their insurance company makes.
- The first offer in personal injury and medical negligence cases may not take the full extent of your injuries and harm into account.
- This offer may also not include compensation for all financial losses associated with your injuries.
- Once you accept an offer of compensation, you can not make any further or additional claims for the same accident, even if more damages become apparent.
- A personal injury solicitor could help you understand how compensation is calculated, whether to accept an offer, and what alternative dispute resolution may be available.
If you have any questions, one of our advisors could help. Furthermore, no matter what stage along the claims process that you are at, if you have a valid claim, you can instruct a solicitor at any point. One of the solicitors from our panel may be able to help with your claim on a No Win No Fee basis. Speak to an advisor today about whether to accept an offer of compensation.
Frequently Asked Questions
- Should I Accept the First Compensation Offer I Receive?
- What Does the First Compensation Offer Usually Represent?
- What Do I Need To Consider Before Accepting An Offer?
- What Is The Process To Reject The First Compensation Offer?
- How Can Medical Evidence Help Influence My Settlement Amount?
- How Long Does It Take to Receive a Revised Offer?
- What Are the Risks of Accepting the First Offer Too Soon?
- Should I Accept the First Offer Without Legal Advice?
- How Can a Solicitor Help You Challenge the First Offer?
- Learn More
Should I Accept the First Compensation Offer I Receive?
Generally, you should not accept the first compensation offer you receive as it may be lower than you are entitled to, may not take account of financial losses incurred, and will prevent you from subsequently seeking further compensation.
Accepting a settlement at the beginning of, or early in, the claims process may mean doing so before the full extent of your injuries are taken into consideration or before all financial losses have been calculated.
How Will I Know If My First Offer Is Fair?
To know if your first offer is fair, you can compare the compensation offered for your injuries with guidelines published by the Judicial College (JCG), and any financial losses the injury caused. The JCG can be used by legal professionals when valuing injuries. It contains guideline compensation figures for different forms of harm in varying degrees of severity.
Choosing to work with a personal injury or medical negligence solicitor who can calculate your compensation can help to ensure that you receive a fair offer with all damages considered. A specialist solicitor will also ensure that the prognosis is considered and all injuries are valued when assessing your claim.
Why Will My Initial Offer Be Lower?
Your initial offer may be lower than subsequent ones as the other party’s insurance company may aim to settle the case early before the full extent of your injuries or financial losses are known.
Settlements in compensation claims are final and you can not make a subsequent claim if you find that your injury was more severe than initially diagnosed. Reach out for advice on whether to accept the first compensation offer.
What Does the First Compensation Offer Usually Represent?
The first compensation offer usually represents a payout that does not take full account of the injuries or harm you suffered and the impact this has on your life. The first offer may be made before you have had an independent medical assessment. This may be referred to as a pre-medical offer.
Pre-medical offers may be made before you receive a medical report. This report may include details such as,
- The type of injury/ injuries sustained.
- How severe the injuries are.
- What medical treatment will be needed.
- Your long-term prognosis for recovery.
The first compensation offer may also be made before you take legal advice. If you choose to work with a solicitor from our panel they can arrange for your injuries to be assessed by an independent medical professional specialising in the type of harm you suffered. Their report can be combined with your medical records and other evidence to ensure you receive the best possible offer. Speak to an advisor to find out if you are eligible to work with one of the solicitors from our panel.
What Do I Need To Consider Before Accepting An Offer?
Before accepting a compensation offer, you should consider whether the full extent of your injuries are known, if all financial losses have been taken into consideration, and whether you have obtained legal advice.
Factors you could take into consideration,
- Immediate, medium, and long-term medical costs. You should consider whether you will need to meet private medical bills, or pay for long-term prescription medication.
- Rehabilitation needs. You may need to pay for occupational therapy, physical therapy, or similar services.
- The impact on your ability to work. Your accident and injuries may have reduced or removed your ability to work.
- Care costs. These may take the cost of care provided by a professional or a loved one into account.
These may be considered under special damages, one of 2 heads of loss which may be awarded in successful compensation claims.
Additionally, you may also wish to consider whether the compensation offer takes full account of your pain, suffering, and loss of amenity. The final of these refers to the wider impact on your life, such as the inability to (fully) participate in hobbies or everyday activities.
Finally, you can seek legal advice from a personal injury or medical negligence solicitor who can help ensure that you accept the best possible offer.
What Is The Process To Reject The First Compensation Offer?
To reject the first compensation offer, you must formally respond to the defendant’s (or their insurer’s) offer, stating that you do not accept it, and why. The formal response may be provided in writing and could be sent via your solicitor (if working with one).
Upon receipt of an offer, you could,
- Consider whether it takes the factors already discussed in this guide (such as medical costs) into account.
- Obtain legal advice, comparing the offer with the Judicial College Guidelines and special damages. They may provide advice as to whether a higher settlement could be negotiated.
- Prepare a response setting out that you do not accept the offer and the reason for rejecting it.
- Submit this response to the defendant/ their insurance company or solicitor (as applicable).
Can A Higher Settlement Be Negotiated After Rejecting The Initial Settlement?
Yes, a higher settlement may be negotiable after rejecting the initial settlement offer. A solicitor (if you choose to work with one) will evaluate the initial offer and the reasons why it has been made. They may then make a counter-offer to the defendant’s insurer. This offer may be based on your medical circumstances, as well as expenses incurred.
The defendant’s insurer may raise their offer, or in some cases they may refuse to do so. In a small percentage of cases, parties are unable to agree upon a settlement, and the case proceeds to court. However, it is important to note that this only occurs in a small minority of cases
A specialist solicitor from our panel could provide help and advice on when to accept a settlement. Call to find out more.
How Can Medical Evidence Help Influence My Settlement Amount?
Obtaining medical evidence may be a crucial factor in influencing your settlement amount by determining the severity of injury suffered. For example, showing whether you suffered a serious injury and what (short or long-term) treatment you may require. This information may be used to calculate general damages and to assess any related medical expenses or devices. As such, medical evidence could have a significant influence on both parts of a compensation settlement.
What If the First Offer Includes a Pre-Medical Settlement?
If the first offer includes a pre-medical settlement it may mean that you are not fully compensated for the cost or extent of your injury. Accepting a pre-medical settlement means that you risk not having the complete picture of how an accident has impacted you, which can leave you out of pocket. And, as already discussed, settlements are final, meaning you cannot return to the claim to obtain further compensation at a later date.
This highlights the importance of waiting to have a complete picture before you accept any settlement offer. You could seek legal advice from a solicitor about whether you should accept the first compensation offer.
How Long Does It Take to Receive a Revised Offer?
How long it takes to receive a revised offer can vary significantly depending on factors such as new evidence, expert testimonials, and negotiation between parties. The two parties to the claim may need to exchange information to reassess the value of injuries and financial losses.
A revised offer may be made following an inadequate initial offer and in light of;
- New or additional evidence.
- Testimony from or the results of an independent medical assessment.
- Further and extended negotiation between the parties.
Please talk to a member of our advisory team for further help in understanding the claims process.
What Are the Risks of Accepting the First Offer Too Soon?
The risks of accepting the first settlement offer include reduced compensation, a lack of medical evidence, and the inability to claim for as-yet unknown losses. Risks highlighted in prior sections include,
- Underestimated damages.
- Unforeseen costs.
- Lost future earning capacity.
Find out how one of the personal injury or medical negligence lawyers from our panel could help with your compensation claim.
Should I Accept the First Offer Without Legal Advice?
If you choose to accept the first offer without legal advice your claim may be undervalued and your negotiating position undermined. Taking legal action without advice can mean that you do not have a clear and full understanding of your rights. You may be unaware that an initial offer can be rejected, with further negotiation possible.
A solicitor could provide legal advice, explaining the claims process and Civil Procedure Rules in detail. This can help to prevent the other party from potentially utilising any gaps in your own knowledge.
Learn more about how settlement discussions may work by contacting our advisors.
How Can a Solicitor Help You Challenge the First Offer?
A solicitor can help you challenge an early settlement offer from an insurance company by assessing whether it represents fair compensation, collecting further evidence, and providing independent legal advice. By working with a solicitor, you could get a better understanding of how the claims process works, and the role of things such as the Judicial College Guidelines in valuing your claim.
A lawyer or solicitor from our panel could help conduct settlement negotiations, working on a No Win No Fee basis. They can do so using a Conditional Fee Agreement (CFA). By doing so, you would not need to pay any solicitors’ fees before or during the claims process. You would also not need to do so if your claim isn’t successful. If you win, a success fee would be deducted by your solicitor. This fee is calculated as a percentage (which is legally capped) of your compensation. Additional benefits include,
- Help obtaining an independent medical report.
- A review of any offer made, with an assessment of whether it represents fair compensation.
- Advice on when to accept a full and final settlement.
- Preparation for court proceedings if parties are unable to negotiate a settlement.
These are just some of the potential benefits of working with a solicitor from our panel.
Contact Our Advisors
Contact our advisors to learn more about when to accept or reject an early compensation offer.
- Speak to us online.
- Call 0333 000 0729.
- Contact us about your case.
Learn More
Learn more about claiming compensation in these resources.
- See how much compensation you could claim for a broken arm.
- Get independent advice on making a claim for a concussion or head injury here.
- Find the answers to frequently asked questions here.
References.
- Find out about Statutory Sick Pay in this government resource.
- View first aid information from the NHS here.
- Learn more about claiming compensation after an accident here.
Thank you for reading our guide to the question, ‘Should I accept the first compensation offer?’.