What To Do If Your Insurance Company Offers a Low Settlement

Motor Vehicle Accidents

Receiving a low settlement offer from your insurance company after an accident can be frustrating, especially when the damages and personal injuries you’ve suffered clearly exceed the offer. Insurance companies often use low offers as a negotiation tactic, hoping claimants will accept less than they deserve. Knowing how to respond effectively can make a significant difference in the outcome of your claim.

Step 1: Evaluate the Settlement Offer

When faced with a low settlement offer, the first step is to remain calm. Initial offers are usually just a starting point for negotiations. Take a methodical approach by carefully reviewing the offer and comparing it against your actual damages. Key areas to evaluate include:

Medical Costs: Ensure that all current and future medical expenses are accounted for, including therapy and rehabilitation.
Lost Wages: Calculate income lost due to missed work, and factor in potential long-term effects on your earning capacity.
Property Damage: Assess whether the settlement covers the full cost of repairs or replacements.
Pain and Suffering: Consider compensation for emotional distress, physical pain, or a diminished quality of life.

This review will help you identify gaps in the offer and prepare for the next steps in negotiations.

Step 2: Request an Explanation for the Offer

Ask the insurance company to provide a detailed breakdown of how they arrived at the settlement amount. This explanation is crucial for understanding their perspective and identifying potential errors or omissions. For example, they may have underestimated the severity of your injuries or overlooked critical documentation. A clear explanation also serves as a foundation for building a counteroffer.

Step 3: Ensure All Evidence is Submitted

Gather and organize all documentation and evidence related to your claim, ensuring the insurance company has everything they need to accurately assess your damages. Key pieces of evidence include:

Medical Records: Detailed records of treatments, diagnoses, and related costs.
Proof of Lost Income: Statements from your employer or pay stubs verifying time missed from work.
Property Damage Documentation: Estimates for vehicle repairs or receipts for replacements.
Photos and Witness Statements: Evidence showing the accident scene and its impact on your life.

If the insurance company overlooked any of these details, submitting them promptly can strengthen your position.

Step 4: Consult a Paducah Personal Injury Attorney for Guidance

Negotiating with an insurance company can be challenging, especially if their tactics leave you feeling overwhelmed. Consulting an experienced Paducah personal injury attorney can provide the support and knowledge you need to level the playing field. An attorney can:

Assess Your Claim’s Value

Help you determine the true worth of your damages.

Negotiate Effectively

Handle communications with the insurer to push for a fair settlement.

Prepare for Litigation

If the insurer refuses to negotiate reasonably, our injury attorneys in Paducah can file a lawsuit on your behalf.

Having legal representation can significantly improve the outcome of your claim, especially if the insurer is unwilling to act in good faith.

Step 5: Submit a Counteroffer

If you have identified shortcomings in the insurance company’s evaluation, prepare a counteroffer that reflects the full extent of your damages. Your counteroffer should include:

A summary of the accident and why the other party is at fault.
A detailed breakdown of your damages with supporting evidence.
A revised settlement amount that allows room for further negotiation.

Be firm but professional in your communication, emphasizing your goal to reach a fair resolution.

Step 6: Highlight Strong Evidence During Negotiations

Focus on the most compelling aspects of your case when negotiating, such as:

Clear Proof of Fault: Evidence like police reports or video footage demonstrating the other party’s liability.
Severe Injuries: Medical records showing significant or long-term harm.
Expert Testimony: Opinions from medical professionals or accident reconstruction specialists to substantiate your claim.

Strong evidence can pressure the insurer to reconsider their initial stance and offer a more reasonable settlement.

Step 7: Stay Persistent

Negotiating a settlement often requires patience. Insurance companies may delay responses or use stalling tactics to pressure you into accepting less. Don’t let frustration lead you to settle prematurely. Instead, remain persistent and continue advocating for a fair amount.

Step 8: Explore Alternative Dispute Resolution

If negotiations reach an impasse, consider options like mediation or arbitration. These methods involve neutral third parties who can facilitate a resolution or make binding decisions. Mediation and arbitration can be faster and less expensive than going to court, making them valuable alternatives when negotiations stall.

Step 9: Be Prepared for Litigation

If all else fails, be ready to file a lawsuit. While most claims are settled out of court, demonstrating your willingness to litigate can show the insurer you’re serious about receiving fair compensation. This move often prompts insurers to reevaluate their offers and avoid the cost and uncertainty of a trial.