Settlement Offers from Insurance Companies Are Almost Always Low
Traffic Accidents
- Yaizu & Makinohara Attorneys Top
- Traffic Accidents
- Settlement Offers from Insurance Companies Are Almost Always Low
- I want to consult about a traffic accident in Yaizu or Makinohara
- I want to know if the settlement offer from the insurance company is fair
- The settlement amount offered by the insurance company is too low
Are you troubled by issues like these in Yaizu, Makinohara, Omaezaki, Fujieda, Shimada, Yoshida Town, or surrounding areas?
Yaizu Sogo Law Office offers a free initial legal consultation regarding traffic accident concerns. There is no obligation to retain our services after the initial consultation. We are also available on weekday evenings and Saturdays. Please feel free to contact us by phone or email.
Settlement Offers Presented by Insurance Companies Are Almost Always Low
If you are involved in a traffic accident and the at-fault driver has automobile insurance (voluntary insurance), all communications regarding the accident will be conducted with the insurance company of the at-fault driver.
Once your medical treatment is complete, the insurance company will present a settlement offer for the traffic accident.
For most people, being involved in a traffic accident is a first-time experience, so you may look at the settlement offer presented by the insurance company and think that is simply what the compensation amount is.
However, insurance companies almost never present a fair settlement offer in the first place.
This is because insurance companies handle a massive volume of traffic accident cases and try to minimize the compensation paid to victims. As a result, insurance companies use their own proprietary standards (the voluntary insurance standard described below as Standard ②) to ensure that no losses are incurred on their part.
In other words, the settlement amount offered by an insurance company is low from the outset and significantly below the fair amount. Victims need to negotiate with the insurance company in order to receive fair compensation for their damages.
In actual consultations, it is extremely common for the amount offered by insurance companies to be only about 30–50% of the court standard. Injuries such as whiplash (cervical sprain) and lumbar sprain are particularly prone to undervaluation, so caution is necessary.
The Court Standard Is the Fair Amount
So, the question becomes: "What exactly is the fair amount in a traffic accident?" The conclusion is that it is the amount calculated using the court standard (Standard ③ described below).
There are three standards for calculating traffic accident damages:
- ① Compulsory Automobile Liability Insurance (CALI) Standard
- ② Voluntary Insurance Standard
- ③ Court Standard
The amount varies significantly depending on which of these three standards is used for the calculation. The highest among the three is ③ the Court Standard. ① The CALI Standard and ② the Voluntary Insurance Standard result in considerably lower amounts compared to ③ the Court Standard.
As mentioned earlier, the settlement amount offered by insurance companies is calculated using ② the Voluntary Insurance Standard, so you must exercise great caution when settling. If you sign a settlement agreement and return it to the insurance company without knowing this, you will lose the opportunity to receive fair compensation.
③ The Court Standard is the "highest standard" and is a specialized standard used by attorneys. Because it differs from the standard used by insurance companies, the compensation amount can change dramatically simply by having an attorney intervene.
By Retaining an Attorney, You Can Expect an Increase Based on the Court Standard
As described above, since the settlement offer presented by insurance companies is not a fair amount, we strongly recommend retaining an attorney for your traffic accident case. By having an attorney act as your representative, your damages will be recalculated using the court standard, and the attorney will negotiate with the insurance company on your behalf.
Attorneys negotiate with insurance companies with the possibility of litigation in mind, and insurance companies dislike going to court. This is because, from the court's perspective, the settlement amount offered by insurance companies is low and not a fair amount, so it is inevitable that they would have to pay higher compensation if the case went to trial. Therefore, it is no exaggeration to say that in most cases, the insurance company will increase the initially offered settlement amount once an attorney becomes involved in the negotiations.
Of course, even if the insurance company increases the settlement offer, if the amount still does not reach the court standard and is not satisfactory to the client, it is possible to file a lawsuit and obtain fair compensation based on the court standard through litigation.
In past cases, consolation money, lost earnings due to residual disability, and other items have been significantly reassessed, with many cases resulting in more than double the initially offered amount.
Attorneys handle all aspects requiring specialized legal knowledge, such as the "assessment of the treatment period" and the "appropriateness of the residual disability grade."
To Claim a Fair Amount for a Traffic Accident, Please Retain an Attorney
As explained above, the insurance company of the at-fault driver is by no means your ally. You should understand that the settlement amount presented by the insurance company is low, and you should not rush into accepting it at face value. If you want to know the fair compensation amount for your traffic accident, please take advantage of the free legal consultation at Yaizu Sogo Law Office.
Insurance companies may strongly encourage "early settlement," but that is because they want to "close the case cheaply." Withdrawing from a settlement after signing the agreement is extremely difficult, so be sure to consult an attorney beforehand.
Frequently Asked Questions
Why is the settlement amount from the insurance company so low?
In most cases, insurance companies calculate using the voluntary insurance standard, which results in significantly lower amounts compared to the court standard. Consolation money and assessment of the treatment period tend to be particularly undervalued.
How much can the compensation increase if I retain an attorney?
In our consultation cases, there have been numerous instances where the amount became two to three times or more than the initial offer. A significant increase can be expected when a residual disability is certified.
I am worried about attorney fees. Is it expensive to retain one?
If you or a family member has attorney fee coverage (tokuyaku) as part of your insurance, there is generally no out-of-pocket cost. It does not affect your insurance premiums or rating.
When should I consult an attorney?
The most critical times are before the settlement offer is presented, when treatment ends, and before applying for residual disability certification. The earlier you consult, the more advantageous the outcome.
Can I consult from a distant location? Is online consultation available?
We offer online consultations, and many clients from across Shizuoka Prefecture (Yaizu, Makinohara, Fujieda, Shimada, etc.) use this service.
The Initial Legal Consultation for Traffic Accidents at Yaizu Sogo Law Office Is Free of Charge
Yaizu Sogo Law Office provides a free initial legal consultation regarding traffic accidents.
We handle all traffic accident-related legal matters, regardless of severity or whether they involve property damage or personal injury. If you are feeling stressed by dealings with insurance companies, or if you want to know whether the amount offered by your insurance company is fair, please do not hesitate to consult with us.
Yaizu Sogo Law Office is available not only during regular weekday hours but also on weekday evenings and Saturdays. Please contact us by phone or email to schedule a legal consultation.
Contact
If you are facing issues with traffic accidents, debt restructuring, or inheritance:You can consult a lawyer for free
At Yaizu General Law Office, free legal consultations are available for those facing traffic accidents, debt restructuring, or inheritance issues. There is no obligation to retain our services after a free consultation. For other areas of law, consultations are available at 5,500 yen (tax included) per 30 minutes. Please do not hesitate to contact us if you need assistance.
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About Yaizu General Law Office
Yaizu Office
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- Address
- 〒425-0028
3-11-4 Ekikita, Yaizu City,
Shizuoka Prefecture
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- Phone
- 054-639-5573
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- Business Hours
- Mon-Fri 9:00 AM - 7:00 PM Sat 9:00 AM - 5:00 PM / Closed: Sundays & Holidays
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- Access
- 6-minute walk from Yaizu Station / Parking available
- Access
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- Service Area
- Yaizu, Makinohara, Fujieda, Shimada, Yoshida, and surrounding areas
Makinohara Office
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- Address
- 〒421-0422
Maison de Hautoku 1F, 140-4 Shizunami,
Makinohara City, Shizuoka Prefecture
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- Phone
- 0548-28-6710
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- Business Hours
- Mon-Fri 9:00 AM - 7:00 PM Sat 9:00 AM - 5:00 PM / Closed: Sundays & Holidays
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- Access
- 4-minute walk from Shizunami 1-chome (Bus Stop) / Parking available
- Access
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- Service Area
- Yaizu, Makinohara, Fujieda, Shimada, Yoshida, and surrounding areas
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Free Legal Consultation Process
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01
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Making a Reservation for Free Legal Consultation
Please make a reservation by phone or email. There is absolutely no obligation to retain our services after a free consultation. If you are in need of help, please feel free to come in for a consultation.
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Free Legal Consultation with an Attorney
An attorney will personally listen to the details of your situation. Bringing a memo or documents summarizing your issue will help the consultation go smoothly. If the matter is resolved through consultation alone, the process ends here.
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If You Wish to Retain an Attorney
During the consultation, we will also explain the fees and outlook should we take on your case. If you wish to proceed, you may retain us at that time. You are also welcome to take the information home and consider it before making a decision.
