Navigating The Claims Process: Strategies To Counter Low-Ball Offers From Insurance Adjusters

If you've been in an accident and the insurance company's offer seems too good to be true, it probably is. Insurance adjusters are known to use several tactics to lowball claimants. They may try to settle quickly, before you've had a chance to consult an attorney, or pressure you to accept their offer by implying that it's as high as they'll go. They might ignore or dismiss evidence of liability, or question the validity of your injuries, perhaps by implying that they're from a pre-existing condition. They may also refuse to explain their valuation calculations or try to blame you for your injuries.

However, you don't have to accept a lowball offer. You can review the policy, ask the adjuster for specifics, gather evidence, and negotiate. If they still refuse to raise their offer, you can file a lawsuit against the insurance company in civil court. Alternatively, you can hire a personal injury lawyer to assist you in these steps and raise the lowball settlement offer.

Seek legal representation

If you've been injured in a car accident, slip and fall or in any other circumstance due to somebody else's negligence, you deserve full and fair compensation. However, insurance companies often try to lowball claimants when offering their settlement. They assume that most people don't understand the true value of their claim, need the money quickly or are poor negotiators.

If you feel you are being lowballed, you should seek legal representation. Here are some reasons why:

• Insurers treat claimants who retain an attorney differently from those without representation. Hiring a lawyer can get insurance company representatives to take you seriously and offer more substantial compensation.
• Your attorney will be able to deal with the insurance company on your behalf, assisting you with each of the additional steps outlined below.
• Your attorney can help you negotiate a reasonable settlement demand, especially if your claim is complex or involves difficult legal issues.
• Your attorney can advise you regarding future settlement offers and advise you against actions that could make it more difficult to recover just compensation for your collision.
• Your attorney can also help you gather the evidence needed to increase pressure on the insurance company to pay what your claim is actually worth.
• Your attorney can file a lawsuit against the insurance company in civil court. Filing a lawsuit officially begins the process of taking your claim to a jury trial. Sometimes, the threat of a lawsuit is enough to get an insurance company to finally be fair.

If you've been injured, you should not have to settle for less.

File a property arbitration claim

If you've received a lowball offer from an insurance company, you can file a Property Arbitration claim in the appropriate county. Arbitration is a way for parties to resolve differences without going to court; both parties agree to accept the arbitrated judgment. Typically, in arbitration, you will meet with three attorneys (unless both sides agree that one is sufficient) to argue your position.

• Submission Agreement: Sign and date FINRA's Submission Agreement to acknowledge that you understand FINRA's rules and will abide by the arbitrator(s)' decision.
• Statement of Claim: Compose a document that provides the name(s) of the claimant(s) and respondent(s), details of the dispute, and the type of relief requested, including actual monetary damages, interest, and specific performance. Include any documents mentioned in the Statement of Claim that support your claim.
• Filing Fee: Submit a filing fee to cover the cost of arbitration, based on the total amount of your claim.
• Submit the Claim: File your arbitration claim through the DR Portal. Create an account if you don't already have one, log in, and select "File a New Arbitration Claim." Fill out the Online Claim Information Form, submit your payment, and attach your Statement of Claim.

By simply filing the Property Arbitration claim, you may receive an increased offer from your insurance adjuster. Arbitration will usually result in a better outcome for you, approaching the fair market value for your property.

Gather evidence

Gathering evidence is crucial if you want to get a fair settlement from your insurance company after a car accident. Here are some steps you can take to ensure you have the necessary evidence to support your claim:

• Take photographs and videos: Use your phone to capture the accident scene from various angles, including damage to vehicles, traffic signs and signals, vehicle license plates, and traffic control devices. Date-stamped photos and videos are ideal as they provide clear evidence of the accident and can help establish who was at fault.
• Obtain witness information: Get the names and contact information of any witnesses, including drivers and passengers in uninvolved vehicles, and people in nearby homes or businesses. Witness statements can be valuable in corroborating your account of the accident, especially if the other driver disputes your version of events.
• Exchange information with other drivers: By law, all drivers involved in an accident are required to stop and exchange information. Get the names, addresses, telephone numbers, and driver's license numbers of all drivers. Also, obtain their vehicle license plates and vehicle identification numbers. If a driver does not stop, try to get their license plate number and notify the police.
• Document your injuries: Take photos of any visible injuries you may have sustained in the accident. Additionally, get copies of your medical records, including X-rays and other imaging tests, as these can provide evidence of the extent of your injuries.
• Collect vehicle repair estimates: If your vehicle has been damaged, start collecting repair estimates from multiple repair shops. This will help you argue for the necessary repairs and associated costs.
• Keep a car accident journal: It is important to document how the accident has impacted your life. Keep a journal to track your injuries, headaches, missed workdays, lost opportunities, sleepless nights, and any other ways the accident has disrupted your daily life.
• Gather official documents: Collect all relevant official documents, including medical bills, pay stubs, receipts, and police reports. These documents will help prove your economic damages, such as medical expenses and lost wages.
• Review your insurance policy: Familiarize yourself with your insurance policy to understand what is covered and what is excluded. This will help you identify any discrepancies or unfair adjustments in the insurance company's settlement offer.

Negotiate

Negotiating with an insurance company can be a stressful process, but there are steps you can take to get a fair settlement. Here are some tips on how to negotiate when an insurance adjuster lowballs you:

• Review the policy: Go over the terms of the policy you are making a claim against and ensure the adjuster isn't leaving out anything that should be covered. Understand your rights and what you are entitled to under the policy.
• Ask for specifics: Inquire about the reasons behind the adjuster's offer. Ask them to explain what they have included and excluded from the settlement amount and why. This will help you identify any discrepancies or misunderstandings.
• Gather evidence: In addition to bills, receipts, and estimates, provide the adjuster with additional evidence such as X-rays, imaging tests, photographs from the accident scene, police reports, or any other proof of the other party's liability and your damages. This will strengthen your claim and support your argument for a higher settlement amount.
• Calculate your damages: Determine the value of your claim by calculating both economic and non-economic damages. Economic damages include medical bills, property damage, lost wages, and other out-of-pocket expenses. Non-economic damages cover pain and suffering, mental anguish, and inconvenience. You can use a formula, such as multiplying your economic damages by a number between 1.5 and 5, to quantify your non-economic damages.
• Adjust your settlement demand: Depending on the severity of your injuries and the complexity of your case, you may need to adjust your settlement demand upward or downward. Consider factors such as the nature and extent of your injuries, the difficulty of your recovery, future medical problems, and any partial fault on your part.
• Prepare a counteroffer: Once you have a clear understanding of the value of your claim and the adjuster's offer, prepare a written counteroffer. Keep the tone professional and factual, and avoid emotional appeals. Clearly state the amount of your counteroffer and provide a detailed explanation for it.
• Seek legal representation: Consider hiring a personal injury lawyer who can assist you in negotiating a fair settlement. Experienced lawyers know how to navigate these situations and can help you maximize your compensation. They will handle the legal aspects of your case and guide you through the entire process.

Remember, you don't have to accept a lowball offer from an insurance adjuster. Stay calm, gather your evidence, calculate your damages, and present a well-prepared counteroffer. If necessary, don't hesitate to seek legal assistance to ensure you receive the settlement you deserve.

File a lawsuit

If you've received a lowball offer from an insurance company, filing a lawsuit is one option to consider. Here are some steps and things to keep in mind if you decide to go down this route:

• Consult an Attorney: Before filing a lawsuit, it is highly recommended that you consult an experienced personal injury attorney who can advise you on your specific situation and whether filing a lawsuit is the best course of action. They can also help you understand your rights, determine the value of your claim, and handle the legal aspects of your case.
• Understand Your Policy: Make sure you thoroughly review and understand your insurance policy, including what is covered and any exclusions. This can help you better assess why your claim may have been lowballed or denied.
• Gather Evidence: Collect and organise all relevant evidence, including medical records, bills, receipts, invoices, police reports, witness statements, and any other documentation that supports your claim. This evidence will be crucial in negotiations and any potential legal proceedings.
• Document Communications: Keep a detailed record of all communications with the insurance adjuster and the insurance company, including emails, voicemails, and letters. Also, consider starting a journal or diary to document your interactions and any promises or statements made by the adjuster.
• Send a Demand Letter: Before filing a lawsuit, consider sending a demand letter to the insurance company. This letter should be written in a professional and polite tone and clearly state the facts of the case, the extent of your injuries, and the compensation you are seeking. It is best to be as detailed as possible and provide supporting evidence for your claim.
• File a Complaint: If the insurance company continues to be unresponsive or unreasonable, you can file a complaint with the insurance department in your state. Each state has a department of insurance that handles complaints, and you can find the relevant information on the National Association of Insurance Commissioners (NAIC) website.
• Bad Faith Lawsuit: If you believe the insurance adjuster or company has acted in bad faith, you may be able to file a bad faith lawsuit. This involves demonstrating that the insurance company failed to meet its legal obligations under the terms of the insurance policy, such as acting in good faith and dealing fairly with customers. Bad faith practices can include wrongful claim denial, untimely or inadequate payments, and failure to conduct a proper investigation.

Frequently asked questions