After an accident, many people assume the insurance company will fairly compensate them for their injuries and losses. After all, they have paid insurance premiums for years, or the at-fault party has insurance specifically for situations like this.
Unfortunately, that is rarely how the process works.
One of the biggest surprises injury victims face is receiving a settlement offer that doesn’t come close to covering their medical bills, lost wages, pain and suffering or future treatment. If you have been injured in a car accident, slip and fall, motorcycle crash, workplace accident, or another incident caused by someone else’s negligence, it’s important to understand why insurance companies often start with low settlement offers.
Insurance Companies Are Corporations
Insurance companies are for-profit businesses. While they provide an important service, they also have a responsibility to their shareholders and corporate officers.
Every dollar paid out on a claim is money the insurance company no longer keeps. As a result, insurance adjusters are trained to resolve claims for as little as possible while closing files quickly.
That does not necessarily mean they are acting illegally, but it does mean their financial interests are often very different from yours.
They Hope You’ll Accept Before Knowing the Full Extent of Your Injuries
Many injuries don’t fully develop immediately after an accident.
Conditions such as whiplash, traumatic brain injuries, spinal injuries, herniated discs, nerve injuries and soft tissue damage can worsen over days or even weeks. Some injuries require surgery months later or lead to chronic pain that affects your ability to work for the long term.
Insurance companies know this.
That’s why they sometimes make quick settlement offers shortly after an accident. While the money may seem tempting – especially if medical bills are piling up – accepting an early settlement typically means giving up your right to seek additional compensation later.
Once you sign a release, your case is over forever, even if your injuries become significantly worse.
They May Question Whether You’re Really Injured
Another common tactic is minimizing the seriousness of your injuries.
The insurance company may argue that:
- Your injuries aren’t as severe as you claim.
- You had a pre-existing condition.
- Your pain is unrelated to the accident.
- You recovered more quickly than your doctor believes.
Adjusters often review medical records looking for anything they can use to reduce the value of your claim. They hire their own doctors to perform “Independent Medical Exams” to downplay your injuries.
This is one reason why following your own doctor’s treatment plan and attending all recommended appointments is so important.
They May Try to Shift the Blame
New York follows a comparative negligence system. That means compensation can be reduced if you’re found partially responsible for the accident.
Insurance companies often investigate whether they can assign some percentage of fault to the injured person.
For example, they may claim:
- You were speeding.
- You weren’t paying attention.
- You ignored a warning sign.
- You failed to avoid the accident.
Even assigning a small percentage of fault can reduce the amount they ultimately pay.
An experienced personal injury attorney can gather evidence, obtain witness statements, review surveillance footage, and work with accident reconstruction experts when necessary to challenge these arguments.
They Count of People Not Knowing What Their Case is Worth
Most people have never filed a personal injury claim before.
Insurance companies negotiate claims every single day.
Because of this experience gap, many injured people simply don’t know what fair compensation should include.
A personal injury claim may involve much more than current medical bills, including:
- Future medical treatment
- Rehabilitation costs
- Lost wages
- Reduced earning capacity
- Pain and suffering
- Emotional distress
- Permanent disability
- Loss of enjoyment of life
Without understanding the full value of a claim, it’s easy to accept an offer that’s far too low.
Recorded Statements Can Be Used Against You
Soon after an accident, an insurance adjuster may ask for a recorded statement.
While they often present this as a routine part of the process, these statements can later be used to challenge your claim.
Something as simple as saying “I’m feeling okay today” may later be used to argue that your injuries were not serious.
Before speaking with the insurance company, it is wise to consult with an attorney who can explain your rights and handle communications on your behalf.
Social Media Can Affect Your Claim
Many people don’t realize insurance companies routinely review public social media accounts.
Photos, videos, or posts taken out of context may be used to argue that your injuries aren’t as severe as claimed.
For example, a single picture of you attending a family gathering doesn’t necessarily show what happened before or after that moment, but an insurance company may attempt to use it to dispute your injuries.
During an active injury claim, it’s generally best to be cautious about what you post online.
Documentation Makes a Difference
Insurance companies rely heavily on documentation when evaluating claims.
Strong evidence often includes:
- Medical records
- Diagnostic imaging
- Physician reports
- Photographs
- Witness statements
- Police reports
- Employment records showing lost wages
- Expert opinions when necessary
The stronger the evidence supporting your injuries and damages, the more difficult it becomes for an insurance company to justify a low settlement offer.
Negotiation is Part of the Process
Many people don’t realize that an initial settlement offer is just the beginning of negotiations. The first offer is usually very low.
Insurance companies frequently expect some level of negotiation before reaching a final agreement.
Having an experienced trial attorney can significantly change those negotiations. Insurance companies know which law firms are prepared to take cases to court if necessary, and that reputation can influence settlement discussions.
At Basch Keegan & Spada, we prepare every case as though it may ultimately go before a jury. Thorough preparation often places our clients in a stronger negotiating position.
What Should You Do if You Receive a Low Settlement?
If you received a settlement offer after an accident, don’t assume it is a fair offer – or the only offer available.
Before accepting any payment:
- Understand the full extent of your injuries.
- Complete or substantially progress through your medical treatment whenever possible.
- Keep records of every medical expense and missed day of work.
- Avoid signing releases without understanding your rights.
- Speak with an experienced personal injury attorney.
A free consultation with Basch Keegan & Spada can help you determine whether the offer fairly reflects the true value of your claim.
Our Personal Injury Attorneys Are Here to Help
Insurance companies have experienced adjusters and defense attorneys working to protect their interests. You deserve someone protecting yours.
At Basch Keegan & Spada, we have spent decades fighting for injured people throughout the Hudson Valley. We understand the strategies insurance companies use, and we work to pursue the full compensation our clients deserve under New York State law.
If you were injured because of someone else’s negligence, don’t let a low settlement offer determine your future. Contact Basch Keegan & Spada today for a free consultation. There is no fee until we recover compensation for you.