When someone is injured due to another party's negligence, one of the first steps in seeking compensation is dealing with the at-fault party's insurance company. In Vermont, as in many states, insurance companies play a central role in the personal injury claims process—especially when it comes to negotiating settlements. Understanding how insurers approach these negotiations can help injured individuals protect their interests and avoid settling for less than they deserve.

The Insurance Company's Primary Objective

Insurance companies are for-profit businesses. Regardless of how friendly or helpful an adjuster may seem, their primary responsibility is to minimize payouts and protect the company's bottom line. This fundamental motivation shapes how they assess claims, assign value to injuries, and decide on settlement offers.

In Vermont, the at-fault party's insurer typically begins the process by opening a claim and assigning an adjuster to investigate the incident. This adjuster is tasked with gathering information about the accident, determining liability, and estimating the potential value of the claim—all with the goal of resolving the matter efficiently and for as little money as possible.

Initial Contact and Information Gathering

Once a claim is filed, insurers often move quickly to contact the injured party. This early outreach may appear helpful, but it's often designed to gather statements that can later be used to minimize the claim. For example:

• Adjusters may request a recorded statement in which the injured party inadvertently downplays their symptoms.
• They may ask for access to broad medical records, looking for pre-existing conditions to use against the claim.
• They might inquire about returning to work, even before the claimant is medically cleared.

These tactics are subtle but strategic. By collecting as much information as possible early on, insurers position themselves to challenge the extent of liability, causation, or damages.

Calculating the Value of a Claim

Before any offer is made, insurance companies rely on internal formulas, adjuster experience, and sometimes software tools (such as Colossus) to determine the value of a claim. These evaluations typically include:

• Medical expenses (past and estimated future costs)
• Lost wages due to missed work
• Pain and suffering, often calculated using a multiplier of the actual damages
• Property damage, if relevant

However, these calculations often undervalue the full impact of the injury, especially in cases involving long-term complications, emotional trauma, or loss of quality of life.

The First Settlement Offer is Rarely the Best

In Vermont, there's no legal requirement for an insurance company to offer a "fair" settlement. Instead, they often start low—sometimes insultingly so. This initial offer serves a few purposes:

• Tests the claimant's knowledge of what their case may be worth
• Assesses willingness to negotiate or hold out for more
• Encourages early settlement, avoiding extended liability or court costs

Many injured individuals are tempted to accept this early offer, especially if they are under financial pressure. However, accepting a low settlement can prevent future compensation—even if new symptoms emerge later. In Vermont, once a release is signed, the case is considered closed.

Negotiation Strategies Insurers Use

Insurance adjusters are trained negotiators. They use a variety of tactics to push claimants toward accepting a lower amount:

• Disputing liability: Even in seemingly clear-cut cases, they may argue shared fault under Vermont's modified comparative negligence rule (which bars recovery if the claimant is more than 50% at fault).
• Questioning the severity of injuries: They may downplay medical findings or suggest alternative causes.
• Dragging out the process: Time can pressure injured individuals into settling, especially if they're unable to work.
• Threatening to close the claim: Some adjusters hint that "this is the best we can do" or that the offer won't be available later.

Understanding these strategies can help claimants maintain leverage and avoid being manipulated into accepting less than what their claim is worth.

Role of Legal Representation

In Vermont, individuals represented by attorneys typically receive significantly higher settlements than those who handle claims on their own. Personal injury lawyers are familiar with how insurers operate, understand the value of various types of injuries, and can push back effectively against lowball tactics.

According to the Insurance Research Council, settlements for claimants with legal representation are, on average, 3.5 times higher than those for unrepresented individuals. Attorneys can:

• Calculate a fair value of the claim based on medical evidence, future care needs, and other losses
• Handle all communications with the insurance company, reducing the chance of missteps
• Negotiate strategically, using documented evidence and expert testimony where necessary
• Prepare to litigate if negotiations stall or if the insurer refuses to offer a fair amount

The mere presence of a lawyer signals to insurers that the claimant is serious and may take the case to court—often leading to better settlement offers.

Vermont-Specific Considerations

Vermont follows a modified comparative negligence rule, which can significantly impact settlement negotiations. If the injured person is found to be 51% or more at fault, they cannot recover damages. Even if they are less than 51% at fault, their recovery is reduced by their percentage of fault.

This rule gives insurance companies another avenue to reduce settlements. They may argue that the claimant bears a larger share of the blame than is reasonable, especially in cases with limited witness statements or unclear accident reports.

Additionally, Vermont has a three-year statute of limitations for personal injury claims. Insurers are aware of this deadline and may use delay tactics to push claimants closer to that window, hoping to avoid a lawsuit altogether.

When Settlements Fail: The Option of Litigation

Most personal injury claims in Vermont settle before reaching court. However, if negotiations stall or the insurer refuses to act in good faith, filing a lawsuit may become necessary.

Litigation brings added pressure to the insurer, as the potential for a jury award introduces uncertainty. In some cases, the threat of litigation is enough to prompt a more reasonable offer. In others, it's the only way to recover full compensation.

Conclusion

Insurance companies in Vermont approach settlement negotiations with a clear goal: pay as little as possible. While some claims are resolved quickly and fairly, many require persistence, preparation, and legal support to ensure a just outcome. Understanding the tactics insurers use—and how to counter them—can make the difference between an inadequate payout and a settlement that truly reflects the impact of your injury.

Need Legal Help? Brandon J. Broderick, Attorney at Law is One Phone Call Away

Navigating Vermont personal injury claims can be challenging. Fortunately, you don't need to do it alone. The experienced personal injury 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.