How do I respond to a low settlement offer from an insurance company in California?

To respond to a low settlement offer, you should formally reject it in writing and provide a counter-demand supported by evidence of your damages. Do not cash any check or sign any release form, as this will likely end your claim. Here is how to respond to a low settlement offer in California: Step 1: Review the Offer and Your Case Carefully analyze the offer and compare it to your total damages. Gather all your documents, including medical bills, proof of lost wages, repair estimates, and any other receipts for expenses related to your injury. Do not make any statements or accept the offer until you have completed this step. Step 2: Calculate Your Full Damages Calculate the total value of your claim. This includes all current and future medical expenses, lost income, property damage, and non-economic damages like pain and suffering. Having a clear, evidence-based number is crucial for negotiating effectively. Step 3: Write a Counter-Demand Letter Draft a formal letter to the insurance adjuster. In the letter, you should state that you are rejecting their offer, explain why it is too low by referencing your documented damages, and present a specific, higher counter-offer. Attach copies (not originals) of your supporting documents to this letter. Step 4: Be Aware of the Statute of Limitations In California, you generally have two years from the date of the injury to file a lawsuit under Code of Civil Procedure Section 335.1. The insurance company knows this deadline. If negotiations stall and you get close to this deadline, you must file a lawsuit to protect your right to recover damages. Important Details: Insurance companies may reduce their offer based on "comparative fault" (California Civil Code Section 1714(a)), arguing that you were partially responsible for the accident. Be prepared to argue why the other party was fully or mostly at fault. Warnings: An insurer's failure to conduct a reasonable investigation or attempt a fair settlement may be considered an unfair claims practice under California Insurance Code Section 790.03(h). If you believe the insurer is acting in bad faith, document all communications. Never sign a release without fully understanding what rights you are giving up. This is general information and does not constitute legal advice. For complex situations, especially those involving serious injuries or disputes over fault, you should consult with a qualified California attorney.