Receiving a low settlement offer from an insurance company is a common part of the personal injury process in South Carolina. Most initial offers do not cover the full cost of medical bills, lost wages, and pain and suffering. If you get an offer that seems too small, you have the right to reject it and ask for more money.
Knowing how to respond to a low settlement offer is the most important step in protecting your financial future.
Why Insurance Companies Make Low Settlement Offers
Insurance companies aim to settle claims for the smallest amount of money possible. They often make a fast, low offer right after an accident to see if you will take it before you know the true cost of your injuries.
Adjusters might use software to calculate your claim. These programs often ignore the human side of an injury, such as how a broken leg affects your ability to play with your children or go to work. They also look for any reason to lower the value, such as pre-existing medical conditions or gaps in your medical treatment.
Should You Accept the First Settlement Offer?
The first offer is often a “nuisance settlement.” This is a small amount meant to make the claim go away quickly. It rarely accounts for future medical costs or the long-term impact on your life. Accepting it early means you are leaving money on the table that you might need for bills six months from now.
Steps to Take Before Responding to a Low Settlement Offer
Before you send a response to a low settlement offer, you need to gather all your facts. Start by reviewing the offer letter carefully. Look for mistakes in the adjuster’s facts, such as the wrong date of the accident or incorrect medical records, then:
- Calculate Your Total Damages: Add up every doctor bill, pharmacy receipt, and car repair estimate. Use your pay stubs to show exactly how much money you lost from missing work.
- Get a Final Medical Prognosis: Do not settle until you reach Maximum Medical Improvement (MMI). This is the point where your doctor says you are as healthy as you are going to get.
- Review South Carolina Fault Rules: If the adjuster claims you were at fault, look at the police report. South Carolina is a “fault” state, meaning the person who caused the crash is responsible for the damages.
- Write Down Your Counteroffer: Decide on a fair number that covers your current and future needs. This number should be higher than what you are willing to accept to leave room for negotiation.
How to Respond to a Low Settlement Offer
When you are ready, reply in writing. This creates a paper trail for your case.
Your response to low settlement offers should be professional, factual, and non-emotional. Start by stating that the offer is unacceptable because it does not fairly compensate you for your losses. List the specific reasons why the offer is too low. For example, if the offer would not cover the physical therapy you need next month.
Provide new evidence if you have it. If you have a new doctor’s note or an updated repair estimate, include those documents. End your letter with a specific counteroffer. This shows the adjuster that you are serious and that you know what your case is worth.
Common Mistakes to Avoid When Responding to a Low Settlement Offer
Many people make mistakes that hurt their chances of getting a fair settlement. One big mistake is talking too much to the insurance adjuster on the phone. They may record your conversation and use your words against you later.
Another mistake is failing to mention “pain and suffering.” In South Carolina, you are allowed to ask for damages that reflect the physical pain and mental stress the accident caused. If you only ask for the cost of your medical bills, you are missing a large part of your legal claim.
Finally, do not wait too long to act. Under South Carolina’s statute of limitations (S.C. Code § 15-3-530), you have three years from the date of the accident to file a lawsuit. If you spend too much time negotiating without progress, you could lose your right to sue entirely.
How a Camden Personal Injury Lawyer Can Help
A local attorney at Savage, Royall & Sheheen, LLP, provides the support needed to hold insurance companies accountable. Here is how our legal team assists with your recovery:
Handling All Communications
We take over all phone calls and emails with insurance adjusters. This prevents you from saying something that could hurt your claim.
Investigating the Accident
We gather police reports, witness statements, and video footage. In South Carolina, proving fault is necessary to win your case.
Calculating Full Value
We look at more than just your current bills. We include future medical costs, lost earning capacity, and pain and suffering in our demands.
Applying South Carolina Laws
We understand state-specific rules like modified comparative negligence. We work to ensure you are not unfairly blamed for the accident.
Managing Deadlines
The statute of limitations in South Carolina is generally three years. We ensure all paperwork is filed on time so you do not lose your right to sue.
Taking Your Case to Court
If the insurance company refuses to pay a fair amount, we are prepared to represent you in front of a jury at the Kershaw County Courthouse.
Contact Our Camden Personal Injury Lawyer
Savage, Royall & Sheheen, LLP has served South Carolina for many years. We understand the local courts and how to deal with adjusters who try to underpay our neighbors.
Contact us at 803-432-4391 to schedule a free consultation about your personal injury case.