After sustaining an injury and/or vehicle damage in an auto accident, a car collision victim may have to deal with an insurance company, where the insurer might submit an initial, lowball offer, which can be demoralizing and frustrating for recipients. However, this is a common tactic utilized by insurers that acts as the beginning of the negotiation process. Understand how to respond to a lowball insurance offer, discover how to approach negotiating an accident settlement, and find out how Lott Law can aid car accident victims; contact us today at (228) 215-2787 to discuss your legal options with a seasoned Mississippi auto accident attorney.
What Is a Lowball Insurance Offer?
Lowball offers refer to the first settlement proposals put forward by insurance providers to claimants. These are usually significantly lower than what motorists may require to cover their losses. This popular strategy utilized by insurers aims to minimize payouts and keep the profits of insurance companies as high as possible by continuously collecting insurance premiums; according to the Insurance Information Institute, insurers collect, on average, just over $1,500 in insurance premiums per vehicle every year.
Can You Challenge an Insurance Settlement?
Claimants who disagree with an insurance settlement may dispute an insurer’s assessment if they feel it is unfair or plainly incorrect. They may check an insurance adjuster’s reasons for denying a claim or offering a low payout before gathering evidence to back up their take on the claim. Then, the motorist may pursue an official appeal, if the insurer has an appeals process, or ask the insurance carrier to reconsider the claim while providing the motorist’s reasons for disagreeing with a case’s outcome and additional documentation that supports these arguments.
What if You Do Not Agree With a Settlement Offer?
There is no legal requirement for claimants to accept an insurer’s offer, regardless of whether it is a first or subsequent one. Motorists may continue negotiations or initiate legal proceedings, with each route presenting certain risks. Those who settle may receive a lower amount of compensation compared to pursuing litigation, but the latter option might also lead to the motorist receiving less than the initial offer or nothing at all.
Explore the steps of fighting a lowball insurance offer in further detail, and learn how an experienced Mississippi vehicle accident attorney might assist drivers with negotiating an accident settlement. Contact Lott Law today to organize an initial discussion.
Should I Accept a Low Settlement Offer?
After receiving an initial, and most likely lowball, offer from an insurer, avoid accepting it straight away. Instead, the motorist may review it carefully to see whether it adequately compensates them for their losses; per the National Safety Council, the economic costs of injuries from motor vehicle accidents depend on the injury severity, with property damage and very minor injuries costing a few thousand dollars and death amounting to potentially millions of dollars.
If the driver believes the offer is insufficient, they can present a counteroffer. Negotiations between the insurer and the driver typically follow, which might involve multiple rounds of receiving offers and submitting counteroffers; the motorist may ask their lawyer to oversee the negotiation process (if they have one).
How Do I Increase My Settlement Offer?
In addition to thorough case preparation and effective negotiations with an insurer, other factors may impact a settlement’s value. These are as follows.
Demonstrate Liability
The chances of receiving an increased settlement improve when claimants can establish which party caused the motor vehicle accident. Some examples of evidence that may effectively prove fault include video footage, police reports, and eyewitness statements, which may enhance a driver’s bargaining position.
Highlight Injury Severity
Injury severity also affects a settlement’s value. Serious injuries requiring considerable medical treatment and leading to lasting disabilities usually result in higher settlements. If a claimant has a severe injury, they might consider collecting medical reports, bills, and receipts and noting how the condition impacts their daily activities to highlight how serious their injuries are to the insurance adjuster.
Utilize Expert Witnesses
Specialist witnesses, like accident reconstruction specialists, economists, and doctors, can make a case appear more credible and support demands for an improved settlement. For instance, an economist can estimate a claimant’s future medical bills or lost income, whereas a doctor might provide a testimony that outlines the consequences of the driver’s injuries.
Get Help With Negotiating an Accident Settlement by Contacting a Mississippi Auto Accident Attorney
Receiving an initial settlement offer following a motor vehicle accident may provide some comfort to victims, especially since they may have outstanding bills or might not have worked for a lengthy period. The key issue, however, is that a claimant might be able to secure substantially more compensation than a first offer, and insurers are aware of this and are relying on an individual’s desperation for funds and lack of awareness of their legal rights and the claim’s full value. Discover how to challenge a lowball insurance offer, and learn some extra tips for negotiating an accident settlement; call a knowledgeable Mississippi car accident attorney from Lott Law at (228) 215-2787 to discuss an insurance claim and the options for moving forward with it.
