How Insurance Companies Try to Reduce Car Accident Settlements in Texas

Why Your Settlement May Be Lower Than Expected—and What You Can Do About It

After a car accident, you expect the insurance company to cover your losses—medical bills, lost income, damage to your car, and the pain that’s disrupted your life. But if you’ve already received a settlement offer, there’s a good chance you’re wondering: Why is my car accident settlement so low?

You’re not alone. Insurance companies across Texas use strategic, profit-driven tactics to undervalue legitimate claims. If you were injured in a car wreck that wasn’t your fault, it’s not enough to rely on the system being fair. You need a legal team that knows how to fight back. At Smith & Hassler, our Houston car accident lawyers understand the playbook insurance companies use to reduce payouts—and we know how to overcome it.

For more than 30 years, our attorneys have fought back on behalf of injured Texans, recovering over $1 billion in settlements and verdicts. If you were hurt and the insurance company isn’t treating you fairly, it’s time to take control.

The Insurance Company Is Not on Your Side

After a crash, you might get a call from a friendly-sounding insurance adjuster asking how you’re doing and offering to “help.” They may even say you don’t need an attorney—that they’ll take care of everything. This isn’t kindness. It’s a strategy.

Insurance companies are for-profit businesses. Their success depends on collecting premiums and paying out as little as possible on accident claims. That’s why many injured Texans are blindsided when they receive a lowball offer or a denial that doesn’t reflect the pain and disruption they’ve experienced.

Whether you’re dealing with your own insurer or the other driver’s, you need to be ready for the tactics they’ll use to save money at your expense.

Common Tactics Used to Reduce Settlement Offers

Insurance companies don’t just make one move—they rely on a combination of tactics to weaken your claim and pressure you into accepting less than you deserve. Here are some of the most common:

1. Quick Settlement Offers

You may be offered money just days after the crash. It might seem like a blessing during a stressful time, but that early offer rarely covers the full cost of your injuries. Once you accept, your case is closed—even if more medical bills come later.

2. Disputing Liability

If they can shift any blame onto you, they’ll reduce your payout under Texas’s modified comparative negligence rule. If you’re found to be more than 50% at fault, you get nothing.

3. Downplaying Injuries

Adjusters may argue that your injuries aren’t as severe as you claim, especially if you delayed treatment or have any pre-existing conditions. They might even hire their own doctors to challenge your medical records.

4. Requesting a Recorded Statement

They may ask you to go on record about the crash. But even casual phrases like “I’m feeling better” or “I didn’t see them coming” can be twisted to suggest you’re not injured or that you were at fault.

5. Dragging Out the Process

Delays are a pressure tactic. The longer you wait, the more desperate you may become, making you more likely to accept a low offer just to cover urgent bills.

Why Is My Settlement Offer So Low?

If you’ve asked yourself this question, it likely comes down to one or more of the tactics above. But beyond that, insurance companies often rely on proprietary software and internal formulas to calculate what they think your case is “worth.” These programs don’t account for your lived reality—how your pain keeps you up at night, how your injury affects your job, or how your family suffers alongside you.

They may undervalue non-economic damages like pain and suffering or fail to account for long-term medical needs, future lost earnings, or psychological trauma. And if there’s any room to challenge fault, they’ll take it—even if the facts clearly show their driver was negligent.

That’s why you should never accept a settlement offer without having an experienced car accident lawyer review it first.

How to Negotiate With Insurance Adjusters in Texas

Negotiating with an insurance company in Texas isn’t a DIY task. While you can try to handle your own claim, it’s rarely a good idea, especially after a serious accident.

Adjusters are trained negotiators backed by teams of legal and financial experts. Their job is to get you to settle quickly, quietly, and for as little as possible. If you try to go toe-to-toe without an attorney, they’ll take full advantage.

Here’s how a skilled car accident lawyer can make a difference:

• They know what your case is really worth. At Smith & Hassler, we calculate your full damages, including long-term care, future earnings, and the emotional cost of your injury.
• They manage communication. We step in immediately to handle all conversations with the insurance company. That means no more pressure tactics, no more confusing paperwork, and no risk of you saying something that could hurt your case.
• They bring leverage to the table. Insurance companies often offer higher settlements when they know you’re backed by a law firm with a strong track record of courtroom success.
• They’re not afraid to file suit. If the insurance company won’t offer a fair settlement, we’ll take them to trial. And they know we’re ready.

Don’t negotiate on your own. One mistake could cost you the compensation you need to recover.

What Should I Do If the Insurance Company Offers Me a Low Settlement?

If you receive an offer that feels too low—or if you’re unsure what’s fair—don’t rush to respond. Here’s what to do:

1. Don’t accept or sign anything.
2. Don’t provide a recorded statement.
3. Contact a Houston car accident attorney immediately.

At Smith & Hassler, we offer free case evaluations. We’ll review your offer, explain what it’s missing, and give you a clear path forward. If you hire us, we’ll take over from there—no upfront cost, no stress, just legal protection from day one.

What Evidence Strengthens a Texas Car Accident Claim?

The strength of your evidence often determines the value of your settlement. Insurance companies are more likely to offer fair compensation when you present clear proof of liability and damages. That means gathering and protecting evidence early is one of the most important things you can do.

A Houston car accident lawyer can help collect and preserve key evidence, including:

• Police reports detailing fault, citations, or witness accounts
• Medical records showing diagnosis, treatment, and long-term impact
• Photos and videos from the crash scene, injuries, and vehicle damage
• Surveillance or dash cam footage that captured the accident
• Witness statements from people who saw the crash unfold
• Expert opinions, such as accident reconstruction or medical specialists

Insurance companies rarely hand over full compensation without being pressured by well-documented claims. That’s why having a legal team that knows how to gather, preserve, and present strong evidence is crucial to winning your case.

How Much Time Do I Have to Take Legal Action?

In Texas, the statute of limitations for personal injury lawsuits is generally two years from the date of the crash. But don’t wait. The sooner we get involved, the better your chances of recovering full compensation. Evidence disappears. Witnesses forget. Insurance companies build their defense early. You should, too.

Take Control of Your Case with a Proven Houston Car Accident Lawyer

If an insurance company is trying to underpay your claim, don’t settle for less. At Smith & Hassler, we know what it takes to get real results for injured Texans. For over 30 years, we’ve been helping people in Houston and throughout Texas fight back—and win. To see how we can help you, contact us today for a free consultation.

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