Steps to Respond to a Low Settlement Offer Keep Calm and Analyze Your Offer. Like everything in life, it's never a good idea to respond emotionally after receiving a low offer. A minimum settlement offer is an offer that is clearly outside the fair value of your claim. In personal injury cases, appraisers use the minimum settlement offer as a technique to lower their expectations about the value of their claim.
Don't take a low offer personally. Review the offer and start writing your rejection letter. You must respond to every reason that the adjuster has given for the low offer. When you make a first offer, your answer should depend on whether it's reasonable, but too low or so low that it's clearly 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 your demand letter. That shows the adjuster that you are also being reasonable and willing to commit. A little more negotiation should quickly lead you to a final settlement amount that you both consider fair. In these negotiations, don't bother to revisit all the facts.
Just emphasize the strongest points in your favor, for example, that the insured was completely at fault. It's common for insurance companies to offer you less compensation for your claim just to see if you accept it. However, you are not obliged to accept a settlement offer from the insurer. You can choose to accept or reject the offer or negotiate.
Keep in mind that a low insurance settlement offer is often the first step in a series of negotiations. We recommend that you do not respond to the insurance company until you have spoken to your injury lawyer. The right settlement offer for you is the one that helps you meet your needs so you can move on with your life after an accident. Instead, an experienced car accident injury lawyer can negotiate with the insurance company on your behalf and get the money you deserve for your injuries and losses.
Trust a Personal Injury Attorney to Negotiate a Fair Settlement with the Insurance Company for Your Injuries and Accident Losses. Most adjusters start with a low settlement offer for each claim as part of their trading strategy, regardless of the factors affecting value. Because you don't have to talk to the insurer or insurance claims adjuster, it's best to remain professional and leave negotiations to your lawyer and remember that an initial offer is just a starting position for negotiation. By “speaking the language of settlement negotiations” and protecting you from the tricks and tactics of defense and insurance lawyers, the lawyer evens the playing field between you and the insurance company, which in turn increases your chances of receiving the money you deserve.
Negotiating your personal injury agreement with an insurance company can be a harrowing experience that is best left to a qualified attorney. Numerous studies have shown that personal injury victims receive more compensation in their pockets with an attorney who does the job than trying to represent themselves in obtaining the settlement. If you or your personal injury lawyer have submitted an organized demand letter and the proper supporting documents to the insurance company, the negotiation process may consist of nothing more than a few phone calls with an insurance claims adjuster. The letter simply protects the insurance company by preventing you from claiming that the company's insurance policy covers your accident just because it started negotiations in agreement with you.
Personal injury lawyers are trained negotiators who can advise you if, when and how to resolve your claim. Sometimes, a letter from your lawyer is all it takes for a stubborn or lazy appraiser to make a fair personal injury settlement offer. This figure is for your own information, so you can factor in your results when you are under bargaining pressures, but it is not something you should disclose to the adjuster. Receiving a settlement offer for your pain and suffering can be insulting, but it is due to yourself not reacting emotionally to an initial offer.
They want to see if you're going to start negotiating against you by making a reduced demand instead of waiting for their offer. Respond promptly to the appraiser's letter so that you can continue to discuss a realistic dollar amount for settlement. . .