What Should I Do if an Insurance Company Makes a Low Settlement Offer?

 Posted on August 19, 2025 in Car Accident

After a car or truck accident, one of the most frustrating experiences can be opening a letter or getting a phone call from an insurance company, only to discover that their "offer" will not even cover your expenses. Medical bills, lost wages, and property damage can add up quickly, yet insurers often come back with numbers that do not come close to meeting what you need.

If this has happened to you, you are not alone. Insurance companies have one goal: paying out as little as possible. The good news is that you are not required to accept their first offer. In fact, most initial settlement offers are deliberately low. Understanding why insurers do this and how you can respond is the first step to protecting yourself, and our McKinney, TX personal injury attorneys can help. 

Why Do Insurance Companies Make Lowball Offers?

Insurance companies are businesses, and like any business, they want to protect their bottom line. Offering a quick, low settlement saves them money. They know that accident victims are often stressed, overwhelmed, and worried about paying bills. By dangling a check early, they hope you will accept less than what your claim is actually worth.

Another reason for low offers is uncertainty about the full extent of your injuries. In the days or weeks after a crash, you may not yet know how serious your condition is or how long your recovery will take. Insurers use this to their advantage, pressuring you to settle before you realize the true cost of what you could recover under Texas law.

Common Problems With Accepting Low Offers from Insurance Companies

Accepting a settlement without thinking it through can leave you in financial trouble later. Some of the most common issues include:

• Medical treatment that is not fully covered by the settlement, especially if ongoing care is required

• Underestimated value of your lost income, particularly if you cannot return to work for an extended period

• Property damage that is underpaid, forcing you to cover further costs out of pocket

• Overlooked or minimized pain and suffering

Once you sign a settlement agreement, you usually cannot go back and ask for more. That is why patience and caution are so important.

How to Respond to a Bad Insurance Settlement Offer

The first step is not to panic. A low offer does not mean your case is weak; in fact, it often means the opposite. Insurers make these offers because they know your claim could cost them much more if properly valued.

Instead of accepting right away, you should carefully review the offer and compare it to your actual losses. Look at your medical bills, pay stubs, repair or replacement estimates for property damage, and any other documentation of your expenses. This helps you understand whether the insurer’s number comes close to reality.

It is also important to consider future needs. If your doctor believes you may require surgery, physical therapy, or long-term medication, those costs need to be included. Settling too early could leave you paying for those treatments on your own.

Contact a Collin County, TX Car Accident Lawyer

Insurance companies keep records of which law firms and claimants push back against unfair offers. They also know which firms are willing to go to trial if needed. Our firm has a well-known reputation for standing strong in the face of lowball insurance offers, and we are not afraid to fight for you in trial. 

If you have received a settlement offer that does not reflect your true losses, you deserve guidance from attorneys who know how to take on insurance companies. At Burress Injury Law, we provide free consultations to accident victims throughout Texas, and even nationwide. Call 214-726-0016 today to discuss your options with a McKinney, TX car accident attorney who will fight for a fair settlement.