Is it Time to Counter This Low Insurance Offer?
I was recently in a car accident where I was rear-ended. After the incident, I submitted a demand letter to Farmers Insurance, requesting a total of:
- $4,523 for medical expenses (with detailed reports and receipts included)
- $33,000 for pain and suffering
- $6,295 for diminished value (they indicated this would be addressed separately)
Yesterday, I received their offer of $7,823 for my bodily injury claim. This barely covers my medical bills and offers a meager amount for pain and suffering—only about 10% of my original request.
Should I counter this offer? If I do, would it be wise to slightly adjust my pain and suffering request to around $25,000 to demonstrate I’m negotiating in good faith, or should I stand firm on my initial ask? Has anyone else navigated this situation without an attorney and managed to secure a better outcome?
As a side note, when my car was getting repaired, I informed the shop to contact the insurance, and they settled the bill directly with them.
I’d appreciate any advice on how to proceed before I respond. Thank you!
It’s understandable to feel frustrated with the low offer from Farmers Insurance, especially given the costs you’ve detailed. Here are some steps to consider as you prepare your response:
Assess the Offer: Their offer of $7,823 is indeed significantly lower than your request of $43,818. This indicates they are not valuing your pain and suffering anywhere close to what you expected. You’ll want to be prepared to make a solid case for your valuation.
Counter Offer: Yes, you should definitely counter the offer. It’s common in negotiations to start with a higher figure and work down, but the key is to remain reasonable to keep the negotiation going. You can lower your demand slightly for pain and suffering to show you’re negotiating in good faith, but ensure it’s still within a range that’s justifiable based on your experiences and damages.
For example, if you feel comfortable, you might counter with $25K for pain and suffering and keep your other amounts the same. This still demonstrates that you’re serious about advocating for fair compensation without undervaluing your experience.
Document Everything: Make sure you have all your documentation organized, including medical reports, receipts, and any details about how the accident impacted your life (e.g., impact on daily activities, emotional distress).
Research: Look into similar cases in your area, if possible, to gauge typical compensation for pain and suffering related to rear-end collisions. This can help justify your counter-offer.
Consider Diminished Value: Since they mentioned handling diminished value separately, ensure you follow up on that matter as well. It’s essential to address every part of your claim to maximize your settlement.
Avoid Settling Too Quickly: Insurance companies often start with low offers, expecting negotiations. Don’t feel pressured to accept the first offer, and it’s typically wise to continue negotiation until you feel you’ve received a fair amount.
Consult an Attorney if Needed: While it is possible to negotiate without an attorney, consider consulting one, especially if negotiations stall or become complicated. They can provide valuable insights and potentially help secure a better outcome.
Ultimately, negotiating effectively can take time, so approach the response thoughtfully. Good luck!