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How to Negotiate your Car Insurance Claim & Settlement?

After filing the claim with insurance company with all the details and documentations, you need to negotiate a settlement for your claim. First, your adjuster offers you an amount as settlement of your claim. If you have a definite opinion on the value of your claim, however, you don’t have to wait for his offer. If you believe your estimated figure is true you can write a demand letter. Click here for a sample demand letter.

Suppose that the adjuster offers you amount lower than your estimation. Adjusters have a settlement range and they are directed to begin at the lowest figure. The least possible amount of money they settle, the better their job is done. You may negotiate a lot, but no matter how long you have been negotiating, when he gets to the top of his range, there will be no further offers. Means he can only certify your claim up to his highest settlement range. Here are some options to bring your claim closer to settlement (Your Estimated Amount), even if you have reached a dead end:

·         In order to determine whether the settlement amount you have in mind is eligible based on the facts and documentation, you can seek an advice from a car accident lawyer.

  • In order to continue negotiating without an attorney, a letter has to be written to the insurance company to support the value you have placed on your claim.
  • Go up the chain of command and speak to the adjuster’s supervisor or manager. Adjusters get their dollar authority to settle from their higher-ups and may not have convinced them the claim is worth more than what is being offered. Perhaps you can convince them.
  • Request alternative dispute resolution (mediation or arbitration).
  • File a Complaint with your state’s Department of Insurance.
  • Hire an attorney to continue the negotiations for you to have settled the amount for your estimated claim.

If your car accident attorney reaches at an end and is convinced your case has greater value than the insurance company is assigning it, that’s when you file a lawsuit against the negligent driver to have the court decide. 

If you are having trouble resolving a claim with your own insurance company, for example, an uninsured motorist claim or a collision claim where your vehicle was deemed a total loss, you also have options. You may not only file a complaint with the Department of Insurance, but you may sue your insurance company for Bad Faith. Be sure to hire an attorney who is well versed in insurance bad faith cases. 

Some more reading...


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