After an accident or loss, insurance should help cover your damages. In some cases, though, insurance companies offer less than a fair amount. This tactic is known as lowballing.
In Wisconsin, state law requires insurance companies to handle claims fairly. Recognizing the signs of a lowball offer helps protect your right to a full and fair settlement.
The offer does not cover all expenses
A lowball offer often leaves out key costs. These may include medical bills, lost wages or long-term treatment. If the offer only includes a small part of the total expenses, the insurance company may not be acknowledging the full extent of the damages.
The company pressures for a quick settlement
If the insurer pushes for a fast decision before a full recovery or property repair, this may be a sign of lowballing. Quick settlements often work in favor of the insurance company, not the injured party. Wisconsin law expects insurance companies to give claimants a fair chance to review offers.
The explanation for the offer seems unclear
An insurance company must provide clear reasons for its payment decisions. If the company cannot explain how it calculated the amount, or the explanation includes vague or conflicting information, it may be hiding the fact that the offer is too low.
What to do next
Keep records of all communications with the insurance company. Save written offers, emails and notes from phone calls. If a claim appears undervalued, contact the Wisconsin Office of the Commissioner of Insurance to report unfair practices.
Understanding the warning signs of a lowball offer helps you take appropriate action. Wisconsin law protects policyholders from dishonest insurance tactics. Knowing the signs can make a difference in receiving the payment owed to you.