Detailed Answer
When an insurance adjuster sends an initial settlement proposal, it often reflects the insurer’s starting point—not the full value of your claim. Preparing and presenting a counteroffer can help you reach a fair resolution under Michigan law. A counteroffer signals that you know your claim’s value, and it opens room for negotiation. This process often leads to a settlement closer to your actual losses.
Why You Should Counteroffer:
- Maximizes recovery: Provides a realistic basis to claim compensation for medical bills, lost wages, and other damages.
- Demonstrates preparation: Showing documentation and calculations encourages the insurer to engage seriously.
- Protects your rights: Avoids accepting a lowball offer that may waive future remedies.
How to Prepare Your Counteroffer:
- Document your losses. Gather medical records, bills, wage statements, and repair estimates.
- Calculate a demand range. Total your economic losses (bills, repairs) and estimate non-economic damages (pain and suffering).
- Draft a demand letter. Include a concise narrative of the accident, your documented losses, and your proposed figure.
- Support with law. Reference Michigan’s Unfair Claims Settlement Practices Act (MCL 500.2006) to remind the insurer of its duty to handle your claim in good faith (MCL 500.2006).
- Set a response deadline. A typical window is 14–21 days to maintain momentum.
Negotiation Tips: Remain professional and fact-focused. If the insurer counters again, evaluate the new offer against your adjusted demand. You may need to consider mediation or small claims court if negotiations stall.
Helpful Hints
- Keep all communication in writing to create a clear record.
- Use a cover letter summarizing attachments to make it easy for the adjuster to review.
- Be realistic: Aim high but stay within a justifiable range based on your evidence.
- Consult an attorney if the insurer ignores your counteroffer or acts in bad faith.
- Track all deadlines under Michigan’s statutes to avoid missing your window for action.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for advice on your specific situation.