Fight Low-Ball Auto Insurance: Know Your Rights

If you've been in a car accident, you may be entitled to compensation from your insurance company. However, insurance companies are out to make a profit and will often try to settle for less than what you deserve. This is called a lowball settlement. If you think your insurance company is lowballing you, there are several steps you can take to fight back and get the money you need to recover from the accident.

First, consult an attorney. Insurance companies are more likely to take you seriously if you have legal representation, and an attorney can help you navigate the complex world of insurance claims and negotiations. Next, make sure that the settlement offer is actually a lowball offer by comparing it to the total costs you have incurred due to the accident. You can also try to figure out why the insurance company is lowballing you. Are they questioning the extent of your injuries, or do they have evidence that you were at fault?

Once you know why the insurance company is lowballing you, you can focus on gathering evidence to prove your claim. This may include medical records, police reports, proof of damages, and witness statements. You can then use this evidence to negotiate with the insurance company or, if necessary, file a lawsuit in court. Remember, you have the right to reject a lowball settlement and fight for the compensation you deserve.

Get help from an attorney

If you've been injured in a car accident, you must file a claim with the other driver's insurance company. However, insurance companies are in the business of making money, so they frequently make low settlement offers, hoping that you accept quickly. This is known as lowballing.

If you believe an insurance company is lowballing you, it's important to get help from an attorney. Here's how an attorney can help:

• Dealing with the insurance company on your behalf: An attorney can take over all communications with the insurance adjuster and negotiate your settlement so that you receive the maximum recovery. They will also conduct a thorough investigation into the cause of your accident and collect the evidence you need to win your case.
• Analysing the offer: Your attorney will analyse the offer with you and explain why it is unacceptable. If the insurance company has not explained why they made a low offer, your lawyer will contact them to determine the reasons. This will help your attorney refute any inaccurate facts that led to the low offer.
• Rejecting the offer: You are not required to accept any settlement offer from the insurance company. Your lawyer can reject a low offer on your behalf in writing.
• Calculating your compensation: An attorney will help you calculate your necessary compensation, including economic and non-economic damages. This includes everything from your current and future medical expenses to the mental anguish caused by the crash.
• Making a counteroffer: Once your lawyer knows how much your claim is worth, they will make a counteroffer to the insurance company. They will do this in writing, outlining the driver's fault in causing the accident and refuting any false claims made by the insurance company. They will also explain the seriousness of your injuries and the treatments you need and will need in the future.
• Filing a lawsuit: If the insurance company refuses to be reasonable, your attorney can file a lawsuit on your behalf and litigate your claim. While it may take longer to settle your case, the insurance company will likely agree to a fair settlement before your case goes to trial.

Remember, insurance companies treat claimants with attorneys differently from those without representation. Hiring a lawyer can get insurance company representatives to take you seriously and offer more substantial compensation.

Make sure it's a lowball offer

It is important to be vigilant and aware of the tactics insurance companies use to lowball your settlement offer. Here are some ways to ensure that the settlement offer you received is, in fact, a lowball offer:

The Settlement Offer Comes Too Fast

A quick settlement offer is a red flag as insurance claims are detailed documents that take time to prepare. A hasty offer is likely a lowball figure as adjusters are probably interested in paying you as little as possible. While it is favourable to settle your accident claim quickly, it usually takes at least four to six weeks, and three to six months or longer for complex cases.

They Pressure You to Accept

Insurers try to settle cheaply and quickly. They prefer dealing with injured individuals directly rather than through an attorney as most people don’t have the knowledge, experience, time, or patience for lengthy negotiations. They may imply that their lowball offer is as high as they’ll go and that you should accept it fast. They may also tell you that you should accept their offer quickly and that there’s “no time” to consult an attorney. However, this is not true as, in most cases, you have two years from the date of injury to file a personal injury claim.

They Ignore or Dismiss Evidence

Insurance companies may try to ignore or dismiss evidence of liability. If they can somehow make the accident your fault, they can pay you less. Make sure to include sufficient evidence in your insurance claim that shows the other party owed you a duty of care, that they breached this duty, that this negligence caused your injuries, and that these injuries resulted in economic and emotional damages.

They Question Your Injuries

Insurance adjusters may question your injuries to pay you less. They may imply that your injuries are from a pre-existing condition. If this happens, take photos of your injuries, get copies of medical tests, and ask your doctor to write a statement that your injuries appear to be caused by the type of accident you suffered. Make a detailed list of your injuries and how they impact your life and activities.

They Won’t Explain the Math

You have a right to ask how the insurance adjuster arrived at their offer, especially for emotional damages. Economic damages are straightforward, but emotional losses are less tangible and, therefore, more likely to fall short. Most insurance companies try to save money on emotional damages, and an insurer who cannot give you a straight answer is probably lowballing you.

Figure out why the insurance company is lowballing you

There are several reasons why an insurance company might be lowballing you. Firstly, insurance companies are businesses committed to protecting their bottom line, so profits may suffer if they pay out large claims. As such, they may have determined that you were at fault and are therefore only willing to offer a minimal settlement. Alternatively, they may have miscalculated or undervalued your losses, leading to a lower offer. It is also possible that the insurance company is acting in bad faith, employing deceptive practices, or manipulating the terms of the contract to avoid paying out a higher amount.

In some cases, insurance companies may take advantage of the fact that the claimant is not fully aware of the value of their claim or is unlikely to hire a lawyer. They might also try to settle the case quickly before you have completed your medical treatment or consulted with an attorney. This is why it is important to carefully review the terms of your policy and gather evidence, such as medical records, employment records, accident scene photographs, and other relevant documentation, to support your claim.

Collect evidence to prove your claim

Evidence is crucial when it comes to car accident cases. To receive a fair settlement, you will need to prove who caused the accident (fault) and how much the accident cost you (damages). Here are some steps you can take to collect evidence and prove your claim:

Collect Information from Those Involved

Get the names, addresses, and telephone numbers of any drivers involved in the accident. Also, obtain their license plate numbers and insurance information. If anyone was driving for their employer, get the employer's name and contact information as well.

Gather Witness Information

Witnesses can provide valuable insights into the events leading up to the accident. Get the names and contact information of any witnesses. Their statements can be very helpful when filing an insurance claim and are often highly valued by insurance adjusters.

Take Photographs and Videos

Documentation is always valuable evidence. Take photographs of the damage to vehicles, injuries sustained, traffic signals in the area, and nearby buildings. Also, take videos if possible, as they can provide clear evidence of how the accident happened and its aftermath.

Obtain Official Reports

Get a copy of the police report, which will include details of the crash, statements from those involved, and sometimes an officer's opinion about how the accident happened. Also, obtain a crash report from your state's Department of Motor Vehicles or a similar agency.

Gather Medical Records

If you sought medical attention after the accident, your medical records will be important evidence. Get copies of your medical tests, X-rays, and any other documentation of your injuries. Ask your doctor for a statement confirming that your injuries were caused by the accident.

Collect Receipts and Expenses

Gather all receipts and expenses related to the accident, including medical treatments, prescription drugs, vehicle repairs, and any other costs incurred. These will help document the value of your claim.

Prove Lost Wages

If you were unable to work due to the accident, get a statement from your doctor about your injuries and the expected recovery period. Also, provide a statement from your employer or pay stubs showing your normal income levels to prove lost wages accurately.

Estimate Damages

Get an estimate of the repair costs for your vehicle, even if your insurance company is paying for the repairs. Include any deductibles or other expenses related to the accident in your final claim for settlement.

Remember, the more documentation you have to prove your claim, the better. Don't hesitate to consult with an attorney who can guide you through the process and ensure you collect all the necessary evidence to support your case.

Keep negotiating or file a lawsuit

If you feel that the insurance company is offering a lowball settlement, you can choose to keep negotiating or file a lawsuit. Here are some steps to help you navigate this process:

Keep Negotiating

Get Help from an Attorney:

Hiring an attorney can make a significant difference in how the insurance company treats your claim. Attorneys are familiar with insurance company tactics and can help you assert your legal rights effectively. They can deal with the insurance company on your behalf and guide you through the negotiation process.

Analyze the Initial Offer:

Take time to understand the insurance adjuster's position. Review the information sent to the insurer and identify any missing or overlooked details. This analysis will help you better understand their initial offer and improve your chances of negotiating a higher amount.

Make a Counteroffer:

Instead of outright refusing an insufficient settlement, consider responding with a counteroffer. A counteroffer is an amount that you consider appropriate and fair compensation. The insurance adjuster may accept your counteroffer or send a new counteroffer, leading to back-and-forth negotiations until an acceptable amount is reached.

Gather Evidence:

Collect evidence to support your claim and prove your losses. This includes medical records, bills for medical treatment, repair estimates, police reports, proof of damages, and any other documentation that demonstrates the extent of your accident-related losses.

Stay Persistent:

Don't be discouraged if the insurance company doesn't immediately accept your counteroffer. Insurance adjusters often start with low initial offers, and it is common to negotiate back and forth. Stay persistent and continue advocating for a fair settlement.

File a Lawsuit

Understand the Risks:

Filing a lawsuit can be costly and time-consuming, and there is no guarantee of success. Consider the value of your case and the policy limits to determine if pursuing legal action is worth the potential time and expense. Remember that a lawsuit also exposes you to the risk of losing your case.

Consult an Attorney:

If you decide to file a lawsuit, it is highly recommended to seek legal representation. An experienced attorney can handle the complexities of the legal process and protect your interests. They can guide you through the specific steps required to file a lawsuit against the insurance company.

Be Prepared for Negotiations:

Even after filing a lawsuit, there is still a possibility for continued negotiations. An insurance adjuster who was previously unwilling to compromise may become more reasonable when facing the prospect of a court case and potential judgment against them.

Document Everything:

Ensure that you keep detailed records of all communication, offers, and counteroffers. Proper documentation will be crucial if your case proceeds to court and can help strengthen your position.

Remember, it is important to carefully assess your situation and weigh your options before deciding whether to continue negotiating or file a lawsuit. Consult with a qualified attorney to get personalized advice based on your specific circumstances.

Frequently asked questions