Getting into a car accident is stressful enough. You're dealing with car repairs, maybe injuries, doctor visits, and time off work. Then, the insurance company finally makes a settlement offer, but your stomach sinks— it’s far too low to cover everything.
Receiving a low settlement offer doesn't mean you have to accept it or that it's the final amount you'll receive. A car accident lawyer can help you understand your options and work through negotiations.
Steps To Take When the Settlement Offer is Too Low
Ask the adjuster to send you the settlement offer in writing if they haven't already done so. Look closely at what it includes. Does it list the specific damages it covers? Does it mention medical bills, lost wages, pain and suffering?
Understanding what they did consider can help you figure out what they missed or undervalued.
Document Everything
You need documentation to back up your claim for a higher amount. Collect everything related to the accident and your losses:
- The official police or accident report
- All medical records and bills (hospital, doctors, therapy, prescriptions, etc.)
- Estimates and invoices for vehicle repairs or proof of its total loss value
- Photos and videos of the accident scene, vehicle damage, and your injuries
- Proof of your income and lost wages
- Notes from your doctor about your diagnosis, treatment plan, prognosis (expected recovery), and any long-term effects or future care needed
- Receipts for any other related expenses
Keep a simple journal detailing your pain levels, limitations on daily activities, and emotional state after the accident. This helps document your pain and suffering.
Seek Legal Aid
An experienced car accident attorney can help you gather evidence to build your case. Your lawyer can review the specific facts of your case and explain your options for a claim.
How a Car Accident Lawyer Can Help You After a Crash
The stress and pain of recovery from a car crash are only exacerbated by the need to deal with insurance companies, paperwork, and medical bills. A car accident attorney can provide invaluable support and guidance through the complexities of the legal process.
Here are some important ways a lawyer can assist you.
Investigate the Crash
A car accident lawyer knows how to navigate the complexities of personal injury law and insurance claims. They have the expertise to thoroughly investigate the accident, gather crucial evidence, interview witnesses, and consult with experts if necessary.
They can determine who was at fault for the accident by analyzing the evidence and applying the relevant laws.
Deal With Insurance Companies
Communicating with insurance adjusters can be a daunting task, especially since their primary objective is to minimize payouts. A car crash lawyer will manage all communication with the insurance companies on your behalf.
As a skilled advocate, they can effectively present your claim, negotiate against low settlement offers, and advocate for the full compensation you deserve based on your injuries and losses.
Calculate Your Losses
An attorney will seek damages for not only immediate expenses like medical bills and car repairs but also future costs that may arise from the accident. A car accident lawyer can calculate the total cost and fight for fair compensation.
Protect Your Rights and Meeting Deadlines
Each state has a statute of limitations for filing a car accident claim. A lawyer can ensure that all necessary paperwork is filed correctly and on time. This will help you avoid unintentionally losing your right to seek compensation for your damages.
Let You Focus on Healing
The biggest advantage to having someone knowledgeable manage the complex legal and insurance details is that it gives you peace of mind and allows you to concentrate on healing from your injuries.
What Makes Up a Fair Car Accident Settlement? Know Your Claim's Real Worth
A fair settlement should cover all the losses and hardships you suffered from the accident. Here are common damages you can seek:
- Medical expenses: This includes all medical costs, including ambulance, emergency room, doctor's appointments, physical therapy, medication, surgeries, and assistive devices. It also includes the estimated cost of future medical care due to your injuries.
- Lost wages: If the accident forced you to miss work, you should be compensated for your lost income.
- Lost earning potential: You can seek compensation if your injuries prevent you from working in the future or if you can only return to a lower-paying job.
- Property damage: You can seek damages for the cost of repairing your vehicle or, if it's totaled, its actual cash value. You can also include damage to other property.
- Pain and suffering: Pain and suffering encompasses the physical pain, emotional distress, inconvenience, anxiety, discomfort, loss of enjoyment of life, and other non-monetary hardships that result from the accident and your injuries.
The insurance company's first offer might only focus on the medical bills they've seen so far and the basic car repair cost. It often significantly undervalues or ignores future needs and pain and suffering. A car wreck lawyer can calculate a fair value for your claim.
Why Did the Insurance Company Offer So Little?
It can feel personal when you get a low offer, but usually, it's business. Insurance adjusters work for the insurance company. Their job involves settling claims while managing costs for their employer.
There are a few common reasons why an initial offer might seem inadequate:
- It's an opening move: Insurance companies often start negotiations low, expecting that you might try to negotiate higher. They might see what you're willing to accept.
- Missing information: The adjuster might not have all the facts yet. Maybe they haven't received all your medical bills, don't fully understand your injuries, or haven't seen proof of all your lost wages.
- Different view of fault: If there's any question about who caused the accident, the insurer might reduce their offer based on their assessment of your potential share of the blame, even if you disagree.
- Underestimating damages: They might undervalue certain parts of your claim, especially things like pain and suffering or the potential need for future medical care. Their calculation might only focus on the bills they have right now.
- Company policy: Some companies may have internal guidelines that encourage adjusters to start with lower offers.
Take Your Time and Avoid the Pressure To Settle Quickly
Insurance adjusters sometimes try to create a sense of urgency, making you feel like you need to accept the first offer right away. Don't fall for this pressure—accepting a settlement is usually final.
Once you sign the release form, you generally can't ask for more money later, even if you discover your injuries are worse than you thought or you need more medical treatment.
It's especially important not to rush if:
- You’re still receiving medical treatment for your injuries.
- Your doctor hasn't declared that your condition is stable and unlikely to improve further.
- You don't yet know the full extent of your injuries or their long-term impact.
- You haven't returned to work or aren't sure about your future work capacity.
The statute of limitations varies by state. However, this is usually measured in years and is different from the adjuster's timeline.
Politely tell the adjuster you need time to review the offer, gather your records, and understand the full impact of the accident before making a decision. Seek legal advice from a car accident attorney to find out if the offer is fair.
Other Lowball Tactics Insurance Companies Might Use
Besides just making a low initial offer, insurance adjusters sometimes use other strategies to encourage you to settle for less than your claim might be worth. Knowing about these tactics can help you recognize them and stand firm in seeking fair compensation.
Downplaying Your Injuries or Future Needs
The adjuster might try to minimize the seriousness of your injuries. They may also ignore or dismiss the possibility that you'll need future medical treatment, physical therapy, or that your injuries could have long-term effects.
Always rely on your doctor's assessment of your injuries and prognosis, not the adjuster's opinion.
Requesting a Recorded Statement
Soon after the accident, an adjuster might ask you to provide a recorded statement about what happened and your injuries. While this seems like a standard procedure, be cautious. Adjusters are trained to ask questions in ways that might get you to say something that could hurt your claim later.
You might unintentionally downplay your pain by saying something like, "I'm doing okay,” or say something else that could be interpreted as admitting partial fault. Consult with an attorney before talking with the insurance company. Providing information in writing after you've gathered your thoughts and facts is often safer.
Discouraging You From Getting Legal Advice
An adjuster might subtly or directly suggest that hiring a lawyer is unnecessary, will complicate things, or will just cost you money. They might say, "We can settle this fairly between us,” or “Involving lawyers just slows everything down."
Adjusters prefer to deal directly with victims, hoping they lack the knowledge and negotiating power to challenge their low offer effectively. Getting legal advice is your right, and it often helps level the playing field.
Delay Tactics
Instead of using pressure, an adjuster might delay. They might be slow to return your calls, repeatedly ask for documents you've already sent, or drag out the investigation process. This can be incredibly frustrating, especially if you have mounting bills.
The hope is that the financial pressure will wear you down, making you more likely to accept a low offer just to get some money sooner rather than later.
Frequently Asked Questions About Low Car Accident Settlement Offers
Dealing with an insurance company after a car accident can raise many questions, especially if their settlement offer seems too low. Here are answers to some common concerns.
Is the First Settlement Offer From the Insurance Company Final? Can I Ask for More?
No, the first settlement offer is rarely final. Think of it as the insurance company's starting point for discussion. Insurance adjusters often make initial offers that are lower than what they might actually be willing to pay, hoping you'll accept it quickly without realizing your claim could be worth more.
You have the right to reject the first offer if you believe it doesn't fairly cover all your losses from the accident. A lawyer can negotiate for a higher amount by presenting evidence of your damages, like medical bills, proof of lost income, and explaining the impact of your injuries on your life.
Rejecting the first offer and making a reasonable counteroffer is a normal part of the settlement process.
How Long Do I Have To Respond to a Low Settlement Offer? Am I Under Pressure To Decide Quickly?
You should not feel pressured to accept an offer immediately, especially if you are still treating your injuries or haven't fully understood the long-term consequences. While the insurance adjuster might suggest a quick deadline, you generally have more time than they imply.
The most important legal deadline is the statute of limitations, which is the time limit set by your state law for filing a lawsuit. As long as you are within that timeframe, you have time to negotiate. Consult with a car crash lawyer to discuss your claim’s specific deadlines.
What Happens if I Reject the Insurance Company’s Offer and We Still Can’t Agree on a Fair Amount Through Negotiation?
If you reject the initial offer and your negotiations with the insurance adjuster don't lead to an agreement you feel is fair, you and your lawyer will usually file a lawsuit against the at-fault party (who the insurance company represents).
Filing a lawsuit doesn't always mean you'll end up in a long court trial; many cases are still settled after a lawsuit is filed but before the trial begins. The act of filing shows the insurance company you are serious about pursuing fair compensation.
Don't Settle for Less: Call DFW Injury Lawyers Today
Receiving a low settlement offer after a car accident can be discouraging, but it's often just the first step in the process. Remember that the initial offer is not the final word.
A car crash attorney can calculate your claim's true value, gather strong evidence, and work towards securing a settlement that truly covers your losses and helps you move forward.
If you need help determining your case's worth, call DFW Injury Lawyers for a free consultation at (972) 440-2320 or contact us online.
Kevin L. Edwards
Founder
Attorney Kevin Edwards is a co-founder of DFW Injury lawyers. During his law school tenure, Mr. Edwards worked for a prominent local personal injury attorney, where he gained valuable pre-litigation, litigation, courtroom, and trial experience in lawsuits involving car wrecks, commercial trucking wrecks, medical malpractice, premises liability and catastrophic injury. Following his graduation from law school, Mr. Edwards joined a high-volume civil litigation/insurance defense firm in Dallas, Texas, where he defended corporations, insurance companies, employers, trucking companies, and numerous businesses and individuals throughout the State of Texas. After approximately five years on the defense side of the docket, Mr. Edwards had seen enough of the corporate and insurance company greed. In 2008, Mr. Edwards moved across the courtroom aisle to help plaintiffs whom he had seen from experience suffer real, and often times, debilitating injuries and were deserving of compensation. Over the last 15 years, Mr. Edwards has dedicated his practice to helping those who have been injured or harmed by the negligence, malfeasance, and/or recklessness of others. He has represented thousands of victims in personal injury matters, defective products cases, and mass tort litigations against medical device and pharmaceutical companies.
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