When you’re recovering from a car accident, the last thing you need is an insurance company trying to shortchange you on your claim. Unfortunately, lowball insurance settlement offers happen more often than most people realize. Understanding why insurers make these low offers and knowing how to respond can mean the difference between accepting far less than you deserve and securing fair compensation for your injuries and damages.
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(214) 855-1420Why Insurance Companies Make Lowball Settlement Offers
Insurance adjusters work for companies whose business model depends on paying out less money in claims than they collect in premiums. While this might sound cynical, it’s simply the reality of how insurance companies operate as for-profit businesses.
Several factors drive insurers to present low initial offers. First, many accident victims don’t know the true value of their claims. Without legal representation, people often accept the first number put in front of them, simply relieved that the process might be over quickly.
Second, insurance companies know that financial pressure works in their favor. If you’re facing mounting medical bills, missed work, and vehicle repair costs, you might feel desperate enough to accept whatever they offer just to get some money in hand.
Third, adjusters often rush to make offers before you’ve finished medical treatment. This strategy prevents you from knowing the full extent of your injuries and future medical needs. Once you accept a settlement, you typically can’t go back and ask for more money if complications arise later.
Do Insurance Adjusters Try to Lowball You?
Yes, insurance adjusters frequently make initial offers well below what your claim is actually worth. This isn’t always because the adjuster is a bad person—they’re simply doing their job as defined by their employer.
Adjusters often receive training in negotiation tactics designed to minimize payouts. They might downplay your injuries, question the necessity of certain medical treatments, or argue that your damages weren’t entirely caused by the accident. Some adjusters will even use your own words against you, which is why you should be careful about what you say to them before consulting with an attorney.
The adjuster assigned to your claim has likely handled hundreds or thousands of similar cases. They know that many claimants will accept their first offer without negotiation. By starting low, they leave room to increase the offer slightly during negotiations while still paying out far less than the claim’s true value.
At Jay Murray Law, we’ve seen countless examples of clients who were offered a fraction of what their cases were worth before seeking legal help. Once we got involved, settlements increased dramatically—sometimes by tens of thousands of dollars.
Five Warning Signs You’re Being Lowballed
Recognizing a lowball insurance settlement offer isn’t always obvious if you’ve never been through the claims process before. Here are five red flags that should make you think twice before accepting:
The offer comes extremely quickly. If an adjuster contacts you within days of your accident with a settlement offer, they’re almost certainly lowballing you. Legitimate settlement offers require time to investigate the accident, review medical records, and calculate damages.
You haven’t reached maximum medical improvement. If you’re still receiving treatment or your doctor hasn’t cleared you to return to normal activities, any settlement offer is premature. You can’t accurately value your claim until you know the full extent of your injuries and recovery timeline.
The offer doesn’t cover all your expenses. Add up your medical bills, lost wages, property damage, and other costs. If the settlement offer doesn’t even cover these documented expenses, let alone pain and suffering or future medical needs, it’s too low.
The adjuster pressures you to accept immediately. Legitimate settlement offers don’t come with artificial deadlines. If an adjuster tells you the offer expires soon or suggests you’ll lose out if you don’t accept right away, they’re using pressure tactics to prevent you from seeking legal advice.
Your injuries are serious or permanent. If you suffered broken bones, traumatic brain injury, spinal damage, or other severe injuries that will affect you long-term, early settlement offers rarely account for the true cost of these life-changing injuries.
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What If the Insurance Settlement Offer Is Too Low?
Don’t panic if you receive a lowball offer. Remember that the first offer is almost never the final offer. Insurance companies expect negotiation, and they often hold back significant amounts in reserve for this purpose.
Your first step should be to avoid accepting the offer immediately, no matter how much you need the money. Once you sign a settlement agreement and release, you give up your right to pursue additional compensation later.
Document everything related to your accident and injuries. Keep copies of medical records, bills, prescriptions, repair estimates, pay stubs showing lost wages, and any other evidence that demonstrates the impact of the accident on your life.
Calculate the true value of your claim by accounting for all current and future costs. This includes ongoing medical treatment, rehabilitation, lost earning capacity if you can’t return to your previous job, property damage, and non-economic damages like pain and suffering.
How to Respond to a Low Insurance Settlement Offer
Your response to a lowball offer sets the tone for negotiations. Here’s how to handle it effectively:
Request a detailed explanation in writing. Ask the adjuster to provide a breakdown showing exactly how they calculated their offer. This documentation often reveals flaws in their reasoning that you can dispute.
Write a formal counteroffer letter. Present evidence supporting a higher valuation of your claim. Include medical records, expert opinions, documentation of expenses, and information about how your injuries have affected your daily life and ability to work.
Stay calm and professional. Getting angry or emotional during negotiations doesn’t help your case. Stick to facts and evidence, and avoid making threats you can’t back up.
Consider hiring an attorney. At Jay Murray Law, we handle negotiations with insurance companies every day. We know their tactics, we understand how to value claims accurately, and we’re not afraid to file a lawsuit if they refuse to make a fair offer.
Research shows that accident victims who hire attorneys typically receive significantly higher settlements than those who negotiate on their own. The insurance company takes your claim more seriously when they know you have experienced legal representation.
When Not to Accept a Settlement Offer
Certain situations should automatically make you reject a settlement offer and seek legal guidance:
You’re still being treated for your injuries. Never settle before your doctor says you’ve reached maximum medical improvement. You might discover additional injuries or complications that require expensive treatment.
The offer doesn’t account for future medical needs. Some injuries require ongoing care, future surgeries, or lifelong treatment. Your settlement should compensate you for these future costs, not just past medical bills.
You suffered permanent disability or disfigurement. These life-changing injuries deserve substantial compensation that accounts for how they’ll affect you for years to come.
Liability is disputed. If the insurance company is trying to blame you for the accident or reduce your compensation based on comparative negligence, you need an attorney to fight back with evidence proving their insured driver was at fault.
The policy limits might be insufficient. If your damages exceed the at-fault driver’s insurance policy limits, you may need to explore additional sources of compensation. An attorney can identify all potentially liable parties and applicable insurance policies.
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How Jay Murray Law Can Help You Fight Back
When you’re facing a lowball insurance settlement offer, you don’t have to accept it or negotiate alone. The legal team at Jay Murray Law has extensive experience handling accident claims and dealing with insurance company tactics designed to minimize payouts.
We start by thoroughly investigating your accident and gathering evidence to build the strongest possible case. We consult with medical experts to document your injuries and determine the full extent of your current and future medical needs. We calculate the true value of your claim, accounting for all economic and non-economic damages.
Most importantly, we handle all communications with the insurance company, protecting you from saying anything that could be used to devalue your claim. We negotiate aggressively for maximum compensation, and if the insurer refuses to make a fair offer, we’re prepared to take your case to trial.
You deserve fair compensation for your injuries, medical expenses, lost income, and pain and suffering. Don’t let an insurance company take advantage of you during a vulnerable time. Contact Jay Murray Law today for a free consultation about your accident claim. We work on a contingency fee basis, which means you don’t pay attorney fees unless we recover compensation for you.
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