Why Is the Insurance Adjuster Offering So Little?

After a car accident or another serious incident, many accident victims are shocked to find that the settlement offer from the insurance adjuster is far lower than expected. Whether it’s a car insurance settlement offer or compensation for medical bills, lost wages, or property damage, it often feels like the insurance company is minimizing your claim—because in many cases, they are.

If you’re wondering why the insurance company’s offer doesn’t reflect your real losses, you’re not alone. Understanding how insurance adjusters operate and what factors influence a lowball settlement offer can help you protect your legal rights and pursue the fair compensation you deserve.

Why Insurance Adjusters Offer Low Settlements

1. The Insurance Company’s Priority Is Profit

Insurance companies are businesses, and like most businesses, they operate to generate profits. One of the main ways they protect their bottom line is by minimizing settlement payouts. The less they pay out on each insurance claim, the more revenue they retain.

Insurance adjusters are trained to evaluate claims with the company’s best interests in mind, not yours. This often results in lowball offers that do not accurately reflect the full extent of your injuries or damages.

2. They Assume Most Victims Will Settle Quickly

Most accident victims are overwhelmed, in pain, and facing financial pressure. Insurance adjusters know this and may try to capitalize on your vulnerability by making a quick initial offer that’s far below what your claim is truly worth.

Many people accept lowball offers because they’re desperate for fast cash to cover medical bills, repair costs, or lost income. Unfortunately, once you accept, you may waive your right to pursue further compensation, even if your condition worsens or more costs arise.

3. They May Claim You Have Minor Injuries

Insurance adjusters often downplay injuries as minor or temporary—even when serious injuries are present. Without complete medical records, doctor’s notes, and evidence from healthcare providers, they may argue your accident injuries don’t warrant higher payouts. This tactic is common in cases involving whiplash, soft tissue damage, or concussions that don’t always show up in imaging tests.

4. Lack of Evidence or Documentation

If your claim lacks detailed records, such as police reports, medical documentation, or clear evidence of non-economic damages like pain and suffering, the insurance company may use that as justification for a low offer. They might argue that the full extent of your injuries hasn’t been proven or that your claim lacks merit.

This is why it’s crucial to gather evidence, present evidence clearly, and work with a personal injury lawyer who understands how to build a strong case.

5. They Anticipate You Won’t File a Lawsuit

Another reason for a low settlement offer is the assumption that you won’t challenge them legally. If they sense you don’t have legal representation or aren’t likely to file a lawsuit, they may feel comfortable making an offer that’s far below your claim’s actual value.

Having an experienced injury lawyer signals that you’re serious about your case and are prepared to pursue maximum compensation, if necessary, through legal action.

What to Do If You Receive a Low Settlement Offer

Don’t Accept the Initial Offer

Initial settlement offers are rarely fair. You’re not obligated to accept the first number the insurance company makes. Taking time to fully evaluate your medical condition and the compensation needed for your recovery is essential before responding.

Consult a Personal Injury Lawyer

A seasoned personal injury lawyer or car accident lawyer can assess whether the settlement offered is reasonable. They can help you calculate the true value of your personal injury claim, including future medical expenses, ongoing treatment, emotional distress, and lost earning capacity.

Legal representation significantly increases your chances of receiving a fair settlement. A lawyer can also file a counter offer, demand full compensation, and, if needed, file a lawsuit to fight for your rights.

Continue Medical Treatment and Keep Records

Continue attending medical appointments and keep thorough documentation of all treatments, prescriptions, and out-of-pocket costs. These medical bills, along with medical records, are critical in demonstrating the seriousness of your injuries and the need for further compensation.

Common Tactics Used by Insurance Adjusters

• Requesting a recorded statement that can be used against you
  
• Downplaying the need for ongoing treatment
  
• Arguing that you had pre-existing injuries
  
• Refusing to acknowledge pain or long-term disability
  
• Claiming policy limits prevent a higher car insurance settlement offer
  

Being aware of these tactics can help you avoid common pitfalls that lead to an unreasonably low settlement offer.

When to File a Lawsuit

If the insurance company refuses to negotiate fairly, your attorney may recommend filing a personal injury lawsuit. This can put pressure on the company to reassess the claim and increase the settlement offer to avoid a costly and time-consuming trial.

Keep in mind that many car accident claims are settled out of court, especially when there’s strong evidence and skilled legal advocacy.

Learn more about how to handle low settlement offers. Call Greenstein & Pittari, LLP at (800) 842-8462 to schedule your free, no-obligation consultation. You can also reach us anytime through our contact page. Let us help you take the first step toward justice and recovery.

FAQs: Why Is the Insurance Adjuster Offering So Little?

Q1: Why is my insurance settlement offer so low?
Insurance adjusters often make low offers to protect company profits and because they assume many victims won’t challenge them or file a lawsuit.

Q2: Should I accept the first settlement offer from the insurance company?
No. The first offer is usually not reflective of your actual damages. Speak with a personal injury attorney before accepting anything.

Q3: How can I increase my settlement amount?
You can increase your compensation by continuing medical care, gathering strong evidence, and working with an experienced personal injury lawyer who can negotiate aggressively on your behalf.

Q4: What if I already accepted a low settlement?
If you signed a release of liability, it may be too late to pursue further compensation. Speak with a lawyer immediately to see if any exceptions apply.

Q5: How does legal representation affect my settlement?
Having a lawyer greatly improves your chances of receiving a fair settlement. Insurers are more likely to offer higher settlements when they know you have strong legal support.