Why Do Insurers Often Give Low-Ball Settlement Offers?

Most people have some insurance policy. Whether it is for your car, home, or business, you may need to file a claim, and the process is never as easy as you hope. Low-ball settlement offers are a common problem, and you can get help from an experienced attorney.

Insurance companies typically care more about their bottom line than their customers’ well-being, and they are known for making low-ball settlement offers. Often, insurance companies make these offers to customers who are desperate, vulnerable, and unrepresented by an attorney. Your first step toward getting a better offer is to hire a lawyer. Your attorney should be able to tell whether the settlement offer is a good one or not and have the skills to negotiate for a better one.

Call our Philadelphia personal injury attorneys at The Reiff Law Firm at (215) 709-6940 and start your case with a free claim review.

Why Are Insurance Settlement Offers Often Insufficient?

Insurance is famously a headache, and almost nobody wants to be in the position to need to file a claim. Below are some common reasons customers receive low-ball settlement offers.

Insurance Companies Are Not Your Friends

First, insurance companies often offer low-ball settlements because they are not here to help you. Contrary to whatever insurance representatives tell you, their goal is to make money, not provide money to those who need it. As such, they look for any excuse, no matter how small or silly, to reduce or deny claims.

You May Be Desperate and Vulnerable

People who file insurance claims are often in very tight financial spots. You might be facing substantial expenses, and you need financial compensation as soon as possible. This is especially true for those whose claims are related to medical treatment for illnesses or injuries.

Unfortunately, insurance companies have a habit of taking advantage of those who might be vulnerable and desperate for help. Instead of offering you a settlement that adequately covers your damages, the insurance company may low-ball you, knowing that you are too desperate for help to push back and demand more.

Lack of Legal Representation

It is common for people to file insurance claims without a lawyer. In many cases, filing a claim is not very difficult, and you might think there is no need for a lawyer. However, insurance companies are more likely to take advantage of unrepresented customers, as they might not know the true value of their claims or how to effectively challenge a low settlement offer.

Even if an unrepresented customer does realize they are being low-balled, they probably do not know how to legally challenge the insurance company.

How Do I Get a Better Settlement Offer from an Insurance Company?

You should not have to accept a low-ball settlement offer from an insurance company. Taking the following steps may help you get what you deserve.

Do Not Accept the First Offer

The golden rule of settlement negotiations is never to accept the first offer. The insurance company might make you an offer, and you should ask for time to review it with a lawyer before accepting or rejecting it. Often, the first offer is much lower than the true value of your claims.

Insurance companies often treat the first offer as a jumping-off point rather than a serious settlement offer. This is often why first offers are so low. Do not be afraid to reject the offer and ask for more.

Hire a Lawyer to Help Negotiate

You should hire a lawyer to help you negotiate with your insurance company. They may be better able to evaluate the true value of your claims and help you get a settlement offer that adequately covers your damages. They may also be able to tell if the insurance company is acting in bad faith or otherwise in breach of their contract with you.

Come Prepared with Evidence

The key to getting a good settlement is evidence. The insurance company will pay you nothing if you do not have some proof to back up your claims. Medical records, affidavits from witnesses, and records of expenses are just a few crucial pieces of evidence.

If our personal injury attorneys end up taking matters to court, we should also have a copy of your policy. The policy spells out the terms of the agreement between you and the insurance company and may reveal that your claims must be covered under the policy.

FAQs About Insurance Settlement Offers

Why Are Insurance Settlement Offers Often So Low?

Insurance companies often offer low settlements to save money. They rely on customers not knowing the real value of their claims and being too afraid to push back. Many people filing insurance claims need the money now, and insurance companies know these vulnerable customers are less likely to fight them to get compensation quickly.

How Can I Prove My Claims to an Insurance Company?

Evidence is key to getting fair compensation from an insurance settlement. The stronger your evidence is, the harder it is for insurance companies to challenge or deny claims. The more evidence you have, the better.

How Can I Get a Better Insurance Settlement Offer?

Hire an attorney to help you navigate the insurance claims process. When customers have legal representation, insurance companies may treat them better because they know there is a lawyer who will challenge them and possibly take them to court.

Can I Reject a Low Settlement Offer from an Insurance Company?

Yes. If you believe your claims are worth more than the settlement offered, your attorney can help you push back against the insurance company and demand more compensation. We should review the terms of your insurance policy and show the insurance company that they are contractually obligated to pay you more.

Should I Hire a Lawyer to Help Me Get a Good Insurance Settlement?

Yes! People often do not think they need an attorney to file an insurance claim, but filing your claim alone leaves you vulnerable to insurance companies that want nothing more than to deny you and save money.

What if the Insurance Company Refuses to Offer a Good Settlement?

If the insurance company refuses to budge, your attorney can take them to court. In many cases, insurance companies are found to have acted in bad faith when they offered a low-ball settlement, and you could be entitled to even more compensation and damages in court.

Get Help Now from Our Personal Injury Attorneys

Call our Chester County, PA personal injury attorneys at The Reiff Law Firm at (215) 709-6940 and start your case with a free claim review.