When the adjuster’s settlement offer is too low

If you are referring to the adjuster’s opening offer, ninety-nine times out of a hundred, it will be too low. An insurance adjuster is given authority by her supervisor to settle a case within a dollar range, say $17,000 to $22,500. Why would she start anywhere but at or near the bottom of the range if her aim is to settle the case as cheaply as possible for her employer? For that reason, it is unwise to accept her first offer whether you think it’s too low or not.

Suppose you have no idea what the value of your case is and the adjuster makes an offer that gets you really excited—sounds like a lot of money! Chances are, it is still on the low end of her authorized range. Don’t jump at it. You can and should make a counter-demand for more.

Note that the lower the amount, the narrower the adjuster’s range is from lowest to highest. For example, if she’s offering you $1,200, it is likely that her range is from about $1,000 to about $2,500. If the offer is $5,000, her likely range is a little wider, say, from $5,000 to about $8,000. As the numbers go up, the range gets wider. A larger case with an offer of $17,000 may go up to $22,000 or so. Larger than that, an offer of $65,000 may go as high as $80,000.

I wouldn’t suggest asking for an outrageous amount just because you know the adjuster has more money to play with. That won’t bring you any closer to settling your claim. In other words, don’t ask for $100,000 when the offer is $1,500 unless there is some very important, compelling proof that the adjuster does not yet have that will justify your demand. Asking for more than what is offered, however, to open the door to further negotiations is perfectly fine. Just be reasonable.

For more information about auto insurance claims, check out the following articles:

Evaluating Your Own Car Insurance Claim

The Initial Steps in Settling Your Car Insurance Claim

Negotiating Your Car Insurance Settlement

Making a Demand or Waiting for an Offer

Settling Your Car Insurance Claim: How to Write a Demand Letter

When Your Car Insurance Claim is Denied

The Medical Authorization Form: What it is and Why You Got One

Check out our Free Advice website if you would like to learn more about auto accidents and the law.