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  • Writer's pictureRobert Schuerger II

Writing a Reply Letter to Too Low Settlement Offer

Unfortunately, there are many cases where people receive a settlement offer that's way too low. When this happens, it's important to stay calm and respond appropriately. While it is possible for people to respond to a lowball settlement offer by themselves, it's always advisable to seek help from a personal injury lawyer who has experience working with insurance companies. Here's how to respond.


Enquiring Why the Insurance Adjuster Made a Low Personal Injury Settlement Offer

Enquiring Why the Insurance Adjuster Made a Low Personal Injury Settlement Offer


First and foremost, people should be aware that insurance adjusters work with the insurance company's best interests in mind. They don't have the victim's best interests at heart. Therefore, a first (often unreasonably low) offer can just be a bargaining gimmick to see how ready the individual is to fight for more and whether they understand the value of their personal injury claim. Almost always, the insurance adjuster aims to get the individual to accept the low offer right away in order to finalize the process as soon as possible.


Take this opportunity to ask the insurance claims adjuster to explain their thinking behind the offer rather than accepting a too-low one. If an initial demand letter has already been filed, it's time to ask for a reasonable explanation for each of the claims, including:

  • The nature and severity of any personal injuries suffered as well as the necessary medical treatment obtained as a result of the injuries.

  • How the accident took place, and how the responsible party is at fault.

  • How the injuries sustained have affected the individual's life, both physically and mentally.


How to Respond to a Low Settlement Offer from an Insurance Company


It's always preferable to get the insurance adjuster's reason for the low settlement offer in writing. Many people tend to get overwhelmed during this time, which is why it's crucial to hire a personal injury attorney. A few vital points to remember are:

  • The low initial settlement offer, response, and counteroffer process is a normal part of the personal injury negotiation process.

  • An insurance adjuster's offer is set with the intention of protecting the profitability of the insurance company.

  • The end goal of the process is to receive a fair settlement.

Therefore, once an initial offer has been made, an appropriate response needs to be submitted. Low settlement offers are part of the game. Review the offer, then start writing a counteroffer letter. Each justification the adjuster provided for the low offer must be addressed. Make sure to include supporting evidence, such as proof of lost income, updated medical bills, non-economic damages, and police reports.


The adjuster does not expect the initial offer to be accepted. A rejection letter's principal objective is to advance the negotiations. The offer from the adjuster and the response letter are merely two steps in the process.


Always start with a high demand and decrease it gradually. Never raise the adjuster's lowball offer in a negotiation. It's also a good idea to respond as soon as possible.


Should Settlement Demands Be Offered?


It's not a good idea to dramatically reduce the amount initially requested regardless of the reason the adjuster made a low-ball offer. Instead, a better negotiation strategy is to lower the initial settlement demand slightly.


Developing a Counter Offer


A personal injury attorney will formulate a counteroffer based on the sum their client is entitled to receive as compensation for things such as pain and suffering, medical care, and other injuries they might have experienced, in addition to the formal rejection of the initial offer.


The available insurance policy limitations and the offender's personal assets may also be taken into account when coming up with a counteroffer if the policy is insufficient to cover the full extent of the injuries.


It is essential to remember that during the discussions, there may be numerous proposals made and rejected. The individual and their lawyer will determine the absolute lowest they're willing to accept for the insurance claim based on the specific circumstances surrounding the case. If negotiations go downhill, it could be advisable to file a lawsuit, as settlement negotiations are binding.


What Happens If the Insurer Doesn't Respond or the Negotiation Process Isn't Going Anywhere?


The most effective way to make an insurance adjuster take a claim seriously is to take legal action by filing a personal injury lawsuit or, at the very least, bringing up the possibility of doing so. At the end of the day, the last thing an insurer wants is to be forced to represent their policyholder in court. Therefore, a realistic threat of going to court may drive the adjuster to make a more fair settlement offer.


However, it isn't always simple to determine if moving forward with a case will be worthwhile. Therefore, whether the adjuster hasn't responded or the negotiation process isn't looking good, it's always advisable to get advice from a knowledgeable legal professional.


What Is a Good Settlement Offer?

What Is a Good Settlement Offer?


An appropriate settlement offer compensates victims fairly for their losses and injuries. A good settlement offer is one that will not result in debt because of future medical expenses or lost wages. This is why it's crucial to only settle an accident injury claim once the victim has healed completely. can give more insight on if a is personal injury settlement considered income.


An Experienced Attorney Can Help Settle a Personal Injury Case


A personal injury lawyer will evaluate a claim objectively, look over any settlement proposals made by the insurance adjuster and any relevant correspondence, and develop the best course of action for the case moving ahead. If filing a personal injury lawsuit seems like the best course of action, an attorney will take care of all the intricacies of the legal procedure while building a strong defense.


The personal injury attorneys at Schuerger Shunnarah Trial Attorneys have years of experience when it comes to getting fair compensation for clients, whether it be through negotiating a reasonable settlement offer or going to trial. If you're not happy with an insurance company's offer, contact our experienced and compassionate personal injury lawyers today for a free consultation.

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