How to Respond to a Low Settlement Offer

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 Law Firm, LLC, 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.

What’s 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. 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. Talking to a lawyer can help you get a better picture before agreeing to a settlement.

What If My Insurance Settlement Is Too Low?

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, your attorney can build a persuasive case and pursue full coverage of your losses.

What If I Don’t Accept a Settlement That Is Offered?

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.

Going to court is risky, though, 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 lawyer.

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, such as your medical bills, accident reports, and so on.
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.
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.

How to Respond to a Low Settlement Offer

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.

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. If your case does go to trial, you need to get help from an experienced trial lawyer.

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 lawyer can help you prepare, so you have the best possible chance of getting the money you need.

The Olson Law Firm, LLC, would be honored to represent you in your case. Contact us today for your free, no-obligation consultation.

Client Testimonials

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“I do not have enough wonderful things to say about Sean and the Olson Law Firm. This firm is the most hardworking, caring, compassionate, smart, and results-driven firm I have ever had the privilege of working with. Sean shows so much compassion for his clients and really cares about getting the right outcome while keeping his clients wishes at the forefront of his work. The personalized experience, time dedication, professionalism, and true passion for client satisfaction was so apparent and so appreciated throughout my time working with him. For all of my legal needs moving forward, I would look no further than the Olson Law Firm! You cannot go wrong and you will get the very best experience and results by choosing this firm. If I could give more than 5 stars, I would! They’re deserved. Thank you for everything Sean!”

“I was lucky to be connected with Sean through a mutual friend, and would highly recommend him to anyone who is in need of legal assistance. From the first time I met with him all the way through the end, I knew exactly what was happening and felt comfortable with the process. Sean is incredibly knowledgeable and kept us very informed, going into detail about both the strengths and weaknesses of my particular situation from the very beginning. He was honest and supportive the entire time, and I really felt like he would be supportive of whatever decision I made and would have my back no matter what I decided to do. He really cares about his clients and it shows!”

Sample Rejection Letter for a Low Settlement Offer

January 1, 2022 [Today’s Date]

Mr. John Doe [Your Name]
101 Maple Street [Your Street Address]
Denver, CO 80202 [Your City, State, and ZIP Code]

Ms. Mary Smith [Insurance Adjuster’s Name]
Acme Insurance Company [Insurance Company’s Name]
909 Main Street [Insurance Company’s Street Address]
Chicago, IL 60601 [Insurance Company’s, State, and ZIP Code]

RE:
John Doe and Adam Jones [Your Name and the Defendant’s Name]
Claim Number 1234567 [Claim Number]
December 15, 2021 [Accident Date]

Dear Ms. Smith: [Insurance Adjuster’s Last Name]

In response to your letter dated [Date of Insurer’s Letter], I am unable to accept your offer of $[Offer Amount] to settle my demand for compensation in Claim Number [Claim Number from Above]. The figure you offered is insufficient in light of the facts of the case.

Please review the information about the [car crash / motorcycle accident / slip-and-fall / dog bite / etc.] that supports my settlement demand of $[Demand Amount]. The accident report, photos from the scene, and statements from witnesses clearly indicate that your insured was at fault for the incident that directly and proximately caused my injuries.

The medical bills and records I provided to your company accurately demonstrate the extent of my medical expenses. I have also submitted employment records that indicate the time I missed from work due to my injuries and the extent of my lost income.

I have endured significant physical pain and emotional trauma because of the accident and the injuries I sustained in it. As a result, I have been unable to perform daily activities such as [cooking, grooming, dressing, household chores, driving, hobbies, etc.]. The injuries I sustained have also caused me to miss out on important events with friends and family, such as [birthdays, graduations, parties, weddings, vacations, etc.].

My injuries and related losses are real and substantial. I made a fair initial demand for compensation based on my documented losses and research regarding similar cases. You have not presented any contrary evidence to justify your lower offer.

Although I maintain that my initial demand was fair and reasonable, I am willing to reduce my demand to $[New Demand Amount] in the spirit of compromise and in hopes of settling the claim without litigation. I recognize that it would be mutually beneficial if we could resolve the
claim fairly and promptly without resorting to court proceedings.

Please reach out to me if you have any questions or would like to discuss this matter further.
I appreciate your time, and I look forward to your response.

Sincerely
John Doe [Your Signature and Typed Name]