Reviewed by Larry Forman, Attorney.
The first settlement offer after a car accident is often low. Sometimes it comes quickly, before you know how badly you are hurt. Sometimes it comes after months of delay. Either way, a low offer is usually an opening position, not a final answer. Here is how to respond without hurting your claim. Related reading: Can Creditors Take My Settlement in Kentucky? Debts, Child Support and Bankruptcy.
Why first offers are often low
- The adjuster’s job is to close the claim for as little as reasonably possible.
- Early offers come before your treatment is finished, so they leave out future care.
- Claims software can undervalue pain and suffering and injuries that don’t show on X-rays.
- Insurers know many people accept the first number to be done with it.
See insurance adjuster tactics for more.
Don’t sign anything yet
A settlement almost always requires you to sign a release that ends your claim for good, even if you later need surgery. Before signing, make sure you know the full extent of your injuries, your future medical needs and what liens must be repaid from the settlement. See medical liens and subrogation.
How to respond to a lowball offer
- Ask how they got the number. Request the basis in writing.
- Finish treatment or get a clear prognosis before negotiating seriously.
- Gather your proof: medical records and bills, wage loss records, photos and a pain journal. Our free injury pain journal helps.
- Send a written demand that explains liability, injuries and damages. See demand letters in Kentucky.
- Counter in writing and keep a log of every call.
- Watch the deadline. Negotiating doesn’t pause the statute of limitations.
What a fair offer should account for
- Past and future medical bills
- Lost wages and lost earning capacity. See lost wages.
- Pain and suffering. See Kentucky pain and suffering.
- Property damage and loss of use
- The at-fault driver’s policy limits and your underinsured motorist coverage. See underinsured motorist claims.
See what affects case value and the Kentucky car accident settlement guide.
Lowball offers on a totaled car
If the insurer’s offer for your totaled car seems low, ask for the valuation report, check the comparable vehicles it used and send your own comparables and records of recent upgrades. See the Kentucky car property damage guide.
When the insurer won’t move
Kentucky law prohibits unfair claims practices, such as failing to settle promptly when liability is reasonably clear (KRS 304.12-230). When an insurer won’t make a fair offer, filing suit is often what changes the number. Larry Forman has tried 50+ jury trials, and we prepare every case as if it may go to trial. See our car crash lawyer page.
Deadlines
Most Kentucky motor vehicle injury claims must be filed within two years of the crash or the last PIP payment, whichever is later (KRS 304.39-230). Use our statute of limitations calculator.
Lowball settlement offer FAQs
Should I accept the first settlement offer after a car accident?
Usually not before you know the full extent of your injuries and costs. Once you sign a release, you can’t reopen the claim.
How do I counter a lowball insurance offer?
Ask for the basis of the offer, gather your records, send a written demand explaining your damages and counter in writing.
Can the insurance company take back an offer?
Yes, until it is accepted. That’s one reason to get advice before negotiating.
Got a lowball offer?
Send it to us before you sign anything. The consultation is free. Get a free case evaluation or call (502) 931-6788.
This post is general information about Kentucky law, not legal advice. Every case is different.
