If you sustain a serious injury in a car accident, you may need immediate funds to help you pay for the high cost of recovery. While a payout from the insurance company certainly helps, you do not want to receive less than you deserve. 

Regrettably, insurance companies regularly make low-ball settlement offers to claimants. If you receive one of these offers, it is probably because of one of the following reasons. 

1. The bottom line 

Most insurance providers are large corporations. Therefore, their leaders have a duty to maximize profit for shareholders. While there are many ways to accomplish this goal, paying as little as possible for accident claims typically works. 

2. Your acquiescence 

Because you probably do not have a car accident every day, you may not have much experience dealing with insurance companies. While the offer may not cover your expenses, you may think your provider’s first settlement offer is as good as it gets. Insurance companies may use your lack of experience to their benefit. That is, if you acquiesce, the company saves money by paying a low settlement. 

3. Computer algorithms 

You may believe an insurance adjuster has carefully reviewed your file and come up with a fair settlement offer. That may not be the case, however. Instead, the insurance company may have used a computer algorithm to determine how much to offer you. This approach, unfortunately, does not account for factors that are unique to you, your accident or your injuries. 

4. Your right to sue 

Following a serious automobile accident, you have a right to seek fair compensation for your injuries and property damage. When you accept an insurance settlement, however, you typically waive your right to file a lawsuit. Sadly, by offering you a low-ball settlement, an insurance company may have a cheap way to avoid litigation. 

Even though you probably have a right to sue, you may not have to go that route. Nonetheless, by carefully considering why an insurance company may be trying to settle for less than you deserve, you can better protect your legal interests.