How do I respond to a lowball settlement offer from the car insurance company?

Clayton T. Hasbrook

Written by Clayton T. Hasbrook. Last modified on June 3, 2024

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If you’ve been injured in a car accident caused by another party’s negligence, you may be entitled to compensation for your medical expenses, lost wages, pain and suffering, and other damages. However, car insurance companies often initially offer a settlement amount significantly lower than what you deserve, known as a “lowball” offer.

Receiving a low settlement offer can be frustrating, but remember that you can negotiate for a fair settlement. Insurance companies use various tactics to reduce the amount they pay out in claims, such as:

  1. Make quick settlement offers before fully assessing your damages and injuries, hoping you’ll accept without realizing your claim’s true value.
  2. Downplaying your injuries’ severity or suggesting they were pre-existing conditions unrelated to the accident.
  3. Attempting to shift blame for the accident onto you, even if the other party was at fault.
  4. Requesting extensive documentation or information not directly relevant to your claim, hoping to find discrepancies or reasons to deny or reduce your settlement.

To respond effectively to a low settlement offer, follow these steps:

  1. Remain calm and professional: Respond to the insurance company calmly and professionally.
  2. Review the offer carefully: Thoroughly review the settlement offer to understand what is being proposed.
  3. Gather evidence: Collect all relevant evidence, including medical records, police reports, witness statements, and other documentation that supports your claim.
  4. Calculate your damages: Determine the full extent of your damages, including medical expenses, lost wages, property damage, and pain and suffering.
  5. Consult with a personal injury attorney: Consider consulting an experienced personal injury lawyer to help assess your claim’s value and negotiate with the insurance company on your behalf.
  6. Make a counteroffer: Based on your calculated damages and gathered evidence, prepare a reasonable counteroffer that more accurately reflects your damages. Provide a clear explanation for each requested compensation item.
  7. Submit your counteroffer in writing: Send your counteroffer to the insurance company in writing, along with copies of supporting evidence. This creates a paper trail and demonstrates you’re taking the negotiation process seriously.
  8. Be prepared to negotiate: The insurance company may come back with another offer, and you may need to engage in further negotiations to reach a fair settlement.
  9. Consider filing a lawsuit if necessary: If the insurance company refuses to make a fair offer, you may need to file a lawsuit to pursue the compensation you deserve. An experienced personal injury attorney can guide you through this process and represent your interests in court.

Is there a deadline for responding to a settlement offer in Oklahoma?

In Oklahoma, there is no specific deadline for responding to a settlement offer, but it’s important to respond promptly to avoid potential delays in the process. Remember that once you accept a settlement offer, you typically sign a release that prevents you from seeking additional compensation for the same accident or injury. The main deadline is the statute of limitations.

If the insurance company is delaying the settlement process, you may need to take legal action to protect your rights. An attorney can help you file a lawsuit and pursue the compensation you deserve in a timely manner. In Oklahoma, the statute of limitations for most personal injury claims is two years from the date of the accident (12 O.S. § 95), so it’s important to act promptly to ensure your claim is filed within the legal deadline.

What if the insurance company denies my claim entirely?

What if the insurance company denies my claim entirelyIf the insurance company denies your claim entirely, you may need to file a lawsuit to pursue the compensation you deserve. An experienced personal injury attorney can help you navigate this process and represent your interests in court. Hiring a lawyer and filing a lawsuit are oftentimes the only ways to hold an insurance company accountable.

How much should I request in my counteroffer?

The amount you request in your counteroffer should be based on a thorough assessment of your damages, including medical expenses, lost wages, property damage, and pain and suffering. An attorney can help you determine an appropriate amount based on the specific circumstances of your case.

How can I afford an attorney if I’m already struggling financially due to my injuries?

Many personal injury attorneys work on a contingency fee basis, which means they only get paid if you receive a settlement or win your case in court. This allows you to obtain legal representation without paying upfront costs. Be sure to discuss fee arrangements with any attorney you consider hiring.

How long does the negotiation process typically take?

The length of the negotiation process can vary depending on the complexity of your case and the willingness of the insurance company to make a fair offer. It may take several rounds of offers and counteroffers to reach a settlement. If the insurance company refuses to negotiate or make a fair offer, your best option may be to file a lawsuit.

Can I handle the negotiation process on my own, or do I need an attorney?

While it’s possible to handle the negotiation process on your own, it’s generally recommended to work with an experienced personal injury attorney. An attorney can help you navigate the legal system, gather evidence, and negotiate with the insurance company to ensure you receive a fair settlement.

What if I am partially at fault for the accident?

In Oklahoma, if you are partially at fault for the accident, you can still recover damages under the modified comparative negligence rule (23 O.S. § 13). However, your settlement will be reduced by your percentage of fault. For example, if you are found to be 20% at fault and your damages are $100,000, you would be able to recover $80,000. An attorney can help you determine how this may impact your case.

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This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by Founding Partner, Clayton T. Hasbrook who has years of legal experience as a personal injury lawyer. Our last modified date shows when this page was last reviewed.