How to Reply to an Auto Insurance Adjuster’s Offer to Settle Your Claim

If an adjuster has offered you money to settle your claim, that’s great; you must have supplied her with everything she needs to evaluate it, including a good statement of the facts, proof that her insured driver was at fault, copies of medical reports supporting what your injury was and how you were treated for it, copies of all your medical bills, proof of your lost wages (if any), and any other information she requested.  If you are ready to settle, that is, you are no longer being treated for your injuries and you have a good idea of your prognosis for recovery, then it would be prudent to take a close look at what the adjuster is offering and consider whether it is an appropriate amount to cover your expenses plus your pain and suffering.

My best advice is to take it slow.  It is important to note that nine times out of ten, the offer the adjuster is making is an opening offer.  Adjusters are given authority by their supervisors to settle claims within a dollar range, say $12,000 to $15,000.  The insurance company’s aim is to settle the claim fairly, but as cheaply as possible.  Of course she will start at or near the bottom of her authority level.  For this reason, don’t start jumping for joy and just grab the cash.  It is unwise to accept a first offer, even if you think it is a lot of money.  There is a good chance there is more in the pot.  Your best bet is not to be in a hurry, and to reply with a counter-demand.

If you have a “small claim”, say under $5,000, the adjuster’s range will be narrow.  For example, if she is offering you $950, her range is likely from about $900 to about $1200.  If she believes your claim is worth $8,000, the range is probably a bit wider, say from $8,000 to about $11,000.  As the numbers increase in amount, the range continues to widen.  A large case with an opening offer of $85,000 may have a range that goes as high as $100,000.

Now just because you realize the adjuster has some more money in her pocket, that is not a reason to ask for some outrageous figure.  If you had soft tissue injuries to your neck and back, with $1,500 in chiropractor bills and one missed day of work, and you are fine now, don’t respond with a counter-demand of $50,000 when the adjuster offers you $3,500.  That is, don’t do it unless there is some compelling documentation that the adjuster is missing which will justify such a demand.  Otherwise, such a strategy will not bring you any closer to a settlement and you might wind up having to hire an attorney whether you planned to go down that road or not. 

Opening the door to negotiations by asking for more than what was offered is perfectly fine.  Just be reasonable, and you will likely settle to your satisfaction.