Should I Respond to This Low Insurance Offer?
Last year, I was in a car accident where I was rear-ended. I sent a demand letter to Farmers Insurance requesting compensation for:
- $4,523 in medical expenses (I provided detailed reports and receipts)
- $33,000 for pain and suffering
- $6,295 for diminished value (they mentioned this would be handled separately)
Yesterday, I received an offer of $7,823 for my bodily injury claim, which barely covers my medical expenses and only includes a minimal amount for pain and suffering (just 10% of my request).
Should I counter this offer? If I do, would it make sense to slightly reduce my initial demand (perhaps to $25K for pain and suffering) to demonstrate good faith in negotiations, or should I hold firm on my original amounts? Has anyone else successfully navigated this process without an attorney and achieved a better outcome?
Also, for context, when my vehicle was in the shop, I provided the shop with the insurance company’s contact information, and they took care of the payment directly.
I’m seeking advice on my next steps before I respond. Any insights would be greatly appreciated!
It’s definitely worth considering a counter to that initial offer, as it seems significantly lower than what you initially requested. Here are some steps and considerations to help you navigate this situation:
Review your documented medical expenses, loss of income (if applicable), and any pain and suffering you experienced. It’s important to have a clear understanding of the economic and non-economic losses you’ve incurred.
Research Pain and Suffering:
Understand how pain and suffering is typically calculated in your state. While your original request for $33,000 may seem reasonable to you, you might want to research average compensation in similar cases to make sure your counter is justified.
Counter Offer:
You might set your total counter at around $34,000, which is close to your original demand. This gives you room to negotiate while still being reasonable.
Highlight Your Documentation:
When you counter, reiterate the details you provided in your demand letter, emphasizing your medical expenses, and the pain and suffering caused by the accident. This can bolster your position and show that you’re serious about your claim.
Diminished Value Claim:
Make sure to mention the separated diminished value claim in your correspondence. This can help you set the stage for higher compensation, as it factors into your overall damages.
Consider the Non-Legal Approach:
Many people have successfully negotiated without legal representation, but patience and persistence are key. Stay firm and maintain clear communication. If the negotiations don’t improve, you could explore legal options later.
Final Thoughts:
Don’t hesitate to reach out to others who have gone through a similar experience for support and insights. Good luck!