Is Your Insurance Settlement Offer Too Low? Free Evaluation

Every insurance adjuster has a range of settlement authority for each claim. This is an internal dollar amount they are authorized to offer without supervisor approval. The initial offer is typically at or near the bottom of this range. When you reject it and counteroffer, the adjuster may need to seek additional authority from a supervisor or regional claims manager. Each escalation takes time but usually unlocks higher numbers. This is why negotiation is a multi-step process and why the first offer is almost never the final number the company is willing to pay.

Adjusters are evaluated on multiple metrics including claims closed per month, average settlement cost, and customer satisfaction scores. The incentive structure naturally pushes them toward closing claims quickly and cheaply. This does not make them dishonest, but it does mean their interests are structurally opposed to yours. Understanding this dynamic helps you evaluate offers more objectively rather than assuming the adjuster is looking out for your best interests.

Pay close attention to when an offer arrives relative to your treatment timeline. An offer that comes while you are still actively treating is often premature. The insurance company may be hoping you will accept before the full cost of your treatment is known. If you accept and then need additional surgery, ongoing physical therapy, or discover a chronic condition related to the accident, you generally cannot go back and ask for more money. The release you sign is usually final.

A reasonable offer should come after your medical treatment is complete or you have reached maximum medical improvement, after all medical records and bills have been compiled, and after your attorney (if you have one) has submitted a comprehensive demand. An offer that arrives before these conditions are met should be evaluated with extreme caution, regardless of how tempting the dollar amount seems.

To evaluate whether an offer is fair, you need to know your total damages. Start with the concrete numbers: total medical bills (past and projected future), lost wages and lost earning capacity, property damage not already resolved, and out-of-pocket expenses related to the accident. Then consider non-economic damages: physical pain, emotional distress, loss of enjoyment of life, and impact on daily activities. A fair offer should address all of these categories, not just a portion of your medical bills.

A common tactic is for the adjuster to offer an amount that roughly matches your medical bills, implying that this covers your claim. But medical bills are only one component of your damages. If you had $15,000 in medical treatment, missed 6 weeks of work, and dealt with months of pain that affected your sleep, relationships, and ability to exercise, your total damages are significantly higher than $15,000. An offer that matches only your medical costs is typically too low.