Understanding Counteroffers to Insurance Adjusters in Utah

Disclaimer: This article is for educational purposes only and does not constitute legal advice. Consult a licensed attorney for guidance on your specific situation.

Detailed Answer

When an insurance adjuster presents an initial settlement proposal, they often start with a low offer. Preparing and presenting a counteroffer can bridge the gap between your losses and the insurer’s valuation. Under Utah law, policyholders have the right to negotiate a fair settlement.

1. Evaluate Your Damages: Gather all documentation—medical records, repair estimates, lost-wage statements and photos. Total your economic damages (medical bills, property repair) and estimate non-economic damages (pain and suffering).

2. Review Insurance Law: Utah’s Unfair Claims Settlement Practices Act prohibits insurers from misrepresenting policy terms or failing to acknowledge communications promptly. See Utah Code § 31A-26-303 for prohibited practices: le.utah.gov/xcode/Title31A/Chapter26/31A-26-S303.html.

3. Draft Your Counteroffer Letter: Write a clear, concise letter that:

• References the original claim number and date of loss.
• Summarizes your documented losses and attaches supporting evidence.
• Requests a specific dollar amount based on your calculations.
• Sets a reasonable deadline (e.g., 14 days) for a response.

4. Negotiate Strategically: Be prepared for a back-and-forth. If the insurer rejects your counteroffer, ask for a detailed explanation. Use their response to refine your position or escalate the dispute.

5. Consider Mediation or Appraisal: If negotiations stall, Utah law and many insurance policies allow mediation or appraisal. These processes can produce a neutral evaluation and often prompt more realistic settlement figures.

Why Counteroffers Matter

Insurance adjusters expect counteroffers. Failing to respond can signal that you accept a low ball offer. A well-justified counteroffer can:

• Demonstrate you understand your policy rights.
• Encourage the insurer to reassess their position.
• Lead to a more satisfactory settlement without litigation.

Helpful Hints

• Keep detailed records of every phone call, email and letter you send or receive.
• Reference Utah Code § 31A-26-303 if the insurer delays or misrepresents facts.
• Get independent estimates for vehicle or property damage to support your figures.
• Be polite but firm—professional tone often yields better results.
• Set realistic deadlines to maintain momentum in negotiations.
• Consult a personal injury or insurance attorney if negotiations stall or the insurer acts in bad faith.