What if the First Settlement Offered by an Insurer is Too Low?

Being injured in an accident is a stressful experience. Not only do victims have to suffer from the pain of the injuries they sustained, they also have to worry about paying off mounting medical debt and covering the repair costs of any property damaged in the accident. Fortunately, accident victims can often receive reimbursement for these losses by filing an insurance claim, either with their own insurer or with the at-fault party’s insurance company.

The claims process can, however, be complicated and time-consuming, leading claimants to accept the first settlement offer they receive in an effort to put an end to the process. Claimants with experienced attorneys on their side, however, can rest assured knowing that their lawyer will take the lead in the negotiation process and ensure that claimants don’t accept an unfairly low settlement offer.

Knowing Your Losses 

Many insurance companies go to great lengths to pay out the lowest amount possible for a claim. Unfortunately, this means that some of the offers first made by insurers are actually far lower than a claimant deserves. To avoid being taken advantage of in this way, claimants should work with an attorney who can give them a clear picture of their losses and financial needs. When an insurer makes an unfairly low settlement offer, a claimant will have these numbers and the documentation to support them on hand, forcing the insurer to reevaluate.

Responding to the Insurers 

Once a claimant and his or her attorney have reviewed an initial offer and found it to be too low, they have the option of submitting a written response to it. This is the time to explain why the amount isn’t enough to cover their medical bills, repair costs, and lost wages and to counter with a reasonable figure that will cover those losses. The insurer will review this counter offer and will likely respond with its own counter offer that is higher than the initial offer, but a bit lower than the claimant’s. This is why many attorneys go in with a higher counter offer than they actually expect to receive.

Filing a Lawsuit 

Unfortunately, even with a lot of back and forth between attorneys, claimants, and insurers, the parties could end up reaching an impasse. When this happens, a claimant may have no choice but to file a lawsuit in court against the insurance company and to demand the full amount of his or her losses in the form of a damages award. Those who go this route should be sure to have legal representation, as well as strong evidence of why the higher compensation package is necessary. While there is a risk that a claimant may not recover any compensation at all, this risk is lower for those who are represented by a skilled attorney. In fact, in many cases, claimants who take their claims to court recover more than they would have if they had reached a settlement with the insurer. In other cases, the mere threat of a lawsuit will be enough to convince the insurance company to settle the claim for a fair amount.

Speak with a Savannah Personal Injury Lawyer 

Negotiating an insurance claim isn’t easy, especially when the company in question makes an unfairly low settlement offer or otherwise engages in bad faith tactics. Having experienced legal counsel on your side lowers the risk that you will be taken advantage of by an unscrupulous insurer. Call the dedicated Savannah personal injury attorneys at Shiver Hamilton Campbell for help pursuing compensation for your own claim.

Sources:

 forbes.com/advisor/legal/personal-injury/personal-injury-settlement-amounts/

usnews.com/insurance/glossary/bad-faith-in-insurance