Should I Take the First Settlement Offer in My Personal Injury Case? (And How to Handle a Lowball Settlement Offer)

Steps to Respond to a Low Settlement Offer

Some people think they can handle the insurance companies by themselves, but it is always a good idea to work with an experienced attorney, especially if you are recovering from injuries.

A personal injury attorney can help you understand and calculate the true value of your personal injury case, work with the insurance company on your behalf, and protect you from being taken advantage of by lowball offers.

If you do receive a low settlement offer from your insurance company, you and hopefully your attorney can take the following steps to get you the settlement you deserve:

Remain Calm and Analyze Your Offer

Just like anything in life, it’s never a good idea to respond emotionally after receiving a low offer. It’s an even bigger mistake to accept it out of fear that it’s the best they will do.

No matter how upset you get, or how in need of money you may be, never ruin the professional relationship you have with the other parties. Things you say and do can be sued against you if you try to renegotiate the offer.

Keep in mind that the insurance company’s initial offer will be the lowest offer they think they can get away with and serves as a starting point for negotiations.

And remember that if you are struggling with short-term finances while your personal injury case is ongoing, your attorney can often help you delay payment of your medical bills until after a settlement or verdict is returned.

Ask Questions

Once you’re sure you can keep your emotions in check, you can start asking questions. Find out why the adjuster made the offer they did. Ask your claims adjuster to break down how they made their offer based on the information they have.

Your insurance adjuster must give you the reasons why they came to their decision if they decide to deny your claim. Their responses can help guide you on how to respond with an appropriate counteroffer.

For example, as we mentioned above, if your offer was not enough or it was denied due to missing information, provide them with the information they need in your counteroffer.

Present the Facts

Everything needs to be documented after your accident. Your injuries, medical costs, property damage, lost wages, and any other documentation of damages can serve as valuable evidence to support your claim. The more evidence you have, the easier it will be to prove your claim.

Having the paperwork necessary to back up the amount you believe is needed to cover your damages makes it harder for your insurance company to send you a lowball offer.

Presenting your adjuster with all the facts, backed by a paper trail, will likely force them to give you a better settlement offer.

Develop a Counteroffer

With all your documentation, and after thoroughly reviewing the offer from your adjuster, you and your attorney can develop a counteroffer.

Other factors that you will need to consider when developing your counteroffer might be the limits of the insurance policies or the wrongdoer’s personal assets if the insurance policy limits aren’t enough to pay your damages.

There may be several offers and counteroffers made during the settlement negotiations. In fact, even after a lawsuit is filed, settlement negotiations can always continue, right up to the start of trial.

It will be up to you and your attorney to decide what you are willing to accept for your claim. If you cannot reach a fair settlement during negotiations, you might have to take your claim to court.

Respond in Writing

Your attorney will help you draft a formal response in the form of a demand letter to the initial offer notifying the insurer that you are rejecting the offer.

While drafting the letter, you and your attorney can point out faulty assumptions made by the insurance company that made the initial offer too low. Your written response should include additional details that had been left out initially, like proof of lost income, updated medical records and medical bills, details from police reports, and details about your non-economic damages, like how pain and suffering is affecting your life.