Quick answer
Usually not until you have compared it to your full losses, including future medical care and lost income. First offers often arrive before treatment is finished, and signing a release generally ends the claim for good, including injuries you do not know about yet if the release waives Civil Code section 1542. Negotiating does not stop the two-year filing deadline under Code of Civil Procedure section 335.1.
Should you accept the insurance company’s first offer? Usually not without checking it against your full losses first. A first offer often arrives before your treatment is finished and before anyone knows what your injury will cost over time, and once you sign a release, the claim is over. In California a general release can even cover problems you do not know about yet if the release waives Civil Code section 1542.
We are B&D Law Group, APLC, a California personal injury firm. This guide explains why first offers tend to be low, what to check before you respond, and how a counteroffer usually works.
Why the First Offer Is Often Low
An adjuster values a claim based on what is documented at the time. Early on, that usually means the first few medical bills and not much else. Future treatment, lost earning capacity and the full effect of the injury on your daily life may not be in the file yet. A quick offer can also come before you have talked to a lawyer, which is when people are most likely to accept less than the claim is worth.
That does not mean every first offer is unfair. It means the offer should be compared to a complete picture of your damages, not accepted because it arrived quickly.
What a Release Does
To get paid, you will be asked to sign a release. A release ends the claim against the people and insurers named in it, and you generally cannot reopen it if your injury turns out to be worse than you thought. Civil Code section 1542 says a general release does not cover claims you did not know or suspect at the time you signed. Many insurance releases include a clause waiving section 1542, which means the release is meant to cover unknown claims too. Read that clause carefully before you sign.
What to Check Before You Respond
Before responding, gather your medical bills and records, your doctors’ view of future care, proof of lost wages, and photos or notes showing how the injury has affected your life. Make sure you have reached, or are close to, the point where your doctors can say what your recovery will look like. Our guide on delayed symptoms after a car accident explains why some injuries do not show their full effect for days or weeks.
How a Counteroffer Usually Works
Most claims resolve through negotiation. The injured person, or their lawyer, sends a written demand letter that lays out liability and damages, the insurer responds, and the two sides go back and forth. Under Insurance Code section 790.03(h)(5), not attempting in good faith to effectuate prompt, fair and equitable settlements of claims in which liability has become reasonably clear is an unfair claims practice. That rule is enforced by the Insurance Commissioner, and the California Supreme Court held in Moradi-Shalal v. Fireman’s Fund (1988) that a third-party claimant cannot sue the other driver’s insurer under it directly.
Keep the Deadline in Mind
Negotiation does not pause the statute of limitations. Code of Civil Procedure section 335.1 generally gives you two years from the date of injury to file a personal injury lawsuit, and a claim against a public entity requires a written government claim within six months under Government Code section 911.2. If talks are dragging, those dates still apply.
Related guides: how personal injury lawyer fees work.
Frequently Asked Questions
Should I accept the insurance company’s first offer?
Not before comparing it to your full damages, including future medical care and lost income. First offers often come before those costs are known, and signing a release generally ends the claim.
Can I reopen a settlement if my injury gets worse?
Generally no. A signed release ends the claim, and many releases waive Civil Code section 1542, which would otherwise keep unknown claims outside a general release.
Does negotiating stop the two-year deadline?
No. The statute of limitations under Code of Civil Procedure section 335.1 keeps running while you negotiate.
Can I make a counteroffer?
Yes. Most claims settle through a written demand and a series of offers and counteroffers.
Talk to a California Injury Lawyer
If you have an offer on the table, we can review it against your full damages before you respond. We handle these claims through our car accident attorneys and insurance claim attorneys practices. Call (888) 977-2238 or use our contact page.
Attorney advertising. This article is provided for general informational purposes only and does not constitute legal advice. Reading this article or contacting us does not create an attorney-client relationship. Every case is different and past results do not guarantee a similar outcome. If you have been injured, speak with a licensed attorney about your specific situation.