how to counter an insurance settlement offer

Negotiation: How to Reject and Counter a Low Settlement Offer

• The Initial Settlement Offer. The initial offer you receive from the insurance adjuster will almost always be a "lowball" offer. ...
• Evaluating the Initial Offer. ...
• Rejecting the Initial Offer and Making a Counteroffer. ...
• Fair Initial Settlement Offer. ...
• Let Us Help You. ...

Full Answer

How to write a counter offer settlement letter?

• You start by stating that you do not accept the offer by them
• Reject any statements that are in offer letter that might be damaging or inaccurate about your claim. ...
• Rewrite the amount for the claim you would be accepting, then go ahead to state why you believe that your counteroffer is right. ...

More items...

How to reject a low insurance settlement offer?

There is no required format for this letter, but it is wise to include the following elements:

• Factual account of the event
• Factual-based argument for the settlement rejection
• Facts that support your argument, including financial costs, injuries and suffering
• Evidence-based statement of liability, which may include police report or witness information

How to reject an insurance offer?

Rejecting an Insurance Settlement Offer After a Car Accident

• Analyze Your Injuries in Dollars and Cents. Before you can tell whether a settlement offer is “fair,” you need to know how much your injuries are worth.
• Compare the Amount Offered to What Your Injuries are Worth. ...
• Draft a Counteroffer. ...
• Waiting to Hear Back. ...
• Speak with a Denver Car Accident Lawyer. ...

Should I accept a settlement offer from an insurance company?

You do not have to accept an auto insurer’s settlement offer, let alone the first one. Insurance companies want to reduce what they pay you. They will encourage or even pressure you to accept the first offer despite this actually being a negotiation. They will not say this.

How do I write a counter offer for an insurance settlement?

What To Include In Counter Offer. In the letter, you will need to refer to the offer made by the insurance company and when it was made. You will then need to reiterate why you think you are owed damages from the other party and why you think that offer was low.

What happens if you decline an insurance offer?

When you reject a settlement offer from the insurance company, that offer is “dead,” meaning you can't later change your mind and accept it. Instead, you'll submit a counteroffer, which means that you are now the party submitting an offer, and it's up to the insurance company to accept or reject it.

Can you argue an insurance settlement?

However, if you feel that the offer for your vehicle's value is too low, you can begin negotiating with your claims adjuster. If you decide to negotiate, you may want to be prepared to show how you came up with your desired payout number.

How do you negotiate a settlement claim?

Begin the Settlement Negotiation Process (5 Steps)Step 1: File An Insurance Claim. ... Step 2: Consolidate Your Records. ... Step 3: Calculate Your Minimum Settlement Amount. ... Step 4: Reject the Claims Adjuster's First Settlement Offer. ... Step 5: Emphasize The Strongest Points in Your Favor.

How do you respond to a low ball settlement offer?

Steps to Respond to a Low Settlement OfferRemain Calm and Analyze Your Offer. Just like anything in life, it's never a good idea to respond emotionally after receiving a low offer. ... Ask Questions. ... Present the Facts. ... Develop a Counteroffer. ... Respond in Writing.

Should you accept the first offer of compensation?

Unless you have taken independent legal advice on the whole value of your claim, you should not accept a first offer from an insurance company.

What should you not say to an insurance adjuster?

Never say that you are sorry or admit any kind of fault. Remember that a claims adjuster is looking for reasons to reduce the liability of an insurance company, and any admission of negligence can seriously compromise a claim.

Can you negotiate total loss value?

A vehicle is legally considered a total loss if the cost of repairs and supplemental claims equal or exceed 75% of the fair market value – which, again, can typically be negotiated. If your car is a total loss, and the insurance carrier accepts liability, they are required to pay fair market value for the vehicle.

How do you negotiate with an adjuster?

Unless the amount offered is more than you've expected, first offers are generally refused. Show the adjuster that you're willing to renegotiate your offer by lowering it slightly, and they'll typically follow by raising theirs. This can be done several times until a final offer is accepted.

How do I maximize my insurance settlement?

15 Ways to Maximize Compensation for your Car Accident SettlementWRITE DOWN EVERYTHING FROM YOUR ACCIDENT. ... TAKE PHOTOGRAPHS OF YOUR ACCIDENT. ... JOURNAL ALL OF YOUR PAIN AND SUFFERING. ... SEEK IMMEDIATE MEDICAL ATTENTION. ... TELL YOUR DOCTOR EVERYTHING THAT HURTS. ... DO WHAT THE DOCTOR ORDERS. ... TURN TREATMENT INTO TESTIMONY.More items...•

Do insurance companies try to get out of paying?

Insurance companies will seek to decrease or eliminate payments for injuries caused by an insured person's actions. After becoming injured, victims of accidents want nothing more than to move on from the traumatizing experience.

Can you argue with an insurance claims adjuster?

After considering their argument, you can form a counter-argument. An adjuster can bring up a few things, however, that you should prepare for. When you enter negotiations with the insurance company and/or claims adjuster you should have a desired settlement in mind, as well as a minimum settlement you will accept.

Do you have to accept first offer on totaled car?

When your car is declared as a total loss by your insurer, you have a few options. You don't have to take the first offer you receive, and you can negotiate with your insurer until you're happy with what they offer.

What does decline coverage mean?

Employees who choose to decline one or more lines of coverage offered by a company for themselves or their dependents must sign a waiver and provide a reason for declining.

How do insurance companies negotiate settlements?

Let's look at how to best position your claim for success.Have a Settlement Amount in Mind. ... Do Not Jump at a First Offer. ... Get the Adjuster to Justify a Low Offer. ... Emphasize Emotional Points. ... Put the Settlement in Writing. ... More Information About Negotiating Your Personal Injury Claim.

How do you write a letter to reject a settlement offer?

This letter should state:That you will not accept the initial settlement offer;The reasons why you feel you deserve a higher settlement amount;Each of their low-offer reasons, and your responses;The higher settlement amount that you will accept.

How an insurance settlement offer is determined

An insurance settlement offer from your insurance company is prepared by a claims adjuster. There are strict protocols that these adjusters follow to determine a value for a claim. By understanding the way a settlement offer is prepared, you can better judge its fairness and make an argument for a counter offer to your insurance company.

Identify what parts of the low insurance offer are unfair

When the need to counter a low insurance offer from your insurance company arises, you must provide proof that you deserve more compensation. Think over the process employed by the claims adjuster. Is fault clearly determined? Have the severity of losses been thoroughly documented?

Prepare and submit your counter offer to your insurance company

Before you draft a written counter offer to the low insurance settlement offer you received, give some thought to the following three things:

How does an insurance adjuster settle a claim?

The settlement process usually begins after you or your attorney sends the insurance company a demand letter . The insurance adjuster will either accept the offer or make a counter offer. This claims adjuster (also called an appraiser, examiner, or investigator) is the person in charge of deciding whether or not an insurance company must pay a claim and, if so, how much. Oftentimes, there will be a lot of back and forth between you (or your attorney) and the insurance company with regard to the value of your accident claim, until an agreement is reached.

What is the first step in making a counter offer?

The first step in making a counter offer is to determine the value of your claim. To do this, simply:

What to do if you have been involved in a car accident?

If you've been involved in a car accident and have already received a settlement offer, make sure you take the time to review and counter before you accept . If you're making an insurance claim following a car accident, at some point you need to consider how much money you would be willing to accept to settle your claim ...

How to write a counter offer letter?

Start by summarizing the offer that was made to you. State that the offer is too low and explain why it is too low by drawing on your research. You might want to consider attaching some documents, such as bills, as exhibits. Finally, end by detailing the amount for which you would settle the claim.

What is the sum of special damages and general damages?

Add special and general damages together. The sum of your special and general damages is a good ballpark estimate of the value of your claim.

Should you be compensated for someone else's negligence?

The idea being that because someone else's negligence caused you undue pain, discomfort, or even emotional damage or stress, you should be compensated for that impact on your life. When it comes to actually determining this compensation, there is a lot of room for negotiation.

What happens if you counter a settlement offer?

If you counter your settlement amount, the claims adjustor may also try to assert “settlement authority ,” which is a limit on how much money the adjuster’s supervisor will permit in an offer.

What is settlement authority?

Remember that “settlement authorities” are just tactics for negotiation. If an insurance adjuster brings this up, they are simply trying to persuade you to accept the offer. This method is used to make you feel like you have to take what is offered even if the amount is not fair.

What does a claims adjuster do?

A claims adjuster will follow up with you to investigate your automobile accident. During the investigation, the adjuster will review your medical records, obtain cost estimates for repairing your car and look over the police accident report. The claims adjuster may also interview you to get your account of the accident.

What is special damages?

Special damages are: Current and future medical costs, i.e. ambulatory care, hospital stays, and rehabilitation. Property damage, which is the cost to replace or repair your vehicle.

What are some expenses you have paid out of pocket?

Expenses you’ve paid out of pocket, like towing your car, purchasing prescription medicine, traveling to the doctor’s office, or renting a wheelchair

Does insurance settlement cover loss?

Your insurance settlement should cover the cost of these losses up to your insurance coverage limit.

Do you have to settle for an insurance settlement?

The truth the insurance company doesn’t want you to know is , you don’t have to settle for the insurance company’s initial settlement offer.

What should an insurance adjuster do if the first offer is very close to the claimant's minimum amount?

If the insurance adjuster’s first offer is very close to the claimant’s minimum amount, the claimant should adjust their expectations upward.

What to do if a claimant wants to lower the amount?

If the claimant wants, they can enter into negotiations and send several letters that gradually lower the amount they will accept. It is also important for the claimant to mention any emotional suffering. This will not have a dollar value, but it is strong support of a higher settlement.

Why do insurance companies make low offers?

The first offer given by the insurance company will most likely be very low and not be their last offer. They may purposefully make a low offer to see if the claimant knows what he or she is doing. This is why it is recommended to negotiate for a higher offer.

What happens when you submit a claim letter to an insurance company?

When a person submits a claim letter to an insurance company, whether it’s for a car accident, medical malpractice, personal injury or other reason, the insurance company will respond with a first offer. At this point, the claimant has the right to make a counter offer, and in most cases, this is the best thing to do.

Who does a letter go to when a claimant is at fault?

In most cases, the letter goes to the at-fault party’s insurance company to make it clear that the claimant suffered injuries because of the fault of the company’s insured person.

Should the claimant decide on the lowest amount they have calculated is fair for their claim?

The claimant should decide on the lowest amount they have calculated is fair for their claim and keep it in mind during negotiations, but not reveal it to the insurance company. If the insurance adjuster’s first offer is very close to the claimant’s minimum amount, the claimant should adjust their expectations upward.

Is an insurance company required to give a fair settlement?

The insurance company is not required by law to give a claimant a fair settlement. There are some adjusters who want to treat claimants fairly and some who take advantage of the claimant’s naiveté to offer a less than fair amount.

How to counter an insurance settlement offer?

When you receive the initial settlement offer in writing, examine the reasons the insurance adjuster has given for the low settlement amount . Each of these points will become a part of your counteroffer letter, and you should respond to each and every one. Your counteroffer letter will reassert your original position described in your demand letter, as well as respond to each of their low-offer reasons in turn. Keep your emotions out of the letter and stick to facts, such as the extreme pain and suffering you have had to endure and the frustration and hassle of attending medical treatments. Be professional, courteous, and confident, and never attack the claims adjuster personally in your counteroffer letter.

How to reject a settlement offer?

To reject the initial offer, you will create a counteroffer and send it via mail to the insurance company claims adjuster. This letter should state: 1 That you will not accept the initial settlement offer; 2 The reasons why you feel you deserve a higher settlement amount; 3 Each of their low-offer reasons, and your responses; 4 The higher settlement amount that you will accept.

What is a lowball offer from an insurance adjuster?

The initial offer you receive from the insurance adjuster will almost always be a "lowball" offer. They may defend their low offer by claiming that you were partially at fault for the accident that caused your injuries, or that the injuries you suffered weren't severe enough to warrant a greater amount. They may also question the amount of pain and suffering you experienced. They will aggressively defend their position of a low offer because this will often intimidate people into simply accepting the low offer. Do not ever accept the initial offer unless it is a fair offer.

How to reject an insurance offer?

To reject the initial offer, you will create a counteroffer and send it via mail to the insurance company claims adjuster. This letter should state:

What happens after an insurance adjuster investigates a personal injury claim?

After the insurance company has fully investigated your personal injury claim, they will make their first offer of settlement. Their investigation may include witness interviews, examination of the police reports and medical records pertinent to your case, and the demand letter you've forwarded to them. By the time the insurance adjuster presents an offer, they will feel confident about who was liable for the injuries you've suffered and property damage incurred, and what those are worth as a dollar amount.

What to do in a counteroffer letter?

Your counteroffer letter will reassert your original position described in your demand letter, as well as respond to each of their low-offer reasons in turn. Keep your emotions out of the letter and stick to facts, such as the extreme pain and suffering you have had to endure and the frustration and hassle of attending medical treatments.

How long does it take to get a settlement offer from insurance?

The initial settlement offer that comes from the insurance company can come at any time after you've filed your claim . Some personal injury claimants have to wait weeks to receive the offer, and some receive it rather quickly. Unfortunately, there is no set time in which the initial offer must be made.

How to receive a settlement offer?

You may receive a settlement offer in a phone call or email, which will be followed by a letter. Once you have the settlement offer letter, you have the right to make a counter demand if you find the offer unacceptable. Compare what the insurance company has offered to your record of costs and losses, and the maximum payment provided by ...

What should an insurance settlement account for?

An insurance settlement should account for all of these losses as they apply to you and your situation, up to the limits of the applicable insurance coverage.

How to prepare for an insurance company offering less than you deserve?

Prepare for the real possibility that the insurance company will offer less than you deserve by keeping a record of your costs and losses related to your accident and injury. Save copies of all bills and receipts and keep a journal of your recovery.

What to do if your insurance is disputed?

You could benefit from the assistance of an experienced personal injury lawyer if your insurance claim is disputed after an accident. Sometimes, just a letter on a law firm’s letterhead helps an insurance company get more serious about responding to a claim.

How do claims adjusters follow up on a claim?

A claims adjuster should follow up on your claim by contacting you and investigating your case. The investigation may include reviewing your medical records, obtaining vehicle repair estimates, reviewing police accident reports, interviewing you and reviewing your initial claim documents.

What to do if insurance company is using delay tactics?

You must also consider how slowly negotiations are going.If the insurance company is using delay tactics, you will need to keep in mind the statute of limitations for filing a personal injury lawsuit. You do not want to let the time limit expire.

What to do after an accident?

After suffering an injury in an accident, you may be able to turn to insurance for coverage of medical costs and other losses. You might file a claim under a policy you hold (e.g., auto collision insurance, homeowners’ insurance, health insurance) or through another person’s liability insurance if he or she was at fault.

What to do after an insurance adjuster's first offer?

After the insurance adjuster's first offer in your car accident case, you have every right to respond with your own counter-offer. Again, you may get the best results by putting your counter-offer and your supporting arguments into a detailed car accident demand letter.

Who makes the settlement offer for an at fault driver?

So, assuming the at-fault driver has car insurance, the settlement offer is going to come from the insurance company , and if you have a lawyer, he or she will be the intermediary. But it's the insurance company that is making the offer.

What is a typical settlement for a car accident?

While every case is different, here is the course that a typical car accident settlement might follow: 1) The insurance company makes an initial offer that is almost always less than what your claim is probably worth. 2) You (and your attorney if you have one) respond with a detailed car accident injury demand letter that asks for more ...

What happens if you sign a release of liability?

You sign a release of liability and the insurance company cuts a check. Your claim may not go through this much back-and-forth, especially if you've suffered only minor injuries (or no injuries) and the insurer's liability is limited mostly to vehicle damage.

Is it worth talking to an experienced car accident attorney?

In more significant car accident cases -- where you've got serious injuries and your full medical recovery is expected to take some time, for example -- it might be worth your while to discuss your case with an experienced car accident attorney.

Receiving a Settlement Letter

The settlement process always begins after receiving a letter from the insurance company regarding the settlement offer. Once that happens, the victim is going to be working with the best car accident lawyer Des Moines has to offer to make a counteroffer for the insurance company.

Determine the Value of the Claim

If the victim received a settlement letter from the insurance company and determined that it’s not enough for them, they can start making their counteroffer by determining the true value of the claim.

Preparing the Counteroffer

The final step is to draft a letter where the victim outlines what the insurance company offered them initially. Once they’re done, they must state the reasons why they consider the offer to be too low according to their research. It’s vital to include any documents that may help the victim support their claims (bills, exhibits, photos, etc.)

Working with a Professional for the Counteroffer

Drafting a counteroffer for a car settlement in Des Moines, Iowa, can be challenging without any guidance. In these cases, it’s vital to get a fair settlement amount so that the victim can cover all the damages sustained after the accident.