After a car accident in San Antonio, receiving an offer from the at-fault driver’s insurance company to cover only your medical bills—while refusing compensation for other damages—can be confusing and frustrating. This limited offer strategy is a common insurance tactic designed to minimize payouts and protect their bottom line.
The Insurance Company’s Strategy
Insurance companies are for-profit businesses with a primary goal of maximizing revenue while minimizing expenses. When you’re injured in an accident caused by their policyholder, their objective is to resolve your claim as quickly and inexpensively as possible.
By offering to pay only your medical bills, the insurer is attempting to:
- Create the impression they’re being reasonable and helpful
- Secure a quick settlement before you fully understand your rights
- Avoid paying for other legitimate damages you’re entitled to under Texas law
- Prevent you from hiring an attorney who would likely negotiate a higher settlement
What Texas Law Actually Entitles You To
Under Texas personal injury law, accident victims are entitled to recover various types of damages beyond just medical expenses. These may include:
Economic Damages
- Current and future medical expenses: Not just your immediate bills, but any ongoing or future treatment needs
- Lost wages: Compensation for time missed from work due to injuries
- Loss of earning capacity: If your injuries affect your ability to earn money in the future
- Property damage: Costs to repair or replace your vehicle and other damaged property
Non-Economic Damages
- Pain and suffering: Physical pain and discomfort caused by your injuries
- Mental anguish: Emotional distress, anxiety, and psychological impact
- Loss of enjoyment of life: Diminished ability to enjoy daily activities and hobbies
- Disfigurement: Compensation for permanent scarring or visible injuries
- Physical impairment: Reduced physical capabilities or mobility
The Texas Civil Practice and Remedies Code outlines these damages, and courts consistently uphold accident victims’ rights to pursue full compensation.
Why Insurance Companies Make These Limited Offers
There are several tactical reasons why an insurer might offer to pay only your medical bills:
1. They’re Banking on Your Lack of Knowledge
Most accident victims don’t fully understand their legal rights or the true value of their claim. Insurance adjusters are trained to capitalize on this knowledge gap.
2. They Want to Act Before You Hire an Attorney
Statistics consistently show that accident victims who hire attorneys receive significantly higher settlements than those who don’t. According to the Insurance Research Council, represented claimants receive settlements 3.5 times larger on average than unrepresented claimants.
3. They’re Using the “Foot-in-the-Door” Technique
By getting you to accept partial compensation, they’re establishing a relationship where you might be more likely to accept their terms for the remainder of your claim.
4. They’re Hoping to Close Your Claim Quickly
The longer a claim remains open, the more it typically costs an insurance company. Early, limited settlements save them money.
The “Medical-Only” Tactic in San Antonio Cases
San Antonio’s unique position as one of Texas’s fastest-growing cities has led to increased traffic congestion and accident rates. Local insurance adjusters have adapted their tactics accordingly, and the “medical-only” offer has become increasingly common in Bexar County.
The Texas Department of Insurance reports that complaints about partial settlement offers have increased by 23% in the San Antonio area over the past three years, indicating this is a growing strategy.
The Hidden Dangers of Accepting a Medical-Only Offer
Accepting an offer that covers only your medical bills can have serious consequences:
1. You May Sign Away Your Rights
Insurance settlements typically require you to sign a release that waives your right to seek additional compensation—even for damages you didn’t know about when you signed.
2. Your Medical Needs May Evolve
Many injuries, particularly those affecting the spine, brain, or joints, can worsen over time or require additional treatment. What seems adequate today might be insufficient tomorrow.
3. You Forfeit Other Valid Damages
By accepting medical-only compensation, you’re essentially paying for your own lost wages, pain and suffering, and other damages out of pocket.
4. You May Not Account for Health Insurance Subrogation
If your health insurance covered any of your medical expenses, they likely have a right to be reimbursed from your settlement. This “subrogation” right could significantly reduce your net compensation.
Steps to Take When Offered a Limited Settlement
If you’ve received a medical-only offer from an insurance company, consider these important steps:
1. Don’t Accept the First Offer
Initial offers are almost always lower than what the insurance company is ultimately willing to pay. Treat it as the starting point for negotiations, not the final offer.
2. Document Everything
Keep detailed records of:
- All accident-related expenses
- Medical treatments and recommendations
- Time missed from work
- How your injuries affect your daily life
- All communications with the insurance company
3. Complete Your Medical Treatment
Never settle a claim before you’ve reached maximum medical improvement (MMI) or have a clear understanding of your future medical needs.
4. Calculate All Your Damages
Beyond medical bills, quantify your lost wages, property damage, and estimate your pain and suffering damages.
5. Consult with a Personal Injury Attorney
A San Antonio personal injury lawyer experienced in dealing with insurance companies can:
- Evaluate the true value of your claim
- Handle communications with the insurer
- Negotiate for a fair settlement that covers ALL your damages
- Take your case to court if necessary
How San Antonio Courts View Partial Settlements
The Texas 4th Court of Appeals, which has jurisdiction over San Antonio, has consistently ruled in favor of accident victims’ rights to full compensation. In several notable cases, the court has overturned partial settlements when it was clear the victim didn’t fully understand their rights or was pressured into settling.
Statute of Limitations Considerations
In Texas, you generally have two years from the date of the accident to file a personal injury lawsuit. Insurance companies know this and may use delay tactics combined with small offers to run out the clock.
Don’t let artificial time pressure force you into accepting less than you deserve. While you should be mindful of the statute of limitations, you also shouldn’t rush into an inadequate settlement.
The Value of Legal Representation
Studies consistently show that represented claimants receive larger settlements than unrepresented ones—even after accounting for attorney fees.
A study by the Insurance Research Council found that accident victims who hired attorneys received settlements 3.5 times larger than those who settled on their own. This is particularly true in complex cases involving serious injuries or disputed liability.
How Insurance Companies Calculate Settlement Offers
Understanding how insurance companies value claims can help you recognize when you’re being undercompensated:
The Multiplier Method
Many insurers use a formula where they multiply your medical expenses by a factor (typically 1.5 to 5, depending on the severity of your injuries) and then add your lost wages.
For example, if you have $10,000 in medical bills and $2,000 in lost wages:
- A fair settlement might be ($10,000 × 3) + $2,000 = $32,000
- A medical-only offer would be just $10,000—less than one-third of fair value
The Per Diem Method
Another approach assigns a daily dollar amount to your pain and suffering and multiplies it by the number of days you experienced pain.
Insurance companies offering medical-only settlements are effectively valuing your pain and suffering at zero—an approach Texas courts have repeatedly rejected.
San Antonio’s Unique Insurance Environment
San Antonio’s diverse population and unique traffic patterns create specific challenges in accident cases:
Military Presence
With multiple military bases in the area, many San Antonio accidents involve active-duty personnel or their families, complicating jurisdiction and insurance requirements.
Tourist Traffic
As a major tourist destination, San Antonio sees many accidents involving out-of-state drivers and rental vehicles, adding layers of complexity to insurance claims.
Commercial Vehicle Activity
San Antonio’s position as a logistics hub means accidents often involve commercial vehicles with complex corporate insurance policies.
Conclusion: Protecting Your Rights After a San Antonio Accident
When an insurance company offers to pay only your medical bills after an accident, remember:
- This is a strategic offer designed to minimize their payout
- You are entitled to much more under Texas law
- Accepting such an offer likely means waiving your rights to full compensation
- Consulting with a personal injury attorney is the best way to ensure your rights are protected
At Ryan Orsatti Law, we understand the tactics insurance companies use to minimize payouts to San Antonio accident victims. Our experienced team can evaluate your case, handle all communications with insurers, and fight for the full compensation you deserve—not just for medical bills, but for ALL your accident-related damages.
Don’t settle for less than you deserve. Contact our San Antonio personal injury team today for a free consultation about your accident claim.
