Legal Help: Getting Hurt on the Street

Why Insurance Companies Make Low Offers

Many people get surprised when insurance companies offer extremely low settlement offers for injury victims. However, you would not be that surprised if you knew why these companies sometimes make such low offers. Here are some of the reasons why the insurance companies make such low offers.

They Are Profit-Driven

Having insurance coverage is useful, but you should not forget that insurance companies are businesses that must make money for their investors. An insurance company must increase its revenues and lower its expenses as much as possible to maximize their profits. One way of lowering expenses is to give the smallest possible payouts.

They Might Get Away With It

Not every injury victim will fight a low offer from the insurance company. People accept low settlements all the time for different reasons. It makes sense, at least to the insurance company, to start with a low offer each time they want to begin settlement negotiations. Insurance adjusters know that some people will automatically accept such offers without putting up much of a fight.

Automated Calculations

In some cases, it is not the insurance adjustor's intention to give a lowball offer. Many insurance companies are embracing technology to improve efficiency and reduce expenses. They use computer programs to calculate damages for injury claims. Unfortunately, computer algorithms have limitations and do not always consider minor variations between comparable injuries. Treating injury claims as exactly the same sometimes results in some accident victims getting lower offers than they would get if an actual person had handled the claim.

Inadequate Information

Some accident victims also unintentionally contribute to their low offers. The insurance company can only determine how much you deserve if they have all the information for the calculations. Failing to provide the necessary information can result in an unintentionally low offer. For example, an injury victim that fails to include future physiotherapy expenses in their claim might get a lower offer than they deserve.

Plaintiff Ignorance

Lastly, many people don't even know the true worth of their injuries. The determination of accident compensation is a complicated process that the public might not always understand. This is even more so with non-monetary damages, such as pain and suffering, or punitive damages. Anyone who doesn't understand the value of their case is likely to walk away with less than they deserve.

As you can see, you need to be really careful if you are to get the maximum award for your injuries. A personal injury lawyer can help you get the compensation you deserve from the insurance company. To find a lawyer to work with, contact firms like that of Prediletto, Halpin, Scharnikow & Nelson, P.S.

About Me

Legal Help: Getting Hurt on the Street

I never gave a lot of thought to needing a lawyer until I was injured while walking down a sidewalk. The accident happened when a biker decided to use the sidewalk instead of the street, and plowed into me as he turned a corner. What followed was a lesson in what is involved with pedestrian accidents. I found a traffic attorney who took my case, and she was able to obtain a settlement that covered the legal fees and my medical bills. If you have been injured through the negligence of another party, you do need legal representation. Keep reading and I'll share how I found the right lawyer and what we did to ensure that my rights were fully protected in a court of law.