When filing a personal injury claim, you expect a fair settlement covering your damages. However, many insurance companies initiate with a low offer, hoping you’ll accept less than deserved. If this occurs, don’t feel pressured to settle immediately. Instead, take steps to negotiate a better offer and safeguard your rights.
This may involve counteroffers, evidence submission, and potentially seeking professional legal guidance to ensure you receive just compensation.
Why Do Insurance Companies Offer Low Settlements?
Insurance companies often start with a low settlement offer to see if they can close the case quickly and save money. This initial offer might cover some of your medical expenses, but it typically won’t account for all current and future damages, such as lost wages, ongoing medical treatment, pain and suffering, and other related costs.
It’s important to assess the offer critically. Accepting a low settlement means you may not have the chance to claim more compensation later. Therefore, knowing your rights and understanding the negotiation process is important.
Step 1: Review the Settlement Offer
When you receive a low settlement offer, the first step is to read it carefully, considering several key factors. Look for coverage of your medical bills, lost wages, and other expenses related to your injury, as well as the timing of the offer, as a quick response may indicate the insurer’s desire to settle before you’ve fully assessed your situation.
Ensure you understand what the offer includes, seek clarification from the insurer if necessary, and take your time with this review, as rushing to accept an offer can lead to future financial struggles.
Step 2: Gather Supporting Documentation
If you believe the settlement offer is too low, start gathering evidence that supports your claim. This documentation may include:
- Medical records and bills
- Police reports (if applicable)
- Photos of the accident scene and injuries
- Proof of lost wages
- Witness statements
Having strong documentation can help counter the insurer’s claim that your injuries or damages are less severe than stated.
Step 3: Get a Professional Evaluation
If you’re unsure about a settlement offer, consider consulting an experienced NJ injury attorney, like from Rosengard Law Group, located at 496 Kings Highway North Suite 220B Cherry Hill, NJ 08034, who can provide valuable insights and offer free consultations. They can help you assess your claim, calculate both economic and non-economic damages, and understand your rights, ensuring you don’t settle for less than you deserve.
Approximately 91% of individuals with an experienced personal injury attorney receive a settlement payout, compared to only about 51% of those without legal representation. An injury attorney can advocate on your behalf, negotiate with the insurance company, and take legal action if necessary.
Step 4: Respond to the Offer
Once you’ve reviewed the offer and gathered documentation, it’s time to respond by drafting a written counteroffer that includes the amount you believe fairly compensates you for your injuries, referencing the evidence you’ve collected to justify your request. When communicating, remain calm and professional, expressing gratitude for their offer while explaining why you believe it’s insufficient.
Use clear, straightforward language to ensure the adjuster understands your position, setting the stage for negotiation and demonstrating your commitment to receiving fair compensation.
Step 6: Consider Legal Action
If negotiations with the insurance company stall, consider legal action to protect your rights and secure compensation. Filing a lawsuit can serve as leverage, prompting the insurer to reconsider. Consult an experienced attorney to guide you through the process. According to a study by the Insurance Research Council, injury victims who hired attorneys received settlements 3.5 times larger than those who settled on their own.
Be aware of your state’s statute of limitations, as waiting too long can jeopardize your case. Taking legal action is a serious step, but may be necessary to ensure justice.
Step 5: Engage in Negotiation
Negotiation is an essential part of dealing with insurance companies, requiring a strategic approach to achieve a fair outcome. To navigate this process effectively, be prepared to compromise, understanding that negotiation often involves both parties giving a little, while still holding firm on what you believe is fair.
Additionally, stay patient, as the negotiation process may take time, and avoid rushing into an agreement, as patience can pay off in the long run. Maintaining open lines of communication with the insurance adjuster is also important, so don’t hesitate to ask questions or request more time when needed.
Step 7: Don’t Accept the First Offer
Never accept the first settlement offer without careful consideration. Insurance companies often rely on desperation or lack of information to secure minimal payouts. Advocate for yourself to ensure adequate compensation. Be cautious of quick settlement agreements, as they often can’t be renegotiated later. Have an attorney review any agreement before signing it to ensure it covers all damages.
In a notable New Jersey case, a shopper from Mount Laurel, Winifred Freeman, filed a lawsuit against Walmart after being struck by a heavily loaded restocking cart, resulting in significant injuries. This legal action highlights the importance of not accepting initial settlement offers without thorough consideration and legal consultation.
Conclusión
Receiving a low settlement offer from an insurance company can be frustrating, but it’s not the end of the road. By following these steps, you can negotiate a better settlement and fight for the compensation you deserve. Remember to stay calm, gather evidence, and consider hiring a personal injury attorney to help you deal with the process. Don’t be afraid to stand up for your rights and seek the justice you deserve.
