Car accident victims should be able to file an insurance claim and receive fair compensation for their property damage and injuries. Unfortunately, insurance companies will often deny car accident claims or offer low settlements that are far less than you deserve.
As a former insurance adjuster, Justin Minton, founder of our personal injury law firm, knows the tactics insurance companies use to deny or devalue claims. In this post, we will share some tips on how to negotiate a fair car accident settlement.
Steps to Take Immediately Following a Car Accident
The steps you take after your car accident can make a difference in your physical health and your financial recovery.
If possible, take the following actions following a motor vehicle accident:
- Seek medical attention: Your top priority following an accident should be your health. Even if you feel fine, it is important to see a doctor right away since some injuries may not manifest themselves immediately. Medical records can provide valuable evidence linking your injuries to the car accident.
- Document the accident scene: The more evidence you have that the other driver is at fault, the greater the chance your claim will be successful. Take pictures and videos of your injuries, property damage, road conditions, debris in the road, and anything else that might be relevant.
- Speak to eyewitnesses: Statements from third-party witnesses to the incident can provide valuable evidence to support your car accident claim. Collect statements and contact information from pedestrians, other drivers, or anyone else who saw the accident occur.
- Contact a car accident lawyer: An experienced car accident attorney can help you through each step of the claims process. A lawyer can be your legal advocate and ensure that you aren’t taken advantage of financially by greedy insurance companies.
- Notify your insurance company: Report the incident to your insurer as soon as possible. While you should be honest and provide the insurance adjuster with the necessary details, avoid giving them a recorded statement until you have consulted a personal injury lawyer.
Gather All Necessary Documentation
Most personal injury lawyers will tell you that thorough preparation is essential to any successful negotiation with the insurance company.
Preparation may include obtaining and organizing the following documents:
- Police report
- Car repair bills or estimates
- Medical records
- Receipts of any out-of-pocket expenses
- Wage statements to prove lost income
When you have this information readily available, it helps to substantiate your claim. It also demonstrates that you are well-prepared and serious about receiving fair compensation for your auto accident claim.
Remember that insurance adjusters are often skilled at pressuring or tricking people into accepting insurance offers that are less than their claim is worth. For this reason, it is recommended to let your car accident lawyer handle all communication with the insurer.
Review Your Car Insurance Policy and the Other Drivers
It is often said that knowledge is power; this holds true when it comes to car accident insurance settlement negotiations. Familiarize yourself with your own auto insurance coverage and the other driver’s policy.
By understanding what is covered in the insurance policies, you can counter low settlement offers with confidence. You will be able to argue your case more effectively, referencing specific clauses and coverage details to support your claim.
Knowing the policy limits also empowers you to recognize when an insurance company is acting in bad faith. With this knowledge, you can challenge unfair settlement offers or denials and, if necessary, take legal action to protect your rights.
Some car accident victims find insurance policies complex and difficult to understand. When you hire a car accident lawyer to handle your case, he or she will carefully examine the details of your policy for you and use this knowledge while negotiating on your behalf.
Understand the Value of Your Claim
According to a recent annual statistic, 2,694 people were seriously injured in car accidents in Arkansas. A severe accident can leave you with significant financial losses.
Before negotiating, it is important to have a clear understanding of what your insurance claim is worth.
Your damages could include:
- Medical expenses: The cost of current and future medical care, rehabilitation, and therapy
- Lost wages: Income lost due to your injuries preventing you from working
- Property damage: Repair or replacement costs for your vehicle and personal belongings
- Pain and suffering: Compensation for your physical pain and emotional distress
- Loss of enjoyment: Impact on your ability to enjoy daily activities and hobbies
Calculating your damages will give you a baseline for settlement negotiations. However, it can be difficult to understand the true value of your claim, especially when calculating non-economic damages like pain and suffering. When you have a car accident lawyer representing you, he or she will know how to calculate your losses accurately.
Keep Alert to Insurance Company Tactics
Insurance companies use various strategies to protect their interests and reduce payouts.
Being aware of the following tactics can help you navigate negotiations more effectively:
- Quick settlement offers: Insurance companies may offer a quick settlement amount much lower than your claim’s value. The insurance company’s first offer doesn’t usually account for long-term medical expenses, ongoing care, or pain and suffering damages.
- Delaying a claim: Insurers may intentionally delay paying a claim, hoping that you will become frustrated and accept a low offer. They may request excessive documentation or take a long time to respond when you try to communicate with them, knowing that these delays can put a financial strain on you.
- Downplay injuries: Insurers may try to downplay the severity of your injuries. They may present arguments that your injuries are a pre-existing condition or not as serious as you claim. Insurance companies may also hire their own medical experts to dispute your doctor’s diagnosis of your injuries.
- Social media monitoring: You may want to avoid posting on social media until after your claim has been settled. Insurance companies may monitor your posts, comments, and photos to look for anything that can be used to dispute your injury claim.
- Dispute liability: Adjusters may dispute who was at fault for the motor vehicle accident, attempting to shift blame onto you. They may challenge the evidence you presented or try to use your own statements against you.
The best way to counter insurance company tactics is to hire a car accident lawyer who is familiar with the strategies insurance companies utilize.
Start With a Higher Demand
When negotiating the purchase of a new home or motor vehicle, the seller will begin with a high sales price, while the consumer will start off with a low sales price. If both parties are good negotiators, they usually end up meeting somewhere in the middle.
It is similar when negotiating with insurance adjusters. They will usually begin with a low settlement offer that is substantially less than what the insurance company is actually willing to pay.
For this reason, when drafting your demand letter, it is suggested that you begin negotiations high enough, for you to come down, meet the insurance adjuster in the middle, and still receive fair compensation.
If you need help deciding on a starting negotiating amount, contact the attorneys of Minton Law Firm. Founder Justin Minton is experienced on both sides of the insurance negotiation process, so his entire legal team is prepared for any tactics the insurance companies dish out.
Be Patient and Don’t Give Up Too Early
In some rare situations, the insurance claims adjuster may offer you a reasonable settlement amount during the initial discussion. However, more often than not, negotiations will go back and forth several times before you receive a fair settlement offer.
Emotions may run high during negotiations but try to remain calm and professional. If you believe the amount you are requesting is fair, keep submitting documentation to support your settlement request.
Be patient and remember that successful negotiations take time. Don’t rush into accepting an offer out of frustration. Insurance adjusters may withhold their best offer for several rounds of negotiations, so you have to hang in there. Don’t give in too soon!
Know When to Settle or Take Legal Action
While it is important to be persistent and avoid settling your claim too early, you should also be aware of when the insurance company has made its final offer. Look for clues that the adjuster may be able to go higher, such as saying, “I am unable to make a higher offer right now.” The phrase “right now” could indicate a higher offer is still available.
If you believe that the insurance adjuster has made a final offer, you will need to decide whether to accept the settlement amount or pursue a personal injury lawsuit.
If the amount offered by the insurance company is close to what you think is fair, it may be in your best interests to accept the settlement. On the other hand, if the insurance company fails to provide you with a fair settlement offer, your car accident lawyer may suggest filing a lawsuit.
Factors to consider before going to court include:
- The cost of taking your case to court
- The amount of compensation you would be awarded if you went to court
- How long a court case could take
- The uncertainty of a lawsuit vs. the certainty of a settlement
When deciding whether to settle or pursue legal action, keep in mind that once you accept a settlement offer, you will not be able to go back and request more money later.
Why Hire a Personal Injury Lawyer to Negotiate Your Car Accident Settlement
While it may be tempting to handle the claims process on your own, hiring a personal injury attorney can greatly increase your chance of receiving a fair settlement for the following reasons:
- Calculate the value of your claim: Your lawyer will do more than add up your medical bills and vehicle repair costs. He or she will assess your future medical expenses, pain and suffering, loss of future earning potential, and other losses.
- Protect your rights: Insurance companies have whole teams trained to reduce the amount they have to pay out as settlements. When you have a car accident lawyer on your side, you level the playing field.
- Negotiate skillfully: Personal injury attorneys are trained negotiators. They can present your case in a compelling way. Lawyers can also anticipate arguments the insurer may use and develop counterarguments to strengthen your case.
- Maximize compensation: Your best chance at receiving maximum compensation is to hire a personal injury lawyer. This is because personal injury lawyers are skilled at identifying all potential sources of compensation and ensuring that no aspect of your claim is overlooked.
- Provide peace of mind: The days and weeks following a severe car accident are often filled with physical pain and emotional anxiety. Dealing with insurance companies and settlement negotiations can add stress to an already challenging situation. When you hire a lawyer, you can focus on your recovery while your lawyer handles your insurance claim.
Get Help Negotiating a Fair Car Accident Settlement
Negotiating a car accident settlement is complex and can feel overwhelming. By being well-prepared and understanding the steps involved, you can increase your chances of securing a fair settlement.
However, your best chance at maximizing your car accident claim is to hire a personal injury law firm to handle your case. Before opening Minton Law Firm, Justin Minton worked as an adjuster for a major insurance company. He has seen firsthand how many people settle their insurance claims for less than they are worth.
Justin Minton left the insurance industry to help car accident victims like you protect their legal rights. Let his legal team at Minton Law Firm negotiate a just and fair car accident settlement on your behalf. Call us 24/7 at 855-Xadjuster or complete the contact form to schedule a free case evaluation.
