Receiving a settlement offer from an insurance company can feel like a win, especially after the stress of an accident or injury. But what happens when that offer is far below what you expected? Before you sign anything, here’s what you need to know about responding to a low settlement offer in Louisiana, and why it’s crucial to advocate for your rightful compensation.

Why You Should Never Accept the Insurance Company’s First Offer

Insurance companies are supposed to fairly pay out claims. However, these companies are businesses, and like any other business, their goal is to make a profit. One way they do this is by lowballing claimants, or offering settlements that fall far beneath what a claim is truly worth. Accepting the first offer can feel like the “easier” option versus getting into a long, drawn-out fight with the insurance company. Unfortunately, this leads to many people simply taking what’s offered without realizing that they could be entitled to a lot more.

Insurance companies often offer low settlements, hoping you'll accept without question. Once you do, however, you’re stuck with that amount. You can’t go back and ask for more, even if your injuries and damages end up being worse than you initially realized. So, while the initial offer may seem like enough to cover your expenses, you could find yourself suddenly facing thousands of dollars more in medical bills, lost wages, and other damages—all of which you now have to pay out of pocket.

Remember, the insurance company’s goal is to minimize its payout, not ensure you’re fully compensated for your losses. Accepting the first offer could mean leaving money on the table, especially when it comes to damages like lost earning capacity, pain and suffering, and emotional distress. In almost every instance, it’s worth it to negotiate with the insurance company for a fair settlement that truly covers your injury-related damages.

Assessing the True Value of Your Personal Injury Claim

Determining the worth of your personal injury claim involves more than just tallying up medical bills. Consider the following factors:

Medical Expenses: You may have initially sought medical treatment for your injury or may have even been hospitalized, but your medical expenses don’t necessarily stop there. You could need ongoing rehabilitation, medications to manage your pain, multiple surgeries, and other treatments and care in the future, all of which cost money.
Lost Wages: A serious injury can put you out of work for weeks, months, or even years. You might qualify for disability or other benefits, but these do not fully replace the wages you would have earned if you were able to work. A fair settlement can help make up for your lost income resulting from your temporary inability to earn a living.
Lost Earning Capacity: Many injuries not only affect your ability to work while you heal but also leave lasting impairments that permanently impact your earning capacity. If you suffered an injury that left you unable to return to your previous employment, a fair settlement can help compensate you for the wages you would have earned.
Pain and Suffering: Serious injuries don’t just leave physical scars; they also cause lasting emotional and mental trauma, significant pain, and intense suffering. For many victims, the pain and suffering of an injury can be debilitating. This should be factored into your settlement so that you can obtain all the necessary resources you need to heal.
Other Losses: The impact of an injury cannot be overstated. From the cost of getting to and from doctor’s appointments to making alterations to your home to accommodate a new disability, an injury can affect nearly every aspect of your life, costing thousands or even millions of dollars. You should be fairly compensated for all your losses.

Understanding the true value of your claim boils down to assessing the true, full extent of your damages. This usually requires gathering important evidence, such as medical bills, future projected care costs, paystubs, and proof of your pain and suffering.

How a Louisiana Personal Injury Lawyer Can Help

Negotiating with an insurance company after an accident can feel intimidating. You might be overwhelmed with everything else you now need to do—from seeing doctors to going to physical therapy, picking up prescriptions, managing everyday expenses, and making sure you get the time you need off work. The last thing you want to do on top of all this is deal with fighting the insurance company, so being offered a settlement can feel like a relief. However, accepting that first offer can actually cause you more stress in the long run, as it likely won’t cover all your damages.

So, what should you do?

The best thing to do after a serious accident, after seeking medical attention, is to enlist the help of a skilled Louisiana personal injury lawyer. An experienced attorney knows how to accurately assess the value of your claim, ensuring that no expense is overlooked. Additionally, personal injury lawyers are trained negotiators who can effectively advocate for a fair settlement on your behalf. They can gather the necessary evidence and present your case in a compelling way, allowing you to focus on your physical and emotional recovery.

Perhaps most importantly, your lawyer can help you if the insurance company refuses to play fair or if negotiations stall. If this happens, it might be necessary to file a lawsuit and sue the insurance company (or another liable party) for the full compensation you are owed. Your attorney will be able to assist you throughout this process, providing the guidance, support, and personalized representation you need.

You’ve Been Offered a Settlement: What Now?

If you receive a low settlement offer from the insurance company, don’t panic and, most importantly, don’t accept it. Instead, there are several steps you can take to protect your rights, including your right to fair compensation.

Here’s what to do if the insurance company has offered you a low settlement:

Review the Offer: Consider the offer in light of your actual damages and losses. Does it fall far below what you need? Does it provide for future medical care? Do you know how much your future expenses might cost?
Consult with a Lawyer: Schedule a free consultation to discuss the details of your case with a personal injury attorney. They can provide insight into whether the offer is fair and reasonable, as well as what to do if it’s not.
Counter the Offer: With your lawyer’s help, prepare a counteroffer (typically presented as a letter of demand) that reflects the true value of your claim. This will require concrete evidence proving your losses.
Stay Patient: Negotiations can take time. Be prepared for back-and-forth discussions with the insurance company and your legal team. In some cases, insurance companies won’t settle until they’re threatened with a lawsuit.

Receiving a low settlement offer can be frustrating, but it’s crucial not to settle for less than you deserve. By understanding your claim's value and leveraging the experience of a knowledgeable personal injury lawyer, you can seek compensation that accurately reflects your losses.

Remember: After an accident, the insurance company is not on your side. True accountability often requires skilled negotiation and a fierce commitment to making sure insurance companies pay what they owe. At Clayton, Frugé & Ward, we are here to support you every step of the way.