If you receive a settlement offer soon after making an insurance claim, taking time before accepting it is in your best interest. Insurance companies often try to settle quickly with a low offer, hoping you will take it and resolve the claim fast. Their goal is to protect their bottom line through quick resolutions and reduced payouts.
You have a right to reject a lowball settlement offer. This could be essential to securing fair compensation; taking the offer means closing your claim. Turning down the settlement offer paves the way for settlement negotiations with the insurance company.
These negotiations involve a series of back-and-forth discussions and exchanges to reach a mutually agreeable resolution. Alternative dispute resolution methods like mediation or arbitration can sometimes help find common ground.
Evidence is key
If you decide to reject a lowball settlement offer and make a counteroffer, it helps to respond in writing with a clear explanation of why it falls short. Detail your total expenses and provide relevant evidence supporting your case.
The goal is to demonstrate the offer does not measure up to your damages and justify the amount you seek or believe you are entitled to. Remember to keep copies of any communication with the insurer and all documents related to your claim.
Push for a fair settlement
Remember, you can seek the court’s intervention if settlement negotiations stall and the insurance company refuses to offer fair compensation or acts in bad faith. Should the matter reach this point, a judge or jury will assess the evidence and determine an appropriate settlement.
Having qualified guidance through the claims process can help get around such complications, safeguard your interests and increase the chances of a favorable resolution.