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If you have filed a car insurance claim to recover money for property damage to your vehicle, bodily injury or both, you will need to negotiate a car accident settlement to get the payout you deserve. Negotiating a car accident insurance settlement is not difficult if you are comfortable and prepared. When you negotiate your car accident settlement, you will need to work closely with an insurance claims adjuster who is responsible for investigating the accident and deciding what the company will pay.
TIP:Insurance claims adjusters have a car accident settlement range and will typically begin at the lowest figure. Their job is to settle the claim for the least possible amount of money. Do not be afraid to reject the first offer, and negotiate a better car insurance settlement deal.
The Insurance Settlement Negotiation Process
You can respond to the car insurance settlement offer, by politely declining and writing a claim letter with a counter offer reflecting the figure you believe your claim is worth. The adjuster will then respond with their own counter offer that should be closer to your acceptable range, and you two will begin negotiating the car accident settlement. You may venture into back-and-forth negotiations for a while, so be patient don’t let any delays deter you to give in quickly and accept less than you deserve.
The first step in knowing how to dispute your car insurance settlement offer, is to prepare yourself by gathering as much information as you can about your policy and your claim. Before you respond to the initial car insurance settlement offer from your car insurance company, you should:
Know what your car insurance policy says! You can’t make a claim unless the damages are covered, so read through your declarations page to know what you are entitled to recover.
Know what your car insurance claim is worth. Add up all of your bills, keep all of your receipts, and calculate all the costs that you have had to pay as a result of the car accident.
Know your acceptable settlement range. After figuring out how much your claim is worth, set an upper and lower amount that you would be willing to accept, and be prepared to end the negotiation if your needs are not met.
Know when to seek legal advice. You need to know what a car insurance attorney can do for you, and when you should consider getting legal help. Your car insurance company has experience negotiating claims, so you need to be prepared
How to Negotiate a Car Accident Settlement
Here are some options to bring your claim closer to settlement, even if you have reached an impasse:
Go up the chain of command and speak to the adjuster’s supervisor or manager. Adjusters get their dollar authority to negotiate a car accident settlement from their higher-ups. You may be able to convince someone in charge of your accident claim’s value.
Request alternative dispute resolution (mediation or arbitration).
Hire an attorney to continue the negotiations for you.
File a complaint with your state’s Department of Insurance. Do this if you truly feel you are at an impasse, especially if you feel the low amount is in bad faith. Consider hiring an attorney who is well versed in insurance bad faith cases to file a suit against the insurance company for bad faith negotiations.
If your car accident attorney reaches an impasse and is convinced your case has greater value than the insurance company is assigning it, he or she might suggest filing a lawsuit against the insurance company or the negligent driver. Do not be afraid of this option if the car accident settlement process is not going to get you the money you need to pay for your damages.