Getting into an accident is stressful enough without having to worry about dealing with insurance companies. When it comes time to settle your claim, should you just accept their first offer and move on? Not so fast!

The Lowball Offer

Insurance companies are businesses, and their goal is to pay out as little as possible on claims. That’s why their initial settlement offer is often a lowball amount that doesn’t fully cover your damages or injuries. It’s a common tactic to see if you’ll just take the easy money and go away.

Think of it like haggling at a flea market. The seller’s first price is always inflated, and they expect you to negotiate down. Except in this case, the insurance company is trying to lowball you from the start.

Know Your Claim’s True Value

To avoid getting shortchanged, you need to understand the full value of your claim. This includes not just the cost of repairing your vehicle, but also:

• Medical expenses (current and future)
• Lost wages from missed work
• Pain and suffering
• Other damages like rental car fees

An experienced personal injury attorney can help calculate a fair settlement amount based on your specific situation.

Three Surprising Facts

1. The first offer is rarely the best offer. Insurance companies expect you to negotiate and will often increase their settlement amount if you provide evidence justifying a higher payout.

2. You can reopen a claim after accepting. If your injuries end up being more severe than initially thought, you may be able to reopen the claim and seek additional compensation.

3. Recorded statements can be used against you. Be very careful about giving a recorded statement to the insurance company, as anything you say can potentially reduce the value of your claim.

Don’t Go It Alone

“Negotiating with an insurance company is like bringing a knife to a gunfight. They have teams of lawyers working to minimize payouts.” - Personal Injury Attorney

While you have the right to handle your own claim, having an experienced personal injury lawyer on your side levels the playing field. They know all the tactics insurance companies use and can fight for the full compensation you deserve.

Key Takeaway: The insurance company’s first settlement offer is rarely their best offer. Do your homework, know what your claim is truly worth, and don’t be afraid to negotiate for a fair payout.

Learn More

• Personal Injury Claims 101: A beginner’s guide to filing an injury claim and protecting your rights.

• Calculating Pain and Suffering Damages: How to properly value non-economic damages like emotional distress.

• Hiring a Personal Injury Attorney: Tips for finding and working with the right lawyer for your case.