Insurance Company Negotiation Tactics: The Lowball

The lowball offer is a favorite negotiation tactic among injury insurers, and your N.J accident lawyer will be prepared to handle any ridiculously low offer set forth by the unscrupulous insurance companies. If the defendant’s insurer made you an offer than seems way too low, you should speak with a lawyer right away.

Why Do Companies Lowball Plaintiffs?

Companies lowball plaintiffs in an effort to save as much money as possible on the injury claim. Hoping that plaintiffs will not know better, the insurance company will throw out an attractive, but extremely insufficient amount in an attempt to get the plaintiff to settle. Many injured plaintiffs are attracted to immediate offers to settle because they are out of work and in need of funds. However, do not be swayed by these offers are they are typically a small percentage of what your potential recovery could be.

What is an Example?

For example, you are injured and your N.J accident lawyer believes your case is worth between $15,000 and $20,000. Your bottom line is $12,000 and your lawyer thinks you can walk away with $15,000. As a starting point, your lawyer sends the insurer a demand letter seeking $27,500, only to receive a response offering $3,000. This is a lowball offer.

What is the Insurer’s Strategy with the Lowball Offer?

(a). The insurer believed that the original demand of $27,500 was so astronomically  high that it is trying to make a point by offering a ridiculously low amount.

(b). The insurer’s policy is to make conservative settlement offers in an attempt to pursue litigation instead.

(c). The insurer is hoping the extreme lowball response will shock the plaintiff and his lawyer into backing down significantly and demanding a much lower figure.

(d). The adjuster wants to see the plaintiff lower his expectations of the case.

(e). If the adjuster made the offer, he may be new to negotiating or has been given very little authority by the insurer.

How Can I Combat This Strategy?

You and your N.J accident lawyer can implement a number of strategies following a lowball offer. Specifically:

(a). Reassess the case to ensure that the original demand amount is appropriate.

(b). File a claim in district court and prepare to litigate if the insurer is not usually one to settle.

(c). Continue negotiating until you eventually meet in the middle.

Who Can Help Me with My Case?

N.J. accident lawyer Gerald Clark can help you if you are in need of assistance with your personal injury claim. Call his office today: 877-841-8855.