Partner at AKD Lawyers
Practice Areas: Personal Injury, Insurance Claims
When you’ve been in a car accident, you expect your insurance company to be there when you need them. You’ve paid your premiums, followed the rules, and trust that they’ll handle things fairly. But when the first offer arrives, many people are surprised to see how low it is.
Understanding how insurance companies value car accident claims can help you protect yourself from unfair settlements and make informed decisions about your recovery.
Why Insurance Companies Devalue Car Accident Claims
Insurance companies are not charities. They are businesses focused on profits. Every claim payout affects their bottom line. This means that while an adjuster might sound friendly and helpful, their job is to settle your claim for as little as possible.
Some common tactics include quick settlement offers before you know the full extent of your injuries, unnecessary delays, or questioning your medical treatment. These strategies are designed to wear you down until you accept less than what your claim is worth.
An insurance adjuster may also request an Independent Medical Examination (IME). While it sounds neutral, the doctor is typically hired by the insurer, and their report often leans in favor of the company.
“Insurance companies are required under Louisiana Revised Statute § 22:1973 to act in good faith, but that does not mean every claim is handled fairly.”
Understanding Low Settlement Offers
A lowball offer is one that falls far below the true value of your claim. Many drivers accept the first offer because it seems generous at first glance. Unfortunately, it often doesn’t cover long-term medical costs or lost wages.
What these offers usually leave out:
- Future medical care such as therapy or follow-up procedures
- Pain, suffering, and emotional distress
- Lost earning capacity or reduced ability to work
- Long-term care and rehabilitation
“A 2024 Insurance Research Council study found that injury claimants who documented future medical costs received settlements nearly 3 times higher than those who did not.”
When you add these overlooked factors, the value of your claim can change dramatically.
Key Factors That Influence Claim Value
Every accident is unique. The amount you’re entitled to depends on how the accident affected your health, finances, and daily life.
Medical Expenses
This includes every part of your treatment such as ambulance rides, emergency visits, hospital stays, physical therapy, medication, and future medical needs. Keeping organized medical records helps ensure nothing is missed.
Lost Income
If your injury keeps you from working, the wages you lose during recovery are compensable. In severe cases, you may also recover for a reduced ability to earn in the future.
Pain and Suffering
Accidents affect more than just the body. Anxiety, loss of sleep, or emotional stress are real damages and part of your total compensation.
Property Damage and Daily Impact
Repairing or replacing your car and personal items is part of your claim, along with how the accident disrupted your normal life.
Louisiana follows a comparative fault law under La. Civ. Code Art. 2323. This means your compensation may be reduced if you share part of the blame for the crash.
“Under Louisiana Civil Code Article 3492, most personal injury claims must be filed within one year of the accident date.”
Knowing the law helps you act within deadlines and avoid losing your right to recover compensation.
Independent Medical Examinations (IMEs) Explained
An Independent Medical Examination is often requested by insurers to verify injuries. Despite the name, these exams are not always independent. The physician conducting it is chosen and paid by the insurance company.
Sometimes, IME reports minimize the seriousness of injuries or suggest that additional treatment isn’t needed. That’s why keeping your own medical records and following your doctor’s advice is crucial.
Documenting ongoing symptoms, treatment schedules, and physician notes provides a balanced view of your condition and supports your claim’s accuracy.
Common Gaps Between Initial and Final Insurance Settlements
|
Injury Type |
Example of Initial Offer | Adjusted Value After Full Evaluation |
Key Factors Overlooked |
| Minor soft-tissue injury | $4,000 | $12,000 | Physical therapy, missed work days |
| Fractured limb | $18,000 | $50,000 | Surgery costs, long-term rehab |
| Head injury (mild TBI) | $25,000 | $120,000 | Neuro evaluations, cognitive therapy, income loss |
Figures are illustrative and not actual case results.
This comparison shows how much a claim’s value can change when future costs and long-term recovery are fully considered.
Steps to Protect Yourself When Dealing with Insurance Companies
After a car accident, documentation is your strongest protection. Keep copies of every record like medical reports, repair estimates, receipts, and correspondence with your insurer. These details show the true scope of your loss.
Before accepting any offer, compare it to your total documented losses and consider future needs. Don’t rely solely on what the adjuster says your claim is worth.
If your recovery involves surgery, ongoing therapy, or emotional distress, the real value of your claim could be much higher than the initial offer. Acting quickly is important since Louisiana’s one-year statute of limitations begins the day of your accident.
Understanding these steps gives you confidence to make informed choices and protect your financial recovery.
Frequently Asked Questions
Why do insurance companies offer low settlements after accidents?
They often make early low offers to protect profits, hoping claimants accept before full medical, emotional, and financial impacts of the accident are fully known.
What should I include when calculating the true value of my claim?
Include medical bills, ongoing care costs, lost income, pain, suffering, property damage, and emotional distress to reflect the complete financial and personal impact of your accident.
Are Independent Medical Examinations (IMEs) mandatory?
IMEs may be required by your insurer or a court to verify injuries, but remember the examining doctor is typically chosen and compensated by the insurance company.
How long do I have to file a car accident claim in Louisiana?
Louisiana law allows one year from the accident date to file a personal injury claim, after which you could lose the right to seek compensation.
What happens if I’m partly at fault for the crash?
Under Louisiana’s comparative fault rule, your compensation decreases proportionally to your share of fault, meaning partial responsibility reduces but does not eliminate recovery.
Conclusion
Insurance companies know how to minimize payouts. Understanding how insurance adjusters calculate settlements and what truly affects claim value helps you avoid costly mistakes.
Your claim should reflect more than just immediate medical bills, it should cover your ongoing care, emotional recovery, and lost income. Acting quickly, keeping records, and learning how insurers work puts you in control.
If you were injured in a car accident in Louisiana and want to understand your rights, Alvendia, Kelly & Demarest Law Firm can help you review your situation and explain your legal options.
Start your free consultation today to learn what your claim may truly be worth.
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In 2003, after being dissatisfied with the quality of legal care for victims of car accidents, Roderick ‘Rico’ Alvendia sought to establish a new firm focused on providing high-quality legal services to aid injured victims and their families. J. Bart Kelly, sharing Rico’s passion for upholding justice, joined the firm later that year, and established a partnership.
