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  • Writer's pictureRobert Schuerger

Writing a Reply Letter to Too Low Settlement Offer | Insights from Legal Experts

Low settlement offers made by insurance companies are common. Schuerger Shunnarah Trial Attorneys have helped many injured claimants combat the dirty tactics employed by insurers and recover maximum compensation.


Those who have suffered injuries in Dallas, Texas, should contact an experienced personal injury attorney at Schuerger Shunnarah Trial Attorneys for legal representation. They have extensive experience in dealing with insurance companies and can help work in the claimant's best interests. They can advise on if a personal injury settlement is considered income.


Why Do Claims Adjusters Make Low Settlement Offers?

Why Do Claims Adjusters Make Low Settlement Offers?


There are several factors that affect the value of a personal injury claim, such as the severity of the injuries, the length of recovery, and the insurance coverage, among many others.


Unfortunately, when an insurance company receives a claim, it assigns it to the claims adjuster, who makes a lowball settlement offer without assessing the claim on a merit basis. It's part of their strategy to save the insurer money.


Insurance claims adjusters get paid according to the number of cases they resolve and the amount of money they help the insurance company save. This ensures that the insurer closes as many personal injury cases as possible while keeping its shareholders happy.


To pressure the claimant into accepting a low settlement offer, the claims adjuster may do their own research into the personal injury case. They can conduct witness interviews, review medical records, and investigate the accident to find some dirt on the claimant.


Writing a Reply Letter to Too Low Settlement Offer


After filing a claim, the injured victims should be mentally prepared to receive a low settlement offer. In most personal injury cases, adjusters often blame the claimant for partially being responsible for the accident or argue that their injuries aren't as severe as they claim to be.


This is a common strategy adopted by claims adjusters to see whether the claimants would take the bait. Most injured victims accept the initial settlement offer just to move on with their lives, while others get mad and say something to the adjuster that may be detrimental to their case.


Adjusters often do their homework into the claimant's personal lives as a tactic to gain information that they could use against them. If an injured victim has bills piling up, for example, a claim adjuster might drag out the negotiation process, prompting them to accept a low settlement offer.


It's essential for the injured victims to understand that they don't need to take the first offer that comes their way. They can draft a settlement demand letter and respond to the points made by the claims adjuster, proving that their damages are greater than the settlement offer received.


A general rule of thumb that all injured victims should follow is that the claimant should always work down from their initial settlement demand (in small increments) rather than negotiate from the adjuster's offer.


Below are a few things that the claimant must mention in their formal response letter to the insurance adjuster:

  • The rejection of the offer

  • Identify any errors made by the insurance company

  • Mention the facts surrounding the accident

  • Provide evidence to prove the at-fault party's negligence

  • Add any information missed in the initial demand letter

  • The need for medical treatment

  • The impact of the injuries on the claimant's life

  • A fair settlement offer (as part of the negotiation process)


Strategies to Combat the Low Personal Injury Settlement Offer


When insurers assign claims to the insurance adjusters, they expect them to make as little payouts as possible. To make sure that the claims adjusters save money, they might start using dirty tactics, including avoiding communication by leaving the claimant hanging.


However, it is crucial for the injured victims to note that the insurance companies cannot act in bad faith, meaning they must respond to the claimant's written response within a certain time frame.


The claims adjusters know this and use the law to drag out the negotiation process to see whether the injured party negotiates against themselves.


Below are a few strategies that the injured parties should follow to work toward a final settlement:


Make a Counteroffer


In most personal injury cases, adjusters often state that they don't have the authority to negotiate a higher settlement offer. This is one of the many tactics these professionals use to coerce the claimant into accepting a lowball offer.


If the claimant believes that they have a strong case with credible evidence, they should not shy away from making a counteroffer in their written response. They should also request the claims adjuster to make any offers in writing, explaining the reasons behind their settlement amount.


After receiving a written response, the claimant should take the time to go through each reason provided by the adjuster and respond accordingly.


Accept a Reasonable Settlement Offer


A good negotiator understands that in order to get something, they must make compromises. Some injured parties stick to the compensation amount requested in their initial demand letter and are not willing to negotiate. This may throw a spanner into the claims process.


Both parties, the claimant and the insurance company, must give up a little bit to ensure that they reach a mutually agreed fair settlement. They must first work on deciding on the economic damages (medical bills, lost wages, and property damage) before discussing non-economic losses.


The claimant should also be mindful of the statute of limitations. If the insurance company won't budge on its settlement offer, it's best to seek legal advice from an experienced personal injury attorney.


What Are the Factors to Consider When Making a Counteroffer?


There are certain things to consider when making a counteroffer, and these include the following:

  • When responding with a counteroffer, the claimants must have a clear understanding of the damages (medical bills, lost income, property damage, and non-economic damages) they've incurred and how much they are willing to negotiate.

  • The claimants are not obligated to speak to the insurance adjuster or accept their injury settlement offer.

  • Often, there is a back-and-forth between the insurance company and the claimant. If the parties involved do not come to a mutual agreement over the settlement offer, the injured party can pursue a personal injury lawsuit in court.

  • Once the claimant accepts any settlement offer, they cannot renegotiate or demand more later. The insurance company drafts a contractual agreement that legally binds the injured party and prevents them from making any further compensation requests.


How a Personal Injury Lawyer Can Help the Injured Claimants in Dallas, Texas?

How a Personal Injury Lawyer Can Help the Injured Claimants in Dallas, Texas?


A skilled personal injury lawyer at Schuerger Shunnarah Trial Attorneys can help the claimant in many ways, including the following:

  • Draft a letter to respond to a low personal injury settlement offer

  • Gather evidence to support the fair compensation requested

  • Handle the negotiation process

  • Go to trial if there is a disagreement over a fair settlement amount


Schuerger Shunnarah Trial Attorneys Can Help Injured Victims Respond to a Low Settlement Offer to Recover Fair Compensation!


Claimants in Dallas, Texas, should call to schedule a free consultation with experienced personal injury attorneys at Schuerger Shunnarah Trial Attorneys. They can help protect their rights and go to war against the insurance adjusters to ensure maximum settlement!

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