What Should I Do If the Insurance Company Offers a Low Settlement?

If you have made a claim with an insurance company and received a settlement offer that is lower than what you need, there are several things you should do, and several things you should not do. A Cumming accident lawyer explains.

What Should I Do If the Insurance Company Offers a Low Settlement?

Don’t Accept Right Away

The main thing to keep in mind when you receive a settlement offer is that it’s very common for insurance companies to make their first settlement offer a low one. It may be tempting to just accept the offer and move on with your life, but consider that first offer as a starting point for negotiation. As soon as you accept a settlement, your claim will be closed, and you will very likely be unable to seek further compensation even if you realize later that the settlement is much too low to cover your expenses.

Review the Offer

Compare the terms of the settlement to your damages, including both your economic damages (tangible, measurable losses) and your non-economic damages (intangible losses). Gather evidence of the financial impact you have incurred, such as medical records, receipts for medical treatment and other costs, and repair estimates. Consider the medical reports and your own personal records showing the losses you have suffered which cannot be measured financially, such as pain or emotional distress. Use these records to assess whether the settlement offer is fair.

Consult a Cumming Accident Lawyer

If you are certain there is a significant gap between your losses and the settlement offer, or even if you suspect that the offer is not fair, a personal injury lawyer can help you evaluate your case. It is a good idea to have someone on your side who understands personal injury law and is skilled at dealing with insurance companies.

Know Your Policy and Your Rights

Review your insurance policy to see what the terms are. Also, check with your lawyer about state laws regarding fair claim practices. There may be grounds for filing a complaint with the state insurance commissioner if you can produce evidence that your insurance company has acted in bad faith.

Negotiate with the Insurance Adjuster

Write a counter\offer letter, or have your lawyer write the letter, explaining your damages in detail. Provide clear evidence of your damages, and highlight in your explanation why exactly the settlement offer is insufficient. Your letter should be polite but firm.

Consider Mediation

If negotiations fail or stall, suggest mediation as a way to resolve the issue. Mediation is where a neutral third party works to help both parties reach a fair and mutually agreeable resolution.

Make a Lawsuit Your Last Resort

Consider filing a lawsuit your last resort. Although a lawsuit can be costly and time-consuming, it may be the only way to get the compensation you need. Consult with your attorney to see if they consider your case worth pursuing in court.

If you have received a low settlement offer, contact the law team at Spaulding Injury Law in Cumming, GA, for help with responding to the insurance company. We also serve the Atlanta, Lawrenceville, and Alpharetta areas.

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