Setareh Law
February 4, 2026
When an insurance adjuster calls with a settlement offer days after your accident, the figure they present may sound reasonable until you consider what you’re actually owed. That first offer almost always falls short of covering your medical expenses, lost income, and the full scope of damages you’ve sustained, yet many accident victims accept it out of urgency or lack of information.
Navigating insurance claims after a car accident requires understanding the tactics insurers use to minimize payouts. Setareh Law has spent over 60 years advocating for injured Californians and has recovered more than $250 million in compensation by refusing to let insurers shortchange accident victims. Our team understands the true value of injury claims and fights to ensure you receive every dollar you deserve.
Why Do Insurance Companies Make Low Initial Offers?
Insurance companies operate as for-profit businesses with a clear incentive to protect their bottom line. When they present that first settlement offer, they’re counting on your immediate financial stress, limited legal knowledge, and desire to resolve matters quickly. The adjuster may frame the offer as generous or final, but these tactics are designed to close your claim before you understand its full value.
The strategy works because most accident victims haven’t yet received complete medical evaluations, don’t know the long-term implications of their injuries, and feel pressure to pay mounting bills. According to the Insurance Information Institute, the average bodily injury claim from auto accidents in recent years has exceeded $20,000, yet initial offers frequently start at a fraction of that amount. Accepting prematurely means waiving your right to pursue additional compensation later, even if complications arise or your recovery takes longer than expected.
What Gets Left Out of First Settlement Offers
Initial settlement calculations typically focus only on immediate, obvious damages while ignoring the broader financial impact of your injuries. Insurers may account for your emergency room visit but exclude follow-up appointments, physical therapy, or specialized treatments you’ll need. They rarely factor in diminished earning capacity if your injuries prevent you from returning to your previous role or force you into lower-paying work.
Pain and suffering, emotional distress, and reduced quality of life represent significant damages that deserve compensation but often receive minimal consideration in first offers. For serious accidents involving truck collisions or catastrophic injuries, future medical needs and permanent disability warrant substantial compensation that early offers systematically undervalue. If your accident resulted in a wrongful death, the initial offer will almost certainly fail to reflect the economic and emotional losses your family faces.
How to Respond to a Low Settlement Offer
When you receive an inadequate settlement offer, your response strategy can make the difference between accepting far less than you deserve and securing fair compensation. Taking deliberate, documented steps strengthens your negotiating position and demonstrates to the insurer that you understand your claim’s true value.
Document Everything Thoroughly
Start by gathering comprehensive documentation of all accident-related expenses, from medical bills and pharmacy receipts to mileage logs for doctor visits. Keep detailed records of missed work days, reduced hours, and any job opportunities you couldn’t pursue due to your injuries.
Calculate Your True Damages
Add up all economic losses including past and projected medical costs, lost wages, reduced earning capacity, and property damage. Consider non-economic damages such as pain, suffering, loss of enjoyment of life, and emotional trauma. For severe injuries, consult medical professionals about long-term prognosis and future care needs.
Respond in Writing
Never accept or reject a settlement offer verbally. Submit a written response that itemizes why the offer falls short, provides documentation of your actual damages, and presents a counteroffer based on the full value of your claim.
Understand Your Leverage
Insurance companies want to avoid litigation because trials cost them significantly more than settlements. Your willingness to reject inadequate offers and pursue fair compensation through negotiation or court proceedings gives you substantial bargaining power.
Your response should remain professional but firm, making clear that you understand your claim’s value and won’t settle for less than appropriate compensation. Express willingness to negotiate in good faith while maintaining that the current offer doesn’t reflect the harm you’ve suffered or the losses you’ve incurred.
Get Experienced Legal Support from Setareh Law
Settlement negotiations require understanding California personal injury law, insurance company tactics, and the true value of injury claims. Setareh Law brings over 60 years of combined experience handling personal injury cases throughout California, backed by more than $250 million recovered for clients and over 400 five-star Google reviews. Our attorneys know how to counter lowball offers, document damages thoroughly, and negotiate settlements that reflect the full extent of your losses.
We handle all personal injury cases on a contingency fee basis, meaning you pay nothing unless we secure compensation for you. Our bilingual team provides personalized attention in English and Spanish, and we’re available 24/7 to address your concerns throughout the claims process. Don’t let an insurance company’s first offer determine your financial recovery. Contact us today to schedule a free consultation and learn what your claim is truly worth.
