Today, we delve deep to dissect a poignant question that often bewilders injured parties following accidents – Why do insurance companies lowball?
Understanding Insurance Companies’ Final Settlement Offers
Insurance companies are for-profit entities whose top priority is their bottom line. Thus, their principal objective is reducing expenses – which includes the compensation they pay out for claims. So how do they achieve this? By offering considerably lower settlements than the claimants deserve. This process is commonly referred to as ‘lowballing.’
The Lowballing Process
Typically, an insurance adjuster will approach you shortly after an accident with a tempting offer. These offers usually sound great, especially when you’re burdened with hefty medical bills and lost wages. But beware! Accepting these initial lowball offers waives your rights to further compensation.
So Why Do Insurance Companies Lowball?
1. Reduction of Liabilities: It’s their business model – spend as little as possible on each claim to maximize profits.
2. Proactive cost-saving: The early resolution of claims can help save on administrative and legal expenses.
3. Exploitation of the victim’s ignorance: Insurance companies capitalize on the fact that most policyholders are not well-versed with insurance laws, personal injury law, and the real value of their claims.
4. Time Pressures: Insurance companies understand that claimants face mounting bills and may be becoming financially stressed. They use this to their advantage by pressuring the claimants to settle quickly for far less than the claim is worth.
Personal Injury Lawsuits and Negotiating with Insurance Companies
The type and severity of the accident often inform the insurance company’s offer. Accidents leading to personal injuries – such as motor vehicle accidents, workplace incidents, slip-and-fall cases, medical malpractice situations, and incidents involving defective products – typically result in higher compensation demands.
Negotiating with insurance companies in these incident types can be complex. The negotiation process requires an in-depth understanding of the law, expertise in analyzing and interpreting medical bills, and the ability to comprehensively evaluate non-economic damages like pain and suffering – something most accident victims aren’t equipped to handle.
Tips to Stand up to Lowball Insurance Offers
1. Be patient: One of the most effective weapons against insurance lowball tactics is patience. Don’t be quick to accept the first offer. Take your time to fully understand your injuries and their implications.
2. Document everything: Preserve all records of your medical treatments and other costs related to the accident.
3. Get a seasoned attorney: Hire a skilled personal injury attorney who can negotiate with heavyweight insurance companies on your behalf.
At Gianaris Trial Lawyers, we strongly advocate for your rights and ensure that you get the compensation you rightfully deserve. Don’t fall victim to insurance companies’ lowball strategies. Contact us today and allow our team of experienced attorneys to fight for your rights and secure a fair settlement.