Why Insurance Companies Offer Low Settlements for Personal Injury Claims
Turn the Tables: Challenge Unfair Insurance Payouts
Ever wondered why people get such small offers from insurance companies after accidents? It’s a head-scratcher. At the heart of this problem, personal injury attorneys in New Orleans step in. These are legal professionals focused on helping people who got hurt because someone else wasn’t careful.
Insurance firms, aiming to keep their money piles high, often pitch lowball settlements. They bet on the idea that many won’t fight back or know how much their hurt truly costs. This tactic leaves many shortchanged, struggling to cover their bills and mend.
Quick Summary
- Insurance companies offer low settlements after accidents to protect their profits, often using software to calculate offers before knowing all the details. They hope people, stressed and unaware of their rights, will accept these offers.
- Insurance companies might offer you less money than you deserve after an accident. Signs of a lowball offer include a quick settlement offer, pressure to agree, ignoring evidence, doubting your injuries, not explaining the offer calculation, trying to blame you, and suddenly stopping communication.
- To respond to a low settlement offer, understand why it’s low and decide what amount would be fair. You can write a letter asking for more, provide more details about your claim, or continue with your legal case. If the offer is unfair, you can refuse it and take the insurance company to court with the help of a personal injury lawyer.
Why Do Insurance Companies Offer Low Settlements for Personal Injury Claims in Louisiana?
Insurance companies prioritize profits over fair settlements for those injured due to their client’s negligence, like in car accidents. After such incidents, the at-fault insurer often contacts you, aiming to benefit themselves by asking questions or making a lowball settlement offer.
Seeking advice from a personal injury lawyer before speaking to an insurance adjuster or accepting any settlement offer is crucial. Here are the main reasons insurance companies offer lowball settlement offers:
Insurance Companies Want to Save Money
The main reason insurance companies offer settlements much lower than what your claim is worth is to protect their profits. They’re not concerned about fairness or ensuring your losses are fully covered.
Their goal is to collect premiums and either deny claims or offer low settlements to boost their profits. The more they can settle for less than a claim’s true value, the more money they make.
They Use Software to Decide on Settlement Offers
If an insurance adjuster offered you a low settlement over the phone right after your accident, they likely used a computer program to calculate it before knowing all the details. While insurers are required to handle claims fairly, big companies often handle so many claims that they use software to decide how to handle them.
It can lead to unfair denials and low offers. The software estimates based on past cases, but it might not account for unique aspects of your situation.
Many People Accept Low Offers
Insurance companies often succeed with their first low offers because many people are stressed after an accident and don’t know their rights or the full value of their claim. They hope you’ll accept their offer without question.
The smart move is to turn down their offer and talk to one of the personal injury attorneys in New Orleans who can determine what your claim is worth.
You Can’t Sue Them If You Accept the Offer
If you agree to a settlement, you give up your right to sue the insurer later if you find out your losses are more than you thought. This happens because of a legal agreement called a “release agreement.”
Insurers benefit if they can get you to accept a low offer quickly. In Louisiana, you have one year from the accident date to file a claim. This gives you time to finish medical treatments and understand the full extent of your damages before making a claim.
They Don’t Think You’ll Get a Lawyer
Insurance adjusters offer low settlements because they think you don’t know your claim’s true value or won’t get a lawyer to fight for you. They expect you to accept their offers easily. Hiring a personal injury lawyer shows the insurance company you’re serious about getting a fair settlement.
What Are the Signs the Insurance Company is Lowballing Me?
Insurance companies want to settle for less money. Here are signs they’re offering you less than you deserve.
The Offer Comes Too Quickly
It is best to settle your accident claim swiftly, allowing you to get back to your life. However, a fast offer often means it’s too low. Insurance claims require thorough documentation. A detailed claim typically includes:
- Medical records, like bills, test results, and doctor’s notes
- Statements from witnesses
- Reports from police or details of the accident
- Pictures or videos
- Chronological list of what happened
- Evidence of costs, like receipts
Adjusters who quickly go through your case may just want to pay you less. They might not think about how the accident affected your body, emotions, and money.
They Push You to Agree
Insurance companies not only aim to settle for less but also want to do it quickly. They prefer talking directly to injured people instead of their lawyers because most folks don’t know how to negotiate for a long time. Insurers might suggest that their low offer is the best they can do and you should take it quickly.
They Don’t Consider the Evidence
Insurance companies use various tactics to avoid paying you what you should get. One common tactic is to ignore or reject evidence that shows they’re responsible. If they can make the accident seem like it’s partly or entirely your fault, they can pay you less.
They Doubt Your Injuries
Insurance adjusters doubt your injuries to justify paying you less. They might suggest your injuries were there before. If the insurer questions your injuries:
- Take pictures of your injuries.
- Get copies of medical tests, like X-rays showing injuries.
- Ask your doctor for a statement that your injuries are from the accident.
- List your injuries and how they affect your life.
They Won’t Explain How They Calculated the Offer
You can ask the insurance adjuster how they calculated their offer, especially for emotional harm. It’s easy to figure out costs for things like doctor’s visits or fixing your car. Emotional losses are harder to measure, so a dishonest adjuster might offer less than you deserve.
Most insurers try to pay less for emotional harm. If an insurer can’t explain how they decided on their offer, they’re likely offering you less than you should get.
They Try to Blame You
If you’re responsible for an accident, you can’t get compensation from someone else’s insurance. Insurers sometimes try to blame the victim to pay them less. That’s why you need proof that the other party was at fault.
If the insurance company ignores this proof, it might be a good idea to talk to personal injury attorneys in New Orleans.
They Stop Communicating to You Out of Nowhere
If the insurance company stops contacting you suddenly, it might be a trick to make you accept a low offer. They know that not hearing back from them can make you anxious, especially when you have bills to pay. They want you to feel pressured to accept any offer they give you.
It’s not fair for the insurance company to cut off communication to make you accept less money. You shouldn’t have to chase them down to get the compensation you deserve for an accident that wasn’t your fault.
How Do I Respond to a Low Settlement Offer?
To deal with a low settlement offer, figure out why it’s so low. Decide how much your claim is worth and how much you’d be okay with accepting. You can write a formal letter asking for more money, give more details about your claim, or keep going with your legal case depending on what’s best for you.
You don’t have to agree to a settlement if it’s not fair. You can take the insurance company to court and have a trial to get the right amount. A personal injury lawyer can help you through this process.
Low Settlement Offers Happen Often
Getting a low settlement offer can be frustrating. It’s normal for the insurance company or the other side to start with a low offer. They want you to settle quickly and for less than you should get.
You Can Refuse the Offer
You don’t have to agree to a settlement that’s too low. You can even reject the settlement completely. You can take your case to court for a fair decision. The other side doesn’t get to decide how much you should get.
Be Aware of Deadlines
Even if the other side offers a settlement, you still need to follow time limits for your case. These deadlines are crucial and strict. Don’t forget about them, even as you deal with a low settlement offer. A personal injury lawyer can assist you in quickly filing legal papers before the deadlines expire.
Figure Out the Value of Your Case
To know how to deal with a low settlement offer, it’s important to know the range of what your case is worth. Understand how different the settlement offer is from what you think is fair and how close you are to reaching an agreement.
Think About the Offer Before You Reply
Before you reply to a low settlement offer, take a moment to look it over. See if there are any clues about why they offered that amount. Understanding their reasons can help you respond in a way that might lead to a better offer.
Provide More Information About Your Case
Decide if it makes sense to give more details. More information might help you negotiate a better deal. You might be able to clear up any questions that are preventing a fair settlement.
Know the Insurance Policy Limit
If a claim is too low because of insurance policy limits, check those limits. See if the insurance policy limit is the reason for the low settlement offer.
Make a Counteroffer
You might consider making a counteroffer. A personal injury lawyer can advise you on whether it’s a good idea and how much you should offer to settle the case.
Keep Going With Your Case
Your case is not finished until you agree to and sign a settlement offer. Keep saving evidence and records. If you haven’t already, you might need to start a formal legal claim. If your legal claim has already started, keep gathering evidence, making court motions, and doing other legal tasks until your case is resolved.
Get Help From a Personal Injury Lawyer
You have just one opportunity to secure a fair settlement for a personal injury. Personal injury lawyers in New Orleans can use their experience to help you. They negotiate for you, gather evidence, and use their resources to develop the best strategy for settlement talks.
Fight Back Against Low Personal Injury Settlement Offers in Louisiana
In the battle against stingy insurance offers, Hammond Law Firm LLC stands out in Louisiana. We know the games these companies play. With sharp skills and a deep understanding of the law, our personal injury attorneys in New Orleans work hard to ensure you get the compensation you deserve, not just a fraction.
We believe in fairness, making sure victims of accidents don’t have to worry about their bills while they heal. Need someone to fight for you? Look no further. Hammond Law Firm LLC boasts a team ready to challenge low settlements and push for what’s right.
We can also represent you in Admiralty Maritime and Product Liability. Reach out now and schedule a free consultation.
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