After a serious accident, receiving a settlement offer from an insurance company might feel like a step in the right direction. But in many Vermont personal injury cases, the first offer is rarely fair—or final. In fact, it's often just the opening move in a longer negotiation. While the number may seem appealing at first glance, especially when bills are piling up, there are several reasons why insurers start low.

Understanding the tactics behind that initial figure can empower you to make smarter decisions about your claim. Below are five key reasons why your first settlement offer may not reflect the full value of your losses.

1. Insurance Companies Are Protecting Their Bottom Line

At their core, insurance companies are for-profit businesses. Despite their marketing about helping people in times of need, their financial goals often run counter to those of an injured victim.

When an adjuster evaluates your claim, they're not just calculating what you're owed—they're also weighing how little they can offer while still getting you to accept. This is especially true in Vermont, where insurers are not legally obligated to offer a fair settlement right away. Their goal is to close the claim as quickly and cheaply as possible, often before you fully understand your medical outlook or legal rights.

In Vermont, the average bodily injury liability payout in 2022 was around $22,800, according to the Insurance Information Institute. But for cases involving long-term injuries, that number often doesn't begin to cover total costs. Initial offers typically reflect minimal liability—not long-term damages.

2. Your Future Medical Costs Aren't Fully Calculated

One of the most overlooked parts of a personal injury claim is the cost of future care. If you accept a lowball offer too soon, you may miss out on compensation for:

• Follow-up surgeries
• Long-term physical therapy
• Assistive devices or home modifications
• Medications and ongoing treatments

In Vermont, once you accept a settlement, your case is considered closed. This means you can't go back and ask for more money—even if your condition worsens or additional treatments become necessary. Insurance companies often take advantage of this by making an offer before your full recovery trajectory is known. If your injuries require extended treatment, an early offer likely fails to account for those future costs.

3. Non-Economic Damages Are Undervalued

Unlike medical bills or lost wages, non-economic damages—like pain, emotional distress, and loss of enjoyment of life—are harder to quantify. In Vermont, juries are allowed to award compensation for these subjective losses, but insurance companies rarely factor them into their initial offers in any meaningful way.

Their reasoning? Many victims either don't know they can seek these damages or don't have legal representation to negotiate for them. Without strong documentation or an advocate pushing back, adjusters assume you'll settle for compensation that only covers your "visible" damages.

This is particularly relevant in Vermont, where the law doesn't cap non-economic damages in personal injury cases. That means a well-prepared claim has significant potential for higher recovery—but only if properly pursued.

4. You Don't Have Legal Representation—Yet

Insurers are far more likely to make a low initial offer if you're not represented by a personal injury attorney. Without legal counsel, they know you may not understand the full scope of your rights, the legal process, or how to value a claim.

A 2017 study by the Insurance Research Council found that injured parties who hired an attorney received settlements that were, on average, 3.5 times larger than those who handled claims on their own. That discrepancy isn't a coincidence—it reflects the reality that insurance adjusters are trained negotiators who use specialized software and internal formulas to calculate payouts in their favor.

In Vermont, where comparative negligence rules allow injured parties to recover compensation even if they're partially at fault (as long as their fault is under 51%), an attorney can also help defend against tactics aimed at increasing your share of the blame—another way insurers try to lower payouts.

5. Insurers Bet on Your Financial Stress

In the aftermath of an injury, it's common to face mounting expenses—emergency care, unpaid time off work, transportation issues, or childcare needs. Insurance companies know this. And they use it to their advantage.

By making a fast, modest settlement offer, insurers are banking on your financial pressure. They hope you'll accept quickly out of desperation, even if it means accepting less than your case is worth.

In many Vermont cases, injured people receive an initial offer within days of an accident. But acting too quickly can prevent you from gathering the full scope of medical records, specialist opinions, or documentation needed to accurately reflect your losses. Once you accept, the door to further compensation is closed.

How to Respond to a Low Offer in Vermont

If you receive a settlement offer that seems low, don't panic—and don't rush. Here's how to respond strategically:

• Consult a personal injury attorney: Even a short consultation can help you understand whether the offer is reasonable.
• Gather evidence of damages: This includes medical records, wage loss documentation, and statements from healthcare providers.
• Understand the true value of your claim: Include all future damages, emotional impacts, and how the injury has affected your day-to-day life.
• Don't accept the first offer without negotiation: Counter-offers are expected. A skilled attorney can often push for significantly more.

Conclusion

In Vermont, the first settlement offer from an insurance company is rarely reflective of your true losses. Whether it's due to undervalued pain and suffering, overlooked future costs, or pressure tactics designed to rush a decision, low initial offers are the norm—not the exception. Understanding why this happens puts you in a better position to protect your rights and demand the compensation you deserve.

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.