Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for guidance on your specific situation.
Detailed Answer
When you receive an initial settlement proposal from an insurance adjuster, remember that it usually serves as an opening anchor in negotiations. Adjusters often start with a low offer to gauge your response and protect the insurer’s bottom line. You can—and frequently should—prepare and present a counteroffer if the initial amount fails to adequately compensate your losses.
Why Present a Counteroffer?
- Protect Your Interests: Ensures you are not leaving money on the table.
- Demonstrate Seriousness: A well-supported demand shows you’ve documented your damages.
- Encourage Fair Negotiation: Insurers expect claimants to counter before finalizing a resolution.
How to Prepare a Counteroffer in Mississippi
- Gather Evidence: Compile medical records, repair estimates, receipts, and proof of lost wages.
- Calculate Your Damages: Sum your past out-of-pocket costs, projected future expenses, and non-economic losses such as pain and suffering.
- Draft a Demand Letter: Clearly state the facts, liability, itemized damages, and your requested settlement amount.
- Set a Reasonable Deadline: Provide the insurer with a response window—typically 30 days.
Legal Framework
Under Mississippi law, insurers must conduct prompt and fair investigations and attempt equitable claim settlements. Unfair or deceptive practices are prohibited under Miss. Code Ann. § 83-11-105. If an insurer unreasonably delays, undervalues, or denies a valid claim, you may have grounds for a bad-faith lawsuit.
Keep in mind the statute of limitations for personal injury claims in Mississippi is three years from the date of injury. See Miss. Code Ann. § 15-1-49. Failing to respond or counter within this period could jeopardize your right to sue.
Helpful Hints
- Organize Your File: Store all correspondence, bills, and estimates in one place.
- Be Realistic: Base your counteroffer on verifiable evidence, not emotion.
- Keep It Professional: Use concise, fact-based language in your demand letter.
- Include a Deadline: Encourage timely insurer response with a clear timeline.
- Consult an Attorney: A personal injury lawyer can review your counteroffer and advise on strategy.