When you’ve been in an accident, the last thing you want to deal with is a low settlement offer from Farmers Insurance that barely scratches the surface of your expenses.
They are one of the largest auto insurers in the United States, and have faced scrutiny for their business practices, including a class-action lawsuit accusing the company of using price optimization strategies to overcharge long-term policyholders.
These concerns have raised questions about how Farmers manages claims and settlements, with many policyholders reporting low initial offers that fail to cover medical bills, car repairs, and lost wages.
You’ve paid your premiums, filed your claim, and expected fair compensation—but instead, you’re met with tactics that seem more focused on protecting Farmers’ bottom line than addressing your needs.
In fact, Farmers’ settlement practices have been criticized in high-profile cases, such as the Harris class-action lawsuit and the Rudniki v. Farmers case, which resulted in a $155 million judgment against the company for wrongful termination linked to testimony in a gender discrimination case.
This guide explains why Farmers Insurance may offer less than you’re entitled to, how to recognize these tactics, and the steps you can take to secure a fair payout. Understanding these strategies—and knowing how to counter them—could mean thousands more in your pocket.
Why Farmers Insurance Might Lowball Your Settlement
Farmers Insurance, like most major insurers, has a financial interest in minimizing claim payouts. With auto accident injury claims averaging over $20,000, insurers have a vested interest in reducing settlement amounts wherever possible. Here’s why you may receive an offer that feels unfair:
Profit Protection – Insurance companies are businesses, and minimizing claim payouts is a common practice to protect their bottom line. Lower settlements mean higher profits.
Anticipating Quick Acceptance – Insurers know that many claimants, eager to resolve the claim and move forward, will accept an initial low offer, thinking it’s the best they can get.
Pressure to Settle Quickly – By presenting an early offer, Farmers hopes you’ll take it before you completely understand the extent of your damages and the potential value of your claim.
Limited Knowledge of the Claims Process – Insurers rely on claimants’ unfamiliarity with the claims process to keep payouts low. Those without legal representation may not realize they have the right to negotiate or challenge the offer.
5 Steps to Take When You Receive a Low Offer
If you receive a low settlement offer from Farmers Insurance, don’t rush to accept it. Following these steps can help you increase the payout to a fairer amount:
- Review the Offer Thoroughly
Take time to review the offer in detail. Does it cover all of your immediate and long-term medical bills, lost wages, and property damage? If it falls short, you have grounds for negotiation.
- Request a Detailed Breakdown
Farmers should provide a breakdown of how they arrived at the settlement amount. Request documentation that explains the offer, which can reveal any overlooked expenses or biased calculations.
- Gather Evidence to Support Your Claim
Insurance adjusters often disregard certain expenses to keep their offers low. Collect all relevant documentation, like medical records, car repair costs, and proof of income.
- Consult with a Personal Injury Attorney
Studies show that claimants who hire an attorney generally receive higher settlements than those who go it alone. A personal injury attorney can assess your claim’s value and handle negotiations with Farmers on your behalf.
- Formally Decline the Offer and Counter with a Demand Letter
If the initial offer is far below what you need, consider sending a demand letter outlining damages they missed and requesting a revised amount. This letter should include evidence supporting your claim, and an attorney can craft it effectively to increase your chances of success.
How to Get a Fair Settlement From Farmers Insurance
We get it. Negotiating with an insurer can be intimidating, especially if you’ve never been through the process before. But with the right approach, you can increase your chances of securing the payout you need. Here’s how:
Keep Track of Every Interaction
Save all emails, call notes, and written exchanges. This makes it easier to see what’s been promised and track any shifts in their offer.
Back-Up Your Case with Clear Evidence
Photos from the scene, witness statements, and medical records strengthen your case and leave less room for dispute.
Stand Firm, But Stay Open to Fair Negotiation
You don’t have to be pushy; just be prepared and assertive. If Farmers raise their offer a little, weigh it carefully, then respond with a counter that meets your needs.
Consider Arbitration if You’re Hitting a Wall
If they don’t budge, arbitration could be the answer. It’s a way to get a fair review without the time and cost of a lawsuit.
Bring in a Personal Injury Attorney for Extra Support
Having a lawyer on your side shows you mean business. Farmers will know that with legal support, you’re not likely to settle for anything less than fair, which often leads to better offers faster.
What to Do If Farmers Insurance Refuses to Settle Fairly
Sometimes, despite your best efforts, Farmers may refuse to offer you a fair settlement for your auto accident injury. Here are your options for how to get a fair settlement if negotiations hit a wall:
- File a Formal Complaint: Filing a complaint with your state’s Department of Insurance can add pressure, as this agency oversees insurance practices and may investigate if your case warrants it.
- Consider Taking Legal Action: If Farmers Insurance remains uncooperative, filing a lawsuit can push them to reassess their stance. Often, the threat of legal action is enough to prompt a fair offer.
- Prepare for Litigation: If your case goes to court, you’ll need a strong legal team to represent you. In court, all evidence will be presented, and a judge or jury will determine fair compensation based on the facts of your case.
Why Working with an Attorney Can Make a Difference
Hiring a personal injury lawyer can make a significant difference in the outcome of your settlement. Studies show that claimants who work with attorneys receive, on average, three times more than those who go through the claims process alone.
At Angel Reyes & Associates, our award-winning team is dedicated to advocating for accident victims who deserve fair treatment and full compensation.
With a proven track record, we bring the experience and tenacity needed to maximize your settlement. Don’t let a low settlement offer dictate your financial future—our skilled team is here to fight for you every step of the way.
For more guidance and a free consultation, contact us today– or come see us in person at one of our conveniently located offices.
