How Insurance Companies Cheat You on Car Accident Claims – Lowball Offers And What You Can Do About It

Ryan Bradley | April 14, 2025 | Insurance Issues After Injury Accident

Key Takeaways:

• Insurance adjusters often use manipulative tactics to minimize your car accident settlement, including quick lowball offers before you know the full extent of your injuries and expenses. 
• Remember that your claim’s true value includes more than just medical bills. A settlement should include amounts for future treatments, lost income, and pain and suffering damages.
• Skilled legal representation levels the playing field and can give you the leverage you need to recover a fair settlement amount or trial verdict from an insurance company.

You’ve just been in a car accident. Your car is mangled, you’re in pain, and medical bills are starting to pile up. Then comes what seems like good news: The insurance company calls and offers you a settlement. 

But before you sign anything, stop and ask yourself: Is this really what my claim is worth? Remember, once you accept that check, there’s no going back for more, even when additional expenses surface weeks or months later.

In this article, we’ll pull back the curtain on the insurance industry’s playbook to minimize your compensation. You’ll learn how to calculate what your claim is truly worth and practical strategies to fight back and get what you deserve.

The Tactics Insurance Companies Use to Slash Your Settlement

Here is how insurance companies try to minimize your settlement and protect their profits:

1. The Quick Settlement Trap: That fast offer from your insurer may seem tempting, especially with medical bills piling up. Unfortunately, an early offer is usually an attempt to lowball you before the full extent of your injuries and expenses are clear. If you accept, you’re out of luck if your damages turn out much higher later on.
2. Adjusters Twist Your Words Against You: Beware when insurance adjusters encourage casual conversation. They might be fishing for information or statements that could undermine your claim, such as admitting partial fault or downplaying your injuries.
3. Delay Tactics: Insurers know the longer they wait to pay you, the keener you will be to get your mounting bills paid. By dragging out claim processing, they hope you’ll accept a lower settlement out of desperation or frustration.
4. Minimizing Pain and Suffering: Economic damages like medical bills are tangible, but non-economic damages like pain and suffering may be dismissed by insurers to avoid paying what you deserve.

What Is Your Car Accident Claim Really Worth?

Most accident victims think their claims only cover obvious expenses like vehicle repairs and immediate medical bills. Unfortunately, that’s exactly what insurance companies want you to believe. But the true value of your claim could be much more.

Hidden Expenses You Could Be Entitled To

Your damaged car and injuries are just the beginning. While damages will always depend on your specific accident and circumstances, a comprehensive claim should account for:

• Lost wages: Lost income shouldn’t just cover the days you’ve already missed but should also include future time off for treatments and recovery.
• Reduced earning capacity: You could be entitled to damages for reduced future earning capacity if your injuries affect your ability to perform your job long-term.
• Transportation costs: You could recover transportation costs like rentals, rideshares, or public transit while your car is in the repair shop.
• Home modifications: If your recovery or permanent injury requires modifications to your home, like handrails and ramps, the expense should be covered in a settlement.
• Household assistance: You could be entitled to any help required with cleaning, childcare, or other daily tasks you can’t perform due to an accident-related injury.
• Property damage: Property damaged in the crash likely doesn’t just include your car but other personal items like laptops or phones. You could qualify for replacement or repair of all property damaged or destroyed in the crash. 

Don’t rely on an insurance company to have your best interests at heart. A dedicated car accident lawyer can help you understand all the damages you could be entitled to and fight for what you deserve.

Long-Term Medical Costs Insurance Adjusters “Forget” to Mention

Insurance companies are experts at underestimating your future medical needs. They may calculate based on what you’ve already spent rather than what specialists say you’ll need going forward. A truly fair settlement should account for:

• Future treatments like surgeries, ongoing physical therapy, or specialist appointments.
• Long-term medication costs, like prescriptions for pain management or related conditions.
• Follow-up diagnostic procedures, such as MRIs, X-rays, or other tests to monitor recovery.
• Assistive devices like crutches, braces, or mobility aids you may need.
• Counseling and therapy for accident-related anxiety, PTSD, or depression.

Insurance adjusters rarely volunteer to help with these costs. In fact, they may rush settlements before you’ve had a chance to speak to an attorney or before you’ve been fully evaluated by medical specialists who can accurately predict your long-term needs. Don’t let that happen to you, as you’ll be leaving money on the table.

How to Calculate the True Value of Your Settlement

Determining what your claim is worth is crucial to recovering a fair car accident settlement. It requires a systematic approach that insurance companies hope you don’t know about:

Add up all economic damages, like medical bills, lost wages, property damage, and other out-of-pocket expenses. Document everything, no matter how small. 

Then, apply the multiplier method to calculate your non-economic damages like pain and suffering. This is done by taking your actual expenses (economic damages) and multiplying them by a factor of 1.5 to 5, depending on injury severity. Minor injuries with full recovery might warrant a 1.5-2x multiplier, while severe, life-altering injuries could justify 4-5x.

Factor in future anticipated impacts, like medical costs and long-term effects on your quality of life. Has your injury affected your ability to participate in hobbies? Are you dealing with chronic pain? These factors, among others, will influence your claim’s value.

Remember: Insurance adjusters will try to minimize these calculations at every step. Their initial formula might use the lowest possible multiplier or exclude categories of damages entirely. Protect yourself by getting an experienced car accident attorney on your side. A complete and accurate assessment of what your claim is worth can make a significant difference in the payout.

What You Can Do to Fight Back

You may have to put up a fight to get the settlement you deserve after a car crash. Here’s what you can do:

• Document Everything: Keep meticulous records of all accident-related costs and communication with the insurance company. Evidence of your damages strengthens your case and prevents insurers from undervaluing your claim.
• Don’t Settle Early: As tempting as it is, avoid settling before the long-term impact of your injuries is clear. Quick settlements overlook future impacts like medical treatments or reduced earning capacity. 
• File an Appeal: If your claim is denied or undervalued, challenge the insurer’s decision by filing a formal appeal. This allows you to present new evidence and demand a reconsideration of the settlement.
• Hire an Attorney: Skilled car accident attorneys know how to counter unfair tactics, negotiate higher settlements, and fight your case at trial if necessary. 
• File a Complaint: In Missouri, if an insurance company is not treating you fairly, you can file a complaint with the Missouri Department of Commerce and Insurance.

Get Started Now—Your Next Best Steps 

Insurance companies don’t have to win. Push back when they give you a lowball offer. Understanding their tactics and seeking legal advice ensures you get fair compensation that helps you get your life back on track after an accident. 

Don’t wait too long to speak to an attorney, as the time to file a lawsuit is limited. Schedule a free consultation with Bradley Law today and find out how we can help you fight (and win) this battle.