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What to Do if an Insurance Company Lowballs You After an Accident

Insurance companies want people to trust them. They are among the most prolific advertisers in the United States in part because they want people to quickly recall their slogans and cute mascots. Those who have internalized messages about insurance companies being on their side or ready to help them out in a tough time may not scrutinize communications with the insurance company as much as they should for their own protection.

They might receive a settlement offer after a car crash puts them in the hospital and think that they’re lucky to get a quick response to their claim. However, the settlement may seem a little on the low side, given the costs caused by the crash.

What can someone hurt in a collision do after receiving an unreasonably low insurance settlement offer?


Prepare for Negotiations

When an insurance company offers a settlement, it often does so in a desire to limit future liability. Settlements are an efficient means of mitigating future losses. The claimant receives just enough to feel satisfied, and the company eliminates future liability for the incident.

Offering a low settlement is a common insurance tactic, and it is one that is often successful. People who are unaware of their rights often accept a first settlement offer, even if it feels too low. Provided that the offer is not at or beyond the policy limit for the coverage available, the person making the claim likely has the option of countering the settlement offer with a figure that is closer to the total losses they have experienced.

Negotiations are often necessary to get a reasonable offer from an insurance company. Unfortunately, many people already struggling with physical injuries would have a difficult time handling the negotiation process on their own.


Get Appropriate Support

Even reading through a policy to understand what kinds of compensation are available can be difficult for someone with no legal experience. After factoring in the stress of coping with major injuries, the average person affected by a car crash could have a hard time being their own best advocate when dealing with an insurance company.

A lowball settlement offer is an example of bad-faith insurance practices. It is a warning sign that the company may do whatever it feels is necessary to keep its costs as low as possible. People already struggling with injuries and stress triggered by a car crash may have a hard time staying calm and rational during negotiations with insurance providers.

Many people choose to hire personal injury lawyers during a settlement negotiation to optimize their recovery and reduce their personal stress. Getting the right support can make a major difference for those facing a lowball initial offer when making a large insurance claim.


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