how to respond to a low settlement lawyer

Steps to Respond to a Low Settlement Offer

• Remain Calm. Receiving a lowball settlement offer for your pain and suffering can feel insulting, but you owe it to...
• Analyze the Offer. After receiving an offer, you and your attorney will analyze its contents. Your attorney will break...
• Develop a Counteroffer. In addition to your formal rejection of the offer, your attorney...

Full Answer

What to do when you receive a low settlement offer?

They usually think that if they contact a personal injury victim quickly, and offer a small sum of money, they can settle a claim without spending a larger sum typically needed to resolve a given dispute.

Can you settle a personal injury claim quickly?

Oftentimes, when there has been a personal injury, companies and their insurance carriers wish to settle a claim quickly and for the lowest amount of money possible. It is not uncommon for an insurance company to make contact with the victim of a personal injury soon after an incident, and offer to settle a claim for a small amount of money. However, personal injury victims should refuse to accept quick settlements, and there are a few things you should keep in mind when responding to a low settlement offer.

What is the worst mistake you can make?

Getting emotional and rejecting or accepting a low offer without proper analysis is one of the worst mistakes you can make. Take some time to cool down, as this offer is typically only a starting point for settlement negotiations. Once you can calmly perform an analysis of the offer, consider the following:

Can you accept a settlement offer from an insurance company?

It is in your best interest not to accept a settlement offer from an insurance company before you have fully healed, or a doctor states that you have reached maximum medical improvement (MMI). It is the only way to fully understand the extent of your injuries and how your life will be impacted in the future. Once you accept a settlement offer by signing a release of liability, there are no options for pursuing additional compensation from that insurer.

How to respond to a low settlement offer?

Find out why the insurance claims adjuster evaluated your case the way he or she did. Call or email the claims adjuster with specific questions that break down where the offer came from. The insurance adjuster lawfully must give a reason if he or she denies your claim. The adjuster’s responses can guide you in how to respond with an appropriate and informed counteroffer. For example, if the adjuster estimated your losses based on incomplete injury documentation, you may be able to provide updated medical expenses or proof of lost wages to increase the offer.

How to negotiate with an insurance adjuster?

Stay polite and professional when negotiating with an insurance claims adjuster, even if you believe he or she is trying to take advantage of you or is using bad faith tactics. Getting angry and yelling at the adjuster will not help your case and may even hurt your ability to obtain fair compensation. Your anger could position you as an unreliable witness and put you at a greater disadvantage during settlement negotiations. Try to remain calm and polite instead. Hire a personal injury attorney to speak to insurance companies on your behalf if desired.

What is the most difficult part of a personal injury claim?

Dealing with an insurance company is one of the most difficult aspects of a personal injury claim. Even if you succeed in proving someone else’s liability for your accident and injuries, you may then have to contend with a lowball settlement offer or other bad faith tactics from an insurance provider to ensure a fair outcome.

What happens if you collect more evidence?

The more evidence you collect, the stronger your claim to damages will be. You will have the paperwork backing up the amount you believe is fair and reasonable to cover your damages, making it more difficult for the insurance company to argue for a lower settlement.

Do you have to accept a low insurance offer?

Do not let an insurance company pressure you into accepting a low offer. No law obligates you to say yes to the first, second or any settlement offer. You do not have to accept until you believe the insurance company is offering a fair amount.

1. Remain Calm and Polite

In most cases, receiving a low offer can instigate emotional reactions. However, it would help if you remained professional and polite as you negotiate with the insurance claims adjuster.

2. Table Your Questions

You can respond to a lowball settlement offer by asking several questions. It’s your right to know why the insurance provider undervalued your claim the way they did. When emailing or calling the adjuster, have clear and specific questions to ask them. Put them to task to explain precisely why they undervalued your claim.

3. Give All the Facts

If your injury documentation was incomplete, you need to fill it exhaustively when responding to a low offer. Include all your injuries, lost income, medical expenses, and any other damage. All these will act as evidence, adding support to your claim.

4. Develop a Counter Offer

Besides rejecting the low settlement offer formally, you need to come up with a counter offer. The new offer shows the reasonable amount you deserve for the damages. With the help of your attorney, this should be easy to develop.

5. Respond in Writing

Let your attorney draft a written response to the low settlement offer, indicating you rejected the offer. It’s not advisable to communicate this over the phone. Communication should be in writing.

6. Only Settle When Fully Healed

If there is one mistake you can make, it’s to accept a settlement before you complete the healing process. You shouldn't settle until you know your total past, current, and future medical bills, non-economic damages, and wage loss.