Why Insurance Companies Make Lowball Settlement Offers After Car Accidents (And What You Can Do)

Originally Published January 9, 2022 | Updated by Robert Byrne January 3, 2026

Imagine this: You’re recovering from a car accident. Your neck still aches. You’re missing work. Medical bills are piling up. Then the insurance adjuster calls with “good news” – they’re ready to settle your claim right away for $5,000.

It sounds tempting, doesn’t it? Quick money. No hassle. You do not need to share any money with an attorney. Case closed.

But here’s what they’re not telling you: What if your claim might actually be worth $250,000 or more? They’re counting on you not knowing the difference.

The harsh reality? Insurance companies make lowball settlement offers after car accidents because it works. Most people accept far less than their claims are worth – simply because they don’t realize they’re being shortchanged.

If you’re dealing with a car accident claim in Virginia, this article will show you exactly why insurance companies lowball settlements, how to recognize their tactics, and when you need to push back through litigation or trial to get what you actually deserve.

Why Do Insurance Companies Make Lowball Offers After Car Accidents?

Let’s be clear about one thing: Insurance companies are businesses designed to make profits. And they make more profit when they pay less on claims.

Think about it from their perspective. Every dollar they don’t pay you is a dollar that goes to their bottom line. Their adjusters are evaluated – and often bonused – based on how much money they save the company on settlements.

Here’s the uncomfortable truth: The insurance adjuster who seems so friendly and concerned about your recovery? They’re trained professionals whose job is to minimize what you receive. Not because they’re bad people, but because that’s literally what their employer pays them to do.

The Financial Incentive Behind Lowball Offers

When an insurance company lowballs your car accident settlement, they’re playing a numbers game:

Most people settle early without consulting an attorney
Most people don’t know what their claim is actually worth
Most people are desperate for quick money to pay medical bills
Most people fear litigation and assume it’s not worth the hassle

Insurance companies study these patterns. They know that if they make 100 lowball offers, maybe 70-80 people will accept them. Those 20-30 who push back? The insurance company can still settle many of those for less than fair value. The few who actually hire attorneys and pursue litigation? Those cases cost more, but the savings from the 70-80 quick settlements more than make up for it.

The bottom line: Lowballing claims is profitable. Period.

For a legal consultation with a personal injury lawyer, call (434) 817-3100

Common Tactics Insurance Companies Use to Lowball Car Accident Victims

Insurance adjusters have an entire playbook of tactics designed to minimize your settlement. Here are the most common strategies they’ll use after your car accident:

1. The Quick Settlement Push

“We want to help you get money fast!”

The adjuster calls within days or even hours of your accident. He or she expresses concern and offers a quick settlement. Maybe they say they will reserve some funds in a pool you can use for medical treatment. They make it sound like they’re doing you a favor by moving so quickly.

The reality? They’re trying to settle before you:

Understand the full extent of your injuries
Consult with an attorney
Learn what your claim is actually worth
Discover injuries that may develop days or weeks later

In one case we handled, an insurance company eventually offered our client $35,000 following a car accident. He sustained a shoulder injury and the insurance company refused to increase the offer as we got close to trial. He declined the offer and agreed to try the case to a jury. The jury heard the evidence and validated our client by awarding him $258,000 – more than seven times the initial offer and above the policy limits.

2. Questioning Your Claim’s Validity

Insurance adjusters are experts at planting seeds of doubt:

“Are you sure you were injured that badly?”
“Our investigation shows the damage to the vehicles was minimal”
“The police report doesn’t mention you were hurt”
“Maybe you’re just not used to this level of physical activity?”

They want you to question whether you even deserve compensation. This tactic is especially common in cases involving traumatic brain injuries or other injuries that aren’t immediately visible.

3. Blaming Pre-Existing Conditions

Did you hurt your back in this accident? The adjuster will dig through your medical records to find that time you threw out your back five years ago.

“This injury was pre-existing. The car accident didn’t cause it – the old problem is acting up but that has nothing to do with this crash.”

The legal reality in Virginia? If a car accident aggravates, worsens, or accelerates a pre-existing condition, you’re entitled to compensation for that aggravation. But insurance companies will try to use your medical history against you to reduce what they pay.

4. Minimizing Your Injuries

“You’re healing fine. Your injuries aren’t that serious.”

Insurance adjusters love to downplay injury severity, especially when dealing with:

Soft tissue injuries
Concussions and mild TBI
Psychological trauma
Chronic pain
Future medical needs

We once represented a client with what the insurance company called a “mild concussion.” They offered $125,000 to settle. After litigation and trial, a jury awarded $2.21 million because they understood the true impact of even a “mild” traumatic brain injury on our client’s life, work, and future.

5. Using Your Recorded Statement Against You

The adjuster asks if you’ll give a recorded statement “just to document what happened.” Sounds innocent enough, right?

Be careful. Every word you say in that recorded statement can and will be used to minimize your claim. Adjusters are trained to ask questions designed to get you to:

Downplay your injuries
Accept partial fault
Make inconsistent statements they can exploit later
Admit to pre-existing conditions

Pro tip: In Virginia, you’re generally not required to give a recorded statement to the other driver’s insurance company. Consult with an attorney first.

6. The Delay Tactic

Sometimes lowball offers come in a different form: No offer at all.

The insurance company drags out the investigation. Requests more documentation. “Needs more time to review.” Meanwhile, your bills are piling up, you’re missing work, and financial pressure is building.

Then, suddenly, they make an offer – one that’s far too low but starts to look appealing when you’re desperate. Next thing you know, you are a month away from the statute of limitations and feel like you have to accept the low offer because you are out of time.

7. Ignoring Non-Economic Damages

Insurance companies love to focus only on “economic damages” – the bills and receipts they can count:

Medical bills
Lost wages
Property damage

What they conveniently ignore:

Pain and suffering
Emotional distress
Loss of enjoyment of life
Loss of consortium (impact on your relationship with your spouse)
Future losses and ongoing care needs

These non-economic damages often represent the majority of a fair settlement value in serious car accident cases. But you’ll never see them reflected in a lowball offer.

Red Flags: How to Recognize a Lowball Settlement Offer

How do you know if you’re being lowballed? Here are warning signs:

🚩 The offer comes very quickly (within days or weeks of the accident), while you are still undergoing medical treatment

🚩 The adjuster pressures you to accept “before the offer expires” or “before management changes their mind”

🚩 The offer only covers medical bills with little or nothing for pain and suffering

🚩 They refuse to explain how they calculated the offer

🚩 The offer ignores future medical needs or ongoing treatment

🚩 You haven’t reached maximum medical improvement (MMI) yet

🚩 The adjuster discourages you from consulting an attorney

🚩 The settlement requires you to sign a broad release without time to review

🚩 Your gut tells you something doesn’t feel right

If you’re seeing multiple red flags, you’re almost certainly looking at a lowball offer.

Red flags indicating a lowball car accident settlement offer including quick offers, pressure tactics, and inadequate compensation for injuries

Warning signs that an insurance company is making a lowball settlement offer after your Virginia car accident. If you see multiple red flags, consult with an experienced personal injury attorney before accepting.

What Your Car Accident Claim Is Actually Worth

So if the insurance company’s offer is too low, what’s your car accident case really worth?

Every case is different, but fair compensation in a Virginia car accident claim should include:

Economic Damages

Past medical expenses: Hospital bills, surgery, physical therapy, medication, medical equipment
Future medical expenses: Ongoing treatment, future surgeries, long-term care needs
Lost wages: Income you’ve already lost due to injury
Lost earning capacity: Reduced ability to earn in the future
Property damage: Vehicle repair or replacement

Non-Economic Damages

Pain and suffering: The physical pain you’ve endured and will continue to endure
Emotional distress: Anxiety, depression, PTSD, fear of driving
Loss of enjoyment of life: Activities you can no longer do
Disfigurement or scarring: Permanent physical changes
Loss of consortium: Impact on your marriage and family relationships

Factors That Increase Settlement Value

Virginia juries and insurance companies consider several factors when valuing claims:

Severity and permanence of your injuries
Impact on daily life and ability to work
Amount of medical treatment required
Credibility of your medical providers and their documentation
Whether you followed treatment recommendations
Clear liability (how obvious it is that the other driver was at fault)
Available insurance coverage
Quality of documentation and evidence
Your age and life expectancy
Sympathy factors that make your case compelling to a jury

Here’s the key insight: Insurance companies calculate settlement offers based on what they think they’ll have to pay if the case goes to trial. If they believe you’ll accept a lowball offer and go away, that’s what they’ll offer. But if they believe you’re prepared to litigate and potentially go to trial, the offers get significantly better.

Why Litigation May Be Necessary to Get Fair Compensation

Sometimes negotiation just isn’t enough. The insurance company has made up their mind: They’re offering $50,000 for a case that’s worth $500,000, and they’re not budging.

This is when litigation becomes necessary.

How Filing a Lawsuit Changes the Dynamic

The moment you file a lawsuit, several things happen:

The insurance company takes your claim seriously. You’re no longer just another person they can lowball. You’ve demonstrated you’re willing to fight.
The discovery process begins. Now you can force the insurance company and the at-fault driver to:

Answer questions under oath (depositions)
Produce documents they’ve been hiding
Respond to written interrogatories
Admit or deny specific facts

Experts get involved. You can hire medical experts, accident reconstruction specialists, economists, and vocational rehabilitation experts to prove the true value of your case.
Trial becomes a real possibility. And insurance companies know that juries in Virginia are often more generous than insurance adjusters.
Settlement offers typically increase. In many cases, the insurance company’s best offer comes on the courthouse steps – literally right before trial is about to begin.

When you should strongly consider litigation. Here are considerations:

The insurance company refuses to make a reasonable offer
Liability is disputed but you have strong evidence
Your injuries are severe and permanent
Future medical needs are substantial
The insurance company is acting in bad faith
You have a traumatic brain injury or other complex medical condition
Multiple parties may share liability
The at-fault party was a commercial truck driver or other commercial entity

Remember: Just because you file a lawsuit doesn’t mean you’re going to trial. Most cases still settle after litigation is filed – but they settle for far more than the initial lowball offers.

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Why Trial May Be Necessary to Keep Insurance Companies Honest

Some cases need to go all the way to trial. Here’s why:

Insurance Companies Test You

Think of lowball offers as a test. The insurance company is asking: “Will this person actually take us to trial, or will they eventually fold?”

If you reject their lowball offer but never file suit, they learn you’re bluffing. If you file suit but seem hesitant about trial, they’ll wait you out. They’re counting on you getting tired, scared, or desperate.

But if you’re genuinely prepared to go to trial? That changes everything.

Juries See Through Insurance Company Tactics

Virginia juries are often more sympathetic to injured victims than insurance adjusters. They understand that:

Real people suffer real injuries in car accidents
Insurance companies have deep pockets and can afford to pay fair compensation
Lowball offers are unfair

In our experience, juries often award more than we asked for because they’re offended by the insurance company’s conduct.

Remember those examples I mentioned earlier?

Case 1: Insurance offered $125,000 for a “mild TBI.” We went to trial. Jury awarded $2.21 million – more than 17 times the offer.
Case 2: Insurance offered $35,000. We went to trial. Jury awarded $258,000 – more than 7 times the offer and above policy limits.

These aren’t unusual outcomes when insurance companies lowball serious injury cases. Juries recognize injustice when they see it.

Trial as Accountability

Sometimes trial isn’t just about money – it’s about accountability. It’s about standing up and saying: “What happened to me matters. My injuries are real. And I deserve fair compensation.”

When you’re willing to go to trial, you’re not just fighting for yourself. You’re making it harder for insurance companies to lowball the next victim, and the victim after that.

The Reality of Going to Trial

Will every case go to trial? No. Statistically, most personal injury cases settle.

But the willingness to go to trial is what creates the leverage you need to get a fair settlement. Insurance companies have entire databases tracking which attorneys actually try cases and which ones always settle. If they know your attorney is willing to go to trial (and has a track record of winning), they’ll make better offers.

This is why choosing the right attorney matters. You need someone who:

Has trial experience
Has a track record of verdicts, not just settlements
The insurance companies know and respect
Is genuinely prepared to take your case to trial if necessary

At MartinWren, P.C., we’ve tried cases to verdict in Virginia courts. Insurance companies know we’re not bluffing when we say we’re ready for trial. And that makes a difference in the settlements we secure for our clients.

What to Do If You’ve Been Offered a Lowball Settlement

If you’ve received a settlement offer after a car accident in Virginia and you suspect it’s too low, here’s what to do:

Step 1: Don’t Accept Immediately

You are under no obligation to accept the first offer. In fact, you should be suspicious of any offer that comes quickly after an accident.

Take your time. Once you accept a settlement and sign a release, you generally cannot pursue additional compensation later – even if you discover your injuries are worse than you thought.

Step 2: Don’t Sign Anything Without Legal Review

Insurance companies will send settlement paperwork that includes a release. This legal document prevents you from pursuing any further claims related to the accident.

Read it carefully. Sometimes these releases are broader than they need to be. Have an attorney review any settlement documents before you sign.

Step 3: Document Everything

Start building your case by documenting:

All medical treatment and expenses
Lost wages and missed work
Pain levels and symptoms (keep a journal)
How the injuries impact your daily life
Photos of injuries and vehicle damage
Witness contact information
All communications with insurance adjusters

This documentation will be crucial whether you negotiate a better settlement or end up in litigation.

Step 4: Reach Maximum Medical Improvement (MMI)

Don’t settle until you’ve reached MMI – the point where your medical condition has stabilized and your doctors can predict your long-term prognosis.

Why? Because once you settle, you can’t go back for more money if:

Your injuries turn out to be worse than initially thought
You need additional surgery
Complications develop
You discover you can’t return to your previous work

Step 5: Consult with an Experienced Car Accident Attorney

This is the most important step. Before you accept any offer, talk to an attorney who handles car accident cases in Virginia.

Most personal injury attorneys, including our firm, offer free consultations. There’s no risk in getting a professional opinion about whether an offer is fair.

An experienced attorney can:

Review the offer and explain whether it’s reasonable
Identify damages the insurance company ignored
Estimate what your case might actually be worth
Negotiate with the insurance company on your behalf
File a lawsuit if litigation becomes necessary
Take your case to trial if that’s what’s needed for fair compensation

Step 6: Be Prepared for Negotiation

If you reject the initial lowball offer, be prepared for back-and-forth negotiation. The insurance company will likely come back with a slightly higher offer. This is normal.

Your attorney can handle these negotiations while you focus on recovering from your injuries.

Step 7: Know Your Timeline

In Virginia, you generally have two years from the date of the accident to file a personal injury lawsuit. This is called the statute of limitations. Some claims have even shorter notice periods.

Don’t let these deadlines sneak up on you. If you’re negotiating with an insurance company and the two-year mark is approaching, you may need to file suit just to preserve your rights – even if you hope to settle.

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Frequently Asked Questions About Lowball Car Accident Settlement Offers

How do I know if a car accident settlement offer is too low?

Compare the offer to your total medical bills (past and future), your lost income, and the severity of your injuries. If the offer only covers a fraction of your bills with little or nothing for pain and suffering, it’s almost certainly too low.

Red flags include: offers that come within days or weeks of the accident, pressure to accept immediately, refusal to explain how they calculated the offer, and ignoring your future medical needs. Trust your gut—if something feels off about the offer, it probably is.

Why do insurance companies make lowball offers after car accidents?

Insurance companies are businesses designed to make profits, and they make more profit when they pay less on claims. Their adjusters are often evaluated and bonused based on how much money they save the company on settlements.

They know that most people will accept lowball offers without consulting an attorney because they’re desperate for quick money, don’t know what their claim is worth, or fear the litigation process. It’s a numbers game—if 70-80 out of 100 people accept lowball offers, the strategy is profitable even when they have to pay more on the remaining cases.

Should I hire a lawyer if I receive a lowball settlement offer?

Yes. Studies consistently show that car accident victims represented by attorneys receive significantly more compensation—even after attorney fees—than those who handle claims themselves.

Attorneys know how to properly value claims, negotiate effectively with insurance companies, use litigation leverage, and take cases to trial when necessary. Most personal injury attorneys, including our firm, offer free consultations, so there’s no risk in getting a professional opinion about whether an offer is fair. Insurance adjusters are trained negotiators who handle claims every day—it’s an uneven playing field if you go it alone.

When is litigation necessary after a car accident?

Litigation becomes necessary when the insurance company refuses to make a reasonable offer despite good faith negotiations. This often happens when injuries are severe and permanent, liability is disputed but you have strong evidence, future medical needs are substantial, or the insurance company is acting in bad faith.

Filing a lawsuit changes the entire dynamic. The insurance company takes your claim more seriously, you can use the discovery process to force them to produce documents and answer questions under oath, and trial becomes a real possibility. Most cases still settle after litigation is filed—but they settle for far more than the initial lowball offers.

How long do I have to file a car accident lawsuit in Virginia?

In Virginia, you generally have two years from the date of the accident to file a personal injury lawsuit. This is called the statute of limitations, and it’s a hard deadline in most cases. Look at Va. Code § 8.01-243 for more information.

Don’t let this deadline sneak up on you while you’re negotiating with insurance companies. If you’re approaching the two-year mark and haven’t reached a fair settlement, you may need to file suit just to preserve your rights—even if you’re still hoping to settle the case.

What if I already accepted a lowball offer—can I still do anything?

Once you’ve signed a settlement release, you might have hope depending on the timing and a couple other aspects. Under Va. Code § 8.01-425.1, if you accept an insurance company offer in the first 30 days after a crash, and if you were not represented by an attorney, you have a very short window of time to rescind the settlement agreement. You might have less than 3 full days, so act quickly.

Talk to an attorney immediately to discuss whether you have any options.

Will hiring a lawyer reduce what I ultimately receive after fees?

This is one of the biggest misconceptions about hiring an attorney. Yes, attorneys typically take a contingency fee of 33-40% of the recovery. But you’ll almost always walk away with more money in your pocket even after the fee.

Here’s why: Attorneys know how to properly value claims and negotiate effectively. In our experience, the difference between a lowball offer and fair compensation is often 3-10 times or more. For example, if an insurance company offers you $35,000 and you accept it, you get $35,000. If an attorney rejects that offer, litigates the case, and gets a $258,000 verdict (which actually happened in one of our cases), you’d receive over $170,000 even after a 33% fee. The attorney fee is a small price to pay for that increased recovery.

Based on that, think of the attorney’s fee as an investment.

Can I negotiate directly with the insurance company without a lawyer?

You can, but it’s rarely in your best interest. Insurance adjusters are trained professionals who negotiate claims every single day. They know every tactic, every pressure point, and every way to minimize what they pay. You’re at a severe disadvantage.

Even if you don’t hire an attorney for full representation, at least consult with one before accepting any offer. Most personal injury attorneys offer free consultations where they’ll review the offer and tell you honestly whether it’s fair. That consultation alone could be worth tens or hundreds of thousands of dollars if it prevents you from accepting an inadequate settlement.

What if the insurance company’s offer is at their policy limits?

Just because an offer is at or near the policy limits doesn’t mean it’s fair compensation for your injuries. If your damages exceed the available insurance coverage, there may be other sources of recovery you haven’t considered.

These include: your own underinsured motorist (UIM) coverage, other potentially liable parties (like a bar that overserved the drunk driver, or a municipality responsible for dangerous road conditions), umbrella policies, and in some cases, the personal assets of the at-fault driver. An experienced attorney can identify all potential sources of compensation and pursue every avenue available.

How long does car accident litigation typically take in Virginia?

Plan on 1-3 years from filing suit to trial in most Virginia jurisdictions, though it varies by location and case complexity. The process includes filing the complaint, the discovery phase (exchanging documents, taking depositions, etc.), motions practice, and finally trial preparation and trial itself.

Many cases settle during this period—often right before trial when the insurance company realizes you’re serious. While that seems like a long time, remember: you’re fighting for compensation that may need to last the rest of your life, especially if you’ve suffered permanent injuries. It’s worth taking the time to do it right rather than accepting a quick lowball offer that leaves you struggling for years.

Don’t Let Insurance Companies Take Advantage of You

Car accidents are traumatic enough without having to fight insurance companies for fair compensation. But the unfortunate reality is that lowball offers are standard practice in the insurance industry.

You don’t have to accept it.

You have the right to fair compensation for your injuries. If an insurance company is trying to shortchange you with a lowball offer, you have options:

Reject the offer and negotiate
Hire an attorney to handle negotiations
File a lawsuit to pursue full compensation
Take your case to trial if that’s what justice requires

The insurance companies are counting on you to feel overwhelmed, desperate, or intimidated. They’re betting you’ll take their lowball offer and go away quietly.

Get the Legal Help You Deserve

If you’ve been injured in a car accident in Virginia and you’re facing a lowball settlement offer, we can help.

At MartinWren, P.C., we’ve successfully represented car and truck accident victims throughout Virginia in cases against major insurance companies. We understand their tactics because we’ve seen them all. And we’ve consistently secured fair compensation for our clients – whether through negotiation, litigation, or trial.

We offer free consultations for car accident cases. There’s no risk in calling to discuss your situation.

When you work with us:

We work on contingency – you pay nothing unless we recover compensation for you
We handle negotiations with insurance companies so you can focus on recovery
We’re prepared to litigate if the insurance company won’t make a fair offer
We’re ready to go to trial when that’s what’s necessary for justice
We have a track record of verdicts that show insurance companies we mean business

Don’t let an insurance company take advantage of you during one of the most difficult times of your life. Call us today for a free consultation to discuss your car accident claim and find out what your case is really worth.

Call MartinWren, P.C. at 888-775-8808 or contact us online to schedule your free consultation.

Your recovery matters. Your claim matters. And you deserve an attorney who’s willing to fight for what’s right.