In most cases, the first settlement offer is low, and you have every right to refuse it–and you should. Before you respond to any settlement offer–whether high or low–consider these two important factors.
1. First Offers are Usually the Lowest
Your first settlement offer will likely be a small percentage of the actual worth of your case. The reason? Insurance companies fully expect you to reject the offer and counter with a higher one.
There are a couple reasons they do this:
- They’re hoping you’ll accept the low offer, so they get a deal on the accident.
- They anticipate you coming back with a counter offer that’s still lower than what your case is worth because they’ve started the negotiations at such a low number.
Neither of those reasons benefits you. Understanding what your case is worth will allow you to make a counter offer that aligns better with what you’re rightfully owed.
2. Personal Injury Lawyers Can Influence a Payout
Sadly, most insurance companies are banking on your ignorance. If you try to negotiate a settlement offer on your own, they are more likely to lowball you. They assume you don’t have a frame of reference or the knowledge to understand what you’re owed. While this may be true, having an attorney to help with negotiations can make a tremendous difference on the outcome. When insurance companies deal with an experienced personal injury attorney, you can expect more efficiency and professionalism from the insurance company. They will be more likely to negotiate in your favor knowing you have the law to back your case.