Imagine this nightmare scenario: A car crash caused by a reckless driver seriously injured you. You're rushed to the hospital, where you undergo emergency surgery and begin a long, painful road to recovery. The medical bills start piling up, and you cannot work and earn a paycheck.
You expect the at-fault driver's insurance company to step up and provide the compensation you need to put your life back together.
But then the insurance adjuster calls with a settlement offer that's a fraction of your losses. Despite your devastating injuries and rapidly mounting expenses, they're offering you a lowball payout that won't even come close to making you whole.
Unfortunately, for countless accident victims, this nightmare is a reality. Insurance companies routinely try to take advantage of injured claimants, making insultingly low settlement offers in the hopes of protecting their bottom line.
As experienced Port St. Lucie personal injury attorneys, we've seen this cruel tactic time and again, and we've made it our mission to fight back.
Why Insurance Companies Make Lowball Offers
The fundamental reason insurance companies make lowball settlement offers to accident victims is simple: it saves them money. Insurance is a for-profit business, and every dollar an insurer pays out in claims is one less dollar of profit. Insurance adjusters are often incentivized or pressured to settle claims for as little as possible.
Beyond boosting profits, there are a few specific reasons insurance companies often make unreasonably low offers:
1. They're Hoping You'll Accept It
Insurance companies bank on the fact that many accident victims will simply accept a lowball settlement offer without pushing back. They understand that the average person is not well-versed in personal injury law or the claims process, and they exploit this lack of knowledge to their advantage.
Think about it: if you're facing a mountain of medical bills and you're unable to work, a $5,000 settlement offer might seem like a godsend - even if your claim is actually worth ten times that amount.
The insurance adjuster might pressure you to accept the offer quickly, claiming it's the best they can do. They're hoping you'll leap at the promise of fast cash and sign away your rights without realizing the true value of your claim.
2. They're Trying to Take Advantage of Your Financial Stress
The financial impact of a serious accident can be devastating. If you cannot work, you're not only losing income but also accruing additional expenses in the form of medical bills and other costs related to your injuries.
The insurance company knows you're likely feeling the squeeze and may be desperate for any influx of cash.
Adjusters are trained to exploit this vulnerability. They may emphasize the immediate availability of their lowball offer, knowing you're more likely to accept a smaller payout if it means getting money in your hands right away.
They may even convince you that their meager offer is the best outcome you can hope for, given your financial situation. Don't be fooled - you can hold out for the full compensation you deserve, even if reaching a fair settlement takes longer.
3. They Don't Think You'll Put Up a Fight
Insurance companies will often look for any reason to downplay the severity of your injuries to justify lowball offers. They may seize on any gaps or inconsistencies in your medical records to argue that your injuries are not as serious as you claim or that they were pre-existing before the accident.
For example, let's say you injured your back in a car accident but didn't seek treatment until a few days later because you thought the pain would subside on its own. The insurance company may argue that the delay in treatment means your injury wasn't that serious or that it was caused by something other than the accident.
They may use this as an excuse to make a lowball settlement offer that fails to account for the full extent of your injuries and medical needs.
4. They're Questioning the Severity of Your Injuries
Insurance companies will often look for any reason to downplay the severity of your injuries to justify lowball offers. They may seize on any gaps or inconsistencies in your medical records to argue that your injuries are not as serious as you claim or that they were pre-existing before the accident.
For example, let's say you injured your back in a car accident but didn't seek treatment until a few days later because you thought the pain would subside on its own.
The insurance company may argue that the delay in treatment means your injury wasn't that serious or that it was caused by something other than the accident. They may use this as an excuse to make a lowball settlement offer that fails to account for the full extent of your injuries and medical needs.
5. They're Undervaluing Your Damages
Insurance adjusters are trained to minimize payouts by undervaluing claimants' damages. They may focus solely on your current medical expenses while ignoring other significant losses such as future treatment costs, lost earning capacity, pain and suffering, and loss of enjoyment of life.
For instance, if you suffered a traumatic brain injury in an accident, you may require ongoing cognitive therapy, occupational therapy, and other expensive medical care for years to come. You may never return to your previous job or enjoy hobbies and activities you once loved.
The insurance company may gloss over these profound losses and make you an offer that covers only a fraction of your current medical bills, leaving you without the resources you need to move forward.
6. They're Trying to Wear You Down
Insurance companies make the claims process exhausting and frustrating for accident victims. They may deliberately drag out negotiations, making a series of marginally higher but still unacceptable offers in the hopes that you'll eventually cave and accept a low settlement just to be done with the ordeal.
This tactic is especially effective against unrepresented claimants who are not used to the slow pace of legal negotiations.
The adjuster may go days or weeks without returning your calls, only to finally come back with an offer that's only slightly better than their previous lowball offer. They're betting that the stress and frustration of the process will wear you out and make you more likely to accept their low offer.
7. They're Using Your Words Against You
Insurance adjusters are skilled at using claimants' own words against them to diminish the value of their claims. If you give a recorded statement to the insurance company after the accident, the adjuster will comb through it, looking for any statements they can take out of context and use to undermine your credibility or assign you blame for the accident.
For example, let's say you mentioned in your statement that you were running late to work on the day of the accident. The adjuster may spin this to argue that you were driving recklessly or not paying attention, even if the other driver was clearly at fault. They may then use this argument to justify making a lowball settlement offer.
To protect yourself, never give a recorded statement to the insurance company without first consulting an attorney. If you must give a statement, stick to the facts and avoid speculating about fault or the extent of your injuries.
How to Respond to a Lowball Insurance Offer
So, what should you do if you receive a lowball settlement offer from an insurance company after an accident? Here are the key steps to take:
1. Stay Calm and Don't Accept the First Offer
When you receive a lowball settlement offer from an insurance company, it's natural to feel angry, frustrated, or even insulted. However, it's essential to keep your emotions in check and approach the situation with a clear head.
Remember, accepting the first offer is rarely in your best interests. Insurance adjusters are trained to start with low offers, expecting that claimants will negotiate for more. If you accept the first offer, you're essentially letting the insurance company off the hook for a fraction of what your claim is truly worth.
Instead of getting upset or lashing out at the adjuster, calmly and professionally inform them that you cannot accept their offer. Let them know that you believe your claim is worth more and that you're prepared to negotiate for a fair settlement. By staying composed and assertive, you set the stage for productive negotiations.
2. Carefully Review Your Damages
Before you can effectively negotiate with the insurance company, you need a clear picture of the full extent of your damages. This means taking a thorough inventory of all the losses you've suffered due to the accident.
Start by gathering all your medical bills and records related to the accident. This should include bills for hospital stays, surgeries, doctor's appointments, physical therapy, medication, and any other medical expenses you've incurred. Don't forget to also consider future medical costs, such as ongoing treatment or therapy you may need down the line.
Next, calculate your lost wages from missing work due to the accident. If your injuries have left you unable to return to your previous job or earn the same income level, you may also have a claim for lost future earning capacity.
Finally, consider non-economic damages such as pain and suffering, emotional distress, and loss of enjoyment of life. These damages can be more difficult to quantify but are just as real and deserving of compensation.
By thoroughly documenting your damages, you'll more easily counter the insurance company's lowball offer and negotiate for a settlement that truly reflects your losses.
3. Respond in Writing
Once you decline the insurance company's lowball offer and carefully assess your damages, submit a counteroffer in writing, typically in the form of a demand letter.
In your demand letter, start by clearly stating that you cannot accept the insurer's initial offer. Explain that you believe your claim is worth more, and outline the reasons why. This is where your thorough review of your damages comes in handy - use specific figures and examples to illustrate the extent of your losses and the inadequacy of the insurer's offer.
When making your counteroffer, aim high but remain realistic. You want to leave room for negotiation while still sending the message that you know your claim's worth and won't let the insurance company shortchange you.
4. Provide Strong Supporting Evidence
To give your counteroffer the best chance of success, back it up with convincing evidence of your damages. This is where the documentation you gathered in step two comes into play.
Include copies of your medical bills, records, and any other proof of treatment related to the accident. If you have photos of your injuries or property damage, include those as well. Statements from eyewitnesses, police reports, and expert opinions can also bolster your claim.
When it comes to proving non-economic damages like pain and suffering, keep a journal documenting how your injuries have impacted your daily life. Include details about activities you can no longer enjoy, events you've had to miss, and the emotional toll the accident has taken on you and your loved ones.
The stronger your evidence, the harder it will be for the insurance company to justify a lowball settlement offer. By presenting a well-documented claim, you demonstrate that you're serious about pursuing fair compensation.
5. Be Persistent in Negotiations
Negotiating with an insurance company can take a long time, but stay focused and persistent. Even after submitting a well-supported counteroffer, the adjuster may return with another lowball offer or try to stall negotiations.
Don't be discouraged if the insurance company doesn't immediately agree to your demands. Continue to resist any unreasonable offers, reiterating your position and the evidence supporting your claim.
It's also important not to let the adjuster pressure you into accepting a low offer. They may try to create a sense of urgency or suggest that their offer is the best you'll get. Don't fall for these tactics - as long as you have a strong claim and are willing to stand your ground, you have the upper hand in negotiations.
If negotiations stall or the adjuster becomes uncooperative, consider involving an experienced personal injury attorney. An attorney can communicate with the insurance company on your behalf, handle the back-and-forth of negotiations, and apply legal pressure when necessary.
6. Know When to Involve an Attorney
If any of the following apply to your case, seek legal representation:
- The insurance company refuses to make a fair settlement offer despite strong evidence of your damages.
- The adjuster uses high-pressure tactics, such as rushing you to accept a low offer or suggesting your claim isn't valid.
- Your injuries are severe or complex, requiring extensive medical treatment or resulting in permanent disability.
- There are disputes over fault for the accident or the extent of your damages.
- The insurance company is denying your claim outright.
An attorney can level the playing field against the insurance company, using their knowledge of personal injury law and negotiation tactics to advocate for the full compensation you deserve. They can also handle all communication with the insurer, gather additional evidence to support your claim, and file a lawsuit to protect your rights if necessary.
Remember, most personal injury attorneys work on a contingency basis, meaning they only get paid if they win your case. As a result, you can typically benefit from an attorney's knowledge and advocacy without upfront costs.
Call Our Personal Injury Lawyers Today
Remember, you have the right to full and fair compensation after an accident, and you don't have to accept a lowball offer from an insurance company. By standing firm and fighting for what you deserve, you can ultimately recover the compensation you need to heal and move forward after an accident.
If you've been injured in an accident in southeast Florida, the personal injury attorneys at Frankl Kominsky Injury Lawyers are here to help you.
We have extensive experience going up against insurance companies and fighting tirelessly for the rights of accident victims. We offer free consultations to review your case and advise you of your legal options.
Contact Frankl Kominsky Injury Lawyers today at (561) 800-8000 or through our online form for your free consultation.