If you’ve been injured in an accident caused by someone else’s negligence, you may be shocked when the insurance company presents you with an offer that barely covers your expenses, let alone your long-term needs. Insurance companies frequently make lowball offers, hoping you’ll accept far less than what you’re actually entitled to.
Understanding why insurers do this and how a New York City personal injury lawyer can protect your rights is essential for ensuring you receive the compensation you deserve. At The Rothenberg Law Firm, we have spent over 50 years fighting for accident victims and securing billions of dollars in compensation for our clients.
Our experienced personal injury lawyers know the tactics insurance companies use to minimize payouts, and we’re prepared to counter those tactics to protect your financial future. We understand why insurance companies make lowball offers, and our attorneys will help you fight back.
New York City Personal Injury Guide
- What is a Lowball Offer?
- Why Insurance Companies Make Lowball Offers
- Understanding “Full and Final” Settlement Agreements
- How a Lawyer Strengthens Your Position
- Bad Faith Insurance Practices
- What Damages Can You Recover in a Personal Injury Claim?
- Why Timing Matters in an Insurance Claim
- Consult a Lawyer First to Avoid Costly Mistakes
What is a Lowball Offer?
A lowball offer is a settlement proposal from the insurance company far below your claim’s actual value. These offers are designed to save the insurance company money by paying out as little as possible.
While the amount may seem substantial at first glance, it often fails to account for all the damages you’re entitled to—such as future medical expenses, lost wages, emotional distress, or pain and suffering. Accepting a lowball offer can leave you with significant financial burdens down the road, which is why you should talk with an attorney before agreeing to any settlement.
Why Insurance Companies Make Lowball Offers
Insurance companies are businesses; like any business, their primary goal is to protect their profits. They aim to settle claims for as little money as possible, even if it means offering an amount that doesn’t fully cover your medical bills, lost wages, and other damages.
Here are a few reasons insurance companies might offer a lowball settlement:
- Profit Motive: Insurance companies maximize profits by minimizing payouts. The less they pay you, the more money they keep in their pockets.
- Assumption You’ll Accept Quickly: Many accident victims are overwhelmed and eager to resolve their claims after an accident. Insurance companies often take advantage of this by offering quick settlements that don’t account for the full scope of your injuries.
- Lack of Legal Representation: Insurance adjusters know that if you’re handling the claim on your own, you may not fully understand the value of your case. They count on your lack of experience to push a lower offer than what you’re entitled to.
- Minimizing Future Damages: Insurers often downplay the potential for long-term or progressive injuries that could arise from your accident, such as chronic pain, emotional distress, or ongoing medical treatments. They know that these factors significantly increase the value of your claim, but a lowball offer won’t factor in these long-term needs.
Understanding “Full and Final” Settlement Agreements
A danger accident victims face when dealing with insurance companies is the “full and final” settlement agreement. Many people are unaware that when they accept a settlement offer from an insurance company, they are often agreeing to waive their right to pursue any further compensation related to the accident. This means that the insurance company is no longer obligated to cover those additional costs even if new injuries arise or existing ones worsen.
What Is a Full and Final Settlement?
A full and final settlement is a legal agreement between the injured party and the insurance company where the victim agrees to accept a certain amount of compensation in exchange for waiving any future claims. Once you sign this agreement, you are essentially closing the door on any opportunity to seek further damages for the accident—even if your medical condition changes or if unexpected costs arise.
While this might seem like a quick way to resolve a claim, it often works to the insurance company’s advantage. Their goal is to settle for as little money as possible, and once you’ve agreed to their offer, they are no longer responsible for any further payouts related to your injuries.
How It Affects Future Compensation
The most significant risk of signing a full and final settlement is that you may not be fully aware of the long-term impacts of your injuries when you agree to the settlement. Some injuries, especially those involving the spine, brain, or soft tissues, may not show their full extent until weeks, months, or even years after the accident. Accepting a settlement too early could leave you paying out-of-pocket for treatments, rehabilitation, or surgeries that were not accounted for in the initial offer.
Additionally, many accident victims underestimate the emotional toll that serious injuries can have over time. Emotional distress, anxiety, depression, or post-traumatic stress disorder (PTSD) may develop after the initial settlement, yet you would be unable to claim compensation for these conditions once you’ve signed away your rights.
Talk to a Lawyer Before Talking to the Insurance Company
Before accepting any settlement offer, talk with an experienced personal injury lawyer. At The Rothenberg Law Firm, we’ve seen firsthand how signing a full and final settlement too early can devastate a victim’s financial future.
How a Lawyer Strengthens Your Position
Insurance companies frequently pressure claimants to settle quickly, especially before they have had a chance to fully understand the extent of their injuries or consult with a personal injury attorney. While it may seem tempting to accept a quick settlement and move on, doing so could leave you struggling with unpaid medical bills, lost wages, and future financial burdens.
A personal injury lawyer protects your rights, ensures that all damages are considered, and strengthens your position in negotiations with the insurance company. Here’s how having a lawyer helps:
- Lawyers are Experienced Negotiators: Insurance companies have skilled adjusters whose job is to protect their company’s bottom line. Personal injury attorneys know these adjusters’ tactics and can negotiate on your behalf to ensure you receive fair compensation.
- Full Valuation of Your Claim: A lawyer understands the types of damages you are entitled to, including immediate costs like medical bills and lost wages, as well as future damages. This includes potential future medical treatments, long-term care, emotional distress, and even lost earning potential if your injuries prevent you from returning to work at full capacity.
- Filing a Lawsuit if Necessary: Sometimes, the insurance company simply won’t budge from a lowball offer. If that happens, having a lawyer on your side means you can take your case to court. Insurance companies know injured victims with legal representation are more likely to pursue litigation if they don’t get a fair offer, strengthening your bargaining position from the start.
- Countering Bad Faith Practices: Some insurance companies engage in bad faith practices, which are tactics used to avoid paying out a fair settlement. An experienced personal injury lawyer can identify bad faith tactics and hold the insurance company accountable, ensuring you receive the compensation you’re owed.
Bad Faith Insurance Practices
Insurance companies are legally obligated to act in good faith when handling claims. Unfortunately, this isn’t always the case. Some companies may engage in bad faith practices to avoid paying fair compensation, leaving victims with inadequate settlements. Common bad faith practices include:
- Unreasonable Delays: The insurer might delay your claim, hoping you’ll grow desperate and accept a lower settlement offer.
- Misrepresentation: Insurance adjusters may misrepresent the terms of your policy or the nature of your claim to minimize their payout.
- Unjust Denials: Some companies may deny legitimate claims without a reasonable basis, hoping you won’t pursue further action.
If an insurance company is acting in bad faith, a personal injury lawyer can help you fight back. At The Rothenberg Law Firm, our attorneys have extensive experience handling bad faith insurance claims and can ensure that the insurance company honors its legal obligations.
What Damages Can You Recover in a Personal Injury Claim?
After an accident, you may be entitled to recover a variety of damages. Many victims, however, are unaware of the full scope of compensation they can pursue. This is another reason why working with an attorney experienced at handling insurance claims is so important—your lawyer can help ensure that you pursue the maximum compensation possible.
Common types of damages in a personal injury claim include:
- Medical Expenses: This includes current and future medical bills for treatments related to the accident, such as surgeries, physical therapy, medications, and long-term care.
- Lost Income: If your injuries prevent you from working, you may be entitled to recover lost wages, including future income if your ability to earn has been permanently affected.
- Pain and Suffering: Pain and suffering damages compensate you for the physical pain and emotional distress you’ve experienced as a result of the accident.
- Emotional Distress: Serious accidents can have a profound emotional impact, causing anxiety, depression, or post-traumatic stress disorder (PTSD). These damages compensate victims for the psychological toll of their injuries.
- Loss of Enjoyment of Life: If your injuries have diminished your ability to enjoy daily activities or hobbies, you may be entitled to compensation for loss of enjoyment of life.
- Property Damage: In many motor vehicle accidents, you can also recover compensation for property damage, such as damage to your vehicle.
By consulting an attorney, you can ensure that you are pursuing compensation for all available damages, including future costs you may not have considered.
Future Damages
Severe or progressive injuries often lead to future medical bills, ongoing treatment, and long-term financial strain. Accident victims may not fully understand the extent of their injuries, especially immediately after an accident.
An insurance company’s initial offer may not take into account the long-term impact of your injuries. A lawyer, however, will ensure that your claim includes compensation for future damages, such as:
- Ongoing Medical Treatment: Some injuries require long-term treatment, including additional surgeries, rehabilitation, or in-home care.
- Lost Future Wages: If your injuries prevent you from working in the future or force you to take a lower-paying job, your lawyer will calculate these future wage losses and include them in your claim.
- Diminished Earning Capacity: For many accident victims, injuries can permanently reduce their ability to work at the same level they did before the accident. A lawyer will include this loss of earning capacity in your claim.
- Future Pain and Suffering: Chronic pain and emotional distress may persist long after the accident. An attorney will fight to ensure that you are compensated for these long-term impacts.
Why Timing Matters in an Insurance Claim
A critical factor in securing fair compensation is timing. When you delay reporting an accident or filing an insurance claim, you could unintentionally jeopardize your ability to recover the compensation you deserve. But while filing your claim promptly is essential, so is making sure that you’ve consulted a lawyer before doing so.
Insurance companies often use delays to their advantage, and waiting too long to act can give them more leverage to deny your claim or reduce the settlement offer. While you focus on recovery, it can be tempting to put off filing a claim. However, delaying your claim may result in serious consequences for your case.
Insurance companies typically require accidents to be reported within a reasonable timeframe. Failure to report promptly gives the insurer an opening to argue that your injuries aren’t as severe as you claim, or worse, that the injuries may not have been caused by the accident at all.
Even if your injuries were significant, delays in reporting can raise red flags and provide the insurer with more opportunities to deny or minimize your claim. Your lawyer can advise you on how to handle your communication with the insurance company, ensuring that your rights are protected from the start.
Statutes of Limitations
Every state has a statute of limitations that sets a legal deadline for filing a personal injury lawsuit. In New York, for example, the statute of limitations for personal injury claims is typically three years from the date of the accident. However, other states, like New Jersey and Pennsylvania, may have different time limits depending on the type of claim.
Failing to file a lawsuit within the statute of limitations means you could lose your right to pursue compensation entirely. This is why it’s important not to wait too long to speak with a lawyer and start the process. A personal injury attorney will ensure that your claim is filed within the appropriate timeframe and that all necessary steps are taken to preserve your right to compensation.
How Delays Give the Insurance Company Leverage
If you don’t seek medical care right away or delay filing your claim, the insurance company may question the connection between the accident and your injuries. They could argue that your injuries occurred after the accident or that they weren’t as serious as they truly are. Delays give insurers the opportunity to challenge the severity of your injuries and reduce the value of your claim.
If your injuries are progressive or have long-term effects, delaying your claim could mean missing the opportunity to factor in future damages. A prompt filing ensures that all potential impacts of your injuries are considered, rather than leaving room for the insurance company to argue that your injuries have healed or aren’t as debilitating as they truly are.
Consult a Lawyer First to Avoid Costly Mistakes
While reporting an accident and filing a claim promptly is crucial, contacting a personal injury lawyer is equally important. Filing too quickly without legal guidance can lead to mistakes, such as making statements that the insurance company could later use against you to minimize your compensation.
At The Rothenberg Law Firm, we understand the importance of timely action in personal injury claims. Our attorneys work quickly and strategically to ensure your claim is reported and filed within the legal time limits while also giving you the time you need to fully understand the extent of your injuries and their impact on your life.
Contact us today to get started on your case and ensure that your rights are protected from the beginning. Call our main office at 800-624-8888 or contact us online to get started.
