Key points
- First offers are usually opening positions, often near the low end of a fair range.
- Signing a release ends the claim for good, even if your injury gets worse.
- Counter in writing, with the bills and records that support your number.
An adjuster calls with a number. It may arrive quickly, sometimes before you have finished treatment. Here is how to decide what to do with it.
Why first offers run low
Insurers expect to negotiate, and a first offer leaves room to move. Some offers come early because the insurer knows medical costs are still rising. Others count on people needing money for rent and bills. None of that means the offer reflects what the claim is worth.
Questions to ask before you answer
- Is treatment finished? If not, you do not know the claim’s full cost. Ask your doctor whether more care is expected.
- Does the offer cover every bill? Add up all medical bills, including those your health plan paid, plus lost income.
- What is left for pain and suffering? Subtract economic damages from the offer. If little is left, the offer is low.
- What is the policy limit? If the offer equals the limit, it may be the most this insurer can pay.
- How close is the filing deadline? Negotiating past it destroys your leverage.
What signing the release means
To get paid you will sign a release. It usually waives every claim arising from the accident, known or unknown. If you later need surgery, you cannot go back. Read it before signing, and do not sign while treatment is ongoing unless you have good reason.
When accepting makes sense
- The offer covers your bills, lost income and a fair amount for pain and suffering
- It equals the at-fault party’s policy limit and there is no other coverage
- Fault is disputed and the offer reflects that risk fairly
- The amount is small and your time matters more than a modest increase
How to counter
Reply in writing. State your counteroffer and the reasons: the treatment, the bills, how the injury affected your work and life, and the evidence of fault. Then plan each move with the counteroffer calculator. To see where the offer sits in your state’s range first, use Is my settlement offer fair?