When Can You Reject a Lowball Insurance Offer in Arizona?
After a car accident in Arizona, you may expect the insurance company to step in and cover your losses fairly. Unfortunately, that’s not always the case. Many insurers begin the process with a lowball offer—hoping you’ll accept quickly before realizing the true value of your claim. Knowing when and how to reject these offers is critical. An accident lawyer can help you understand the tactics insurers use and guide you toward a fairer outcome.
Why Insurance Companies Make Low Offers
Insurance companies are businesses with one priority: protecting their bottom line. Offering you less than your case is worth is one of the simplest ways to save money. Lowball offers often come early in the claims process, sometimes before the full extent of your injuries or property damage is even known.
For example, in a T-bone collision at a Tempe intersection, initial offers might only include emergency room bills while ignoring ongoing physical therapy, lost income, or future care costs.
Signs of a Lowball Insurance Offer
You might be dealing with an undervalued settlement if:
The offer comes within days of the crash.
It doesn’t account for long-term treatment or rehabilitation, such as for spinal injuries.
Pain and suffering damages are excluded or minimized.
Property damage repairs don’t match the actual repair estimates.
The insurer pressures you to sign quickly.
If any of these red flags appear, it’s usually a sign you can and should reject the initial offer.
Arizona’s At-Fault System and How It Impacts Offers
Arizona is an at-fault state, meaning the driver responsible for causing the accident is financially liable for damages. The insurance company for that driver is supposed to compensate you. However, they know most victims don’t have extensive experience with injury claims, making it easier to push a quick, cheap settlement.
In cases involving comparative negligence—such as a distracted driver accident where both parties share some fault—the insurer may try to use the law against you by overemphasizing your share of liability to justify a lower payout.
When You Should Reject an Offer
Rejecting a lowball settlement is not only your right—it’s often the smartest move. You should seriously consider rejecting an offer if:
You haven’t completed medical treatment and don’t know your long-term prognosis.
The offer doesn’t cover future expenses like surgeries, therapy, or lost earning capacity.
Non-economic damages (pain, suffering, emotional distress) aren’t included.
Multiple parties are involved, such as a rideshare accident, and liability hasn’t been fully evaluated.
The settlement amount is far below comparable verdicts and settlements for similar cases.
What Happens After You Reject?
Rejecting an offer doesn’t mean you lose your chance to settle. Instead, it opens the door for negotiation. Typically, you or your representative will respond with a counteroffer supported by evidence: medical bills, doctor testimony, lost wage documentation, and proof of pain and suffering.
Insurance companies expect negotiation. In fact, most cases don’t settle until after multiple offers and counteroffers are exchanged.
Tools to Strengthen Your Position
If you decide to reject a lowball settlement, you’ll want strong evidence to support your claim:
Medical records documenting ongoing care, such as treatment for paralysis injuries.
Accident reconstruction reports in complex cases like rollover accidents.
Witness statements and police reports confirming fault.
Expert opinions on long-term care needs or diminished earning capacity.
When Litigation Becomes Necessary
If negotiations stall, filing a lawsuit may be the next step. This doesn’t always mean your case will go to trial—many lawsuits still settle before reaching the courtroom. But showing the insurer that you’re prepared to pursue your claim through the legal system often motivates them to make a more realistic offer.
Arizona’s Statute of Limitations
Remember that Arizona law gives you two years from the date of the accident to file a lawsuit in most cases. Waiting too long to reject or negotiate could mean losing your chance to pursue compensation altogether.
Key Takeaways
You are never required to accept the first settlement offer from an insurance company.
Lowball offers often come early and undervalue long-term medical and financial losses.
Rejecting an offer opens negotiations, which are a standard part of the process.
Evidence and documentation are your strongest tools in fighting for fair compensation.
In high-stakes cases, such as those involving traumatic brain injuries, rejecting a low offer may be the only way to secure enough resources for lifelong care.
Conclusion
Insurance companies often try to settle car accident claims for far less than they’re worth. If you receive a settlement offer that doesn’t cover your actual damages, you are well within your rights to reject it. In many cases, rejecting that first lowball number is the only way to start moving toward a fair resolution that reflects the true cost of your injuries and losses.
