Detailed Answer
When you file a claim after an accident or loss, the insurer’s adjuster will typically issue an initial settlement proposal. That first number often serves as a starting point, not a final resolution. Presenting a well-crafted counteroffer can help you secure a fair outcome under Pennsylvania law.
Why Counteroffer?
An insurance adjuster’s opening offer often aims to minimize the insurer’s payout. By submitting a counteroffer, you:
- Anchor negotiations closer to your damages total
- Demonstrate you understand your legal rights
- Create room for back-and-forth bargaining
Steps to Prepare Your Counteroffer
- Gather Documentation: Compile medical records, repair estimates, lost-wage statements and any expert reports.
- Quantify Your Damages: Calculate economic harms (medical bills, property damage) plus non-economic losses (pain and suffering).
- Draft a Demand Letter: Summarize the accident, outline liability, itemize your damages and specify your counteroffer amount.
- Reference Applicable Law: Cite the Unfair Insurance Practices Act, 40 P.S. § 1171.1 et seq. (link) and the Department of Insurance’s 31 Pa. Code § 146.6 timeline for claim handling (link).
Insurers must acknowledge and investigate claims promptly and avoid unfair settlement practices. - Send by Certified Mail: Use return receipt to confirm the insurer receives your counteroffer.
- Be Prepared to Negotiate: Expect multiple rounds. Each response can narrow the gap toward a fair settlement.
Key Pennsylvania Rules
- Unfair Insurance Practices Act (40 P.S. § 1171.1 et seq.) prohibits lowball tactics and unreasonable delays.
- 31 Pa. Code § 146.6 requires insurers to acknowledge claims within 15 business days and make a decision within 30 days.
- Statute of limitations for personal injury claims is two years from the date of injury (42 Pa.C.S. § 5524).
Helpful Hints
- Review your insurance policy limit before naming a figure.
- Keep clear records of every communication.
- Stay professional; frustration can derail negotiations.
- Consult medical or repair experts for credible estimates.
- A void vague language—itemize costs and attach proof.
Disclaimer: This article is for informational purposes only and does not constitute legal advice. For guidance specific to your circumstances, consider consulting a licensed attorney in Pennsylvania.