After an accident, many victims expect the at-fault driver's insurance company to act fairly and provide them with adequate compensation. However, the reality is that insurance companies are businesses whose primary goal is to minimize their payouts and protect their profits. This means that, in many cases, the first offer you receive will be much less than you actually deserve.
If the insurance company offers you a settlement that seems insufficient or unfair, it's critical that you know how to handle the situation to protect your right to fair compensation. Below, we explain what to do if you face this situation.
1. Evaluate whether the insurer's offer is fair
Insurance companies often make quick offers in the hope that those affected will accept them without question. This is especially true when the victim is under financial stress and urgently needs money to cover medical expenses or lost income.
Before accepting any settlement, consider the following:
- Does the offer cover all your current and future medical expenses?
- Does it include compensation for lost wages if you've been unable to work?
- Does it take into account the pain and suffering you've experienced due to the accident?
- Has the damage to your vehicle and the repair or replacement costs been accurately assessed?
If the amount offered doesn't cover these factors, it's likely a low offer that doesn't reflect the true impact of the accident on your life.
2. Don't Accept the First Offer Without Analyzing It Thoroughly
Accepting a hasty offer from the insurance company can be a costly mistake. Once you sign a settlement agreement, you waive your right to file additional claims, even if you discover more injuries or unexpected costs later.
Often, the effects of an accident aren't fully apparent in the first few days. Some injuries, such as whiplash or internal damage, can appear weeks after the incident. If you accept a premature offer, you could be left without resources to cover additional medical treatment.
For this reason, it's a good idea to consult with an attorney before making any decisions. An experienced attorney can evaluate the offer and determine if it's truly fair based on the damages you've suffered.
3. Provide Evidence to Support Your Claim
Insurers will look for any excuse to minimize their payouts. If they believe you don't have sufficient evidence to support your case, they will try to reduce your compensation or even deny your claim altogether.
To strengthen your negotiating position, be sure to present solid documentation, including:
- Detailed medical records demonstrating the severity of your injuries.
- Bills and receipts for medical expenses, treatments, and medications.
- Police reports describing the accident and identifying the responsible party.
- Photographs and videos of the accident scene, your injuries, and the damage to your vehicle.
- Witness statements confirming what happened.
The more evidence you have, the harder it will be for the insurer to justify a low offer.
4. Avoid Signing Declarations or Giving Extra Information
It's common for insurance adjusters to ask you for a recorded statement about the accident. While this may seem like a routine procedure, their true intentions may be to use your testimony against you.
Some questions may be designed to get you to admit partial fault or minimize the severity of your injuries. For example, if you say you feel "better" or that your injuries "aren't that bad," they may argue that you don't need significant compensation.
If the insurer requests a statement, it's best to respond with caution and consult with an attorney before providing detailed information.
5. Negotiate with the Insurance Company (or Let a Lawyer Do It for You)
If you receive a lowball offer, remember that you have the right to negotiate. You are not obligated to accept the first amount offered.
You can present evidence to support the true value of your claim and argue why the initial offer is insufficient. In many cases, insurers are willing to increase the amount if they know you have solid evidence and are willing to reject an unfair settlement.
If the insurer is inflexible, having an attorney can make all the difference. An experienced personal injury attorney knows how to deal with insurance adjusters and can negotiate on your behalf to obtain a fairer settlement. Additionally, if the insurer continues to refuse to pay adequate compensation, you can take the case to court and legally push for a better outcome.
Don't Let the Insurance Company Fool You: Protect Your Right to Fair Compensation
Insurance companies don't always act in the best interest of accident victims. If you receive a lowball offer, don't feel pressured to accept it immediately. Take the time to analyze it, gather evidence, and, if necessary, seek legal help.
At Highway Law Group, our Los Angeles Personal Injury lawyer know how to take on insurance companies and fight for the compensation you truly deserve. If you've received an unfair offer, don't hesitate to contact us for a free consultation. Our team will evaluate your case and help you make the best decision to protect your future.