If you’ve been involved in a no-fault car accident, you may be entitled to compensation for your medical bills, lost wages, and other expenses through your own insurance provider’s Personal Injury Protection (PIP) coverage. While the no-fault system is meant to simplify the claims process, it doesn’t always go smoothly.
Many accident victims are shocked when they receive a lowball settlement offer from their insurance company. After paying premiums for years, you may have expected a fair payout — but insurance companies often try to minimize their payments. Knowing how to handle a lowball settlement offer can make all the difference in your financial recovery.
We’ll explain why insurance companies offer low settlements, how to recognize a lowball offer, and what steps you should take to secure the compensation you truly deserve.
Why Do Insurance Companies Offer Lowball Settlements?
Insurance companies are businesses, and like any business, their goal is to maximize profits and minimize expenses. Payouts to accident victims count as expenses, so insurance companies look for ways to reduce these costs.
Here’s why you may receive a lowball offer after a no-fault accident:
- They Assume You Don’t Know Your Rights: Many accident victims don’t know how much their claim is worth, and insurers take advantage of this by offering a quick, low settlement.
- They Hope You’ll Settle Quickly: Insurance companies know that accident victims may be financially strained due to medical bills and missed work. They may offer a small settlement early, hoping you’ll take it out of desperation.
- They Want to Avoid Future Liability: By offering a quick settlement, insurers try to avoid paying for future medical treatments, lost wages, or other expenses you may incur later.
- They Rely on You Not Challenging the Offer: Insurers know that many people accept the first offer because they don’t want to deal with the hassle of negotiations.
A low settlement offer is not the end of your claim. By recognizing the tactics used by insurance companies and taking action, you can negotiate for a higher payout.
How to Recognize a Lowball Settlement Offer
It’s not always obvious when a settlement offer is too low. Some offers may seem fair at first, especially if you’re unsure how much your claim is worth. However, there are a few clear signs that you’re being offered less than you deserve:
- The Offer Comes Too Early: If you receive an offer shortly after the accident — before you’ve completed medical treatment — it’s likely a lowball offer. The insurance company is trying to settle before the full extent of your injuries is known.
- The Offer Doesn’t Cover All Your Expenses: A fair settlement should cover your medical bills, lost wages, future treatment costs, and other damages. If it doesn’t, it’s too low.
- You’re Pressured to Accept the Offer: If the insurance adjuster tells you that this is the “best offer” or that you have to accept it by a certain deadline, it’s a sign they want to settle for less than you deserve.
- The Offer Seems Unreasonably Low: If the settlement amount doesn’t come close to covering your medical bills, property damage, and lost wages, you’re likely being lowballed.
If you’re unsure whether an offer is fair, a Wright Gray Harris attorney can review the offer, calculate the true value of your claim, and negotiate for a higher settlement.
What Should You Do If You Receive a Lowball Settlement Offer?
If you believe you’ve received a lowball offer from the insurance company, here’s what you should do to protect your rights and maximize your compensation:
Don’t Accept the First Offer
The first offer is rarely the best offer. It’s a starting point, not the final word. Insurance companies intentionally offer less than they’re willing to pay, knowing that many people will accept it. Instead of accepting, ask for time to review the offer.
Review the Offer With a Wright Gray Harris Attorney
Contact a Wright Gray Harris attorney to review the settlement offer. An attorney can evaluate your medical expenses, lost wages, pain and suffering, and other damages to determine if the offer is fair. If it’s too low, your attorney will push back against the insurance company.
Calculate the Full Value of Your Claim
Before you counter the offer, you need to know how much your claim is truly worth. This includes:
- Current medical expenses (hospital bills, prescriptions, rehabilitation, etc.)
- Future medical costs (ongoing physical therapy, surgery, etc.)
- Lost wages (for time missed from work)
- Future lost earning capacity (if you can no longer perform your job)
- Pain and suffering (emotional and physical pain caused by the accident)
A Wright Gray Harris attorney can calculate the full value of your claim to ensure you don’t settle for less than you deserve.
Send a Counteroffer
Once you know the full value of your claim, you (or your attorney) can send a counteroffer. The counteroffer should clearly explain why the initial offer was too low and include evidence to support your claim. This might include medical records, photos of your injuries, and statements from your employer.
Don’t Sign a Release Without Legal Guidance
If you accept a settlement offer, you’ll be required to sign a release of liability, which prevents you from seeking additional compensation in the future. If you accept a low offer and later discover that your injuries require more treatment, you won’t be able to reopen the claim. Before you sign any documents, consult a Wright Gray Harris attorney to ensure you’re not giving up your rights.
How a Wright Gray Harris Attorney Can Help You Handle a Lowball Offer
Insurance companies are more likely to take you seriously if you have an attorney representing you. Here’s how a Wright Gray Harris attorney can help you handle a lowball settlement offer:
- Negotiate With the Insurance Company: Your attorney will handle negotiations, making it clear that you’re prepared to pursue a higher settlement.
- Gather Evidence: We’ll collect medical records, wage statements, and other evidence to prove the full value of your claim.
- Calculate Your Claim’s True Value: Our attorneys will ensure all current and future expenses are included in your settlement demand.
- Take Your Case to Court if Necessary: If the insurance company refuses to offer a fair settlement, we’ll file a lawsuit and fight for you in court.
With a Wright Gray Harris attorney on your side, you won’t have to face the insurance company alone. We’ll handle every aspect of the negotiation, ensuring you get the compensation you deserve.
Common Mistakes to Avoid When Dealing With a Lowball Settlement Offer
Don’t let the insurance company take advantage of you. Avoid these common mistakes that could reduce your settlement:
- Accepting the First Offer: The first offer is rarely the best offer. Don’t accept it without speaking to an attorney.
- Providing a Recorded Statement: Insurance adjusters may ask for a recorded statement, but you’re not required to give one. These statements can be used against you.
- Failing to Document Injuries and Expenses: Keep track of all medical expenses, lost wages, and other costs related to the accident. This evidence is crucial for negotiating a fair settlement.
- Signing a Release Too Soon: Don’t sign a release of liability until you’re certain you won’t need further medical treatment.
A Wright Gray Harris attorney can help you avoid these mistakes and protect your right to fair compensation.
Contact Wright Gray Harris
If you’ve received a lowball settlement offer after a no-fault accident, don’t accept it without a fight. Insurance companies often try to minimize payouts, but you have the right to fair compensation.
At Wright Gray Harris, our experienced car accident attorneys will review your settlement offer, calculate the full value of your claim, and negotiate for a higher payout. If the insurance company refuses to offer a fair settlement, we’ll take them to court to fight for you.
Don’t let the insurance company take advantage of you. Call Wright Gray Harris today for a free consultation. We’ll protect your rights, fight for your compensation, and guide you every step of the way.
Call now to schedule your free consultation.