Why Insurance Companies Offer Less Than You Deserve and What You Can Do About It

After a car accident or personal injury, insurance companies are quick to make settlement offers. While a fast resolution may seem appealing, these initial offers are often far below what a case is truly worth. Mississippi law allows injured individuals to recover compensation for medical bills, lost wages, and pain and suffering, but insurers frequently attempt to minimize payouts. Understanding the tactics they use and how to respond effectively can make a significant difference in your settlement.

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Why Insurance Companies Offer Low Settlements

Insurance companies focus on profit, and one of their strategies is paying the least amount possible on claims. Some common reasons insurers present low settlement offers include:

• Assuming You Need Fast Cash: Insurers count on accident victims being under financial pressure. By making a quick but inadequate offer, they hope claimants will accept before realizing the full extent of their losses.
• Minimizing Medical Costs: Adjusters may argue that medical expenses are inflated or that certain treatments are unnecessary. They might also claim that your injuries are pre-existing or not as severe as reported.
• Blaming You for the Accident: Mississippi follows a pure comparative negligence rule, meaning your compensation is reduced by your percentage of fault. Insurers often try to shift blame to lower their payout.
• Using Delays as a Strategy: Some insurance companies purposely delay claims, hoping you’ll become frustrated and accept a lower offer just to move forward.
• Relying on a Lack of Legal Representation: Without an attorney, insurance companies know claimants may not understand the full value of their case or how to counter lowball offers.

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How to Recognize an Unfair Settlement Offer

Not every settlement offer is reasonable, and recognizing red flags can help protect your rights. Common signs of a lowball offer include:

• The Offer Comes Too Quickly: If an insurance company makes an offer within days of the accident, they likely haven’t accounted for future medical costs, lost wages, or pain and suffering.
• The Offer Doesn’t Cover All Your Expenses: If the settlement barely covers your medical bills or omits future expenses, it may not reflect the true value of your claim.
• The Adjuster Pressures You to Accept: If you’re being told you must accept the offer immediately or risk getting nothing, it’s likely an attempt to avoid paying fair compensation.
• They Disregard Non-Economic Damages: Compensation should cover more than just medical costs—it should also account for pain, emotional distress, and loss of enjoyment of life.

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How to Respond to a Lowball Offer

Step 1: Review the Offer in Detail

Carefully go over the insurance company’s offer, paying close attention to what they are and aren’t covering. Compare it to your actual expenses and estimated future costs.

Step 2: Request a Justification

Ask the adjuster to explain how they arrived at the settlement amount. This forces them to outline their reasoning and exposes any weaknesses in their calculations.

Step 3: Gather Strong Evidence

To push back against an unfair offer, solid documentation is essential. Key evidence includes:

• Medical records and bills
• Proof of lost wages and employment impact
• Statements from doctors about future treatment needs
• Witness statements and accident reports
• Photos or videos from the accident scene

Step 4: Make a Counteroffer

Once you’ve assessed the true value of your claim, submit a written counteroffer. Explain why the initial offer is insufficient and provide supporting evidence to justify your new demand.

Step 5: Stay Firm in Negotiations

Insurance adjusters are trained negotiators who expect claimants to accept less than they deserve. It’s important to stand firm, avoid making emotional decisions, and continue presenting facts that support your case.

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When to Take Legal Action

If the insurance company refuses to offer fair compensation, legal action may be the best option. The process typically involves:

1. Filing a Lawsuit – If negotiations fail, a personal injury lawsuit can be filed against the responsible party. Mississippi law generally allows three years from the date of the accident to file a claim, though certain exceptions may apply.
2. Discovery Process – Both sides exchange evidence, take depositions, and gather expert testimony to build their cases.
3. Mediation or Settlement Talks – Many cases settle before going to trial. Your attorney can negotiate a fair amount based on the strength of your evidence.
4. Going to Trial – If an agreement isn’t reached, your case may proceed to trial, where a jury will decide the appropriate compensation.

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If an insurance company has made you an unfair settlement offer, you don’t have to accept it. Kellum Law Firm, P.C.fights for injury victims across Mississippi to ensure they receive the compensation they deserve. Call our Jackson office at (601) 969-2709 or our Port Gibson office at (601) 590-9000 for a free case evaluation.

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Mississippi Car Accident Claims Frequently Asked Questions

How do I know if an insurance company’s offer is too low?
A settlement offer should cover all medical expenses, lost wages, and other damages, including pain and suffering. If the amount doesn’t reflect these costs or seems rushed, it’s likely too low. Reviewing medical bills, future treatment needs, and accident-related losses can help determine if the offer is fair.

Can I negotiate with an insurance company without an attorney?
While you can negotiate on your own, insurance companies are skilled at minimizing payouts. They may use tactics that make it difficult to obtain full compensation. Having an attorney ensures your claim is valued correctly and that you don’t accept less than you deserve.

What happens if I reject a settlement offer?
Rejecting an offer doesn’t mean you won’t get compensation. It simply starts the negotiation process. You can submit a counteroffer and continue discussions. If the insurer refuses to negotiate fairly, you have the option to take legal action.

How long do I have to file a lawsuit if the insurance company won’t negotiate?
Mississippi’s statute of limitations for personal injury claims is generally three years from the accident date. If the insurance company refuses to offer fair compensation, filing a lawsuit before the deadline ensures you maintain your right to seek damages.

What if I already accepted a settlement offer? Can I reopen my case?
Once a settlement is accepted and signed, it is usually final. This means you cannot seek additional compensation later, even if new injuries or expenses arise. It’s important to fully understand the terms before agreeing to any settlement.

How do insurance adjusters determine settlement amounts?
Adjusters assess medical expenses, lost income, and accident details to determine an offer. However, they often use formulas that undervalue claims, particularly non-economic damages like pain and suffering.

Will the insurance company increase their offer if I hire an attorney?
In many cases, insurance companies make higher offers once an attorney is involved. They recognize that an attorney will gather evidence, push back against unfair practices, and take the case to court if necessary.

What if my injuries get worse after I settle?
Once you sign a settlement agreement, you cannot seek additional compensation, even if your condition worsens. This is why it’s crucial to wait until you fully understand your medical prognosis before accepting an offer.

Can I get compensation if I was partially at fault for the accident?
Yes. Mississippi follows a pure comparative negligence rule, meaning you can still recover compensation even if you were partially responsible. However, your damages will be reduced by your percentage of fault.

Should I talk to the insurance company on my own?
It’s best to be cautious when speaking with an adjuster. They may ask questions designed to reduce your payout. Providing only basic details and avoiding recorded statements can prevent insurers from twisting your words against you.

Call For Your Free Consultation

If you’ve been injured in a Mississippi car accident, understanding how police reports impact your claim is crucial. At Kellum Law Firm, P.C., our attorneys can guide you through the claims process and ensure your rights are protected. Contact our Jackson office at (601) 969-2709 or our Port Gibson office at (601) 590-9000 to discuss your options and secure the compensation you deserve.