Want to maximize your personal injury settlement?
Filing a claim and getting the right compensation after an accident is a process. The real money isn’t made during the claim, it’s made when you know how to negotiate a higher settlement with an insurance company. After all, they’re not exactly the most generous with their payouts…
The Problem:
The reason insurance companies have a reputation for low-ball offers is because most people accept the first one they get. Huge mistake.
According to a study, those who rejected the insurance company’s first offer received settlements that averaged $30,700 more than those who accepted the initial amount.
If you don’t know the right personal injury settlement negotiation tactics, you’re leaving thousands of dollars on the table.
In this Article:
- Why Most People Settle for Less Than They Deserve
- Insurance Company Psychological Tactics
- 6 Negotiation Strategies That Actually Work
- When to Reject a Settlement Offer
Why Most People Settle for Less Than They Deserve
Let’s get one thing straight right now…
Only 4% to 5% of all personal injury claims ever go to trial. The remaining 95% are settled through negotiations.
Insurance companies are counting on this. They know 95 out of 100 people would rather not go to court. So they low-ball, expecting claimants to settle.
Makes sense when you think about it:
You’ve got medical bills, lost wages, pain, and suffering to deal with. Nobody wants to add a drawn-out legal case to that.
Insurance companies exploit this. They make you think you don’t have a choice but to take what they’re offering.
That’s where a good attorney comes in. An experienced personal injury law firm understands how to fight big insurance companies who have teams of lawyers dedicated to protecting their profit margin.
Lawyers have years of experience working on personal injury lawsuits. They know the laws, know the tricks, and know how to get you a fair settlement offer.
It’s been proven in the numbers. People who hire personal injury attorneys receive payout settlements nearly three times higher than those who go it alone.
The Psychology Behind Insurance Company Tactics
Insurance companies are masters of the psychological game. They push all the right buttons to get you to settle for less.
Here are the most common ones they use:
The Quick Settlement Trap
Insurance adjusters call you within DAYS of your accident with a “generous” settlement offer.
Makes you feel like they care and you can resolve it quickly. But it also pressures you into accepting before you understand the scope of your injuries.
Not all injuries show symptoms right away. Some don’t appear for WEEKS and MONTHS after an accident.
Accept their first offer and that becomes your maximum compensation. Forever.
The False Sympathy Approach
Insurance adjusters are trained to sound caring and sympathetic. They’re taught to use phrases like “We want to make this right for you” while offering you 20% of the value of your claim.
Do NOT fall for it.
6 Negotiation Strategies That Actually Work
Let’s go over some actual negotiation tactics that you can use to get a better settlement.
These are the strategies that professional personal injury attorneys use every day.
1. Never Accept the First Offer
If you didn’t know it before, you know it now.
The first offer is always a lowball. Always.
Insurance companies know you’ll negotiate. They expect you to. So if you accept their first offer they KNOW they could have offered you even less and you’d have taken it.
Do NOT accept their first offer.
Pro Tip: Thank them for their offer and tell them you need time to review it with your attorney.
2. Document Everything Like Your Life Depends On It
Negotiation is all about power. And the best source of power is evidence.
Document EVERYTHING:
- All of your medical treatments and expenses
- Lost income and wages
- Pictures of your injuries and the accident scene
- Witness statements
- Expert testimony (if necessary)
Everything. Keep all your receipts. Even the parking fees at the hospital count as damages.
3. Use the “Anchoring” Technique
This is simple psychology.
Anchor your negotiations by starting with a number higher than what you expect to actually get.
Let’s say you figure your case is worth $50,000. Start by demanding $75,000. Anywhere between $50,000 – $75,000 is acceptable to you.
But the insurance company will feel compelled to counter-offer with something higher than they would have if you’d started with $50,000.
It’s simple human psychology.
4. Know When to Bring in the Big Guns
Sometimes you have to escalate.
If the adjuster isn’t listening to reason, ask to speak to their supervisor.
Experienced personal injury attorneys like Valley Injury Team specialize in dealing with situations exactly like this and know how to navigate complex personal injury lawsuits effectively.
Even better: Have your attorney call the insurance company. Insurance adjusters take personal injury attorneys seriously.
Stats back that up. 91% of those with experienced attorneys receive settlement payouts versus only 51% of those who represent themselves.
5. Use Deadlines to Create Pressure
Give them a reasonable deadline to respond to your demands. Otherwise they can take as long as they like to get back to you and use that time against you.
Create a sense of urgency.
For example:
“I need your response to this offer within 10 business days. After that, we will need to consider other options.”
6. Master the Art of Strategic Silence
The moment you make a demand is the moment you must shut up.
Be quiet. Let them respond first. Negotiation 101 is the person who speaks first usually discloses their position first.
It’s a psychological game.
When to Reject a Settlement Offer
The best negotiation tactic sometimes is to simply walk away.
You should consider rejecting an offer if:
- The settlement doesn’t cover your medical expenses
- You haven’t reached maximum medical improvement
- The offer is unreasonably low compared to similar cases
- Your attorney advises against it
Remember, 95% of personal injury cases settle – eventually. So walking away just means you’re serious. It doesn’t mean the insurance company won’t make you another offer.
It’s when the insurance company won’t negotiate any further that you walk away. Unless your attorney tells you otherwise, of course.
Negotiation is About Preparation
There is no specific negotiation tactic or strategy that will work every single time.
Negotiation is all about preparation, patience, and strategy.
Insurance companies are businesses. Businesses that respond to facts, logic, resources, and the threat of going to court.
They are NOT trying to hurt your feelings.
They are not going to budge on their offer without a good reason to do so.
And when you give them that good reason they will be forced to adjust.
These are the negotiation keys you need to remember:
- Never accept the first offer
- Document everything obsessively
- Have professional representation if the stakes are high
- Don’t be afraid to walk away from unfair offers
Negotiation skills are the difference between a good personal injury settlement and a great one.
And with 95% of cases settling out of court the difference could be tens of thousands of dollars.
Don’t let insurance companies take advantage of your misfortune. You’ve had more than enough of that already.
Time to take a stand. Time to get what you actually deserve.
