How To Respond to an Insurance Company’s Low Settlement Offer
Unfortunately, getting fair compensation after an accident that was caused by another party’s negligence can be difficult. Insurance companies are businesses. As such, some insurance companies only focus on making profits. It is quite common for insurance companies to make low settlement offers to personal injury claimants. Fortunately, if an insurance company makes you a low settlement offer, you do not have to accept it. In this article, we discuss the reasons insurance companies make low settlement offers and the steps to respond to a low settlement offer.
Why Do Insurance Companies Make Low Settlement Offers?
Insurance companies make low settlement offers to personal injury claimants for several reasons. However, it is crucial to note that not all insurance companies engage in the practice of lowballing personal injury claimants. The following are some of the reasons insurance companies make low settlement offers to personal injury claimants;
- Maximizing profits: Some insurance companies only focus on making profits. These companies make low settlement offers to minimize costs and maintain profitability.
- Lack of evidence or facts: An insurance company may make a low settlement offer to a personal injury claimant because the claimant does not have strong evidence to support their claim.
- Many claimants accept low offers: Many claimants accept low settlement offers for various reasons, including financial pressure, inadequate information, uncertainty, and trust in the insurance company.
- To prevent setting a precedent: When an insurance company pays out higher amounts, it can set a precedent for future claims, possibly increasing their overall payout obligations.
Steps To Respond to a Low Settlement Offer
The insurance company may make you a quick but low settlement offer, hoping that you will accept it. This is especially true if you don’t have an attorney. Here is how to respond to a low settlement offer;
Hire an Attorney
If you have been handling your case up to the point where the insurance company makes you a low settlement offer, it is in your best interest to hire a lawyer. You and your attorney should then take the following steps.
Remain Calm
It can be frustrating and insulting to receive a low settlement offer from an insurance company. However, it is vital that you remain calm. Reacting emotionally to a low settlement offer will only worsen the situation.
Scrutinize the Offer
Analyze the settlement offer with your attorney and allow your attorney to explain to you why the offer is unacceptable. If the insurance hasn’t explained the reason(s) for the low offer, your attorney will determine the reason(s). Your attorney can then contest any inaccurate arguments.
Develop a Counteroffer
If the offer is too low, your lawyer will reject it in writing on your behalf. In addition, your lawyer will create a counteroffer to the insurance company in writing. The insurance company may reject your first counteroffer. Before your claim is settled, your attorney and the insurance company may exchange several offers and counteroffers.
File a Lawsuit
If the insurance company refuses to make you a fair offer, your attorney will file a lawsuit. The insurance company will likely make you a fair settlement offer before the case goes to court.
Contact Us for Legal Help
Our Tampa personal injury attorneys at The Pendas Law Firm can negotiate a fair settlement with the insurance company on your behalf. Contact us today to schedule a consultation.
The Pendas Law Firm also represents clients in the Jacksonville, Fort Myers, Miami, Naples, Melbourne, Bradenton, Daytona Beach, West Palm Beach, Fort Lauderdale, Ocala, and Orlando areas.
