Detailed Answer
When an insurance adjuster issues an initial settlement offer, they often start low to protect the insurer’s bottom line. Under New Jersey law, including the Unfair Claims Settlement Practices Act (N.J.S.A. 17:29B-4), insurers must act in good faith and handle claims promptly and fairly. However, their first number rarely reflects your full damages. Presenting a well-documented counteroffer can help bridge the gap and encourage a more reasonable settlement.
Follow these steps to prepare and present an effective counteroffer:
- Assess Your Economic Damages. Gather medical bills, pharmacy receipts, lost wage statements, car repair invoices, and other out-of-pocket expenses. Detailed documentation strengthens your position.
- Estimate Non-Economic Damages. In New Jersey, you may seek compensation for pain and suffering. A common approach multiplies your economic losses by a factor between 1.5 and 5.0, depending on injury severity. Consulting an attorney can refine this estimate.
- Review Policy Limits. Check the at-fault party’s liability limits and any applicable Personal Injury Protection (PIP) caps. Understanding coverage constraints helps you set realistic expectations.
- Draft a Demand Letter. Clearly outline the accident facts, liability basis, and itemized damages. Attach all supporting documents and state your counteroffer amount with a deadline (e.g., 14–30 days) for response.
- Use a Professional Tone. Maintain a concise, respectful style. Present facts and evidence objectively, avoiding emotional language.
- Choose Secure Delivery. Send your counteroffer via certified mail or email with read receipt to track delivery and timing.
- Consider Legal Guidance. Negotiating with insurers can be complex. A New Jersey attorney can evaluate your case, advise on strategy, and negotiate more effectively on your behalf.
Helpful Hints
- Keep a claim file: organize correspondence, medical records, and bills.
- Note all phone calls: date, time, adjuster name, and summary of discussion.
- Be aware of New Jersey’s two-year statute of limitations for personal injury claims (N.J.S.A. 2A:14-2).
- Avoid signing a release until you fully understand the settlement terms.
- Remain patient; negotiations often require multiple counteroffers.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. Consult a licensed attorney in New Jersey to address your specific situation.