While it may be tempting to accept the first offer from the insurer, it’s not advisable. Since insurance companies are profit-making businesses, their initial offers are usually far below what you deserve, and you aren’t obliged to accept. This is where negotiation comes in. Negotiating helps you obtain the highest possible compensation for your damages. Discussed below are five tips for negotiating a car accident settlement.
- Hire an auto accident attorney
Navigating a car accident’s aftermath can be challenging, especially when dealing with insurers to get fair compensation. Insurance adjusters employ different tactics to reduce payouts to safeguard their employer’s bottom line. This is where an auto accident lawyer comes in. They’re well-versed in the complexities of insurance regulations and laws.
- Car accident attorneys are trained negotiators who:
- Effectively communicate with insurers to secure a fair settlement
- Know how to present proof and argue your case to maximize the compensation offer
A car accident lawyer has the resources and skills to accurately evaluate the full extent of your damages, ensuring you’re fully compensated for all your losses.
- Avoid accepting a quick settlement
After being involved in an auto crash due to someone else’s negligence, their insurance adjuster may contact you soon to offer a quick settlement. However, you shouldn’t accept it because of the following reasons:
- You don’t know your injuries’ severity: You’re entitled to compensation for medical expenses (past and future), pain and suffering, lost wages, and other damages. You may not know how severe your injuries are, the treatment you’ll require, or the long-term prognosis immediately after the accident. Accepting a quick settlement offer means you’ll be under-compensated, and future damages won’t be included
- The settlement might be too low: Usually, initial settlement offers from insurance companies are very low because insurers hope you’ll accept it without questions
Accepting the first settlement offer robs you of the right to negotiate. If you later learn that your injuries were more severe, you cannot file a claim again to ask for more money.
- Craft a winning demand letter
A demand letter outlines your case’s facts, details your losses and injuries, and explains why you deserve compensation. To create a winning demand letter that supports your argument for why you should be fairly compensated, gather all the information you’ll need, including the following:
- The police report
- Medical reports and bills
- Witness statements
- Lost wage details
- Other auto accident-related losses
Ensure the amount of money you ask for as compensation in your demand letter is substantially higher than what you expect to recover. This will leave room for negotiation.
- Value your claim correctly
Before sending your demand letter, you must determine the correct value of your claim to know what you’re negotiating for. An accurately valued car accident claim may contain the following:
- Medical expenses
- Vehicle damage
- Lost wages
- Pain and suffering
- Punitive damages
- Loss of consortium
Valuing a car accident claim correctly can be challenging, particularly if you lack the necessary skills. However, an auto accident lawyer can help ensure all your damages and losses are included in your claim to secure maximum compensation.
Endnote
When an insurance company makes an initial offer, you don’t have to accept it because it will likely be lower than you deserve. Hiring an auto accident lawyer, crafting a winning demand letter, valuing your claim correctly, and not accepting a quick settlement can help you negotiate a fair car accident settlement.
