Detailed Answer
When an insurance adjuster reviews your claim, their initial settlement proposal often underestimates your actual damages. Preparing and presenting a counteroffer shows you understand the full value of your claim and signals good-faith negotiation. In Indiana, insurers must avoid unfair claim settlement practices under the Indiana Code. See IC §27-4-1-2.
First, calculate your total damages. Include economic losses such as medical bills, repair costs, and lost wages, along with non-economic harms like pain and suffering. Next, gather supporting documents: medical records, repair estimates, pay stubs, and photographs. With this evidence, craft a written demand letter that outlines your claim’s value and states a clear minimum acceptable figure.
Submit your counteroffer in writing. A formal demand letter creates a paper trail and strengthens your negotiating position. Insurers often respond with a revised offer—you can accept, reject, or counter again. If negotiations stall, you may pursue appraisal, mediation, or file suit in small claims court. Watch policy deadlines carefully to avoid forfeiture of rights.
By engaging in back-and-forth negotiation, you maximize your chance of a fair settlement without litigation. Failing to counteroffer can leave money on the table and weaken your case if you later file suit.
Helpful Hints
- Review your insurance policy limits and coverage details before negotiating.
- Document all communications with the insurer in writing.
- Set a clear bottom-line value in your demand letter.
- Allow sufficient time for the adjuster to evaluate your counteroffer.
- Keep all medical treatment and repair invoices organized for future reference.
- Consider consulting an attorney if your damages exceed policy limits or negotiations stall.
Disclaimer: This article is for educational purposes only and does not constitute legal advice. For guidance specific to your situation, consult a qualified attorney.