I get the call all the time. Someone gets hurt in a crash on the 5 or rear-ended at a light on Rosecrans, and within a few days the other driver's insurance company is already on the phone with a number. It sounds like a lot when you're stressed and the bills are starting to show up. My advice is almost always the same. Slow down before you sign anything.
I'm Joe Crudo. I handle personal injury cases here in San Diego, and I've seen how the first offer works from the inside. It's not a favor. It's a business decision, and the business is trying to close your case cheap and fast, before you know what your injuries are really going to cost you.
Here's what I want you to understand about that first number, and why patience usually pays.
The First Offer Is a Starting Point, Not a Final Answer
Insurance companies don't lead with their best number. That's not how any of this works. The adjuster who calls you has a range they're authorized to pay, and the first offer sits at the bottom of it. They're hoping you take it before you talk to a lawyer, before you finish treatment, and before anyone adds up the full picture.
Think about it from their side for a second. Every dollar they don't pay you stays with the company. The adjuster is friendly because friendly works. A quick, low settlement that you sign in week one is a win for them. It's rarely a win for you.
When you counter, or when a lawyer counters for you, that first number tends to move. Sometimes it moves a lot. But you only find that out if you don't grab the first thing they hand you.
You Don't Know What Your Injuries Cost Yet
This is the big one. In the first days and weeks after a crash, you usually have no real idea how bad the injury is or how long it's going to take to heal.
Back injuries and neck injuries are the classic example. You feel sore, you assume it'll pass, and you sign a release for a few thousand dollars. Then a month later the pain is worse, an MRI shows a herniated disc, and now you need injections or surgery. Here's the problem. Once you sign that release, the case is closed. You can't go back and ask for more, even when the medical bills blow past what you settled for.
Some injuries take time to fully show themselves. Soft tissue damage, concussions, nerve problems, all of it can look minor at first and turn serious later. Doctors talk about reaching "maximum medical improvement," which is the point where they can actually say how you've healed and what care you'll still need. Settling before you get there is guessing. And you're guessing against people who do this for a living.
A fair settlement should account for more than the bills sitting on your kitchen table today. It should look at future medical care, lost wages if you couldn't work, reduced earning ability if the injury is lasting, and pain and suffering. The first offer usually ignores most of that.
What the Number Should Actually Cover
When we evaluate a case, we're not just adding up receipts. California law lets injured people recover a range of damages depending on the facts, and a rushed offer tends to leave money on the table in every category.
- Medical bills, both what you've already paid and what you'll reasonably need going forward.
- Lost wages, including time you missed and, in some cases, a reduced ability to earn later.
- Pain and suffering, which is real and compensable even though it doesn't come with a receipt.
- Property damage, like your vehicle after a wreck.
An early offer often covers a slice of your medical bills and calls it a day. It leaves out the rest because the adjuster knows that if you accept, you've waived the whole claim.
Medical Liens and the Money You Actually Take Home
Here's something people don't think about until it's too late. If your health insurance or a medical provider paid for your treatment, they may have a lien, which means they get paid back out of your settlement. If you take a quick, low offer, that money can get eaten up fast, and you can end up with far less in your pocket than the number sounded like.
Part of what a lawyer does is negotiate those liens down so more of the recovery actually reaches you. That work happens after the settlement number is set. If you settle on your own for a small figure, there may be nothing left to work with once the liens come out.
California's Comparative Fault Rule Cuts Both Ways
California is a pure comparative fault state. In plain terms, if you were partly at fault for what happened, your recovery gets reduced by your share of the blame, but you can still recover. Even if you were mostly at fault, you may still be owed something for the other side's share.
Adjusters know this rule cold, and they'll often try to pin more fault on you than the facts support to justify a low offer. "You were speeding a little." "You should've seen them." They say things like that to shrink the number. Whether it's a car accident, a motorcycle accident, or a pedestrian accident, how fault gets assigned can change the value of your case a great deal, and it's worth having someone push back on an unfair fault story before you accept anything.
You Have More Time Than the Adjuster Suggests
The rush is manufactured. Adjusters create urgency because urgency makes people settle. But in California, the general deadline to file a personal injury lawsuit is two years from the date of the injury, under Code of Civil Procedure section 335.1.
Two years isn't forever, and I don't want anyone reading this to sit on a case. Evidence fades, witnesses move, and memories get fuzzy. There are also important exceptions. Claims against a public entity, like a city, a county, or a government agency, can have much shorter deadlines, sometimes just months, so those need attention right away. But the point stands. You almost always have enough time to finish treatment and understand your injury before you decide on a number. Don't let a phone call convince you it's now or never.
What to Do Instead of Signing
If you've been hurt, here's the practical version of what I tell people.
- Get medical care and follow through with it. Your health comes first, and consistent treatment also documents the injury.
- Don't give a recorded statement to the other side's insurer before you understand your rights. They'll use your words to reduce the offer.
- Keep everything. Bills, photos, the police report, notes about how you're feeling day to day.
- Talk to a lawyer before you accept or reject anything. Most injury cases, mine included, run on contingency, so a consultation costs you nothing and there's no fee unless we recover for you.
A lot of people worry that calling a lawyer means a fight or a courtroom. Most cases settle. The difference is what they settle for, and whether the number reflects everything you've actually lost. My job is to take the pressure off you and deal with the insurance company directly.
If you're not sure whether your offer is fair, that's a fine reason to call. We answer questions like this every week, and you can also read through our FAQ for more on how injury claims work in California.
A Quick Note
This post is general information about how settlement offers and injury claims tend to work in California. It isn't legal advice, and it doesn't create an attorney-client relationship. Laws change and every case turns on its own facts, so the only way to know what your situation calls for is to talk it through with a lawyer about the specifics.
Talk to Me Before You Sign
If an insurance company has already made you an offer, or you think one's coming, let's talk before you decide. The consultation is free and confidential, and I'll give you a straight read on whether that number makes sense. Call Crudo Law at (858) 622-7280, or reach out through our contact page. It's your recovery. Make sure the number reflects it.