If you’re injured in an accident that wasn’t your fault, your case will most likely end with an insurance settlement rather than a verdict. That means your primary opponent isn’t really the person who caused the accident. Instead, it’s their insurance company. And because insurance companies are driven by profits instead of doing what’s right for accident victims, they will try to get away with paying as little as possible in a settlement.
Before you accept any insurance settlement after an accident, talk to an experienced personal injury lawyer. Attorney Sean Olson of Olson Personal Injury Lawyers, has spent more than a decade helping accident victims seek fair compensation for their injuries. Our firm can evaluate your offer and, if it’s too low, help you demand more money for your losses to ensure you get justice for your injuries. Contact us today for your free initial consultation.
Key Takeaways
- Insurance companies often begin with lowball offers that fail to fully compensate for both economic and non-economic damages.
- Respond in writing with a formal counteroffer, setting it 10-20% higher than your minimum acceptable amount, and provide evidence to back up your position.
- Wait until you’ve reached maximum medical improvement before settling. Accepting an offer too soon means you forfeit the right to seek additional compensation in the future.
How Should I Respond to a Low Settlement Offer?
If you get an unfairly low settlement offer, that does not mean your case is over, or you have no options. Instead, after receiving the offer, talk to a lawyer and take the following steps:
- Try to remain calm and examine the offer. After receiving a low settlement offer, the most important thing to do is to stay calm. Blowing up at the insurance company won’t do you any good, and it may actually hurt your case. As angry or upset as you may feel, do your best to keep cool and break down the offer. Some aspects of the offer may be fair, while others are unreasonable. If you can tell the insurance company what is and is not reasonable about their offer, you’ll have a strong position as negotiations begin again.
- Provide a formal, written response. It’s essential to respond in writing, not verbally, if you receive a low settlement offer. First off, writing is more precise and gives you the chance to make sure you don’t say anything that could accidentally harm your case. Second, responding in writing allows you to provide additional evidence to support your claim.
- Formulate your counteroffer. You may not get everything you want in an insurance settlement, but making a counteroffer can help you get more of what you want. Your counteroffer can give the insurance company a better picture of the amount you’re willing to accept in a settlement, making negotiations more straightforward. Our team has drafted a sample rejection letter for a low settlement offer, you can use if you are unsure of where to start.
- Settle after you’ve recovered. Do not accept any settlement until you’ve recovered from your injuries or reached maximum medical improvement and know your future medical costs. Once you take a settlement, you can’t negotiate for any additional compensation, so you need a complete picture of what your treatment will actually cost before you agree to a settlement.
Always respond to a low settlement offer in writing rather than over the phone or in person. Submitting a counteroffer in writing gives you a chance to provide more evidence to support your claim. If you haven’t already hired a lawyer, do so before you respond to the low offer you received.
What Is Considered a Good Settlement Offer?
Many people accept less money than they should in an insurance settlement because they don’t know what a good offer is, and don’t know that they can negotiate with the insurance companies. While “good” is a subjective term, you’re generally looking for a settlement that adequately covers your present and potential future medical expenses, lost wages, and any other financial losses related to the accident. On top of that, you can seek compensation for the pain and emotional distress the accident caused.
The particular amount that qualifies as a reasonable offer will depend on the extent of your injuries and other factors, and that can be hard to calculate on your own. Talking to a lawyer can help you get a better picture before agreeing to a settlement.
Compare the Amount Offered to What Your Injuries are Worth
Take out the insurer’s settlement offer and see if the amount comes close to your economic and non-economic losses. If the insurance adjuster made a verbal offer over the phone, get something in writing.
When you compare the numbers, you will probably see there is a big gap between what your injuries are worth and what the insurance adjuster wants to give you to settle. Chances are, the insurer is lowballing you. Some settlement offers are so low that they are insulting. Nevertheless, don’t be insulted. Instead, realize that the negotiation has begun.
Go through the letter a second time and identify any of the reasons given to support the offer amount. For example, the adjuster might think you are partially at fault for the accident or that your injuries are not as serious as you claim. You need to identify all of the reasons given so you can provide evidence to counter them.
Draft a Counteroffer
In your letter, you reject the amount offered as too low. You should also give reasons why. For example, the amount offered might not come close to reimbursing you for lost wages and medical expenses. Tell the insurer that since their insured is at fault, he or she should compensate you for your entire economic losses.
If the insurance adjuster thinks you are partially at fault, you can clarify for him or her what actually happened. Correct any misstatements and errors in the adjuster’s letter.
You should also counteroffer with an amount. Take a moment to come up with a good number to offer. Remember, the insurance company might reject your counter-offer, so you want it to be high enough so that you have room to come down.
Let’s say your economic and non-economic losses total about $100,000. The insurance company offered $25,000—a pittance. Do you really want to counter-offer with $100,000? No. If you do, then there isn’t room to move down during negotiations. Instead, make an offer 10-20% or so more than what you will settle for.
Always remember to keep your letter polite and your tone professional. Although you might be outraged at the low offer, there is no reason to take it out on the insurance adjuster, who is under pressure from his or her boss to settle the claim for as little as possible. Keep a copy of your letter for your file.
Waiting to Hear Back
Insurance adjusters differ in how soon they respond back. Some might immediately contact you, while others might drag their feet. If you hear nothing back for a week, call the adjuster and check that they received your letter. Always remember to mail letters certified mail, return receipt requested so that you will know when it was received.
If the adjuster rejects your counteroffer, he or she might call you. It’s important to remain calm and professional. Listen carefully for the adjuster to say he doesn’t have the “authority” to settle the claim above a certain amount. This information is usually partly true—that insurance agent doesn’t have authority to go over a certain amount, but her boss certainly does. Don’t allow yourself to be bullied into accepting a number you think is too low.
If the adjuster makes a counter-offer, get it in writing. You can then review the reasons given for rejecting your offer and either accept the adjuster’s counter offer or reject it again. Often, you need to go back and forth several times, each side moving incrementally to a number they both can agree to.
Should I File a Personal Injury Lawsuit?
Sometimes the threat of a lawsuit is enough to bring insurance companies back to the table, as they know trials are risky. In other cases, though, insurance companies will dig in their heels and take their chances in court. However, it is well-known that most cases settle before going to trial. If your case does go to trial, you need to get help from an experienced trial lawyer, so they can focus on building a strong case for you.
What Happens If You Accept a Low Settlement Offer?
When you accept an insurance settlement, you agree not to pursue additional compensation from whoever caused the accident. So, if you take a settlement offer that’s too low, you most likely won’t be able to get any more money if you need it.
That could mean you may not have the resources to pay your future medical bills, cover your lost wages, and pay for any additional care you may need. Before you accept any insurance settlement, speak to a lawyer to see if you’re getting a fair deal. If the offer is insufficient, you can reject the insurance offer, and your attorney can build a persuasive case and pursue full coverage of your losses.
What Happens If You Reject a Settlement Offer?
A few different things could happen if you don’t accept an insurance company’s settlement offer. If it’s their first offer, you can make a counteroffer and see how they respond. Depending on your offer and how strong your case is, the insurance company could come back with a more reasonable settlement, and you can wrap up your claim.
If you’ve already engaged in prolonged settlement negotiations and the insurance company won’t budge on their offer, you may have to take your case to court if you want additional compensation.
However, going to court is risky, as you could come away with nothing. Depending on the strength of your case, it could be worth the risk, but you’ll want help from an experienced personal injury attorney in Denver. Our attorneys don’t require any upfront costs to take your case, and you will only pay once we settle your claim.
How a Personal Injury Lawyer Can Help You Negotiate a Settlement
Hiring a personal lawyer gives you the best chance of getting a fair insurance settlement. Your attorney can help you document your other losses, file your claim, and handle all the correspondence with the insurance companies while you rest and heal. If your case goes to trial, your personal injury lawyer can help you prepare, so you have the best possible chance of getting the money you need.
The attorneys at Olson Personal Injury Lawyers are trial lawyers first, meaning we are ready to fight for your rights until the end. If you are unsure of your legal options, contact us today for your free, no-obligation consultation.
A serious injury can impact your health, work, and future. We’re here to hold the responsible party accountable and get you the compensation you deserve.
