Personal injury cases can be overwhelming for victims. Beyond the physical pain and emotional distress, injured individuals often face the daunting task of dealing with insurance companies. Unfortunately, insurance companies have a long-standing reputation for delaying, denying, and undervaluing claims, leaving injured people in financial hardship.
Why Insurance Companies Delay and Deny Claims
One of the primary reasons for delays is profit. Insurance companies earn interest and investment returns on the money they hold. The longer they keep claim payments in their accounts, the more profit they generate. This financial incentive motivates adjusters to slow down the claims process, request excessive documentation, and schedule unnecessary evaluations to postpone payouts.
Adding to the complexity, insurance companies serve a dual role. On one hand, they aim to maximize shareholder value. On the other, the law requires them to defend their insured policyholders. This creates a built-in conflict of interest for defense attorneys working on behalf of insurers. While they technically represent the insured, they often take direction from insurance adjusters—non-attorneys—regarding settlement decisions. This practice can blur ethical lines and leaves consumers at a disadvantage.
How Low-Ball Settlement Offers Happen
When someone is injured, they may be entitled to compensation from the at-fault party’s insurance company. However, insurers frequently attempt to minimize payouts by making low-ball offers—proposing a fraction of the actual claim value in hopes the injured party will accept just to end the process.
These offers are often paired with tactics such as:
- Shifting blame onto the injured person to reduce liability
- Downplaying the severity of injuries
- Disputing medical treatment costs or lost wages
The result? Injured victims may face mounting medical bills, lost income, and other expenses, all while being pressured to settle for less than they deserve.
The Burden on Injured Victims
The personal injury claims process can be exhausting. Victims are often required to submit extensive medical documentation, attend multiple appointments with insurance adjusters, and navigate legal formalities—all while trying to recover from their injuries. This overwhelming process can push some to accept inadequate settlements just to bring the ordeal to an end.
Protecting Yourself Against Unfair Settlement Tactics
Insurance companies are motivated to protect their bottom line—not your best interests. Their dual role, combined with the adjuster’s control over settlements, creates an environment where the consumer often loses. That’s why it is critical to work with an experienced personal injury attorney who understands insurance bad faith practices and can negotiate for the full and fair compensation you deserve.
With the right legal representation, you can level the playing field, challenge low-ball offers, and hold insurance companies accountable for acting in bad faith.
Frequently Asked Questions
Why do insurance companies make low-ball offers?
Insurers are profit-driven and aim to reduce payouts. Adjusters may start with a low-ball offer to test whether you will accept less than your claim is worth, especially if you are facing financial pressure or don’t have an attorney.
Should I accept the insurer’s first offer?
Usually not. First offers are often strategic and undervalue medical bills, lost wages, and pain and suffering. It’s wise to consult a personal injury attorney before agreeing to any settlement.
How should I respond to a low-ball offer?
Request the offer calculation in writing, identify what was excluded or discounted, and submit a documented counter‑demand with medical records, bills, proof of lost income, and a clear pain‑and‑suffering rationale.
What evidence helps increase my settlement value?
Complete medical records and bills, diagnostic imaging, physician opinions, proof of lost wages or reduced earning capacity, photos, witness statements, and a treatment timeline all support a higher valuation.
What is insurance bad faith?
Bad faith occurs when an insurer unreasonably delays, denies, or undervalues a valid claim or fails to fairly investigate. If you suspect bad faith, speak with an attorney to protect your rights.
Do I need a lawyer—and how do fees work?
An experienced personal injury lawyer can counter low-ball tactics and negotiate for full value. Most firms use contingency fees, so you pay no attorney’s fees unless there is a recovery.
Disclaimer: This content is for informational purposes only and does not constitute legal advice. Please consult with a licensed attorney about your specific situation.