Why are personal injury claim first offers so low?

Defendant insurers deliberately under-value personal injury cases. This is because a percentage of claimants are unrepresented and do not receive independent advice. As a result, they are “captured” directly by the defendant insurance companies who hope to use the claimants’ lack of knowledge. Defendant insurers also deliberately make low first offers, hoping that claimants will take the first offer made so as to settle the case quickly.

Example of insurers making a low offer:

We have just successfully settled a client’s claim for £4500.00.

Medical evidence was obtained and sent to the defendant insurers with a schedule of out of pocket expenses. From this, we requested their settlement proposals.

The insurers put forward an offer of £1750.00. We knew immediately from our years of experience that this was a significant under-value of the claim. We assessed the value of the case, utilising case law from cases previously decided by the Courts. From this research, we realised that the case was actually worth in the region of £5000.00.

Several offers then passed between the parties, before eventually securing a settlement at £4500.00.

In effect, the defendant insurer’s first offer represented just over only 40% of the true value of the claim.


Can I reopen a settlement once it is accepted?

Once a settlement is accepted, a case cannot be re-opened.

However, if you have been incorrectly advised by another firm of solicitors to accept a low offer, and it was before you were fully recovered and against your wishes and instructions, then you may be able to make a professional negligence claim against your former legal representatives. Contact us for a free initial consultation at Ringrose Law to see if you can make a claim.

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