After an accident, you rely on the insurance company to provide fair compensation for your damages. However, insurers often start with a low settlement offer, hoping you will accept less than what your claim is worth. Knowing how to handle these offers can make a significant difference in your final payout.
Why Do Insurance Companies Offer Low Settlements?
Insurance companies are businesses focused on minimizing payouts. Some common reasons for low settlement offers include:
- Testing Your Patience: They assume you may be in financial distress and willing to accept a quick payout.
- Questioning Liability: If there is any doubt about who caused the accident, they may reduce the offer.
- Downplaying Injuries: Adjusters may claim your injuries are not as severe as you state.
- Using Your Statements Against You: If you previously told the adjuster you were “fine” or “feeling better,” they may use that to argue for a lower amount.
Steps to Take After Receiving a Low Settlement Offer
1. Do Not Accept the First Offer Right Away
Insurance companies expect negotiations. Their first offer is rarely their best. Politely decline and request a written breakdown of how they calculated the settlement amount.
2. Review the Offer and Compare It to Your Damages
Before responding, evaluate:
- Medical expenses (past and future)
- Lost wages
- Property damage
- Pain and suffering
- Long-term impact of injuries
Compare the settlement offer to the actual costs of your accident-related expenses. If the offer does not cover these damages, it is too low.
3. Gather Evidence to Strengthen Your Claim
To justify a higher settlement, provide:
- Medical records detailing the severity of your injuries
- Bills and receipts for treatments and rehabilitation
- Proof of lost income from missed work
- Vehicle repair estimates
- Photos of the accident scene and injuries
- Witness statements
4. Write a Counteroffer Letter
A strong counteroffer should include:
- A rejection of the initial offer
- A detailed explanation of your damages
- Supporting evidence (medical bills, doctor statements, repair estimates)
- A new settlement amount you believe is fair
Be professional and fact-based in your response. Avoid emotional language or hostility.
5. Be Prepared to Negotiate
Insurance companies rarely accept counteroffers immediately. Expect back-and-forth negotiations. Stay firm, but reasonable, in your demands. If necessary, adjust your expectations based on documented damages.
6. Do Not Let Pressure Force You into a Quick Settlement
Adjusters may tell you that their offer is final or that accepting quickly will get you paid faster. Do not rush. Take the time to review and consult an attorney if needed.
7. Consider Legal Representation
If negotiations stall or the insurer refuses to make a fair offer, a personal injury attorney can help. A lawyer can:
- Handle all communication with the insurance company
- Provide legal leverage in negotiations
- File a lawsuit if necessary to push for proper compensation
When to Accept a Settlement Offer
Accepting a settlement is a final decision—you cannot go back and ask for more later. Only agree to a settlement if it fully covers your medical expenses, lost wages, property damage, and pain and suffering. If you are unsure, consult with an attorney before signing any agreement.
Need Help Negotiating a Fair Settlement?
If you have received a low settlement offer from an insurance company, the Law Offices of Brent W. Caldwell can help. Contact us for a free consultation to ensure you receive the compensation you deserve.
