Getting into an accident and sustaining an injury can be traumatizing and expensive. Receiving a settlement offer from an insurance company is probably a relief – that is, until you realize it’s a lowball offer. Lowballing means offering a number less than what someone is asking for or deserves. Lowballing is a tactic employed by many insurance companies in an effort to conserve money. If you are dealing with settlement offers from an insurance company, acquire the services of a New York injury lawyer who can fight for the compensation you deserve.
What Is a Lowball Settlement in New York?
A lowball settlement is an offer from an insurance company that is significantly less than the true value of your claim. While this may be a quick relief from accumulating expenses following an accident, these fail to account for the full extent of your damages, including future medical care, lost income, and pain and suffering.
An insurance settlement may be considered a lowball offer when:
- It doesn’t cover all medical expenses, including future care
- Lost wages and reduced earning capacity are limited or excluded
- Pain and suffering are significantly undervalued
- The offer is made before you understand the full extent of your injuries
- The insurer pressures you into accepting quickly
For example, if your medical bills, wages lost, and property damage amount to $5,000, then you would want your compensation to be at least $5,000. If an insurance company offers you a settlement of $3,000, you may feel like you’re being shorted. That’s because you are.
Signs an Insurance Company Is Lowballing You
- They are trying to settle too quickly
- They are pressuring you to accept the offer
- They are ignoring or dismissing important information
- They are refusing to explain their calculations
- They stop responding to you
An experienced lawyer will be able to better understand the signs that an insurance company is trying to lowball you. Seek professional advice to increase your chances of being compensated fairly.
Why Are They Lowballing Me?
In a lot of instances, an insurance company will lowball you simply because they can. Insurance providers will always try to pay out as little as possible to ensure that they are making the most profits for their company.
If they are ignoring the facts and offering you less than you deserve, this is an act of bad faith.
The insurer could also be lowballing you because they believe you to be responsible for the accident, lack the complete information necessary to value the claim, or utilize formulas that undervalue your claim.
Common Reasons for Lowball Settlement Offers
- The insurer hopes to reduce payouts to protect profits
- They believe you may accept due to financial strain
- They do not have full documentation for your damages
- They dispute liability or asset claims that you are partially liable
- They utilize formulas that undervalue long-term losses
What Should You Do After Receiving a Lowball Settlement Offer?
Whether you are rear-ended while driving through downtown Nyack or you slip and fall while in a Spring Valley supermarket, it’s important to understand that you should not accept a settlement offer without fully examining it. Accepting too quickly can lead to serious financial consequences, as this can waive your right to receive future compensation. As such, should additional damages arise down the line, you will be unable to recover compensation for those losses, as you have already accepted a settlement.
It’s important to take your time, understand the damages you have suffered, and consider your legal options before making any decisions regarding your compensation.
How to Respond to a Lowball Settlement Offer
- Carefully review the offer and compare it to your total damages
- Calculate all losses, including medical expenses, lost income from time off work, and your future medical expenses
- Request a written explanation of how the offer was calculated
- Gather documentation, like medical bills and property damage repair costs
- Submit a counteroffer with supporting evidence
- Consult an experienced attorney before accepting or rejecting an offer
This process helps ensure your claim reflects the full financial long-term impacts of the injuries you have suffered.
Contact an Experienced Rockland County Personal Injury Attorney
Having a skilled attorney on your side will be your biggest benefit during a settlement negotiation. Insurance companies are able to pay people less than they deserve because they are simply unaware of their rights. An injury lawyer with Mitchell J. Schroeder, P.C., is equipped with the experience to navigate these situations. Our firm is familiar with the tactics that the insurance companies will employ and can fight against a lowball offer to get you the compensation you rightfully deserve. Contact us today to learn how we can represent you.
