If you’ve been hurt in an accident, the first settlement offer from the insurance company is usually not their best or what you truly deserve. Learning how to respond to a low offer can help you avoid settling for less and instead get fair compensation for your injuries, lost wages, and pain.
At McKay Law PLLC, our personal injury attorneys in East Texas have handled thousands of insurance settlements in Sulphur Springs, Dallas, Tyler, and nearby areas. In this guide, we share the strategies we use to push back against low settlement offers and help our clients get the most from their claims.
Understanding Why Insurance Companies Lowball Settlement Offers
Before you learn how to respond to a settlement offer, it helps to know how insurance companies work. Their goal is to pay out as little as possible while collecting as much as they can in premiums. Adjusters are trained to negotiate and are often judged by how much money they save the company, not by how fairly they treat people who have been hurt.
Common Insurance Company Tactics
The Quick Settlement Push: Adjusters frequently contact accident victims within days of an incident, offering fast payment before victims understand the full extent of their injuries or consult with an attorney.
Downplaying Injury Severity: Insurance representatives may suggest your injuries are minor, pre-existing, or unrelated to the accident, despite medical evidence to the contrary.
Disputing Liability: Even when their insured is clearly at fault, adjusters often claim shared responsibility to reduce their payout obligation.
Using Recorded Statements Against You: Anything you say in a recorded statement can be twisted to undermine your claim’s value.
Delaying Tactics: Some adjusters intentionally slow the claims process, hoping financial pressure will force you to accept less than you deserve.
Essential Preparation Before Countering a Settlement Offer
To negotiate well, you need to be prepared. If you make a counteroffer without the right documents and careful calculations, you could weaken your case.
Gather Comprehensive Medical Documentation
Your medical records form the foundation of any personal injury claim. Collect all documentation including:
- Emergency room reports and ambulance records
- Hospital admission and discharge summaries
- Physician notes from all treating doctors
- Diagnostic test results (X-rays, MRIs, CT scans)
- Physical therapy and rehabilitation records
- Prescription medication receipts
- Medical device or equipment purchases
- Future treatment recommendations from physicians
The better your medical records are, the harder it is for insurance adjusters to question your injuries or how serious they are.
Calculate Your Complete Damages
Many people don’t realize how much their claim is really worth. When you add up your damages, make sure to include everything:
Economic Damages (quantifiable financial losses):
- All past and future medical expenses
- Lost wages from missed work
- Reduced earning capacity if injuries affect future employment
- Property damage costs
- Out-of-pocket expenses related to your injury
- Costs for household services you can no longer perform
Non-Economic Damages (subjective losses):
- Physical pain and suffering
- Emotional distress and mental anguish
- Loss of enjoyment of life
- Disfigurement or permanent scarring
- Loss of consortium (impact on family relationships)
In Texas, most personal injury cases do not have a limit on economic or non-economic damages. However, punitive damages are capped at either $200,000 or two times the economic damages plus non-economic damages up to $750,000, whichever is greater.
Research Similar Case Settlements and Verdicts
Knowing what similar cases have settled for in your jurisdiction provides valuable leverage. Research recent verdicts and settlements involving:
- Similar injury types
- Comparable liability situations
- Cases in East Texas counties (Hopkins, Franklin, Titus, Camp, Wood, Smith, etc.)
- Verdicts against the same insurance company or defendant
Doing this research proves you know what your case is really worth and that your counteroffer is based on facts, not just a guess.
Document the Accident Thoroughly
Having solid evidence about who was at fault makes your position stronger when you negotiate:
- Police reports and accident reconstructions
- Witness statements and contact information
- Photographs of the accident scene, vehicle damage, and injuries
- Video footage from dashcams, security cameras, or cell phones
- Weather and road condition reports
- Citations or violations issued to the at-fault party
Professional Strategies for Countering Settlement Offers
After you’ve gathered all your information, try these negotiation strategies to respond to a low offer from the insurance company.
Never Accept the First Offer
Insurance adjusters expect you to push back on their first offer. That first number is usually much lower than what they’re actually willing to pay. If you accept it right away, it can show you’re inexperienced and you might miss out on a lot of money.
Respond in Writing with Detailed Justification
It’s best to make your counteroffer in writing so there’s a clear record of what was said. Your written response should include:
A Professional Opening: Acknowledge receipt of their offer without expressing gratitude or acceptance.
Point-by-Point Rejection: Systematically address why their offer is inadequate, referencing specific damages they’ve undervalued or ignored.
Comprehensive Damage Breakdown: Present your complete calculation with supporting documentation for every expense and loss claimed.
Supporting Evidence: Include medical records, bills, expert opinions, employment verification, and other documentation substantiating your damages.
Your Counteroffer Amount: State a specific dollar amount that fully compensates your losses, usually higher than your minimum acceptable settlement to allow room for negotiation.
Deadline for Response: Set a reasonable deadline for the insurance company to reply. This shows you’re serious about the process.
Use the Multiplier Method Strategically
Personal injury attorneys often use a multiplier method to calculate pain and suffering damages. This involves multiplying your economic damages by a factor typically between 1.5 and 5, depending on:
- Injury severity and permanence
- Impact on daily life and activities
- Length of recovery period
- Strength of liability evidence
- Insurance policy limits available
For example, if your economic damages are $50,000 and your injuries are permanent with clear proof of fault, using a multiplier of 3 would add $150,000 for pain and suffering. That brings your total claim to $200,000.
Highlight Future Damages and Long-Term Impacts
Insurance companies often pay close attention to past medical bills but try to downplay future costs. Make your counteroffer stronger by pointing out:
- Ongoing treatment needs recommended by physicians
- Permanent disability or impairment ratings
- Future surgical procedures or medical interventions
- Long-term medication requirements
- Reduced earning capacity or career limitations
- Likelihood of developing related conditions (like arthritis after joint injuries)
Get written statements from your doctors, job experts, or life care planners to back up your claims for future damages.
Leverage Litigation as a Negotiation Tool
Insurance companies understand that going to trial costs them time and money. While you should always negotiate honestly, letting them know you’re ready to file a lawsuit if needed can encourage them to make a better offer.
Consider statements like: “While we prefer to resolve this matter through negotiation, our client is fully prepared to present their case to a Hopkins County jury if your company fails to make a fair settlement offer.”
In East Texas, juries often give large awards in cases where fault is clear and injuries are serious. This can make insurance companies more likely to settle fairly instead of risking a trial.
Address Bad Faith TactIf the insurance company acts in bad faith, such as causing unreasonable delays, not investigating properly, or refusing to make a fair offer, bring up these issues directly in your counteroffer: counteroffer:
“Your company’s pattern of delay and unreasonably low offers may constitute bad faith insurance practices under Texas law. We expect a substantive response to this counteroffer within 15 business days.”
Texas Insurance Code allows for bad faith claims when insurers fail to attempt good faith settlements, potentially exposing them to additional damages beyond your original claim.
You shouldn’t rush the negotiation process, but it’s important to keep track of key deadlines:
While you should not rush the negotiation process, be aware of important deadlines:
- Texas Statute of Limitations: Most personal injury claims must be filed within two years of the injury date
- Medical Treatment: Complete treatment (or reach maximum medical improvement) before settling when possible
- Financial Pressure: Do not let the insurance company exploit your financial needs to force a quick, inadequate settlement
Common Mistakes to Avoid When Countering Settlement Offers
Even experienced negotiators can make mistakes that hurt their case. Watch out for these common errors:
Insurance adjusters often request recorded statements that they’ll later use to minimize your claim. Anything you say can be taken out of context or used against you. Politely decline or insist your attorney be present.
Accepting Partial SetSome adjusters might offer to pay for property damage or part of your medical bills right away while still negotiating your injury claim. Be careful—accepting any payment could limit your chance to get full compensation later. compensation later.
Signing Medical Authorizations Without Limits
If you sign a broad medical release, the insurance company can look through your whole medical history to find pre-existing conditions and challenge your claim. Only allow access to records that are directly related to your accident.
Making Demands Without Documentation
If you make a counteroffer without proof, it can seem random and hurt your credibility. Make sure every amount you ask for is supported by documents.
Getting EmotiKeep negotiations calm and focused on the facts. If you get emotional or seem desperate, experienced adjusters may use that against you. by experienced adjusters.
Accepting Settlement Without Understanding Release Language
Settlement agreements have language that stops you from asking for more money later. Don’t sign anything until you fully understand what rights you’re giving up, especially if you might have future medical problems.
When to Hire a Personal Injury Attorney
While you might be able to handle a minor injury claim on your own, most people get much better results with an experienced lawyer, especially when:
- Injuries are serious, permanent, or require ongoing treatment
- Liability is disputed or unclear
- Multiple parties may be responsible
- The insurance company denies the claim or offers grossly inadequate settlements
- The accident involved a commercial vehicle, trucking company, or corporate defendant
- You’re unfamiliar with the claims process or feel overwhelmed by negotiations
The McKay Law Advantage in Settlement Negotiations
At McKay Law PLLC, our personal injury attorneys in East Texas have helped clients recover millions of dollars through settlement negotiations. Here’s how we approach each case:
CompreheComprehensive Case Preparation: We prepare every case as if it will go to trial. This makes our negotiating position stronger and shows we’re serious about getting full compensation.te Case Valuation: Our attorneys use damage calculations, expert consultations, and research to determine your claim’s true value.
AggressiAggressive Advocacy: We respond to low offers with detailed demand letters, strong evidence, and a clear message that we’re ready to go to trial if the insurance company won’t settle fairly.Knowledge: As an East Texas law firm with offices in Sulphur Springs, Dallas, and Tyler, we understand how local juries view cases, which influences insurance company settlement behavior in Hopkins, Franklin, Smith, and nearby counties.
No Fees Unless We Win: With our contingency fee setup, you don’t pay anything upfront. We only get paid if we win compensation for you.
Understanding Texas Personal Injury Settlement Process
The settlement negotiation process typically follows these stages:
Initial Claim Submission
After an accident, you or your attorney submit a claim to the at-fault party’s insurance company, providing basic information about the incident and injuries.
Investigation Period
The insurance company investigates the claim, reviewing the accident report, interviewing parties involved, and potentially conducting surveillance or requesting recorded statements.
Initial Settlement Offer
Once the investigation ends (or sometimes even while it’s still going on), the adjuster usually makes a first settlement offer. This first offer is almost always much lower than what your claim is really worth.
Demand Letter and Counteroffer
Your attorney prepares a comprehensive demand letter detailing your damages with supporting documentation and making a specific settlement demand.
Negotiation
The iThe insurance company might accept your demand, turn it down, or make a counteroffer. This starts a negotiation process that can go back and forth several times.tlement or Litigation
If you reach an agreement, the case settles and you sign release papers and get paid. If not, your lawyer will file a lawsuit and keep negotiating while getting ready for trial.
Mediation (If Case is Filed)
Many lawsuits go to mediation, where a neutral person helps both sides try to reach a settlement. A lot of cases settle at this stage, even if earlier talks didn’t work out.
Frequently Asked Questions About Countering Insurance Settlement Offers
How long should I wait before countering a settlement offer?
Take the time to fully understand your injuries and add up all your damages. You should reply within a reasonable time, usually 30 to 60 days, but don’t let the insurance company rush you into making a counteroffer before you’ve reached maximum medical improvement.
Can I counter multiple times?
Yes. Settlement talks often go through several rounds of offers and counteroffers. Each time you counter, make sure you have a reason for your number to keep your credibility.
What if the insurance company won’t budge from their low offer?
If honest negotiations don’t work, you may need to file a lawsuit. Many insurance companies only make their best offers after a lawsuit is filed, especially as the trial date gets closer.
Should I accept a settlement that’s close to what I asked for?
“Close” means different things to different people. If the offer covers all your documented damages and you’re happy with it, settling might make sense. But if it’s still not enough, you may want to keep negotiating or consider going to court.
How long do I have to settle my claim in Texas?
There’s no set deadline for settling, but in Texas, you usually have two years from the date of your injury to file a lawsuit. You can keep negotiating after you file, but if you miss the deadline, you could lose your right to any compensation.
Take Action: Protect Your Right to Fair Compensation
If an insurance company has made you a low settlement offer, don’t settle for less than you deserve. The experienced personal injury lawyers at McKay Law PLLC fight hard for accident victims all over East Texas.
Contact McKay Law PLLC Today
Sulphur Springs Office: Serving Hopkins, Franklin, Delta, and Titus Counties Dallas Office: Representing clients throughout the Dallas-Fort Worth Metroplex
Tyler Office: Serving Smith, Gregg, Cherokee, and surrounding East Texas counties
Call us today for a free consultation to talk about your case. We’ll explain how we can help you push back against low settlement offers and work to get you the most compensation possible.
Don’t let insurance companies take advantage of you when you’re vulnerable. With good preparation, smart negotiation, and the right legal help, you can fight back against low offers and get the compensation you need to recover and move on with your life.
The information provided in this blog post is for educational purposes and does not constitute legal advice. Every personal injury case is unique, and outcomes depend on specific facts and circumstances. Contact McKay Law PLLC to discuss your particular situation with an experienced Texas personal injury attorney.
