How to counter a low insurance settlement offer If the offer is reasonable, you can immediately make a counteroffer that is slightly lower than the amount of your demand letter. This shows the adjuster that you, too, are reasonable and willing to make concessions. A little more negotiation should quickly lead them to a final settlement amount that they both consider fair. When you make a first offer, your answer will depend on whether it's reasonable but too low, or so low that it's clearly just a tactic to see if you know what you're doing. If the offer is reasonable, you can make a counteroffer that is slightly lower than the amount of the demand letter.
In these negotiations, don't bother to go over all the facts again. Just emphasize the strongest points in your favor, for example, that the insured was entirely at fault. Therefore, the first step in negotiating a personal injury settlement is to send a letter with supporting medical documentation to the adjuster soon after the accident, long before treatment is complete. If you decide to reject the lowest settlement offer, you must communicate your decision to the claims adjuster. Your legal representative can help you write a letter stating your intentions.
In the letter, you can indicate that you're refusing the offer and explain why you deserve a higher settlement amount. You should also refute their reasons for offering the lowest initial offer. Your explanation of these reasons may be critical to getting a second, better offer from the claims adjuster. Your lawyer must explain all the offers made by the insurer, providing a good understanding of how the compensation figure has been calculated. One technique that we have found useful in negotiating a claim is to try to emotionally appeal to the adjuster.
The best part of this technique is that, even if it doesn't help you solve the case, you can use the preparation you do here to appeal to a jury, who are more likely to be convinced by emotions. Reasons for refusing an offer: Generally, your lawyer may recommend that you decline an offer for one of two reasons. You may feel pressured to accept this offer because of the financial burdens resulting from your injury, but think carefully about the value of the proposal and what it could mean if you were to negotiate a larger amount. If you feel able and willing, it might make sense to pursue a personal injury claim on your own, at least initially.
Your counteroffer is likely to be slightly lower than the amount you originally requested in your initial letter of demand, but not so low as to not adequately compensate you for your losses. Because that multiplier can vary and can greatly influence the amount of your recovery, it's important to consult with a personal injury attorney to successfully prove general damages. To support your claim and substantiate the extent of your injuries and damages, gather as much evidence as possible. The only way to know for sure if an offer is “final” or not is to ask the insurance adjuster.
On rare occasions, an insurance adjuster will verify that your position is fair and will make you an acceptable initial offer, taking into account your injuries. If you have any questions about your initial letter of demand or your counteroffer letter, contact a personal injury attorney with experience in your area. The first step in negotiating a personal injury settlement is taken before any actual negotiation begins. Challenging an offer: If an insurer submits an offer without an explanation, your lawyer will likely ask you for a justification of proposed figure.
When you submit a counteroffer, you'll want to explicitly state that you're rejecting your liquidation offer and explain your reasoning in this regard. If not for another reason, this is a solid reason to have an experienced personal injury attorney who looks after your best interests.