Why Do Insurance Companies Offer Low Settlements?
November 17, 2023 Bentley & More LLP
- Insurance Bad Faith
When you’re dealing with an insurance claim, whether it’s for a car accident, a slip and fall, or any other situation that hurts you, you might find the insurance company offers you a low settlement. They do this to save money.
How do you fight back when you’re counting on that money to help with your medical bills and other costs? Hire a Orange County insurance bad faith attorney.
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1. Insurance Companies are Businesses
When dealing with an insurance claim, it’s helpful to remember that insurance companies operate like any other business.
Their main goal?
To make money.
This might seem obvious, but it greatly affects how they handle claims, including yours.
Think of it this way: every dollar an insurance company pays out for a claim is a dollar less in their pocket. So, they often focus on finding ways to pay as little as possible.
When you file a claim, whether it’s for a car accident, an injury at work, or damage to your home, the insurance company’s first move is usually to offer a settlement. But here’s the catch – this first offer is often much lower than what your claim might be worth.
You might wonder why they do this. Well, insurance companies are counting on a few things.
First, they know that many people don’t fully understand how much their claim is worth. Medical bills can pile up, and there are other costs, too, like missing work or needing help at home. It’s hard to put a number on all this, especially when you’re stressed and trying to recover from what happened.
Another reason for these low offers is that insurance companies hope to close the case quickly. They know that the sooner a claim is settled, the less chance there is of new information coming up that could increase the claim’s value.
For instance, you might realize down the line that your injury is more serious than you thought or that you need more treatment than you expected. If you’ve already accepted a low settlement, you can’t go back and ask for more money later.
It’s also about control. The insurance company is trying to take charge of the situation by offering a low settlement right away. They’re hoping you’ll feel pressured to accept their offer, especially if you’re worried about how you’ll pay your bills and take care of your family.
So, what can you do about this? This is where having a lawyer can help. We understand how insurance companies work. We know the tactics they use and why they use them. More importantly, we know how to respond.We can help you figure out the real value of your claim, considering all the ways your life has been affected. We can also handle the back-and-forth with the insurance company, taking the pressure off you. Our aim is to get you a settlement that truly covers your needs, not just the first low offer the insurance company throws out.
2. You Might Not Know the Full Value of Your Claim
When something bad happens, and you need to make an insurance claim, figuring out how much money you should get can be hard. It’s not just about the bills you have right now, it’s about understanding how your injury or situation might affect you in the future.
Let’s start with medical bills. These are usually the first things people think of, and they can add up quickly. But it’s not just the bills you’ve already gotten. You also need to think about future medical care. Maybe your doctor says you’ll need more treatment down the road, or maybe you’ll need physical therapy for a while. These future medical costs should be part of your claim, too.
Then there’s your job. If you’re hurt and can’t work, you’re not just losing your paycheck for now. It could be weeks or even months before you can go back to work.
And what if your injury affects the kind of work you can do in the future? Maybe you won’t be able to do the same job as before, or maybe you’ll need to work fewer hours. Lost wages – both now and in the future – are a big part of understanding the value of your claim.
Pain and suffering is another important part. This is about how your injury has changed your life. Maybe you can’t do things you used to enjoy, like playing sports or even playing with your kids. Maybe you have a lot of pain that makes everyday things difficult. It’s not easy to price this kind of thing, but it’s a real part of what you’re going through and should be included in your claim.
There’s also the stress and anxiety that come with being injured or having your property damaged. Dealing with insurance companies and worrying about money can make it even harder to focus on getting better. These emotional impacts are part of your claim, too.
So, how do you figure all this out? That’s where having a lawyer can help. We know what to look for and what questions to ask. We think about all the different ways your injury or situation affects your life – not just now but in the future, too. We work with you to get a clear picture of everything you’re dealing with and how much it’s costing you.
Our job is to ensure the insurance company also sees the full picture. We talk to them for you, explaining all the parts of your claim and why you need more than they offer. We’re here to take that stress off your shoulders so you can focus on getting better.
3. Insurance Companies Count on Your Lack of Legal Knowledge
When dealing with an insurance claim, one big challenge is that most of us don’t know much about the law or how the claims process works. Insurance companies are aware of this, and, unfortunately, they might use it to their advantage.
Imagine trying to read a book in a language you don’t understand. That’s kind of what it’s like dealing with the legal terms and processes of insurance claims. These terms and processes can be confusing.
Insurance companies might use big legal words or complicated procedures that can make you feel lost. This isn’t just frustrating; it can also make you less likely to fight back if you think the insurance company isn’t treating you fairly.
For example, insurance companies might use legal language in their paperwork that’s hard to understand. They might also have a lot of rules about how to file a claim, what evidence you need, and strict deadlines for when everything has to be done.
If you don’t know these rules, you might make a mistake or miss a deadline, which could hurt your claim.
There’s also the issue of knowing what’s fair. It’s hard to tell if the insurance company is offering you a fair deal without a good understanding of the law and your rights.
They might offer you less money than you deserve or deny your claim without a good reason. If you don’t know your rights, you might think there’s nothing you can do about it.
That’s where we come in. Our lawyers understand the tricks and tactics that insurance companies use. We’re familiar with all the legal terms and processes and can explain them to you in a way that makes sense. Our job is to ensure you understand what’s going on with your claim and know your rights.
We’re also here to make sure the insurance company treats you fairly. We can review any paperwork they send you and explain it. We can help you gather the evidence you need to support your claim and ensure everything is filed on time.
If the insurance company isn’t treating you fairly, we can talk to them for you and fight for your rights.
4. Quick Settlements Can Avoid Future Discoveries
After an accident or injury, it’s common for insurance companies to try to settle claims fast. This might sound good at first. You might think, “Great, I’m getting money quickly to help with my bills.”
But there’s a catch. Sometimes, the true impact of your injury takes time to show up. This is why quick settlements can be a problem.
Let’s talk about why the full effects of an injury might not be clear immediately. When you first get hurt, doctors do their best to figure out what’s wrong and how to help you.
But what seems like a simple injury at first might turn out to be more serious. You might find out later that you need more medical treatment than you thought. Or, you might start feeling pain in new places.
An injury can sometimes affect your ability to work or enjoy life like you used to.
Insurance companies know this. That’s why they often try to get you to settle your claim quickly.
They want to close the case before you find out that your injury is more serious than it seemed. Once you accept a settlement, you usually can’t ask for more money later, even if your injury worsens.
This is a big reason why having a lawyer is helpful when dealing with an insurance claim. We understand how injuries can change over time. We know it’s important to wait and see the full impact of your injury before settling your claim. We’re here to help you think about the long term, not just the quick fix.
5. Standing Up to the Insurance Company
When you’re facing an insurance company after an accident or injury, it can feel like you’re up against a giant. Insurance companies are big, with lots of money and many lawyers.
They know a lot about the law and how to use it in their favor. This can make you feel small and powerless, like you don’t stand a chance against them. But it’s important to remember that you’re not in this fight alone.
Our lawyers have dealt with insurance companies many times before. We know how they operate and the strategies they use. They might try to confuse you with legal talk or pressure you into accepting a low offer. They’re good at making it seem like you don’t have other options. But we know that you do.
One of the biggest things we do is speak for you. You don’t have to talk directly to the insurance company when you have a lawyer. We do that for you. We handle all the calls and letters.
This can provide a huge relief, especially when you’re trying to recover from an injury. You don’t need the extra stress of dealing with the insurance company’s tactics.
We’re also here to make sure the insurance company treats you fairly. We look at every offer they make and compare it to what we think your claim is worth. We consider all the costs of your injury, not just the obvious ones. If their offer is too low, we’ll tell them, and we’ll explain why. We’re not afraid to push back and fight for a better deal.
Sometimes, insurance companies won’t budge until they see you’re serious. Having a lawyer shows them that you won’t just take whatever they offer. It shows them you know your rights and are willing to fight for them. This can make a big difference in how they handle your claim.
Remember, dealing with an insurance company is a kind of negotiation. They start with a low offer, expecting you to ask for more. You might settle for less than you need if you don’t know how much to ask for.
We’re here to help you with this negotiation. We know how to argue for a higher settlement based on the facts of your case. We’re not intimidated by the insurance company’s size or resources.
6. Negotiating a Fair Settlement
Negotiating with insurance companies is a key part of getting a fair settlement. Our lawyers know how to talk to insurance companies. We can negotiate on your behalf, using the facts of your case to argue for a better settlement. We won’t let the insurance company pressure you into accepting less than you deserve.
7. Going to Court if Necessary
Most insurance claims are settled out of court. But sometimes, if the insurance company won’t offer a fair settlement, going to court is the best option. Our lawyers can handle this for you. We’ll prepare your case, gather evidence, and represent you in court. We’re ready to fight for your rights every step of the way.
8. Peace of Mind
Dealing with an insurance claim can be stressful, especially when you’re also trying to recover from an injury. Having a lawyer can give you peace of mind. You’ll know someone is looking out for your best interests and working to get you the settlement you deserve.
Contact a California Personal Injury Lawyer
Greg Bentley & Keith MoreOrange County Insurance Bad Faith Lawyers
Insurance companies offer low settlements for many reasons. They’re trying to save money, count on your lack of knowledge, and want to settle claims quickly. But you don’t have to accept a low offer. Our Orange County personal injury lawyers can help you understand your claim, negotiate with the insurance company, and even go to court if necessary.
We’re here to help you get the settlement you deserve so you can focus on getting better. If you’re dealing with an insurance claim, don’t hesitate to contact us for help.
