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If you’ve been in a car accident and you’re frustrated by a low settlement offer, you’re not alone. I see it every week. Good, honest people are offered a fraction of what their claim is worth, and they feel frustrated, defeated, and wonder if that’s just 'how it works'—but experienced car accident lawyers can help you understand your rights and fight for the compensation you deserve
Let’s pull back the curtain on why this happens and what you can realistically do about it.
The Real Reason Insurance Companies Make Low Offers
Insurance companies don’t make money by paying fair settlements — they make money by paying as little as possible. Their entire system is built around minimizing risk and maximizing profit.
You think sweet Flo from the Progressive commercials is out there looking to pay you a fair amount? Not exactly. Progressive is worth $122 BILLION… that’s right, that’s billion with a “b.” According to the list of the Largest insurance companies by market cap, major insurers like Progressive focus heavily on profit growth, not fair payouts.
You are dealing with high value insurance companies who are focused on increasing profits. That motivation drives everything they do.
When you’re not represented by a lawyer, the insurance company knows something important: you don’t pose a real risk.
That might sound harsh, but it’s true. Cases get settled based on risk, not fairness.
For an insurance company, risk is about the possibility of having to pay out more than they think your claim is worth – sometimes MUCH more. The more you increase that risk, the more they will pay you.
How does that work in practice? If they don’t pay you a fair settlement, the risk is that you will file a lawsuit and a jury might award much more than they are offering. But did you catch the key part to creating that risk? Filing a lawsuit.
If there’s no risk that you’ll file a lawsuit or prove your case in court, there’s no incentive for them to offer more. They’ll only offer below market values on your claim because in their mind, what are you going to do about it? For the unrepresented, it’s a problem of leverage.
So they start low — really low — and see if you’ll take it.
And many people do, because the process is frustrating, confusing, and drags on long enough that it wears you down. Or for many people they are desparate and need the money now. Insurance companies know that after an accident, people are vulnerable because they are hurting, having bills, likely feel financial pressure, and are experiencing many other stressors. And when a claimant is in that condition, they know they have their best chance of getting someone to take a low offer. Never forget, everything an insurance company does is calculated.
They’re trained to follow a very specific internal process — one that most people never get to see. Understanding how insurance companies really evaluate car accident claims can give you a huge advantage when negotiating, because you’ll see exactly why their first offer is usually far below what your case is truly worth.
Their goal is simple: close your file for as little as possible, as fast as possible.
They do it by:
- Offering quick settlements before you know the full extent of your injuries
- Downplaying pain and long-term effects
- Using complicated rules about coverage or medical payments to justify their number
- Create confusion and urgency
They do this every single day, with thousands of claims. And they know it works.
The Real Issue: Leverage
A lot of people think hiring a lawyer is about “getting someone to talk tough” for them.
But that’s not it. It’s about creating leverage.
When you’re represented, the risk dynamic changes. Suddenly, the insurance company knows:
- Someone will actually gather evidence and calculate the real value of your claim
- Someone will argue the law to your benefit and fight for your rights
- There’s a chance your case could end up in court
That’s when offers start to get real.
What You Can Do If You’re Handling It on Your Own
So let’s be honest. If you’re going it alone and don’t plan to use an attorney, there will be limits to how much you can move the needle.
Without leverage, adjusters know they can afford to keep offers low.
That said, there are a few practical things you can do to make your case stronger and avoid leaving money on the table:
1. Make sure your medical bills are complete
Double-check that the insurance company has all your bills and records.
If anything’s missing like follow-up appointments, imaging, or therapy, the adjuster’s valuation will be artificially low.
2. Gather any missing evidence
If there’s any question about who was at fault, try to collect additional proof:
- Photos or videos from the scene
- Security or dash cam footage
- Witness statements (even short written notes help)
Sometimes this kind of documentation can tip a liability dispute in your favor.
3. Request the police report and any available video
In New Mexico, many law enforcement agencies now have lapel and dash camera footage that can be obtained with the police report.
This can show exactly how the crash occurred — and it’s especially helpful if fault is disputed or the other driver changed their story later.
4. Stay organized and polite
Adjusters respond better to claimants who are professional and consistent. As discussed in 5 tips for how to interact effectively with insurance adjusters after a car accident, staying calm, organized, and respectful can make a big difference in how your claim is handled.
Keep a simple claim notebook: document every call, keep copies of every record, and avoid emotional arguments.
Facts and documentation are your best tools.
The Bottom Line
Insurance companies make low offers not because your claim isn’t valid — but because they can.
They count on people giving up.
If you’re getting lowballed, don’t take it personally, take it as a sign that it’s time to get help.
At The Injury and Disability Law Center, we deal with this every day.
We know how to turn pressure back on the insurance company and get your claim moving in the right direction.
If you’ve received a settlement offer that doesn’t seem fair, give us a call.
We’ll tell you whether it is and what to do next.
Our dedicated team here at The Injury and Disability Law Center is here to help you. Schedule your free initial consultation today by calling our office at 575-300-4000, starting a chat, or filling out our online form.
If you want even more information, feel free to check out my free book, Car Accident Cases Made Simple(r), where I discuss this topic and more.
