When you’ve been injured in an accident caused by someone else’s negligence, the last thing you expect is to be lowballed by the insurance company. But in Massachusetts, many personal injury victims are shocked when that initial settlement offer lands far below what they imagined—often failing to account for long-term care, pain and suffering, or even basic medical bills. If this has happened to you, you’re not alone—and you’re not powerless.
Below, we break down five key reasons your first settlement offer is likely far lower than your claim is actually worth, and what you can do about it.
1. Insurance Companies Prioritize Profit—Not Fairness
How Insurance Adjusters Are Trained to Undervalue Claims
Insurance adjusters in Massachusetts (and nationwide) are often trained to settle claims quickly and for as little as possible. Their goal? Minimize payouts to protect the insurer’s bottom line.
They’ll use software programs like Colossus or internal claim valuation formulas to generate an offer—often without fully considering the human impact of your injuries. This automated approach tends to favor objective costs (like ER visits) and downplay subjective damages such as:
- Pain and suffering
- Loss of enjoyment of life
- Emotional trauma
- Ongoing limitations or disabilities
You might see a few thousand dollars offered for injuries that could cost you tens of thousands in the long run.
Massachusetts Comparative Negligence Plays a Role
Massachusetts follows a modified comparative negligence rule. If you're found to be more than 50% at fault, you lose the right to compensation entirely. Even if you're less than 50% responsible, your settlement can be reduced by your percentage of fault. Insurance companies exploit this to justify lower offers early on, even when your fault is minimal or disputed.
2. Your Damages Haven’t Been Fully Calculated Yet
Medical Recovery Takes Time
The first offer usually comes early—before you’ve finished treatment or received a long-term diagnosis. You may still be attending physical therapy, undergoing testing, or awaiting surgery. Accepting a settlement too soon means:
- You waive the right to claim future medical expenses
- You can’t pursue compensation for complications that arise later
- You may be left personally responsible for ongoing care
Lost Wages and Future Income Loss Often Overlooked
Initial settlement offers often ignore projected future earnings. If your injury limits your ability to return to your previous job, retraining or career changes can be costly. Early estimates frequently skip:
- Time off beyond your initial recovery
- Reduced earning capacity
- Missed promotions or benefits
3. The Insurance Company Is Testing Your Patience
Psychological Pressure Is a Tactic
Many adjusters use time to their advantage. They know you’re stressed, facing bills, and may be desperate for quick financial relief. By offering a fast—but low—payout, they hope you’ll settle before you realize the full value of your claim.
They may also delay communication or paperwork to wear you down. This is especially effective when victims don’t have legal representation.
Lowball Offers Are Meant to Open Negotiation
Rarely is a first settlement offer intended to be the final word. Insurers often expect some pushback. If you accept without negotiating, you’re leaving significant compensation on the table.
4. Non-Economic Damages Are Minimally Valued
Pain and Suffering is Difficult to Quantify
One of the biggest reasons for a low offer is the subjective nature of non-economic damages. These include:
- Chronic pain
- Sleep disruption
- Depression or anxiety
- Loss of consortium
Since there’s no receipt or medical bill to “prove” these losses, insurers often assign them little to no financial value unless they are challenged with strong evidence.
Lack of Legal Representation Weakens Your Leverage
Without an attorney advocating for your full recovery—including intangible losses—it’s unlikely the insurance company will take these claims seriously. Massachusetts injury lawyers can back up these damages with expert opinions, journal entries, mental health evaluations, and more.
5. They’re Banking on You Not Knowing Your Rights
Massachusetts Law Offers Strong Protections—But Only If You Use Them
In Massachusetts, personal injury victims have three years from the date of the injury to file a lawsuit. But most claims settle long before court becomes necessary. The problem? Insurers know many victims never consult an attorney, let alone prepare to litigate.
A 2023 Insurance Research Council study found injury victims who hire a lawyer receive settlements 3.5 times larger on average than those who go it alone. When you don’t know how your claim is calculated—or what you’re truly entitled to—insurers take advantage.
Claims Without Documentation Are Easy to Undervalue
Insurers will often claim there's “insufficient documentation” for:
- Pain and suffering
- Long-term disability
- Mental health impacts
- Future medical care
Without a detailed demand letter, supporting records, and medical evaluations, they feel justified in offering far less than fair value.
What You Can Do If You’ve Received a Low Offer
If you’ve already received a low settlement offer for a personal injury in Massachusetts, don’t panic—and definitely don’t sign anything yet. Here are a few steps to consider:
Get a second opinion from a personal injury attorney. Most offer free consultations.
Gather documentation: medical records, wage stubs, and injury-related expenses.
Avoid recorded statements or signed releases without legal advice.
Consider a demand letter with detailed damages and supporting evidence.
Remember, once you accept a settlement, you typically waive your right to pursue additional compensation—even if your condition worsens later.
Conclusion
Insurance companies don’t offer low settlements by accident—it’s a strategy. Whether it’s due to incomplete information, calculated pressure, or the assumption that you won’t fight back, their first offer is rarely what your claim is truly worth. In Massachusetts, the law allows injury victims to pursue full compensation—but only if you push back, document your losses, and seek help when needed. Don’t settle for less than what you need to move forward.
Need Legal Help? Brandon J. Broderick, Attorney at Law is One Phone Call Away
Navigating Massachusetts Personal Injury Claims can be challenging. Fortunately, you don't need to do it alone. The experienced lawyers at Brandon J. Broderick, Attorney at Law, are available 24/7 to help you understand your legal options, gather necessary evidence, and build a strong case to secure the settlement you deserve.
Contact us now for a free legal review.