What to Do When the Settlement First Offer Seems Too Low

What to Do When the Settlement First Offer Seems Too Low

After a serious accident, victims often wait weeks or even months to hear from the insurance company. When that long-awaited settlement offer finally arrives, it can feel like progress — until you realize it doesn’t come close to covering your medical bills, lost income, and pain and suffering. If this sounds familiar, you’re not alone. Insurance companies often start low, hoping injured people will settle quickly out of financial stress or frustration.

At Hill & Moin LLP, our experienced New York personal injury lawyers have seen this tactic countless times. The good news? A first offer is just that — a starting point, not the final word. With the right strategy and legal representation, you can fight for the fair compensation you deserve.

Why Insurance Companies Start With Lowball Offers

Insurance companies are businesses, and their goal is to minimize payouts. By making an initial offer that’s far below your case’s true value, they test whether you understand the claim process or have an attorney representing you.

They count on several factors to pressure victims into settling early:

• Financial strain from medical bills or lost wages
• Lack of knowledge about the claim’s worth
• Desire to move on from the stress of the accident
• Fear of legal costs or delays

Unfortunately, many accident victims accept these early offers without realizing the long-term consequences. Once you sign a settlement agreement, you typically waive your right to pursue additional compensation — even if future medical expenses or complications arise.

Recognizing a Low Settlement Offer

There are clear warning signs that the insurance company’s first offer doesn’t reflect the full value of your claim:

• The amount barely covers your current medical bills, with no consideration for future treatment.
• The adjuster dismisses or downplays your pain and suffering.
• The offer comes before you’ve completed medical treatment or reached maximum medical improvement (MMI).
• The insurer refuses to include compensation for lost income, property damage, or emotional distress.
• The adjuster uses high-pressure tactics to push you into a quick decision.

If any of these sound familiar, take a step back before signing anything. Consult an experienced personal injury attorney who can help you assess whether the offer is fair.

Steps to Take When the Offer Is Too Low

1. Don’t Accept or Sign Anything Right Away

You have the right to review and negotiate. Never accept a first offer without understanding what your claim is truly worth. Even if the adjuster says it’s “the best they can do,” that’s rarely the case.

2. Gather and Organize Your Evidence

The stronger your evidence, the stronger your negotiating position. Collect:

• Medical records and treatment notes
• Bills and receipts for expenses
• Wage statements showing lost income
• Photos or videos of the accident scene or injuries
• Police reports and witness statements

Solid documentation shows that your claim is based on facts, not estimates or assumptions.

3. Calculate the Full Value of Your Claim

Work with your attorney to identify all economic and non-economic damages, including:

• Medical expenses (past and future)
• Lost income and diminished earning capacity
• Pain and suffering
• Emotional distress
• Property damage
• Long-term medical care or therapy

Insurers often overlook or undervalue non-economic damages — the areas that most affect your quality of life.

4. Respond With a Detailed Demand Letter

Your lawyer can send a demand letter outlining why the offer is too low and providing evidence to support a higher settlement amount. The letter should:

• Reference all relevant medical evidence and police reports
• Describe your injuries and the impact on your daily life
• Include specific dollar amounts and a clear justification for them

This approach shows the insurer you’re serious and well-prepared.

5. Stay Patient During Negotiations

Negotiation takes time, but persistence pays off. Insurance adjusters often make multiple offers before reaching a fair figure. Your attorney can handle communications, ensuring you don’t say anything that could weaken your position.

6. Consider Filing a Lawsuit if Necessary

If negotiations stall or the insurance company continues to act in bad faith, your lawyer can file a personal injury lawsuit. Sometimes, the threat of litigation alone motivates insurers to settle fairly. If not, your case can proceed to court — where a judge or jury decides the outcome.

How a Personal Injury Lawyer Strengthens Your Claim

Having a skilled attorney on your side changes the balance of power. The team at Hill & Moin LLP knows how insurance companies operate — and how to counter their tactics. Their attorneys:

• Evaluate your claim’s true value using evidence and expert opinions.
• Handle all communications with insurance adjusters.
• Build a comprehensive legal strategy to pursue the best outcome.
• Negotiate for maximum compensation that covers both current and future needs.
• Take the case to court if the insurer refuses to offer a fair amount.

With decades of experience handling car accident, slip and fall, and wrongful death claims throughout New York, Hill & Moin’s attorneys are known for turning low offers into full settlements.

When to Contact a Lawyer

You should contact an attorney as soon as you receive the first settlement offer — or even earlier. Insurance companies are far less likely to undervalue a claim when they know a respected law firm is involved.

Even if you’ve already received a lowball offer, an attorney can step in to renegotiate or take legal action. Many clients come to Hill & Moin LLP after realizing their claim was worth far more than they were told.

Get the Fair Settlement You Deserve with Hill & Moin LLP

Don’t let an insurance company decide what your injuries are worth. You have rights — and a strong legal team can help you protect them. The attorneys at Hill & Moin LLP will fight to recover every dollar you’re owed for your medical bills, lost wages, and pain and suffering.

Call (212) 668-6000 today for a free consultation. Find out how Hill & Moin can help you challenge unfair settlement offers and pursue the compensation you truly deserve.