FastCounsel

Detailed Answer

Under Alabama law, you have the right to negotiate any initial settlement proposal from an insurance adjuster. An adjuster’s first offer often serves as the starting point of negotiations rather than a final figure. Preparing a counteroffer can help ensure you address both economic and non-economic damages fairly.

Step 1: Evaluate Your Claim. Document medical expenses, lost wages and property damage. Gather treatment records, repair estimates and receipts. A clear valuation strengthens your position.

Step 2: Know Applicable Deadlines. Alabama’s statute of limitations for personal injury and property damage claims is generally two years from the date of injury or damage (Ala. Code § 6-2-38). Filing within this period preserves your legal rights if negotiations stall.

Step 3: Review Unfair Settlement Practices. The Alabama Unfair Claim Settlement Practices Act prohibits insurers from lowballing or delaying valid claims. Ala. Code § 27-12-22 outlines conduct considered unfair. If an adjuster’s tactics seem unreasonable, you may challenge them.

Step 4: Craft Your Counteroffer. State your total damages, cite supporting documentation and explain how you calculated your figure. Maintain a professional tone and allow room for further negotiation. A reasoned counteroffer shows you understand your claim’s value.

Step 5: Follow Up and Document. Submit your counteroffer in writing. Track all correspondence and phone calls. If the insurer rejects or ignores your counteroffer, you will have evidence for potential bad-faith refusal.

Helpful Hints

• Be concise and factual in your counteroffer.
• Include copies of all supporting documents.
• Set a reasonable deadline for the insurer’s response.
• Consider hiring an attorney if the insurer pauses negotiations or offers much less than your damages.
• Keep emotions in check and focus on evidence-based valuation.