How do you respond to a low ball settlement offer?
Receiving a lowball settlement offer after an accident can be frustrating and disheartening. It often feels like an undervaluation of your pain, suffering, and financial losses. However, it is essential to respond strategically to ensure you receive the best compensation amount that is a true representation of your injuries and losses. With legal help from a car accident lawyer, you can achieve the highest possible settlement or verdict in Colorado.
Why Insurance Companies Make Low Settlement Offers in Denver Personal Injury Claims
Handling low settlement offers on your own in Colorado is usually ill-advised because the insurance company is not on your side. Here’s why they make low settlement offers:
Maximize Profits: Insurance companies prioritize profitability, aiming to minimize payouts to boost their bottom line.
Pressure on Claimants: Insurers know that injured parties may need funds urgently, which can pressure them into accepting inadequate offers.
Delay Tactics: Prolonging the settlement process can wear down claimants, making them more likely to accept lower offers out of frustration or financial necessity.
Weak Representation: They exploit situations where the victim lacks strong legal representation, knowing these individuals might be less aware of their case’s true value.
Importance of Deliberation Before Accepting Settlement Offers
You need to wait before responding to lowball settlement offers from the insurance company to do the following:
Fully Assess Your Damages: Take time to evaluate your injuries, all medical expenses, lost wages, and other damages to ensure the offer covers everything.
Gather Necessary Evidence: You may use the time to collect comprehensive documentation and evidence, which will help while negotiating low settlement offers later on.
Consult an Attorney: Discuss the offer with an experienced personal injury attorney to understand its adequacy and whether you can negotiate for a higher compensation amount.
Understand the Insurer's Strategy: Recognize that initial offers are often low to test your knowledge and willingness to negotiate.
Prepare a Counteroffer: Use the time to prepare a well-documented and reasonable counteroffer that reflects your actual damages.
How to Counter Low Settlement Offers by Insurance Companies in Colorado
Avoid Direct Negotiations with the Insurer
Lack of Experience: Insurance companies handle claims every day and are skilled in negotiation tactics. As an individual, you may not have the same level of expertise for countering lowball offers, putting you at a disadvantage.
Complexity of Legal Processes: Personal injury claims involve various legal nuances, including understanding the full scope of damages (medical expenses, lost wages, pain and suffering). Without legal knowledge, you might undervalue your claim.
Pressure Tactics: Insurance adjusters are trained to use pressure tactics to get claimants to settle quickly for less than they deserve. They may downplay your injuries or the strength of your case.
Risk of Undermining Your Case: Any statements made to the insurance company can be used against you. Without legal guidance, you might inadvertently say something that harms your claim.
Steps to Take When Facing a Low Settlement Offer
Seek Immediate Legal Consultation: Contact a reputable personal injury law firm in Colorado when you receive a settlement offer. Early legal involvement can make a significant difference in the outcome of your case.
Document Everything: Keep detailed records of all medical treatments, expenses, and any correspondence with the insurance company. Your attorney will use this documentation to strengthen your case.
Avoid Direct Communication: Refer all communication from the insurance company to your attorney. This prevents you from inadvertently weakening your case and puts you in a strong negotiating position.
Follow Legal Advice: Trust the skills of your car accident lawyer and follow their guidance in each legal matter. They have your best interests at heart and will work to secure the best possible outcome for you.
Advantages of Legal Representation in Settlement Talks
Dealing with low settlement proposals through an attorney typically results in higher settlements than if you negotiate on your own.
Accurate Valuation of Claims
Attorneys have the skills to assess economic and non-economic damages, including medical expenses, lost wages, and pain and suffering. They can project future costs related to ongoing medical care, the long-term recovery process, and the loss of earning capacity to ensure that you obtain a fair and comprehensive settlement amount.
Effective Negotiation Skills
Legal representatives are skilled negotiators who understand these tactics and know how to counter them effectively. They can engage in tough negotiations on your behalf by presenting well-supported counteroffers and using evidence to back up your claims. Their presence alone often compels insurance companies to take your case more seriously and offer higher settlements.
Access to Resources
Attorneys have access to a network of resources that can strengthen cases. This includes medical experts, weather conditions specialists, accident scene reconstruction specialists, and other professionals who can provide vital evidence and testimonies. These resources are invaluable in substantiating your claims and demonstrating the full impact of the accident on your life.
Timely involvement of lawyers can ensure car accident victims don’t commit mistakes or do anything that may jeopardize their claim.
Finalizing and Following Through on a Settlement Offer
Finalizing the Agreement
The first step is to finalize the agreement. Your attorney will draft a detailed settlement document that states all terms and conditions. Review this document carefully to ensure it accurately reflects the negotiated terms with the insurance company of the other driver and you.
Ensuring Compliance
Your lawyer will monitor the receipt of the settlement payment. This should be disbursed within a specified timeframe. Make sure you fulfill any obligations you have under the agreement, such as withdrawing pending lawsuits or agreeing not to pursue further legal action.
Protecting Future Rights
Understand any release clauses in the settlement that might prevent further claims related to the same incident. Consult your attorney about any potential future claims or issues that could arise.
Stand Strong with Our Proven Personal Injury Lawyer in Colorado
If you suffered injuries because of someone else’s fault, the battle-tested legal team at Zobel Legal Group can assert your rights and recover the highest possible compensation for your injuries and losses. We accept personal injury cases on a contingency fee basis, so you don’t pay a fee until and unless we recover financial compensation for you. To schedule your free case assessment, call us at 720-434-6674 or contact us online.