Should I Counter This Low Insurance Offer?
I was involved in a car accident last year where I was rear-ended. I submitted a demand letter to Farmers Insurance, requesting the following:
- $4,523 for gross medical expenses (I included detailed reports and receipts)
- $33,000 for pain and suffering
- $6,295 for diminished value (they mentioned this would be addressed separately)
Yesterday, they came back with an offer of $7,823 for my bodily injury claim, which barely covers my medical expenses and only accounts for a fraction of the pain and suffering I mentioned (just 10% of my original request).
Should I counter this offer? If so, would it be strategic to slightly reduce my initial demand (e.g., asking for $25K for pain and suffering) to demonstrate good faith in negotiation, or should I hold firm to my original figure? Has anyone successfully navigated this process without legal representation to negotiate a better settlement?
Also, just to clarify, when my car was in the shop, I provided the shop with the insurance’s contact info, and they coordinated payment directly.
I’d appreciate any advice on my next steps before responding. Thank you!
It sounds like you have a good grasp of your expenses and the damages you’ve incurred, which is a strong starting point in negotiations. Here’s how you can approach this situation:
Counteroffer: Yes, you should definitely consider countering their lowball offer. The offer of $7,823 does not adequately compensate for your medical expenses, and the pain and suffering you’re entitled to is significantly undervalued.
Adjusting Your Demand: You can lower your demand slightly, but it’s not necessary to go too low, especially if you feel your original request is justified. A counteroffer of around $25,000 for pain and suffering still reflects the seriousness of your injuries and loss, while also showing you’re willing to negotiate.
Document Everything: Make sure to document all your injuries, treatments, impacts on your daily life, and any other factors that support your claim for pain and suffering. Providing this information can strengthen your position.
Express Your Reasoning: When you counter, explain why you’re asking for a specific amount. Emphasize the severity of your injuries, how they have affected your life, and remind them of the documentation you provided in your initial demand.
Be Prepared for Negotiation: Understand that this process may take some back and forth. Be ready to explain your figures and stay firm but open to negotiation.
Consider Your Options: If you find that negotiations are not progressing favorably and you feel overwhelmed, you might want to consider consulting an attorney, especially if the potential payout warrants it.
In summary, counter their offer, consider slightly lowering your pain and suffering demand, and provide clear reasoning for your figures. Good luck!