The “Last Best Offer”: Why Insurance Companies Always “Find” Another $10K at 4:55 PM on a Friday?
In personal injury cases, clients often hear that an insurance company’s “top offer” is final—only to see that figure increase later. This phenomenon, often called the “last best offer,” is not a mistake; it’s a strategic tactic insurance companies use as the case progresses.
Why Insurance Offers Increase Over Time
Insurance companies assess risk at every stage of a case. The longer a case progresses, the more information they have, and the greater their potential exposure becomes. Key factors include:
Filing a Lawsuit: Once a lawsuit is filed, the insurance company is officially exposed to legal risk, making their initial offer more conservative.
Depositions and Discovery: As depositions are taken and evidence is gathered, the insurance company better understands the strength of your claim. Each step increases their potential liability.
Expert Reports and Trial Preparation: Expert testimony, detailed medical records, and trial preparation provide a clearer picture of damages. The more compelling your evidence, the more the insurer may feel pressure to settle.
Imminent Trial: Right before or during trial, insurers face the highest risk of a large jury verdict, which motivates them to increase offers substantially—often at the last minute.
The Strategy Behind the “Last Best Offer”
Calling an offer “final” is both a delay tactic and an anchoring strategy. By suggesting it’s their top figure, the insurer pressures claimants into accepting too early. But as the case develops and risks become clearer, the insurer often finds additional funds to encourage settlement before trial or to avoid a costly jury award.
Bottom Line
Insurance companies rarely show their full hand at the beginning of a case. Understanding the “last best offer” highlights why patience, thorough case development, and strategic litigation often result in higher settlements for clients.
