What to Do When the At-Fault Party’s Insurance Offers a Low Settlement
After a car accident, the other driver’s insurance company may reach out to you with a settlement offer. While this may seem like they’re looking out for your interests, beware: initial settlement offers are almost always less than what your accident case is worth. That’s why you need to know what to do if an insurance company offers a low settlement.
What Steps to Take After Receiving a Low Settlement Offer
When you receive a settlement offer from the other driver’s insurer, the most important thing to do is not accept it outright. You should do the following instead:
- Reach out to an Alabama car accident attorney and notify them of the offer. Have them handle communications with the insurance company going forward.
- Start gathering any available evidence related to the collision. Having strong evidence can help you show that the offer is less than you’re entitled to.
- If the insurance company comes back to you with another offer, don’t accept it without your attorney’s guidance.
Why Insurance Companies Often Offer Low Settlement Amounts
Insurance companies are for-profit businesses. While they do have a duty to adhere to the terms of their policies, they often employ tactics that enable them to protect their profits. One of the easiest ways an insurance company can avoid spending money is by offering quick settlements to injured people, hoping they’ll accept them out of financial desperation or unawareness of their rights.
How to Tell If the Settlement Offer You Received Is Too Low
How do you know a car insurance settlement offer is too low? If you’re getting a call from an insurance company offering you money before you have any idea of your medical costs or recovery process, you can basically count on it being low. In some cases, you may even know the offer is less than what you’ve lost through medical expenses or missing income.
Regardless, the insurance company is not waiting for all the facts. Instead, they’re counting on you not fully understanding how the process works and hoping you’ll accept whatever they offer without realizing the consequences.
Common Tactics Insurance Adjusters Use to Reduce Claim Payouts
Insurance adjusters have a variety of ways to limit payouts and protect their employers’ financial interests. One of their most common tactics is to get an injured person to admit responsibility for the accident. In Alabama, bearing even 1 percent of the fault bars a person from recovering compensation. While fault determination isn’t ultimately up to the insurance company, being on record admitting responsibility puts an injured person at a disadvantage.
The other key tactic is simply making an offer to someone who doesn’t realize that accepting it means forfeiting their right to pursue additional compensation, even if their losses turn out to be far greater than the settlement amount.
Contact Our Personal Injury Attorneys to Challenge Your Low Settlement Offers
The easiest way to avoid falling prey to insurance company tactics and lowball settlements is by working with an experienced Alabama car accident attorney. At Stokes Stemle, LLC, we know how to negotiate an insurance claim settlement and will fight to recover every dollar you’re owed. Contact us 24/7 to get started with a free, no-obligation, fully confidential consultation.
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