Free Consultations | Tap To Call Today: 1.888.625.6265

Speak to a Lawyer 24hrs a Day


Free Consultation, Call Now!

Why Is the Insurance Company Offering so Little Compensation?

Schedule Free Case Review

Monday, January 8, 2018

Why Is the Insurance Company Offering so Little Compensation?

After an accident, insurance claims adjusters get involved to start processing the claim and give out a settlement.

As the plaintiff, you want to end things as quickly as possible. After all, you cannot work, you are in pain, and you have medical bills that are stacking up – without money to pay them. When you finally receive a settlement offer from the insurance company, you are relieved. Yet, when you examine the offer, the amount seems too low.

It is common for insurance companies to send a low offer initially, even more so when you are working without an attorney. While it is common, you do not have to accept that low offer and you should not – because there are ways to increase the amount offered and get what you deserve.

Chicago Insurance Settlements Are Not Final Offers – They Are Negotiating Starting Points

Realize insurance settlements are not final. When you receive your offer, that is an initial offer – even if the insurance claims adjuster tries to tell you that is the only offer. As with any settlement, you have the option to negotiate here.

When you do not believe the amount offered to you is fair, you do not have to accept the insurance company’s offer. Insurance companies are businesses; therefore, they want to minimize their losses as best as they can. They will try to pressure you into taking that first offer – even though no negotiations have occurred.

As the injured person, you have the right to negotiate and request fair compensation.

Realize Insurance Claims Adjusters Are Authorized for Higher

When you are dealing with claims adjusters, the adjuster gives you a settlement offer based on what they think your damages, injuries, and pain is worth.  During negotiations or even when you initially meet with the adjuster you will hear from the adjuster that they are authorized to go only so far with their settlement.

This is a known negotiating tactic, and while the adjuster tries to tell you they are authorized to go to your settlement value, no one knows what the actual authorized number is. Most likely they are trying to convince you that the offer you received was the best you will get – and most of the time the adjuster is bluffing.

Do Not Allow the Process to Stall

Even if you are offered a low settlement, do not delay the negotiator. Instead, speak with an injury attorney as quickly as possible. By allowing the insurance company to hold onto the money, they are earning interest on funds you should have in your bank account – not theirs.

If you have not received an initial settlement, do not let the insurance company delay the process. Stay in constant communication with them or have your attorney communicate with them. The more you push the insurance company to settle, the easier it will be to receive a higher settlement.

Know How Insurance Claims Adjusters Assess Cases

The insurance companies goal is to settle quickly so that they can minimize their losses. If your case were to go to trial, the insurance company knows they will spend more than an initial settlement. While they know this, do not assume that the first offer you get is a fair one.

As an active business, insurance companies must protect their bottom line, which means offering as low of a settlement as possible.

To better understand how your insurance claims adjuster comes to their settlement amount, you must first know the process they go through.

  1. Reviewing the insured’s side of the story. If your accident was caused by a negligent party, then the negligent party’s insurance is paying for your injuries. Therefore, the insurance claims adjuster will get in touch with the insured to find out their side of the story. They will also review the police report, get a statement from the insured, and contact any passengers involved in the accident.
  2. Investigate the plaintiff. Before insurance companies settle, they do a quick investigation into the plaintiff. Insurance companies have access to databases that allow claims adjusters to see if the plaintiff has received an insurance settlement before or been a plaintiff in an insurance lawsuit. For high value settlements the insurance claims adjuster will take the case further by investigating the plaintiff online.
  3. Requesting documentation from the plaintiff. The adjuster then requests documentation from the plaintiff or the plaintiff’s attorney. These documents help establish the injuries, values of those injuries, and the negligence of the defendant. Documentation might include medical records, wages, tax returns, and proof of property damage. Receipts for out-of-pocket costs, and bank statements proving financial losses might be requested too.
  4. Reviewing the documentation. A good adjuster will take his or her time reviewing the documents provided by the plaintiff. They scrutinize every detail, look for evidence that counters what they have, and look for any opportunity to reduce the settlement amount offered. Realize that an adjuster will not make an offer until they have every piece of evidence in front of them; therefore, leaving out documentation will only delay your settlement.
  5. Determining the value. The way insurance claims adjusters value an injury is taking losses and multiplying them based on the severity of the injury. First, the insurance adjuster thinks about what the chances are that the plaintiff will win the lawsuit if the case goes to trial. Next, they consider how much a jury might award the plaintiff. Then, the insurance adjuster separates damages by economic and non-economic damages. Economic damages are those that are usually reimbursed fully, such as medical expenses and lost wages.
  6. Determining pain and suffering. Pain and suffering is a non-economic damage. There is no receipt or exact dollar amount; instead, these damages are subjective. Adjusters today typically use a software program to assign values to the injury – which automatically determines pain and suffering values based on the injury’s severity score.
  7. Making the offer. Even if the insurance claims adjuster’s program comes back with millions for a settlement, they might not offer that amount first. Typically, adjusters offer a percentage of what their computer values the case for, then they see if the plaintiff takes that offer. Typically, if the plaintiff has no attorney the adjuster will issue a lower offer, because they assume the plaintiff will not counter.

Steps to Take After Receiving a Low Offer

While receiving a low settlement is frustrating, you still have options. Do not let the adjuster bully you into believing that this is your final or only offer.

Instead, take the following steps to help increase the next offer presented to you:

  • Analyze the offer. An offer is more than a dollar amount jotted down on a piece of paper. Instead, the adjuster will list several reasons behind their offer. While you are desperate for money, do not put too much into the reasoning behind the offer. Even if the adjuster claims you had unauthorized treatments, your physician’s statement along with an expert could prove that these treatments were necessary – and therefore compensable.
  • Respond in writing, not over the phone. While you might be tempted to call the adjuster, and tell them you disagree with their offer, you must respond in writing to establish your paper trail. Before you respond in writing, write down a list of questions about the settlement – including any questions about what the insurance claims adjuster said in their offer letter. Also, gather documentation that might counter any statement made by the adjuster. When you draft your letter, focus on the pain points – and how your injury affects your quality of life.
  • Formulate the counter offer. Now that you have a list of pain points and evidence to counter anything the adjuster used to lower your initial offer amount, you must formulate a counter offer. Do not respond with an unreasonable amount, because the claims adjuster will reject the offer. Also, do not undervalue your case, because the claims adjuster might agree to your low counter offer – leaving you with less compensation than you need and deserve.

Speak with a Personal Injury Attorney to Get the Settlement You Deserve

Putting a dollar amount on how much your injury is worth is not easy. After all, you are personally dealing with the pain, suffering, and financial losses every day. Sometimes, it is easier to hire a third party who can remain objective and get you the settlement you deserve.

A personal injury attorney knows how to negotiate with insurance companies. More so, they know the tactics used by these companies – and they know how to deliver a favorable settlement in return.

If you were injured in a serious accident, do not deal with the hassles and negotiations yourself. Instead, speak with an attorney from Malman Law. Call us today to schedule a free consultation at 888-307-7068 or request more information online.

Related Posts

Why People Choose Malman Law

You’ll want your lawyers to be this good.
You’ll want our experience on your side.
  • Icon

    Credibility & Experience

    25,000+ Cases over 25 Years
  • Icon

    Track Record of Success

    25,000+ Cases over 25 Years
  • Icon

    Team of Litigation Lawyers

    25,000+ Cases over 25 Years
  • img

    They are very helpful, and when it comes to getting things done with your case I had the pleasure of working with Jason Kellerman he was awesome I highly recommend them.

    - Britany Weaver

  • img

    I’m very pleased to recommend Malman Law to my friends and relatives! I have to mention how efficient and professional in dealing with my case has been with everyone that I’ve been in contact with at Malman Law. Mrs. Sabo is outstanding as well as her secretary and assistant in responding quickly to any of my questions or concerns. This firm has gone above and beyond to keep me updated and get answers to my questions at any time, weekends included! Malman Law rules in my opinion!

    - Cheryl Wagemann

  • img

    I’ve been knowing about this Law firm for many years through friends, referrals & advertisements, never I thought I would need their services because I believed things & situations don’t happen to me like this, long story short I was in a situation that I needed help & advice!!! In the right direction, I connected with the Firm & a very patient, understanding professional woman by the name of Margie assisted me in what I needed 🙂 Thank you I will refer as I was as referred as well This firm really does care!

    - Elvira G.

  • img

    I was rear-ended by a semi-truck on my way to work. I was transported to the hospital and my car was totaled. In the aftermath, Dan Petrich and Anna Schmidt from Malman Law helped me get set up with physical therapy and negotiated with the insurance companies to make sure the resulting settlement would cover my medical bills and a rental car until I could get a new car. I would highly recommend their services.

    would do everything they could for me.

    - Tony S.

  • img

    I contacted Malman Lawafter my work injury. So professional from my first phone call. Mr. Malman’s investigator, Dan, came right out to our home. Everything was explained in detail so I know what to expect during this process. I certainly recommend anyone ever in need of a personal injury lawyer to call Malman Law. Truly the best!! Thanks, everyone!

    - Devin Jones

  • img

    Attorney Greg Lamorena was my lawyer when I slipped and fell. He kept me updated throughout the case and was always available to talk when I had questions. He is a great lawyer and could not be happier about my settlement!

    - Annie Ong

  • img

    Alexis was the attorney on my case! She kept me in the loop about everything with my case. If I had any concerns I was able to contact her and she’ll answer my questions right away. If you’re interested in working with Malman Law I would highly recommend Alexis she was GREAT. I would highly recommend Malman Law if you’re ever in need!

    - Eugenia Cathery

  • img

    They are so efficient and professional. Always available to help. Attorney Boyer was great and very good with my case. I really appreciate Malman Law. I gave them 5 stars because there is nothing higher.

    - Omolewa Snyder

  • img

    I have had an amazing experience with Malman law so far. From the start, Dan was super easy to work with, got me the medical attention I needed, and fast. Couldn’t ask for better communication. Neil Kilcoyne has been nothing but the best I could not recommend a better attorney. Malman Law is a 10 out of 10 law firm.

    - Trevor Harris

  • img

    Hi, I just want to acknowledge Jay McCarron, Kelly & the firm at Malman Law for representing me as they continue to work on my case. Thanks for keeping me updated & responding quickly to any of my questions or concerns. I would highly recommend you and your firm to friends & family. E. P.

    - Ernest Pitts

  • img

    Alexis was the attorney on my case and she was GREAT. She made sure I was updated on everything about my case. I would highly recommend Malman Law if you’re ever in need.

    - Ariel Fleming

  • img

    I had the best experience with Jason and Jay attorneys from Malman Law they really went all the way to settle my case I’m telling you there just the best!! Recommend 100%!

    - Carmen Rivera

  • img

    Adam Meadow acted as the attorney for a family member who was in a car accident. He was highly personable and actively listened to our issues throughout the litigation process. He was able to get us a settlement for the reparations of the accident. We would recommend their services!

    - Greg Gustafson

  • img

    Excellent customer service and a great experience. Malman Law handled the whole process and it was very smooth. The settlement was a great success. I would choose Malman Law again in the future.

    - Malak St.Clair

  • img

    Helped me out of a big jam when my auto was hit twice when and the other drivers had no insurance. Adam Meadow is the only Lawyer I will call for helping me and my daughter.

    - Devri Lott

  • img

    I cannot give enough praise to the team at Malman Law, for helping with my case. My children were involved in an auto collision and the attorney Adam along with his paralegal Michelle worked diligently until the matter was resolved and my entire family was happy. I would definitely recommend Malman Law for anybody going through legal troubles.

    - Adrian Lopez

  • img

    A close friend recommended me to Malman Law. I currently have a case with them due to a car accident I had and ever since the accident they have been taking care of everything for me without me having to worry about anything. They took care of the medical bills & helped me get physical therapy right away. I highly recommend them.

    - Vanessa Leon

  • img

    Bella Feinstein, Jason Kellerman, and Terry Davey have been instrumental in helping me through many difficult situations. Not only did they work to get my mom a settlement, but they have also continued to help me through the legal process of relocating my mom to a different state. I’m very grateful for their hard work and good advice.

    - Nyah Vuljanic

  • img

    This law firm is the best they got me paid and Malman Law kept in constant communication with me which meant a lot to me I would highly recommend this law firm to anyone who. In the position, they are awesome sincerely. Jeff walker

    - Jeff Walker

  • img

    Mr. Kellerman of Malman Law shows compassion for his clients. Returns calls and emails promptly, he takes time to listen to his clients, and gather facts accordingly.

    - Steve Acosta

  • img

    Everyone at Malman Law made me feel welcomed and heard. My lawyer, Adam Meadow, as well as staff, kept me up to date and were more than happy to do so! I would highly recommend their services. Also- a plus is many employees are fluent in Spanish. My experience was easy and worthwhile.

    - Adrianna Gomez

  • img

    Dan Petrich was the best man for my case of falling through my porch of an apartment I rented. He made sure I got what I deserved not only $ wise but medical wise and that my hospital bills and Dr bills were left at a $0 balance before closing my case. I was definitely happy and glad I choose him. Thank you. 5 stars

    - Jose Cruz

  • img

    Steve Malman helped me with my auto case. He quickly responded and answered any and all the questions I had. My case was a success as well as 2 other family members I recommended to him won their cases as well. Definitely a 5 star!

    - Meagan Cruz

  • img
    Malman Law goes above and beyond handling your legal injury case needs. From the first appointment through to the ending verdict my sister and brother in law were very happy with their case results. Highly recommended!

    - Eddie Villarreal

  • img

    I am very impressed with Malman Law and my experience with Tiffany Alberty. She was very professional and knowledgeable. I appreciate the great communication and never felt out of the loop. She was very patient and hard working on my case. I would highly recommend this firm. Thanks for the hard work and all your help!

    - Madissen Miller

  • img

    Malman Law is definitely professionals and skilled at what they do. Mr. Adam Meadow always kept me informed and never hesitated to answer my questions and was open to hearing my concerns. Wouldn’t think twice about referring them to family and friends. Thank you to all at Malman Law!

    - Christina Ocon

  • img

    Mailman Law, Excellent firm!! Tiffany Alberty and her assistant Margie Gallegos were super efficient and knowledgeable. Great communication—very quick response and great follow up! My case was resolved sooner than expected. I highly recommend them!

    - Adriana Martinez

  • img

    So glad I contacted Malman Law regarding my accident. Professional and caring. Thank you Mr. Malman. I most definitely recommend to anyone if you need the best to call Malman Law!!!

    - Virgil Sanner

  • img

    I really appreciated and enjoyed Yennin Calderon’s service. I called asking questions and she was so helpful. Not only did she answer all my questions and concerns. It was also a bonus that she was bilingual in Spanish! Loved the warmth she brought. Thank you!

    - Jazlyn Caraballo

  • img

    My experience with Malman Law was great. I worked with Attorney Tiffany Alberty and her assistant Margie. Both communicated what was going on with my case, explained the next steps, and got my case resolved early. I would highly recommend Malman Law.

    - Ashley Jenkins

View more testimonials

What’s your case worth? Submit for a free case review



2 years ago I was involved in a trucking accident involving a 14-wheeler truck that nearly disabled me for life. Steve fought to make sure that I received the most possible compensation for my injuries. I was about to take the insurance company’s lowball offer, but decided to call Steve first – it was the best decision I’ve made yet

NOAH TAFFELPersonal Injury Victim