If you were injured in a car accident caused by a negligent driver, you mustfile a claim with their insurance company. You may expect them to treat you fairly and offer you what you deserve when settling your claim.
Unfortunately, the insurance company is a business. As such, their focus may be on making a profit instead of your health and needs. You should not be surprised if they make you a lowball first offer.
What Compensation Should You Receive in Your Car Accident Settlement?
To know if the insurance company is offering a low settlement, you must understand what compensation you are entitled to under California law. You should receive both your past and future damages in your settlement. Types of compensation that should be included in your settlement are:
- Medical expenses
- Lost wages and lost earning capacity
- Pain and suffering
- Property damages
- Out-of-pocket expenses
- Wrongful death damages if a loved one was killed in the collision
How to Respond to a Low Settlement Offer
The insurance company may offer you a low amount in their first settlement offer, hoping you want to settle your claim as fast as possible. This is especially true if you are trying to settle your claim alone. Here is how you should respond to the offer.
Retain a Lawyer
A lowball offer is a red flag that the insurance company is not treating you fairly. If you have not yet hired an experienced San Diego car accident lawyer, you need to do so immediately.They will take over all communications with the insurance adjuster and negotiate your settlement so that you receive the maximum recovery. They will also conduct a thorough investigation into the cause of your auto accident and your injuries and collect the evidence you need to win your case.
Analyze the Offer
While you may understandably feel angry at the insurance company, you must remain calm. Remember that the offer you received is only the first one. Even if the insurance company seriously considered your claim, they would not agree to pay you all you should receive in their first offer.
Your attorney will analyze the offer with you and explain why it is unacceptable. If the insurance company has not explained why they offered you a small settlement, your lawyer will contact them to determine the reasons. This will help your attorney refute any inaccurate facts that led to the low offer.
Reject the Offer
You are not required to accept any settlement offer from the insurance company. If their offer is too low, your lawyer will reject it on your behalf in writing. It is most likely not the last one you receive from the insurance adjuster.
Wait to Settle Your Claim Until You Recover
If you have not fully recovered from your injuries, your lawyer may advise you to wait to settle your claim until you reach your maximum medical improvement (MMI). This is the stage in your medical treatment when you have either:
- Fully recovered from your injuries; or
- Recovered as much as you can, and your doctor can give you a final prognosis
It could take months or longer to reach your MMI, especially if you suffered more than one injury. However, you cannot know how much your future damages will be until you reach this stage in your recovery.
Make a Counteroffer
When your lawyer knows how much your claim is really worth, they will make a counteroffer to the insurance company. They will do this in writing to outline the driver’s fault in causing the accident and refute any false claims of the insurance company. They will also explain the seriousness of your injuries, the treatments you need and will need in the future, and the amount of compensation you would accept.
Do not be surprised if the insurance company rejects your first counteroffer. Your attorney and the insurance company may make several offers and counteroffers before your claim is finally settled.
File a Lawsuit
If the insurance company refuses to be reasonable, your attorney will file a lawsuit on your behalf and litigate your claim. While it could take longer to settle your case, the insurance company will likely agree to a fair settlement before your case goes to a jury trial.
Schedule a Free Consultation
Did another driver cause your car accident in San Diego or Southern California? You can start a live chat or call my office to schedule a free consultation.
Related Links:
- How Do I Know If I Need a Car Accident Lawyer?
- Evidence Needed in Car Accident Cases
- 8 Mistakes to Avoid in Your Car Accident Case
FAQs
If they make a lowball offer, it's crucial not to accept it right away. Instead, consider reaching out to an experienced attorney who can help you navigate the complex process of negotiating with the insurance company.
How to respond to a lowball settlement offer? ›
If you have determined to respond to a low settlement offer yourself, consider the following:
- Stay polite and professional. We understand it's a frustrating and emotional process. ...
- Ask questions. ...
- Offer the facts. ...
- Put your response in writing. ...
- Don't be bullied.
How to Respond to a Low Settlement Offer
- Retain a Lawyer. A lowball offer is a red flag that the insurance company is not treating you fairly. ...
- Analyze the Offer. ...
- Reject the Offer. ...
- Wait to Settle Your Claim Until You Recover. ...
- Make a Counteroffer. ...
- File a Lawsuit.
A low settlement offer might be due to many possible issues. The insurer may not have all the information about your injuries, medical bills, or property damage. They might feel they have a good chance of winning a court case because of the circ*mstances surrounding your accident.
How do I reject a low settlement offer? ›
If you choose to reject the low settlement offer, you must communicate your decision to the claims adjuster. Your legal representative can help you write a letter that states your intentions. Within the letter, you can indicate that you reject the offer and highlight why you deserve a higher settlement amount.
How do you respond to an extremely low offer? ›
Acknowledge it's a low ball offer
One approach is to simply say that you're willing to negotiate, but that you need to hear a serious starting offer. Another is to counter-offer with a price that's slightly lower than your asking price – even just $1,000 below it.
How do you win a lowball offer? ›
Winning Strategies for Lowball Offers
- Find Out the Seller's Motivation.
- Write a Clean Offer.
- Always Counter the Counteroffer.
- Divert Attention Away From Price.
- Give a Logical Reason Why Your Lowball Offer Is Fair.
Rather, ask why the adjuster has provided this extremely low figure. You should then write a formal letter of response in which you state that you don't find the initial low settlement offer acceptable, listing the reasons why and concluding with a demand for a higher settlement offer.
How do you ask for a higher settlement? ›
Lawyers Negotiate for Higher Settlements by Assessing Damages Accurately. Nothing is more important for negotiations than accurately assessing a client's damages. This step includes gathering information and documentation from expert witnesses, such as medical professionals and economists.
What is considered a good settlement? ›
In general, if you can get close to judgment value of the case in settlement, then it should be considered a very good settlement. One of the first considerations that attorneys and clients should factor in is the chance of prevailing on the issue of liability.
When an insurance company refuses to settle, it may be liable for the full amount of the excess judgment after trial, notwithstanding the lower policy limits. This duty of good faith aligns the insurance company's incentives with those of its insured.
Can insurance retract an offer? ›
After negotiating a settlement offer, you might wonder if an insurance company can rescind it. The short answer is yes. A settlement offer is like others in that is can be rescinded prior to being accepted by the other party. However, once you sign a release, the offer is considered accepted and cannot be rescinded.
What happens if you don't agree with the settlement? ›
You do not have to accept a settlement offer. You have the right to try to continue to negotiate, and to file suit and go to trial instead. No matter what you choose to do, there is risk involved. If you choose to settle, you may get less than if you had gone to trial.
How do you respond to a low pay offer? ›
How to respond to a low salary offer
- Ask for time. ...
- Understand your minimum acceptable salary. ...
- Conduct research. ...
- Make a plan. ...
- Practice negotiations. ...
- Show enthusiasm. ...
- Negotiate for early performance reviews. ...
- Focus on your skills and expertise.
Keep your message concise, clear, and respectful. Briefly explain that you have carefully considered the offer but have decided to pursue other opportunities that better align with your career goals and compensation expectations. Maintain a positive tone by expressing your willingness to stay connected.
What do you say when a company lowballs you? ›
Don't sound angry, offended, or defensive, as this will only damage your relationship and reputation with the employer. Instead, thank them for the offer, restate your interest and fit for the role, and explain why you think your counteroffer is fair and reasonable.
Should you counter a lowball offer? ›
There is no rule stating that a seller must counter ANY offer. The only rule is the listing agent MUST PRESENT ALL OFFERS to the seller. Some sellers get offended by offers below their asking especially low ball offers even if it's all cash REGARDLESS what their agent recommends.
If you were injured in a car accident caused by a negligent driver, you mustfile a claim with their insurance company. You may expect them to treat you fairly and offer you what you deserve when settling your claim.