If you've been involved in a car accident that wasn't your fault, the other party’s insurance company may contact you with an early settlement offer. This can happen quickly, sometimes within days of the accident, and it may seem like a straightforward way to move on.

However, accepting an insurance company’s offer without legal advice can lead to unfortunate long-term consequences. Many injured individuals find out too late that what they accepted in an initial offer from an insurance company didn’t cover the full cost of their injuries, medical expenses or lost earnings. This can leave you out of pocket for the financial losses related to your injury and, in some cases, prevent you from getting the treatment you need.

Here, the personal injury solicitors at JMW explain why it is important to seek independent legal advice before agreeing to any settlement offer, and how a personal injury solicitor can protect your rights and help you to secure the fair compensation you are entitled to.

Why Do Insurance Companies Make Early Offers?

Early offers are often part of an insurer’s standard claims process. When someone is injured, insurers may move quickly to resolve the case and limit the amount they need to pay.

These offers are made for several reasons:

• To settle quickly, often before the full impact of the injury is understood
• To avoid paying for ongoing medical care, future treatment or lost income
• To save time and money on defending the matter in court or negotiating with your solicitor

While early offers may appear convenient, they are often made before the injured person has had time to fully understand their legal options. For an estimate of how much you could be able to claim, have a look at our personal injury claims calculator.

What Are the Risks of Accepting an Offer Without Legal Advice?

Accepting an offer from an insurance company without first seeking legal advice means giving up your right to claim additional compensation later. In most cases, the insurance company will offer a compensation amount for your injuries that is below what you would receive by making a legal claim, even without accounting for any financial impact of the accident or the long term effects on your life. A solicitor will take all of these factors into account and help you to pursue a civil claim that fully covers all of these losses.

The risks of accepting the insurance company’s offer include:

• Undervaluing your claim: initial offers will not account for long-term medical costs, the need for rehabilitation or compensation that covers any emotional distress or chronic pain you experience as a result of the accident.
• Missing future losses: you may not have recovered fully when the offer is made, so any need for ongoing medical care or future loss of earnings may not be understood or taken into account.
• No proper medical evidence: offers from insurance companies are often made without waiting for a full medical report, which means they are based on assumptions rather than the facts of your condition.
• Signing away your rights: once you accept an offer, it is very unlikely you can reopen your personal injury claim, even if your condition worsens.

Even when a settlement offer seems fair on the surface, without proper legal guidance from a road traffic accident solicitor, it is impossible to know whether it reflects the full extent of your losses.

Common Approaches Used by Insurance Companies

Insurance companies aim to resolve claims efficiently and at the lowest possible cost to them, which leads to offers that don’t reflect the full impact of your injuries. Here are some common strategies you may encounter:

• Early settlement: you may be contacted with an offer before you’ve had a chance to fully recover or speak to a personal injury lawyer.
• Discouraging legal advice: some insurers suggest that involving a solicitor will slow things down or reduce your payout due to legal fees. In reality, proper legal representation means accessing a significantly higher compensation award, based on the full extent of the injury and expense you have incurred.
• Creating urgency: offers are sometimes framed as limited-time deals to encourage a quick decision before you've gathered full medical records, accident reports, or other evidence.
• Minimal documentation: In some cases, offers are made without reviewing the relevant medical reports or properly investigating your injuries.

These tactics reflect the insurer’s focus on protecting their own position. You should seek to protect your own position by working with an experienced solicitor, and allowing them to handle all negotiation on your behalf.

Why Legal Advice Makes a Significant Difference

A qualified solicitor will take the time to fully understand your circumstances and ensure that any compensation you receive reflects the true value of your claim. They will:

• Review all evidence: such as gathering witness statements and reports from independent medical experts to make sure nothing is overlooked.
• Value all losses: this includes your medical bills and property damage, alongside lost wages, future treatment costs and any non-economic damages such as pain, or loss of quality of life.
• Protect your rights: your solicitor will manage all contact with the insurance company, so you don’t feel pressured, and can focus on your recovery.
• Negotiate on your behalf: most accident claims involve a process of negotiation. With legal support from a team that has experience dealing with insurance companies and how they negotiate, you are more likely to access a fair settlement that fully reflects the impact of your injury.

At JMW, we offer a free consultation to review the offer and confirm whether it properly accounts for your injuries and losses.

Strict Time Limits Still Apply

In England and Wales, there is a standard three-year time limit for starting a personal injury claim. This usually runs from the date of the accident, or from the date you first became aware that your injuries were linked to the incident.

There are some important exceptions to the three-year rule:

• Children have until their 21st birthday to start a claim.
• For people who lack mental capacity, there is no time limit.

It’s always best to instruct a solicitor as early as possible. This ensures evidence can be preserved, and memories of exact details remain fresh. Early legal advice also protects you from making decisions that could limit your right to a fair settlement later on. You should not feel pressured into accepting an early offer from an insurance company even if you believe you are approaching the deadline. Contact JMW to learn more about your right to claim and any time limits that apply.