Detailed Answer
Under New Mexico law, you can—and often should—prepare and present a counteroffer when an insurance adjuster’s initial settlement proposal falls short of your actual damages. An insurance adjuster’s first offer typically aims to minimize the insurer’s payout. By formulating a clear, documented counteroffer, you signal that you know the true cost of your losses and respect your own claim. This approach aligns with the insurer’s duty to handle claims in good faith under NMSA 1978, § 59A-16-20 (Unfair Claim Settlement Practices).
1. Evaluate Your Damages
Gather all bills, repair estimates, medical records and other proof of loss. For example, if a fender-bender caused $4,500 in vehicle repairs and $2,000 in medical expenses, total your documented costs.
2. Calculate a Reasonable Settlement Range
Include out-of-pocket costs, estimated future expenses (e.g., physical therapy) and non-economic damages (pain and suffering) if state law or your policy allows. In New Mexico, you may claim general damages for mental anguish after a personal injury (NMSA 1978, § 57-12-2).
3. Draft Your Counteroffer Letter
Use clear language. Cite each damage item and attach supporting invoices or estimates. State your total demand and request a response by a specific date (e.g., 30 days). This written record documents your good-faith effort.
4. Negotiate in Good Faith
Under NMSA 1978, § 59A-16-20, insurers must not unreasonably delay or deny claims. If the insurer counters, review the new offer against your documented losses. Continue the dialogue until you reach a fair amount or decide to explore other remedies.
5. Know When to Seek Legal Help
If the insurer refuses to negotiate or violates settlement practices, you may consider filing a complaint with the New Mexico Office of Superintendent of Insurance or consulting a qualified attorney. Acting early protects your rights and may increase settlement leverage.
Disclaimer: This article is for informational purposes only. It is not legal advice. Consult a licensed attorney to address your specific situation.
Helpful Hints
- Document Everything: Keep all correspondence, receipts and estimates in one file.
- Set a Deadline: Give the adjuster a clear response date to avoid indefinite delays.
- Be Professional: Maintain a polite but firm tone in all communications.
- Know Policy Limits: Understand your coverage maximums before demanding amounts beyond those limits.
- Review Statutes: Familiarize yourself with NMSA 1978, § 59A-16-20 to spot unfair settlement practices.
- Consider Mediation: If negotiations stall, request mediation under your policy or through the insurer’s dispute resolution program.