Insurance settlement offer too low — what to do.
A lowball offer is the start of the negotiation, not the end of it. The counter-offer framework that moves the number.
Step 1. Get the offer in writing with a line-item breakdown
A verbal offer is not a real offer. Ask for the offer in writing, broken down by category: past medical specials, future medical, past lost wages, future earning capacity, and non-economic (pain and suffering). The breakdown tells you exactly where the carrier is underpaying.
Step 2. Build your own valuation
Add medical specials and documented lost wages. Apply a severity multiplier:
- 1.5x for minor soft tissue with no imaging
- 2.5x for soft tissue with imaging or extended treatment
- 3.5x for fracture or surgery
- 4.5x for permanent impairment or disfigurement
- 5x+ for catastrophic (TBI, spinal cord, amputation)
That range is the negotiation zone. Your counter anchors at the high end; the eventual settlement usually lands in the middle.
Step 3. Write the counter-offer
A real counter is a written document that does three things:
- States your number clearly, in dollars.
- Ties each component to documentation (attach medical bills, wage records, treating physician narrative if you have one).
- Names a deadline for response (10-14 business days is standard).
Step 4. Decide when to involve an attorney
After one or two rounds of counter-offers, you will know whether the carrier is moving. If the gap is still more than 25-30% of your documented damages, the net of an attorney's contingency fee almost always still beats accepting the carrier's number. That is the moment to call.
Step 5. Watch the statute of limitations
Negotiation does not pause the statute of limitations. If you are within 6 months of your state's filing deadline and the carrier is still lowballing, file the lawsuit. Most filed cases still settle — filing simply changes the leverage.