How to Respond to a Low Settlement Offer

It’s common for insurance companies to start negotiations with low settlement offers in personal injury cases. They do this to minimize payouts, assuming claimants might accept a lower amount out of urgency or lack of knowledge about the actual value of their claims. 

However, knowing how to negotiate effectively can make a significant difference in the final payout. At Boesen Law, we help our clients push back against unfair offers and secure settlements that truly reflect the extent of their losses. Below, we explore why insurance companies lowball claims, how to assess an offer, and what steps to take to fight for what you deserve.

Why Do Insurance Companies Make Low Offers?

Insurance companies operate as businesses with a primary goal—maximizing profits. One of the ways they achieve this is by paying out as little as possible on claims. 

To justify a reduced payout, one common tactic is questioning liability. Under Colorado’s comparative fault laws, an insurer may argue that you share responsibility for the accident and reduce compensation that way. The more blame they can shift onto the injured party, the less they’re required to pay. 

Another strategy involves disputing medical expenses or claiming that injuries aren’t well-documented. If medical records don’t clearly outline the severity of injuries or the necessity of ongoing treatment, insurers may undervalue the claim.

Finally, many insurers pressure claimants to settle quickly by creating a sense of urgency, presenting the initial offer as a “limited-time deal” to push victims into an early settlement. However, accepting an offer too soon can lead to insufficient compensation. It’s better to take the time to analyze the settlement offer and consult a lawyer to ensure its fairness.

How to Analyze a Settlement Offer?

Carefully reviewing the terms before accepting any settlement offer is critical. The first step is comparing the offer to actual damages. A fair settlement should account for the following:

• Medical expenses
• Lost wages
• Property damage
• Pain and suffering

If any category is underrepresented, you have the right to negotiate for a higher amount. It’s also important to check for missing compensation. Some settlement offers exclude future medical costs or non-economic damages like emotional distress. These factors should be included in any fair offer.

Another factor is policy limits. Insurance companies will not pay beyond a policy’s coverage limits, even if the damages exceed those amounts. In this situation, you may need to explore other options for full compensation, such as filing a personal injury lawsuit directly against the at-fault party.

At Boesen Law, we’re ready to help you understand possible outcomes and assess your settlement offer during a free initial consultation. Our case results show real examples of successful settlements, demonstrating how strong negotiation strategies lead to better compensation. 

Steps to Take When You Receive a Low Offer

1. Remain calm and professional: Avoid emotional reactions and keep communications factual.
2. Request a justification: Ask the insurer to explain how they calculated the settlement amount.
3. Gather additional evidence: Strengthen your claim with updated medical records, expert opinions, or witness statements.
4. Draft a counteroffer: Present a demand supported by evidence that reflects the true cost of your damages.
5. Consult a personal injury lawyer: An attorney from Boesen Law can negotiate on your behalf and apply legal pressure to improve your offer.

What Evidence Can Strengthen Your Counteroffer?

A strong, evidence-based counteroffer increases the likelihood of securing a fair settlement. Here are some of the most important types of evidence to include:

• Medical records and doctor statements: Detailed reports from medical professionals confirm the severity of injuries and validate required treatments and long-term effects.
• Accident reports: Official police reports establish facts and provide an unbiased record of the incident, making it harder for insurers to dispute the claim.
• Expert testimony: Financial or medical experts can explain future treatment needs, permanent disabilities, or lost earning potential, justifying higher compensation.
• Photos and videos: Clear images of injuries, property damage, and the accident scene help prove the extent of harm with visual proof insurers cannot easily dismiss.

Strong evidence is key to negotiating a fair settlement. Acting early and gathering the right evidence are two of the most important steps to take after an accident to support your claim. The more documentation you provide, the harder it becomes for insurers to minimize your claim. 

Common Insurance Company Tactics & How to Counter Them

Understanding the role of insurance companies in personal injury cases allows you to anticipate their approach and push for fair compensation. Insurance adjusters use various strategies to minimize payouts, including:

• Downplaying injuries: Adjusters may claim your injuries are minor to justify a low offer. To counter this, provide detailed medical records and doctor statements.
• Blaming you for the accident: The insurer may argue you share fault to reduce their payout under Colorado’s modified comparative fault rule. We can help challenge inflated fault claims by presenting evidence that minimizes your fault percentage.
• Delaying negotiations: Some insurers drag out the process, hoping financial strain will force you to settle. Keeping detailed records of all communication helps hold them accountable and push for a timely resolution.
• Quick lowball offers: Insurers can present early settlements that fail to cover future medical costs. Consult a lawyer before accepting to ensure the offer accounts for all current and long-term damages.

When to File a Lawsuit for a Fair Settlement?

Filing a lawsuit becomes necessary when negotiations fail to yield a fair settlement. Insurance companies sometimes act in bad faith, refusing to offer adequate compensation or unfairly denying claims. In these cases, taking legal action can pressure them to reconsider. 

Colorado law also limits the time you have to file a personal injury lawsuit, as per the statute of limitations. Delays can impact or eliminate your ability to seek compensation, so it’s important to act quickly if a settlement isn’t progressing.

Sometimes, the mere act of filing is enough to push insurers to negotiate more fairly. If they still refuse to offer a just amount, taking the case to court allows a judge or jury to determine fair compensation based on the presented evidence.

How We Help – Contact a Personal Injury Lawyer in Denver

Hiring a skilled personal injury lawyer can make all the difference when fighting for fair compensation in Colorado. Our legal team pushes against unfair insurers with strong evidence, aggressive negotiation, and a deep understanding of Colorado law to maximize your recovery.

Boesen Law has recovered hundreds of millions for clients by holding insurers accountable. If you’ve received a low settlement offer, don’t settle for less than you deserve! Contact us now for a free consultation.