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A lowball settlement offer is the last thing you want to see after sustaining a personal injury. Inadequate compensation leaves you, the victim, paying out of pocket to cover your damages. Instead of accepting it as the final option, consider speaking with an attorney who can push back against unfair settlements. Reach out to NST Law today to schedule a free consultation and learn how our seasoned attorneys can pursue a fair settlement.
Key Takeaways
- A lowball offer falls short of what your medical bills, lost income, pain and suffering, and other damages may be worth.
- Insurance companies may make early offers, hoping you accept before you know the full cost of your injury.
- Once you sign a settlement agreement, you generally cannot ask for more money later.
- You can send a counteroffer backed by evidence, and an attorney can negotiate on your behalf.
What Is a Lowball Insurance Settlement Offer?
A lowball insurance settlement offer is an amount that falls short of what a claim may be worth based on medical bills, lost income, pain and suffering, and other damages. Insurance companies may make these offers early in the claims process, before they know the full cost of an injury.
In many of these scenarios, the insurance adjuster will present a lowball offer and expect the victim to counter with a higher amount. However, their goal remains to pressure you into accepting the initial amount before you have time to calculate the full extent of your losses.
Why You Should Never Accept the First Settlement Offer
The first settlement offer is often just the beginning of negotiations. Insurance companies may offer less than they are willing to pay, expecting you to ask for more. If you accept too soon, you could end up with less than you need to cover your losses. Keep in mind that once you sign a settlement agreement, you generally cannot ask for more money later, even if new medical expenses or other damages come up.
Step-By-Step: How To Respond to a Lowball Offer
If an insurance company offers less than your claim is worth, you can counteroffer instead of accepting the amount. These steps can help you prepare for negotiations:
- Stay calm and review the offer: Check the settlement amount, the insurer’s reasoning, and review all terms before agreeing.
- Calculate your claim’s value: Include the total of your medical bills, lost wages, and other accident expenses.
- Assess the adjuster’s reasoning: Check whether the insurer missed important records, questioned your medical treatment, or blamed you for the accident.
- Send a counteroffer: Explain how much you are asking for and why, using evidence such as medical bills and wage records to support your demand.
- Consult a personal injury lawyer: An attorney can assess the offer, calculate compensation, and negotiate on your behalf.
What To Include in Your Counteroffer Letter
A counteroffer letter should explain why the insurance company’s offer is too low and provide evidence supporting your requested settlement amount. Keep the letter professional and include the following details:
- Header and case reference: Include your name and contact information, date, insurer, claim number, and accident date.
- Clear rejection statement: State that you reject the offer and briefly explain why it does not cover your losses.
- Evidence breakdown: Itemize medical expenses, lost wages, and other accident-related losses. Include bills, treatment records, pay stubs, and receipts, and note any ongoing treatment or expected future costs.
- Revised demand: Give your requested settlement amount and explain how you calculated it, including financial losses and, where applicable, pain and suffering.
- Response deadline: Request a written response by a reasonable date, allowing time for meaningful negotiations.
Common Insurance Adjuster Tactics To Watch Out For
Insurance adjusters are trained to use various tactics to undermine your claim. These can include anything from pressured quick cash offers to disputes about your evidence.
The Quick Cash Offer
An adjuster may offer a settlement shortly after an accident, before you know how much your injuries will cost to treat. If you accept too soon, you may have to pay for additional medical care yourself.
Delay Tactics
The insurance company may drag out the process by taking too long to review documents or respond to messages. If bills are piling up and you are missing work, you may feel pressured to accept a lower settlement just to get the money sooner.
Disputing Medical Records
An adjuster may question whether your injuries resulted from the accident, argue that treatment was unnecessary, or point to gaps in your medical records to justify a lower offer. If you had pre-existing conditions, they may also use that to dispute your injuries and argue they were not the result of the accident.
Requests for Recorded Statements
An adjuster may ask you to give a recorded statement about the accident. However, they could later use your words to challenge your account of what happened or argue that you contributed to your injuries. Any time you speak with insurers, avoid admissions of fault or speculation about what took place.
If you believe the insurers involved in your claim are attempting any of the above, consider speaking with an experienced attorney for support with your case.
Get Help Responding to a Lowball Settlement Offer
If an insurance company offers less than your claim is worth, our compassionate legal team at NST Law can help you review your options. We have a strong track record of securing favorable case results for our clients.
Contact us today at 731-427-5550 to schedule a free consultation and learn what steps you can take to pursue fair compensation.
