A lowball offer is usually an opening number made before the insurer has seen your full medical picture, and you are not required to accept it. Respond with documentation, a written demand, and a deadline, and know the policy limits first. Owsley Law Firm reviews settlement offers free and charges no fee unless it wins.
Most injured people in Texas receive at least one offer that feels insulting: a few thousand dollars for an injury that has cost far more in bills, missed work, and pain. Sometimes the offer arrives within days of the crash, before treatment has even started.
A low first offer is not the end of the negotiation. It reflects what the adjuster can justify from the file at that moment. The way to move it is to change what is in the file. This guide covers why offers come in low, how to answer one, and the Texas rules that give a well-documented claim leverage.
Why are first settlement offers so low?
Because they are made early, on incomplete information, and the insurer expects negotiation.
An adjuster's first number usually covers the bills already in the file and little else. Future treatment, lost earning capacity, and non-economic damages such as pain, mental anguish, and physical impairment are often discounted or left out until someone documents them.
Early offers also test whether you understand your claim. People who are unrepresented, short on money, and unsure of their rights accept low offers more often, which is why the first offer may come before you have finished treatment.
Do I have to accept or respond quickly?
No. You can take time to finish treatment and gather records, as long as you watch the two-year filing deadline.
An offer from the other driver's insurer does not obligate you to anything. Adjusters sometimes attach a short deadline to create pressure, but the claim itself stays open until it is settled or the limitations period runs.
That period is generally two years from the crash under Civil Practice and Remedies Code section 16.003. The deadline is for filing a lawsuit, not for negotiating, so a case that has not settled must be filed before then to protect it.
How do I respond to a lowball offer?
In writing, with the documents that support a higher number, a specific counter, and a reasonable response deadline.
A strong response, usually called a demand, summarizes how the crash happened and why the insured was at fault, lists every category of damages with records attached, and states a number. Vague objections do not move adjusters. Documents do.
- Complete medical records and itemized bills from every provider
- A treating doctor's opinion connecting the injury to the crash
- Future treatment recommendations and their cost
- Wage loss documentation and, if relevant, loss of earning capacity
- Photos of injuries and a description of how daily life changed
- The crash report, photos, and witness information on fault
How do policy limits affect a lowball offer?
They cap what the insurer will usually pay, so knowing the limits tells you whether the fight is about value or about available coverage.
Texas only requires 30/60/25 liability coverage: $30,000 per injured person, $60,000 per crash, and $25,000 for property damage under Transportation Code section 601.072. In a serious injury case the problem is often not a low offer but a small policy.
When the at-fault driver's coverage is not enough, your own underinsured motorist coverage can pay the difference up to its limits, unless you rejected it in writing (Insurance Code section 1952.101). Other liable parties, such as an employer whose driver was working, may also have coverage.
What is a Stowers demand?
A settlement demand within the policy limits that, if unreasonably refused, can make the insurer responsible for a later judgment above those limits.
The rule comes from G.A. Stowers Furniture Co. v. American Indemnity Co. (Tex. Comm'n App. 1929). If a liability insurer receives a demand within its limits on a covered claim, on terms an ordinarily prudent insurer would accept considering the likelihood and size of a judgment, and it refuses, it can be liable to its own insured for the full excess judgment.
A properly drafted Stowers demand is one of the strongest tools in a Texas injury claim when damages clearly exceed the coverage. The requirements are technical, including a full release of the insured within limits and a reasonable time to respond, so it should be prepared by a lawyer.
Can I sue the other driver's insurer for a lowball offer?
Generally no. In Texas the claim is against the at-fault driver, and the insurer's unfair claim handling duties run to its own policyholder.
Insurance Code section 541.060(b) states that the unfair settlement practices provisions do not give a cause of action to a third party asserting claims against an insured. The Texas Supreme Court reached the same result in Allstate Insurance Co. v. Watson (1994).
The pressure on a third-party insurer comes from a lawsuit against its driver, the risk of a verdict, and, where the facts support it, a Stowers demand. When the lowball offer comes from your own insurer, on a PIP or uninsured motorist claim, Texas law gives you more direct remedies.
What if my own insurer is lowballing my UM, UIM, or PIP claim?
Different rules apply, because your own insurer owes you contract and statutory duties.
PIP must be paid no later than 30 days after the insurer receives satisfactory proof of the claim (Insurance Code section 1952.156), and an insurer that fails to pay PIP benefits when due owes a 12 percent penalty, interest, and attorney's fees (section 1952.157).
For uninsured and underinsured motorist claims, the Texas Supreme Court held in Brainard v. Trinity Universal Insurance Co. (2006) that the insurer's contractual duty to pay arises once the other driver's liability and underinsured status are established, often by judgment. That rule shapes how these negotiations work, so UM and UIM disputes are frequently resolved through a lawsuit against your own carrier.
What an adjuster sees vs. what changes the number
| Weak point in the file | Typical effect on the offer | What fixes it |
|---|---|---|
| Gaps in medical treatment | Argument that the injury healed or was not serious | Treatment records that explain the gap, doctor's opinion on causation |
| Low visible vehicle damage | Argument that the crash could not cause injury | Imaging, consistent symptoms, treating physician testimony |
| No lost-wage proof | Wage loss ignored | Pay stubs, tax records, employer letter |
| Future care not documented | Offer covers past bills only | Doctor's written recommendation for future treatment and its cost |
| Disputed fault | Percentage reduction under Chapter 33 | Video, witnesses, crash report, scene photos |
What evidence proves it
- The written offer and any explanation of how it was calculated
- Policy limits information for the at-fault driver
- Your own declarations page showing UM, UIM, and PIP limits
- Complete medical records and itemized bills
- Doctor's opinions on causation and future care
- Wage and employment records
Mistakes that cost people money
- Accepting an offer before treatment is finished
- Countering without sending any new documentation
- Cashing a check that is labeled as full and final payment
- Letting the negotiation run past the two-year filing deadline
- Assuming the policy limit is the most you can ever recover without checking UIM and other liable parties
Frequently asked questions
Is it rude to reject the first offer?
No. Adjusters expect counteroffers. A documented response is a normal part of the process.
Can the insurer withdraw its offer if I counter?
Yes. A counteroffer generally rejects the earlier offer, and the insurer can change its position. That is one reason to know your full damages and the policy limits before you respond.
What if the offer equals the policy limits?
Then the question is whether other coverage exists, such as your UIM or an employer's policy. Get advice before signing, because a release can affect your UIM claim if your insurer is not notified properly.
How long does the insurer have to respond to my demand?
For a third-party claim, no statute sets a general deadline. A Stowers demand sets a reasonable response time. For your own insurer, Insurance Code chapter 542 sets claim-handling deadlines.
Does hiring a lawyer increase the offer?
No result is guaranteed. A lawyer can document damages fully, identify every policy, and file suit when needed, which are the things that change how an insurer evaluates a claim.
What does Owsley Law Firm charge to review an offer?
Nothing up front. The firm works on a contingency fee, so there is no fee unless it recovers money for you.
This page is general information about Texas law and is not legal or medical advice. Every case depends on its own facts. Contact the firm for a free review of yours.
Keep reading
Should I accept the first settlement offer after a car accident?
How Much Is a Texas Car Accident Case Worth?
How Car Accident Settlements Are Paid Out in Texas
What if the at-fault driver only has minimum coverage in Texas?
Car Accident Claim Denied in Texas: What to Do