Quick Answer: Is Your Settlement Offer Fair?
Insurance first offers are typically 30-50% below fair value. Insurance companies make initial offers expecting you to negotiate. Use our free calculator to compare your offer to what similar cases actually settle for — based on your injury type, location, and real settlement data.
If you received an offer within days or weeks of your accident, before your treatment is complete, it is almost certainly a lowball. Studies show that claimants who negotiate receive 40-80% more than those who accept the first offer.
Compare Your Offer to Real Settlement Data
Why Your Settlement Offer Is Probably Too Low
Here's what the insurance company doesn't want you to know about your offer:
First offers are 2-5x below fair value
Insurance companies have internal studies showing exactly what cases settle for. Their first offer is strategically set at 20-50% of what they actually expect to pay. It's an opening negotiation position, not a final number.
Insurance companies have a financial incentive to lowball
Every dollar they save on your claim goes to their bottom line. Adjusters are evaluated on their "claims savings" — the difference between what they pay and what the claim is actually worth. Lowballing you is literally their job.
Adjusters have settlement authority limits
Your adjuster has a pre-approved range they can settle within. Their initial offer is always at the bottom of that range. They have authority to go higher — they just won't unless you push back.
The Numbers Don't Lie
2-5x
How far below fair value first offers typically are
40-80%
More money for people who negotiate vs. accept
3.5x
Average increase with attorney representation
Don't Accept Without Checking First
How to Evaluate Your Current Offer
You don't need a law degree to determine if your offer is in the right ballpark. Here are three quick tests you can apply right now:
1The Medical Bills Ratio Test
Compare your offer to your total medical bills. A fair settlement is at minimum 1.5-5x your medical bills, depending on severity.
Red flag: Offer < 1.5x medical bills = almost certainly too low.
2The Future Medical Costs Test
Does your offer account for treatment you haven't received yet? Future surgery, physical therapy, and long-term medication must be included.
Red flag: Still in treatment + insurer pushing to settle = they're avoiding your remaining care costs.
3The Lost Wages Test
A fair settlement includes every dollar of income you lost — past and future, including missed work, reduced hours, and diminished earning capacity.
Red flag: Offer only covers medical bills with nothing for lost wages = major damage category ignored.
Get a Data-Backed Comparison
What a Fair Settlement Offer Looks Like by Injury Type
If your offer falls below these ranges, you may be leaving significant money on the table:
| Injury Type | Fair Settlement Range | Typical First Offer | You're Leaving Behind |
|---|---|---|---|
| Whiplash / Soft Tissue | $15,000 - $50,000 | $3,000 - $8,000 | $12K - $42K |
| Broken Bones (Fractures) | $50,000 - $200,000 | $15,000 - $40,000 | $35K - $160K |
| Herniated Disc | $75,000 - $300,000 | $20,000 - $50,000 | $55K - $250K |
| Concussion / Mild TBI | $50,000 - $150,000 | $10,000 - $30,000 | $40K - $120K |
| Knee / Shoulder Injury | $75,000 - $250,000 | $15,000 - $45,000 | $60K - $205K |
| Spinal Cord Injury | $300,000 - $2,000,000+ | $75,000 - $200,000 | $225K - $1.8M+ |
| Severe / Moderate TBI | $500,000 - $5,000,000+ | $100,000 - $500,000 | $400K - $4.5M+ |
*Ranges based on SetCalc analysis, 2024-2026. National ranges — your location can shift values 2-10x.
Your Location Changes Everything
How to Use SetCalc to Check Your Offer (Free)
It takes about 5 minutes to get a data-backed comparison of your settlement offer. Here's exactly how it works:
Enter your zip code
Select your injury type and severity
Enter your medical bills and lost wages
Get your AI-powered settlement estimate
Compare the estimate to your current offer
Ready to Check Your Offer?
What to Do If Your Offer Is Too Low
Confirmed your offer is below fair value? Here's your action plan:
1. Don't Accept Immediately
You are under no legal obligation to accept a settlement offer quickly, regardless of what the adjuster tells you. In most states, you have 2-4 years (the statute of limitations) to file a claim. Take your time and make an informed decision.
2. Respond in Writing
Never negotiate by phone alone. Send a written rejection explaining why the offer is inadequate, referencing specific damages it fails to cover.
3. Counter with Documentation
Submit a formal counter-offer with evidence: medical records, bills, proof of lost wages, and photos of injuries. The more documentation you provide, the harder it is to justify a low offer.
4. Get an Attorney Review
Most personal injury attorneys offer free consultations and work on contingency. Claimants with attorneys receive an average of 3.5x more than those without — even after fees.
Counter-Offer Tip
Common Tactics Insurance Uses to Pressure You
Watch for these common pressure tactics and know how to respond:
"This offer expires in 30 days"
Settlement offers rarely have legally binding deadlines. Your statute of limitations (typically 2-4 years) is the real deadline. Take the time you need.
"This is our best and final offer"
It almost never is. Adjusters routinely increase offers after claiming they've reached their limit. Counter with documented evidence and they will often find more room.
"We need a recorded statement"
You are not legally required to give a recorded statement to the other driver's insurer. Politely decline — anything you say can be used to reduce or deny your claim.
Deliberate delays and slow responses
They hope you'll get frustrated and accept a low offer out of desperation. Document every interaction. If delays are unreasonable, file a bad faith complaint with your state's Department of Insurance.
The Biggest Mistake: Signing Too Soon
When to Accept vs. When to Negotiate
Not every offer needs to be negotiated. Here's how to decide:
Consider Accepting If...
- ✓ Offer covers all medical bills (past + future)
- ✓ Includes fair pain and suffering (1.5-5x medical bills)
- ✓ All lost wages are fully compensated
- ✓ You've reached maximum medical improvement
- ✓ Offer falls within the fair range for your injury and location
Negotiate (or Get a Lawyer) If...
- ✗ Offer is less than 1.5x your medical bills
- ✗ No compensation for pain and suffering
- ✗ Future medical costs are not covered
- ✗ You're still in active treatment
- ✗ Offer was made within days of the accident
- ✗ The insurer is pressuring you to sign quickly
Not Sure? Let the Data Decide.
Compare Your Settlement Offer Now — Free
You already have an offer. In 5 minutes, you'll know if it's fair or if you're leaving money on the table — based on what similar cases actually settle for in your area.
Check If My Offer Is Fair100% free • No credit card • Attorney-reviewed • 5 minutes
Related Resources
Is My Settlement Offer Fair?
Red flags of unfair offers and a step-by-step evaluation checklist
Pain and Suffering Calculator
Learn the multiplier and per diem methods for calculating non-economic damages
Realistic Settlement Calculator
Why most calculators get it wrong and how location changes your value by 10x
How to Write a Demand Letter
Template and guide for writing a counter-offer demand letter to the insurance company
Are You An Attorney?
Use AI to estimate settlements for your clients with a SetCalc Professional account.
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