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How to Reject and Respond to a Low Insurance Settlement Offer

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Posted on May 18, 2024

After an injury, dealing with insurance companies can add stress to an already difficult situation. You want to recover a fair award, but when an insurer presents a low offer, it can be difficult to know what to do next. However, there are strategies you can use to respond to a low settlement offer and secure just compensation. Note that if you are being offered a low settlement for an accident, contact our car accident lawyers in St. George.

Why Do Insurance Companies Offer Low Settlements?

Insurance companies often offer low settlements to protect their bottom line. These entities are businesses, and their primary goal is to maximize their profits. As a result, they often employ a range of tactics to justify a lower settlement. 

One common approach is to minimize the severity of your injuries. They may argue that your injuries are not as serious as you claim, using your medical records and other documentation selectively to support their case. The insurer might also question who was at fault in the accident, thereby reducing the settlement amount they are willing to offer.

Additionally, insurers understand that you might be in urgent need of money to cover medical bills and other expenses. They may offer a lower amount, hoping you will accept it out of necessity. 

What to Expect in an Insurance Settlement

Recovering a fair settlement is essential to cover all the expenses and losses resulting from your injury. Accepting a low offer can have long-term financial impacts, which is why it is essential for your settlement to cover: 

  • All medical expenses incurred due to the injury, including ambulance rides, hospital stays, doctor’s visits, ongoing treatments, and any future medical care
  • Compensation for lost income, including both past lost wages and any future earnings 
  • The physical discomfort and emotional distress caused by the injury
  • Property damage, disability accommodations, and any other out-of-pocket expenses 

To determine if an offer is fair, compare all these costs with the settlement amount. If the offer falls short, it’s wise to have your personal injury attorney negotiate for a better one.

How to Counter a Low Settlement Offer

Hiring an attorney to assist with your insurance settlement can make a substantial difference in the outcome of your claim. A lawyer can navigate the complexities of the negotiation process and advocate for your best interests. When you receive an offer, your attorney can evaluate the settlement against the actual losses that you sustained, determining whether it is fair and covers the full extent of your damages.

If you find the offer unacceptable, your attorney can draft a formal letter and propose a counteroffer. This letter should clearly state that the initial offer is unacceptable and refute any inaccuracies in the insurance adjuster’s statements. Documentation such as receipts, bills, and confirmation of work absences will be included to substantiate your claims.

If negotiations reach an impasse, the next step may be filing a personal injury lawsuit. At this stage, your lawyer can guide you through the litigation process and work toward securing the compensation that you are entitled to receive.

Fight for Fair Compensation with We Win Injury Law

If you have received a low offer from an insurance company, don’t settle for less than you deserve. At We Win Injury Law, our personal injury attorneys understand the tactics insurance companies use and will advocate for your rights at every stage of the process. Call us today at (435) 688-9558 to schedule a free consultation and take the first step toward a just settlement.