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My Insurance Underpaid My Injury Claim. What Can I Do?

Your insurance company proposed a settlement of $15,000 for $40,000 in damages. Sound familiar?

Every day, insurance companies across Washington, DC, underpay legitimate claims, hoping policyholders will accept less than they deserve. When your insurance underpaid claim leaves you struggling to cover actual damages, you need experienced legal representation to fight back.

If the insurance company refuses to pay what your personal injury claim is worth, it would be in your best interest to speak with a DC personal injury lawyer at Regan Zambri Long to learn what to do next.

At Regan Zambri Long, our bad faith insurance attorneys have recovered over $1 billion for clients who were wrongfully denied or underpaid by their insurance companies. We understand the tactics insurers use to minimize payouts, and we know how to hold them accountable. Contact us today for a free consultation.

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How to Recognize an Underpaid Insurance Claim

Many policyholders don’t realize their insurance claim was underpaid because they lack experience dealing with insurance companies. Understanding the warning signs can help you identify when your settlement falls short of fair compensation.

$77

MILLION

Wrongful Death Settlement

$20

MILLION

Brain Injury
Verdict

$19.5

MILLION

Wrongful Death Verdict

$16

MILLION

Premises Liability Settlement

$15.2

MILLION

Wrongful Death Settlement

$15.2​

MILLION

Wrongful Death Verdict

$15

MILLION

Medical Malpractice Settlement

$14

MILLION

Personal Injury Settlement

$14

MILLION

Car Accident Settlement

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The most obvious sign of an underpaid claim is when your settlement doesn’t cover your actual damages. If your car repair estimates total $25,000 but your insurer offers only $18,000, you’re likely dealing with an underpayment. Insurance adjusters often pressure policyholders to accept initial offers quickly, claiming this is their “best and final” settlement. This pressure tactic should raise immediate red flags.
Another warning sign is when your insurance company conducts a superficial investigation or fails to properly assess your damages. Professional adjusters should thoroughly examine property damage, review medical records, and consider all relevant factors. When insurers rush through investigations or ignore evidence you provide, they’re likely trying to minimize your payout.

Vague explanations for settlement calculations also indicate potential underpayment. Your insurer should clearly explain how they arrived at their settlement figure, including what damages they covered and excluded. If they can’t provide detailed reasoning for their offer, you may have grounds to challenge their decision.

Most Common Underpayment Scenarios

Auto insurance underpayments frequently occur when vehicles are declared total losses. Insurance companies may use outdated valuation methods or compare your vehicle to inferior models to justify lower payouts. They might also cap medical expenses at artificial limits that don’t reflect actual treatment costs, particularly for ongoing care or specialist consultations.
Homeowners face underpayments most often after storm damage, water damage, or fire losses. Insurance companies may dispute the extent of damage, claim that certain repairs aren’t covered, or undervalue personal property. They might also fail to account for additional living expenses when homes become uninhabitable.
Health insurance underpayments typically involve denials of necessary medical procedures or disputes over out-of-network provider costs. Insurers may claim treatments are “experimental” or “not medically necessary” to avoid paying legitimate claims. They might also incorrectly apply policy limitations or exclusions.
Commercial property insurance underpayments often center on business interruption claims or equipment replacement costs. Insurance companies may underestimate lost revenue, dispute the length of business interruption, or use depreciation calculations that don’t reflect actual replacement costs.
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how to sue an insurance company for bad faith in dc

Evidence That Proves the Insurance Underpaid Your Claim

Proving your insurance company underpaid your claim requires comprehensive documentation. Independent damage assessments from licensed professionals often reveal the true extent of your losses. These assessments carry significant weight because they come from qualified experts without financial incentives to minimize damages.
Multiple repair estimates from licensed contractors provide additional evidence of underpayment. When three qualified contractors estimate $30,000 in repairs but your insurer offers $20,000, the discrepancy speaks for itself. Medical records and treatment plans serve similar purposes for health-related claims, showing the necessity and extent of medical care.

Comparable settlement data can also demonstrate underpayment. If similar claims in your area resulted in higher settlements, this information can support your case. Your DC personal injury lawyer can access databases and industry resources to gather this comparative evidence.

Step-by-Step Action Plan for Underpaid Claims

When you suspect your insurance company underpaid your claim, taking prompt, organized action improves your chances of obtaining fair compensation. Following a systematic approach helps preserve your rights and builds a strong foundation for potential legal action.
Document everything related to your claim immediately. Save all communications with your insurance company, including emails, letters, and notes from phone conversations. Take photographs of damage from multiple angles and keep receipts for all expenses related to your loss. This documentation forms the backbone of your underpayment case.
Review your insurance policy carefully to understand your coverage limits, deductibles, and exclusions. Many policyholders don’t fully understand their coverage, which makes it easier for insurance companies to justify underpayments. If policy language is unclear, don’t hesitate to ask for clarification or seek legal advice.
Obtain independent estimates for your damages from qualified professionals. Whether you need car repair estimates, home restoration quotes, or medical opinions, independent assessments provide objective evidence of your actual losses. Choose licensed professionals with strong reputations and relevant experience.

Send a formal demand letter to your insurance company requesting proper compensation. This letter should clearly state your position, include supporting documentation, and request a specific settlement amount. Keep copies of everything you send and use certified mail to ensure delivery.

If your claim remains underpaid, it’s time to consider legal action. A qualified insurance claim attorney at Regan Zambri Long can evaluate your case, determine if bad faith occurred, and pursue maximum compensation through settlement negotiations or trial.

Why Insurance Companies Fear Regan Zambri Long

Insurance companies respect our reputation for winning at trial. They know we have the resources and expertise to match their legal teams, and they understand that we’re prepared to take cases to verdict when settlement negotiations fail. This reputation gives us significant leverage in negotiations and often results in faster, more favorable settlements for our clients.

Our track record of substantial verdicts and settlements sends a clear message to insurance companies: underpaying our clients’ claims will be expensive. We’ve consistently obtained results that exceed initial settlement offers, sometimes by substantial amounts. This success creates incentives for insurers to offer fair compensation early in the process.
If your insurance company underpaid your claim, don’t accept their initial offer without understanding your rights. Contact Regan Zambri Long today for a free consultation. Our experienced bad faith insurance attorneys will evaluate your case and fight for the fair compensation you deserve. We work on a contingency fee basis, which means you pay nothing unless we win your case.

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Have you or your loved one sustained injuries in Washington DC, Maryland or Virginia? Regan Zambri Long PLLC has the best lawyers in the country to analyze your case and answer the questions you may have.

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