Quick Answer: Is Your Offer Fair?
First settlement offers are almost always unfair. Insurance companies typically offer 30-50% of a case's actual value as their opening position, expecting you to negotiate. If you received an offer quickly (within days or weeks), it's likely a lowball.
A fair settlement should cover:
- 100% of your medical bills (past and future)
- 100% of your lost wages and reduced earning capacity
- Pain and suffering (typically 1.5-5x your medical bills)
- Property damage
Find Out What Your Case Is Actually Worth
Red Flags: Signs of an Unfair Offer
Watch for these warning signs that your offer is too low:
Before you know the full extent of injuries
You should never pay out of pocket for accident-related care
Only covers "out of pocket" expenses
"This offer expires in 48 hours" is a manipulation tactic
A sign they know the offer is low
"$5,000" without itemized breakdown is suspicious
Never Accept the First Offer
Signs of a Fair Settlement Offer
A fair offer typically includes these elements:
Past treatment AND estimated future care
Especially if you can't return to your previous job
For moderate to severe injuries
You know the full extent of your injuries
Shows how they calculated each component
How to Evaluate Your Settlement Offer
Follow these steps to determine if your offer is fair:
Step 1: Calculate Your Total Damages
- Medical bills to date: $_______
- Estimated future medical: $_______
- Lost wages: $_______
- Future lost earning: $_______
- Property damage: $_______
- Economic total: $_______
Step 2: Add Pain and Suffering
Multiply your medical bills by the appropriate factor:
- • Minor injuries: 1.5-2x
- • Moderate injuries: 2-3x
- • Severe injuries: 3-5x
Step 3: Compare to Your Offer
If your offer is less than 70% of your calculated total, it's likely too low. Counter-offer with a number higher than your target (leave room to negotiate down).
Get an AI-Calculated Estimate
What to Do If Your Offer Is Too Low
1. Don't Panic or Accept
You have time. Statutes of limitations give you 2-4 years in most states.
2. Document Everything
Gather all medical records, bills, photos, and evidence of your damages.
3. Calculate Your Actual Value
Use tools like SetCalc to understand what similar cases settle for.
4. Send a Counter-Offer Letter
Itemize your damages and explain why you deserve more.
5. Consider Legal Representation
Attorneys typically increase settlements by 3.5x, even after fees.
Settlement Negotiation Tips
DO
- ✓ Wait until you know full injury extent
- ✓ Get everything in writing
- ✓ Counter-offer higher than target
- ✓ Use specific numbers, not ranges
- ✓ Cite comparable settlements
DON'T
- ✗ Accept quickly out of desperation
- ✗ Give recorded statements
- ✗ Sign medical authorizations
- ✗ Admit any fault
- ✗ Post on social media
The 3x Rule
Know Your Case Value Before Responding
Don't negotiate in the dark. Get an AI-powered estimate of what your case is worth based on your injury, location, and similar settlements.
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