Tips for Negotiating Settlement With an Insurance Company

Apr 07, 2023

If you are a personal injury victim, the person responsible for your injuries should compensate you for the damages caused. These damages include pain and suffering, loss of income, medical expenses, loss of enjoyment, and many more. However, to receive compensation, you must negotiate a settlement with the defendant's insurer or take the case to court for a judge or jury's decision.
Many personal injury victims prefer out-of-court negotiations, as they can still get the compensation they deserve within a shorter time. During negotiations, the insurance company will make an offer you can accept or reject. Since insurance companies mostly start with low offers, you must have excellent negotiating skills to get a higher settlement without going to court.
Below are some negotiation tips you can use to your advantage.

Know How Insurance Companies Work

Since insurance companies are in business, they'll be at the negotiation table for their best interests. Therefore, the insurance company is the opposing party, meaning they should not be the party that guides you through the process of negotiations. Therefore, be careful about what you share with the insurance company's adjusters before or during negotiations.

Know the Value of Your Claim

Have a settlement amount in mind before negotiating with the defendant's insurer. This way, you'll easily identify what offers are acceptable and what is too low to accept. An experienced personal injury attorney can help you calculate your settlement amount based on the severity of your injury and other damages.
You can make the insurance company raise their figures by supporting your settlement claim with solid facts. However, don't cling too much to what is on your demand letter, as it is only a rough estimate. Anything close to the amount is acceptable; you may even go lower if the insurance company points out facts that weaken your claim.

Be Patient

As mentioned above, insurance adjusters make a low first offer even if you deserve a better settlement. The motive behind the low first offer is to see if you know what you deserve as a fair settlement.
Since you are in a negotiation, make a counteroffer slightly lower than the amount in your demand letter to show that you are willing to negotiate. The facts you give to support your claim will also convince the adjusters to raise the settlement to an amount closer to your figures. If you are patient enough, the bargaining will end with a fair amount for both parties.

Ask for Explanations for a Low Offer

If the insurer makes a very low offer, ask for justifications for the low offer instead of immediately lowering your claim. The reasons provided by the insurance company will help you determine their tactics and if they have facts that could weaken your case.
If the reasons provided are strong enough, you can slightly lower your demand to see if the adjusters will make a reasonable offer worth bargaining.

Know When to Seek Legal Advice

Though you can negotiate an injury settlement without an attorney, you are better off with an attorney. Some situations also require legal help due to their complexity. For example, if you are demanding compensation for serious injuries and damages like loss of income. Also, hire an attorney if it's unclear who is at fault.
Personal injury negotiations are sometimes complicated, no matter how simple a case may seem. Therefore, you should gather enough supporting information and sharpen your negotiation skills to get a fair settlement. Remember to seek legal advice from an experienced attorney before communicating with the adjusters.
At Cartee & Lloyd Attorneys at Law, we boast numerous wins for personal injury cases of varying values. Contact us today to schedule a consultation.

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