Is The Insurance Company Lowballing You?

Posted on: 26 April 2018

Unfortunately, when you receive an initial offer from the insurance company, there is a very good chance that the offer is much less than what you're entitled to. When this offer is far much less than what you're supposed to get, this is what is referred to as lowballing.

Lowballing is not an unusual occurrence in the insurance business. Insurance companies have been known to use this tactic to save as much money as possible on claims. The targets are usually the most vulnerable people who are not likely to afford the costs of extended litigation.

Three Signs You're Getting Lowballed

There are several signs that can warn you that the insurance company is offering much less than you're entitled to. These include:    

  1. Getting an offer from the insurance company too soon after the accident: It takes a while before the damage caused by an accident to you and your car can be analyzed and quantified. A quick offer will not take into account the long-term damage.

  2. You're being pressured to sign something or accept the offer: Manipulative tactics and outright intimidation should be a clear warning sign that you're being lowballed. Nobody has to be forced or tricked into a fair deal.

  3. The insurance company is not considering the damages: When you've provided the insurance company with medical documents and quotes from repair shops but they make no mention of these in their offer, the offer probably hasn't factored these in.

How to Handle a Lowball

Insurance claims adjusters are experienced when it comes to negotiation. They may seem like they're doing what's best for you but don't forget that their interests are aligned with those of the insurance company. If you're presented with an offer that is much lower than what you're entitled to get, the best thing to do is to hire a car accident attorney. When an insurance company is willing to lowball you, there is a lot they may also be willing to do that you may not be ready for.

Mistakes that can Lead to a Lowball    

  1. Accepting an offer too quickly: This will hamper your ability to litigate for a fair settlement later on.

  2. Signing anything the insurance company gives you without legal guidance: No matter how harmless it may seem, signing anything from the insurance company can kill your case.

  3. Not getting immediate medical attention: This may give the insurance company an opening to blame the injuries on something else.