How Do Insurance Companies Try to Reduce Injury Settlements in Arkansas?

In Arkansas, victims of personal injury can seek compensation for economic and non-economic damages. Unfortunately, insurers can be challenging to work with after a serious accident. Do not rely on any insurance company to look out for your best interests. An experienced Little Rock personal injury attorney can help you navigate settlement negotiations.

Insurance companies have a financial incentive to limit the value of personal injury claims, and they may use several strategies to challenge liability, causation, and damages. An insurer may dispute the severity of an injury, argue that medical treatment was unnecessary or unrelated to the accident, invoke comparative fault, or make an early, lowball settlement offer.

Are Most Personal Injury Claims in Arkansas Settled?

Pursuing a personal injury claim in Arkansas certainly does not mean you will be going to trial. It does not even necessarily mean that you will need to file a lawsuit. Settlement is far more common. It can occur before a lawsuit is filed, during litigation, or even shortly before trial.

A settlement gives both sides more control over the outcome. The victim receives an agreed amount of compensation without asking a jury to determine liability and damages, while the insurer or defendant avoids the uncertainty and expense of more litigation. With that being said, accepting settlement only makes sense when the proposed amount represents the fair value of your case.

What are the Strategies Insurers Use to Settle Claims for Less?

Insurance companies have a strong financial incentive to settle personal injury claims for less. Even when they determine liability is clear, they use a wide range of strategies to limit payouts. Some common tactics insurers use to settle for less in Arkansas include:

Disputing Fault: An adjuster may argue that its insured did not cause the accident or that the injured victim contributed to it. In some cases, comparative fault can become important in Arkansas because a claimant’s percentage of responsibility can reduce or, at the statutory threshold of 50 percent, completely bar recovery (Ark. Code Ann. § 16-64-122).
Questioning Medical Causation: Insurers may argue that an injury resulted from a pre-existing condition rather than the accident. They may also challenge whether particular medical procedures, rehabilitation services, or future treatment were related to the accident.
Minimizing the Severity of Injuries: An adjuster may emphasize normal diagnostic findings, gaps in medical treatment, relatively short treatment periods, or evidence that the victim resumed ordinary activities.
Making an Early Settlement Offer: A quick settlement offer is rarely a maximum settlement offer. Insurers may offer money before the injured victim reaches maximum medical improvement or fully understands the injury’s long-term consequences. Once the claimant signs a valid release, the settlement generally ends the covered claim.
Requesting Broad Information: Insurers may request medical records, employment information, prior medical history, recorded statements, or other documentation during a claim investigation. Some of that information may be relevant, but an overly broad request can also produce material the insurer later uses to dispute causation or damages.

How Can a Little Rock Injury Lawyer Help With Settlement?

Personal injury claims are complicated. Dealing with an insurance company after a serious accident is not easy. A top-rated Little Rock personal injury lawyer can help you develop the strategy that makes the most sense for your case. Along with other things, your lawyer can:

Thoroughly Investigate Your Accident: A Little Rock personal injury attorney can gather photographs, video, witness testimony, police records, electronic data, and expert evidence to establish how the accident happened and respond to comparative fault allegations.

Carefully Document Your Damages: You need to be prepared to prove the value of your damages. Your Little Rock Personal injury lawyer can document your medical bills, lost wages, pain and suffering, and other damages.

Prepare a Compelling Settlement Demand: A detailed demand can present the liability evidence, medical documentation, damages calculation, and legal basis for compensation in an organized package. That gives the insurer a concrete basis for evaluating the claim.
Evaluate the Offer and Build a Counteroffer: A Little Rock personal injury attorney also can compare an insurer’s offer with the evidence, available coverage, likely defenses, and potential litigation value of the claim. If the offer is inadequate, your lawyer can prepare a counteroffer supported by additional evidence and legal analysis.

FAQs: Insurance Companies and Personal Injury Settlements

Should I Accept the Initial Settlement Offer from the Insurance Company?

Not without first speaking to an experienced Little Rock personal injury attorney. In a personal injury claim, it is common for insurance companies to make low initial settlement proposals. Your lawyer can review your accident, your damages, the settlement offer, and all other relevant details in order to help you develop a negotiation strategy.

What is a Demand Letter and How Can it Move My Claim Towards Settlement?

Broadly speaking, a personal injury demand letter is a formal settlement demand sent to the insurer or responsible party that explains the factual and legal basis for liability and states the compensation sought. A demand letter can be used to present your case before the insurance company and move your claim forward. It should be drafted by an attorney.

Can a Little Rock Personal Injury Lawyer Help Me Build a Counteroffer?

Yes, a Little Rock personal injury lawyer can prepare a counteroffer when an insurer’s settlement offer does not adequately reflect the documented value of the claim. Among other things, your counteroffer can address weaknesses in the insurer’s valuation by presenting additional evidence regarding liability, medical causation, and current and future damages.

Speak to Our Little Rock Personal Injury Lawyer Today

At Reed Firm, our Little Rock personal injury attorney has the professional experience that you can rely on. If you have any questions about how insurance companies handle settlement negotiations, we are here to help. Reach out to us by phone at 501-777-7333 or contact us online to get your free, no-obligation case review. With an office in Little Rock, our firm handles personal injury claims in Pulaski County and throughout Arkansas.