If you were injured in a car accident in Los Angeles or the San Fernando Valley and the at-fault driver’s insurance company has offered you a settlement amount that seems far too low — you are probably right. Insurance companies routinely make lowball settlement offers hoping that injured accident victims will accept quickly without understanding the true value of their claim. Attorney Anthony Girgis at Girgis Law Firm APC has spent over 16 years negotiating with insurance companies on behalf of accident victims throughout Encino Sherman Oaks Van Nuys Northridge and the greater Los Angeles area. Here is exactly what to do when you receive a low settlement offer.
Do Not Accept the First Offer
The single most important thing to do when you receive a low settlement offer is not accept it. Once you accept a settlement offer and sign a release you permanently give up your right to seek additional compensation — even if your injuries turn out to be far more serious than initially apparent. Insurance companies know this and deliberately make quick low offers hoping to close claims before the full extent of injuries becomes clear.
Do Not Sign Anything Without Consulting an Attorney
Before responding to any settlement offer contact an experienced personal injury attorney. At Girgis Law Firm APC attorney Anthony Girgis offers free consultations and can evaluate whether the insurance company’s offer fairly compensates you for your injuries medical expenses lost wages and pain and suffering.
Understand Why the Offer Is Low
Insurance companies make low settlement offers for several common reasons. They may be disputing liability arguing that you were partially at fault for the accident. They may be minimizing your injuries arguing that your medical treatment was excessive or unnecessary. They may be ignoring future medical expenses and future lost earning capacity. They may be offering nothing for pain and suffering or applying an unreasonably low multiplier. Or they may simply be testing whether you will accept less than your claim is worth.
Understanding the specific reason behind the low offer is the first step in countering it effectively.
How to Counter a Low Settlement Offer
Countering a low settlement offer requires building a strong evidentiary record that supports the full value of your claim. This includes comprehensive medical documentation of all your injuries and treatment, expert medical opinions about future treatment needs and permanent impairment, thorough lost wage documentation, a well-documented pain and suffering calculation, and a formal written counteroffer from your attorney that identifies specifically why the insurance company’s offer is inadequate and what a fair settlement would look like.
What Happens if the Insurance Company Won’t Negotiate?
If the insurance company continues to make unreasonably low offers after receiving your counteroffer attorney Anthony Girgis is fully prepared to file a lawsuit and pursue your case through litigation. The credible threat of litigation from a trial-ready attorney frequently motivates insurance companies to make significantly better offers — because going to trial is expensive uncertain and potentially very costly for them.
California Bad Faith Insurance Law
If an insurance company is acting unreasonably in refusing to settle a valid claim they may be acting in bad faith under California law. California Insurance Code Section 790.03 prohibits insurance companies from unreasonably withholding policy benefits. In egregious cases of bad faith conduct additional damages beyond the policy limits may be available.
Received a low settlement offer after a car accident in the San Fernando Valley? Contact Girgis Law Firm APC for a free consultation. Attorney Anthony Girgis represents accident victims throughout Encino Sherman Oaks Van Nuys Northridge Woodland Hills and surrounding communities. Call (818) 986-5000 — no fees unless we win.
