You can handle a lowball settlement by first establishing why the insurer offered an unfair payout. You can do that by requesting the insurer to justify the lowball offer in writing, especially if that information is unavailable in the award letter. You can then carefully review the reasons provided by the insurer and send a demand letter with your counteroffer.
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Insurance providers often offer lowball settlements to protect their bottom line. They use strategies such as contesting liability, creating unnecessary delays, and downplaying your injuries. You are more likely to receive a lowball settlement when you are unrepresented than when you have a motor vehicle accident lawyer on your side.
At Ankin Law, we have experienced car accident lawyers who can handle a lowball settlement after a car crash. Call us today at 312-600-0000 to schedule a free case review.
Why Insurance Companies Offer Lowball Settlements After Car Accidents
In 2023, up to 87,573 people sustained injuries in motor vehicle accidents in Illinois. You have a right to pursue compensation if you were harmed in an accident caused by another person’s or entity’s negligence. Unfortunately, insurance companies often offer lowball settlements.
These companies are for-profit corporations that protect their profitability by undervaluing claims or paying off as few claims as possible. They do this at the expense of accident victims. The strategies used by insurance companies to persuade victims to accept unreasonable settlements include:
Approaching Unrepresented Victims
Insurance companies are often quick to approach unrepresented victims with an initial offer. They know accident victims are vulnerable without legal representation. Therefore, an insurance adjuster may deceive and use urgency to pressure victims to sign settlement forms.
Ignoring Long-Term Injuries
Bad-faith insurers also downplay long-term injuries because such injuries increase the settlement. They may find an alternative explanation for your long-term injuries to avoid covering their treatment costs and other relevant costs.
Misrepresenting Information
Misrepresenting information enables insurers to omit crucial information and pay a lowball offer upfront. They may alter the policy details or reduce the settlement based on an adjuster’s statements. You may easily take the misrepresented information to be true and accept a settlement amount that doesn’t fully cover your damages, especially if you are unrepresented.
Steps to Take When You Receive a Lowball Car Crash Settlement
Knowing what to expect during a car accident case enables you to prepare adequately for situations that may arise along the way. One thing to expect is a lowball settlement. Knowing the steps to take after receiving an unfair compensatory amount allows you to remain calm, skillfully negotiate, and increase your odds of a positive outcome. These steps include:
Requesting a Written Settlement Offer
Ask your insurance provider to give you a written offer. Doing that ensures you have evidence that the insurer actually made an offer. The documented settlement offer will also be helpful when filing a bad-faith insurance lawsuit if necessary.
Declining the Offer
No law requires you to accept an insurance settlement offer. In fact, it’s not advisable to accept an initial offer without legal representation. If you’ve been unfairly compensated, you have the right to challenge it. Politely decline the offer without lashing out at the insurer’s representative. Request a written document explaining why the insurance undervalued the settlement. The answers you receive will inform your evidence-gathering process.
Reviewing Your Damages
Declining the initial settlement offer buys you time to evaluate your damages. Focus on the economic and non-economic damages to get the full extent of your losses. Receiving compensation for pain and suffering can be challenging. Luckily, your lawyer can evaluate the accident’s impact on your personal life and then calculate the full extent of all your damages.
Collecting Solid and Irrefutable Evidence
Solid and irrefutable evidence gives you an upper hand during insurance negotiations. Examples of evidence that can bolster your claim include police reports, medical records, property repair costs, and visual evidence.
How a Chicago Car Accident Lawyer Can Help You Negotiate Fair Compensation?
You need a lawyer after a car accident to receive compensation that covers the true value of all your losses and damages. Your lawyer can do the following for you:
Draft and Send a Demand Letter
Your lawyer will handle all insurance documentation and correspondence. He or she will draft and send a demand letter to the insurance company. This document outlines the details of the claim, demand for settlement, and the deadline for the company to respond.
Evaluate and Calculate Damages
A lawyer will gather sufficient evidence to prove you are not at fault and are entitled to maximum compensation. The lawyer will calculate both short- and long-term medical expenses and use your bank statements and pay stubs to determine your lost income. He or she will also evaluate your pain and suffering and use the legally approved methods to estimate your non-economic damages.
Negotiating with Insurers
A series of negotiations is often necessary before reaching a mutually acceptable settlement agreement. Experienced lawyers have dealt with many insurance providers. They can anticipate insurers’ counteroffers and present evidence to strengthen your claim. Lawyers also know what to say during negotiations to ensure both parties reach favorable terms.
Were you offered a lowball settlement after a car crash in Chicago, Illinois? At Ankin Law, we will use every resource at our disposal to ensure you’re fairly compensated. Contact us for a free initial consultation with our Chicago car accident attorney.
Frequently Asked Questions (FAQs)
What should I do if my insurance settlement is too low?
The first thing to do is to find out why the insurer gave you a lowball settlement. You can get that information from the settlement offer letter. The next step is to collect relevant evidence and send a demand letter with your counteroffer.
Can I negotiate a higher settlement after a car accident?
You can push for a higher settlement after a car accident through negotiations with the insurance provider. However, you should first gather the evidence that can support your claim for a higher settlement. Move to court if the insurer still insists on paying a low settlement. Of course, you will need to work with a lawyer to improve the odds of a positive outcome.
How long do I have to accept or reject a car crash settlement offer?
There’s no legal timeline for accepting a settlement offer. Most insurers, however, provide settlement offers with an acceptance deadline, usually 30 days. It’s recommended to speak to a Chicago car crash attorney before accepting or rejecting a car crash settlement offer.
