Disclaimer: This article is for informational purposes only and does not constitute legal advice. Always consult a qualified attorney about your specific situation.
Detailed Answer
When an insurance adjuster presents an initial settlement proposal in Oregon, that offer rarely reflects the full value of your claim. Oregon law encourages insurers to act in good faith when handling claims. Under ORS 742.061 (Unfair Claim Settlement Practices), insurers cannot misrepresent facts or policy provisions or undervalue claims. However, they often start with a lowball number to test your willingness to settle quickly.
Preparing and presenting a counteroffer serves two main purposes:
- Signals that you understand your claim’s worth. A well-supported demand letter shows you’ve documented medical bills, lost wages and other damages.
- Starts formal negotiations. Insurance negotiations are a give-and-take process. Your counteroffer sets the stage for back-and-forth until you reach a fair amount.
Follow these steps when crafting a counteroffer:
- Calculate your damages. Sum up past and future medical expenses, property damage, lost income, pain and suffering. Use bills, wage statements and expert opinions.
- Write a demand letter. Clearly lay out the facts, cite your evidence and state the dollar amount you seek. Reference relevant policy language if needed.
- Anchor high—but realistic. Ask for slightly more than you expect. This provides room to negotiate down if necessary.
- Provide supporting documents. Attach medical records, repair estimates and any expert reports. This bolsters your position and compels the adjuster to respond thoughtfully.
- Set a deadline. Give the insurer a reasonable date—typically 2–3 weeks—to respond. This moves the process forward and protects against undue delay.
- Send via certified mail or email with delivery/read receipts. Documentation proves the insurer received your counteroffer, an important detail if disputes arise later.
After you present your counteroffer, expect further dialogue. The adjuster may request additional information or submit a revised proposal. Continue to negotiate until you achieve a settlement that fairly compensates your losses. If the insurer stalls or acts in bad faith, you may have grounds for a claim under ORS 742.061 or other remedies.
Helpful Hints
- Review your policy limits before negotiating.
- Keep a negotiation log with dates and summary of communications.
- Be polite but firm; emotional appeals rarely boost settlement value.
- Consider hiring a personal injury attorney if damages exceed policy limits or if the insurer rejects valid claims.
- Understand the Oregon statute of limitations (generally 2 years for personal injury under ORS 12.110).
- Stay organized: maintain a file of all letters, emails, receipts and medical documents.