Negotiating an Insurance Claim

You never saw it coming, that SUV running the red light.  And now you have a totaled car, a stiff neck and mounting medical bills.  Then, the letter comes:  The insurance settlement letter.  And let’s face it, it’s low.

What do you do now?  What can you do? There are some things to keep in mind while negotiating with an insurance adjuster.

HAVE A REASONABLE AMOUNT IN MIND

What do I mean by reasonable?  If you totaled your Mazda and are asking to replace it with a Mercedes, that’s what I would call unreasonable.  On the other hand, if you sustained an injury that left you out of work for 3 weeks, then tally the amount of lost income and include that in your price. They consider it fraud if you ask for an ungodly amount that is obviously not right.  And you don’t want to be transferred to the fraudulent claim department.

ITEMIZE THE PRICE

Once you have a price, break it down.  Write down exactly what you are asking reprieve for.  And have receipts, documents, doctor’s bills etc.  All of this adds ammunition to your counter offer.  And you can make copies and send in with the letter.  The adjuster will know that you are serious and well organized.

WRITE THE DEMAND LETTER

With all this in hand, write your demand letter.  Be sure to ask for an amount a bit above your desired price (to give you wiggle room).   Put all the info you gathered into it, justifying your price.  Don’t be scared to include an emotional justification too (especially if you had kids in the car, your grandmother or a pet).

ASK AWAY

When you receive a counter offer, don’t be scared to ask the adjuster to justify their offer.  And make note of it. There might be reasons you are unaware of that make the price a bit lower.  It doesn’t mean you have to give in, but you could lower your fixed price a smidgen, therefore bringing you both closer to settling.

KNOW THE LIMITS

Every policy has payout limits.  Know them and you may ask to receive the limits (especially if your desired number is close to them).  Or the adjuster may offer you the Policy Limits.  Once you accept, though, the other policyholder is then released of any further claims.

HIT A WALL

If the negotiations have hit a wall, it may be time to move into mediation, arbitration or litigation.  Sometimes you can’t come to agreement and need outside help.

KNOW THE LAW

The Statute of Limitations varies upon states, but most have a 1-3 year time period to either settle or sue.  After that time, the claim is dead.  So you want to settle quickly.

*You both want the same thing: to settle for a reasonable amount.  It can help to point that out right away to the adjuster to set the atmosphere of collaboration.  After all, you have enough to deal with and ensuring a smooth process means one less stressful thing on your plate.

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