how to negotiate a car accident settlement

8 Tips for Negotiating a Car Accident Settlement with Your Car Insurance Company

• 1. Initiate a Claim as Soon as Possible after an Auto Accident ...
• 2. Keep Accurate Records about the Accident ...
• 3. Calculate a Fair Settlement ...
• 4. Send a Detailed Demand Letter to the Insurance Company ...
• 5. Do Not Accept the First Offer ...
• 6. Emphasize the Points in Your Favor ...
• 7. Get Everything in Writing ...
• 8. Know When to Hire an Attorney ...

Full Answer

How to settle a car accident the right way?

• There are around 4.2 million fender-benders (no injuries or fatalities) reported to police in the United States each year.
• You are not required to file an insurance claim after an accident, but should file a police report.
• other driver instead of filing a claim.

More items...

Should I accept a car accident settlement?

Things to consider before accepting a settlement from the insurance company. Should I Accept a Settlement Offer? Following a car accident, accepting a settlement offer may seem like the easiest way to resolve your case. While this may be true, it is not always to your advantage. For one thing, once you accept a settlement, there is no turning back.

Do you need a lawyer for a car accident settlement?

Need a Car Accident Lawyer for a Settlement? The truly honest answer here, without a doubt, is “no.”. Having said that, the truly smart answer to this question is “yes,” especially if you have suffered a serious injury. The more complicated the case, the more of a need there is to have an attorney by your side to ensure you get the proper justice.

How long does a car accident claim take to settle?

Shortly following a car accident (usually within 24 hours), an injured party should file a car accident claim with the insurance company of the at-fault driver/ negligent driver. Once a claim is filed, it usually takes a few months for the injury victim and the insurance adjuster to agree on a settlement offer.

How do you respond to a low settlement offer?

Steps to Respond to a Low Settlement OfferRemain Calm and Analyze Your Offer. Just like anything in life, it's never a good idea to respond emotionally after receiving a low offer. ... Ask Questions. ... Present the Facts. ... Develop a Counteroffer. ... Respond in Writing.

How do I counter offer an insurance settlement?

Countering a Low Insurance Settlement OfferState that the offer you received is unacceptable.Refute any statements in the adjustor's letter that are inaccurate and damaging to your claim.Re-state an acceptable figure.Explain why your counteroffer is appropriate, including the reasons behind your general damages demands.More items...•

How do you negotiate a higher pain and suffering settlement?

How to Negotiate Pain and Suffering in a Car Accident ClaimPrepare well. ... Learn about pain and suffering. ... Keep your tone with the adjuster professional. ... Explain how the injury affected your life. ... Do not be shy. ... Tell the insurance adjuster how painful the whole experience was. ... Explain how painful the treatment was.More items...

Can you negotiate a car settlement figure?

Even if the offer seems reasonable at first glance, you should always negotiate. After you research the value of your car, come up with a number that you feel is fair for a settlement. It should be the absolute minimum you are willing to accept.

What happens if insurance doesn't pay enough?

Most insurance companies will do anything to increase their profits. When the vehicle insurance company refuses to pay, you may need to threaten them with something that will put their profits at risk. To do this effectively and in the right way you require an insurance lawyer.

How do I get the most out of my car insurance claim?

Contact your insurance provider as soon as possible: The first thing you should do is contact your insurance right away. This will present a more accurate recollection of the events that took place. The more accurate and the better you're able to recall the incident, the stronger your claim will be.

What should I ask for pain and suffering?

In order to make a pain and suffering claim, you will need to send the insurance company a demand letter, which is a summary of your claim and damages. In your demand letter, you should discuss your pain and suffering damages, supported by relevant documents and evidence.

Is an insurance settlement taxable?

Money you receive as part of an insurance claim or settlement is typically not taxed. The IRS only levies taxes on income, which is money or payment received that results in you having more wealth than you did before.

How do insurance adjusters determine the value of a car?

To conduct an appraisal, the adjuster will assess the car's damage and then estimate how much it would cost to repair it. The adjuster is trying to determine how much your car would have been worth before the accident. Once they finish their investigation, the claims adjuster will decide if the car is worth fixing.

What should you not say to an insurance adjuster?

Never say that you are sorry or admit any kind of fault. Remember that a claims adjuster is looking for reasons to reduce the liability of an insurance company, and any admission of negligence can seriously compromise a claim.

Do insurance companies try to get out of paying?

Insurance companies will seek to decrease or eliminate payments for injuries caused by an insured person's actions. After becoming injured, victims of accidents want nothing more than to move on from the traumatizing experience.

What do insurance companies use to value a totaled car?

The insurer will use the actual cash value of your car immediately before the damage to decide whether to declare your vehicle a total loss. You can get an estimate of your car's fair market value from tools like Kelley Blue Book or by checking to see what similar cars are selling for in your area.

How do I write a counter offer letter for an insurance settlement?

What To Include In Counter Offer. In the letter, you will need to refer to the offer made by the insurance company and when it was made. You will then need to reiterate why you think you are owed damages from the other party and why you think that offer was low.

How do you negotiate a settlement with an insurance claims adjuster?

Begin the Settlement Negotiation Process (5 Steps)Step 1: File An Insurance Claim. ... Step 2: Consolidate Your Records. ... Step 3: Calculate Your Minimum Settlement Amount. ... Step 4: Reject the Claims Adjuster's First Settlement Offer. ... Step 5: Emphasize The Strongest Points in Your Favor.

How do you write a counter offer for a personal injury settlement?

You must include additional details about your personal injury case that were not included in the demand letter in the written response, such as proof of lost income, updated medical records and medical expenses, police reports, and details about your non-economic damages.

How do you write a counter offer letter?

Tips for Writing a Counteroffer LetterState clear reasons backed with research. ... Communicate other job offers. ... Emphasize your sought-after skills. ... Formulate your wants as requests rather than demands. ... Use polite, neutral terms. ... Edit and proofread.

Why should I settle my claim? Shouldn’t I file a personal injury lawsuit?

Most personal injury claims settle out of court because it’s faster, less expensive, and not as risky. Trials are stressful, and it can take months...

How does the insurance decide to offer a settlement?

Claims adjusters will divide damages into two categories: physical damages, such as medical bills and property damage, and emotional damage, such a...

Can I reject a settlement offer?

Claims adjusters will divide damages into two categories: physical damages, such as medical bills and property damage, and emotional damage, such a...

How is my lawyer paid?

Most personal injury attorneys are paid on a contingency basis. If your claim is successful, they will take a percentage of the final settlement. T...

What to do if you can't settle a car accident?

If you cannot arrive at a fair settlement agreement after negotiating with an insurance company, you may need to hire a car accident lawyer. An experienced accident attorney can help you evaluate your situation and determine whether a personal injury lawsuit is necessary.

How to hire an attorney for a car accident?

1. Initiate a Claim as Soon as Possible after an Auto Accident. After a car accident, you should contact your insurance company right away. It is important to initiate a claim as soon as possible after a car accident so that you can recall details about your accident accurately.

What to do if your insurance company refuses to pay you?

If the prospect of negotiating with your insurance company or that of the other driver is overwhelming, or an insurance company has refused to pay you a fair settlement, an experienced car accident lawyer may be able to help you navigate the claim negotiation and settlement process. We strongly suggest that you speak to a qualified car accident attorney if you feel that your insurance company is not offering fair compensation. Most car accident lawyers, like us, offer free auto accident case reviews.

How to communicate with insurance company?

When communicating with the insurance company, emphasize the strongest points in your favor. Do not waste time going over undisputed facts; focus on what’s most important to you. If you suffered an injury that will require lifelong medical care, discuss how this will affect your quality of life and finances over time. If you missed a significant amount of work, reiterate the total amount of wages you lost and how missing work impacted your family. Make it clear to the insurance company that you must be compensated fairly for your injuries and other losses.

What do you need to know before sending a demand letter to your insurance company?

Before you send a demand letter to your insurance company, you must determine what you believe your claim is worth. When arriving at a figure, you should take into account all of the following:

How to write a demand letter for medical insurance?

Before you send a demand letter to your insurance company, you must determine what you believe your claim is worth. When arriving at a figure, you should take into account all of the following: 1 The cost of your medical care and related expenses, 2 The amount of income you lost as a result of your injuries if you were unable to work, 3 Whether you are permanently disabled or will require long-term medical care, 4 Any pain and suffering you endured after the accident, and 5 The cost of repairing or replacing your vehicle and any other property that was damaged in the accident.

Why do people settle out of court?

Most personal injury claims settle out of court because it’s faster, less expensive, and not as risky. Trials are stressful, and it can take months for a jury to reach a verdict. After reviewing your case and settlement offers, your attorney will guide whether you should accept the offer or take the case to court.

How to negotiate with insurance company?

As you prepare for your negotiation with the insurance company, it's helpful to follow a few tips. The first is to avoid taking the first offer made. According to Nolo, Sutliff & Stout, and Findlaw.com, an insurance adjuster will often make an extremely low first offer to determine whether you know how to negotiate or understand the value of your car. Even if the offer seems reasonable at first glance, you should always negotiate.

What happens when you get involved in a car accident?

When you are involved in a car accident that causes significant damage to your vehicle, the next step is getting compensated by the insurance company that provides the policy on the car. However, getting a fair price for the damage is often a challenge, as an insurance company loses money when it has to pay out following an accident.

Why do drivers get entangled with insurance companies?

In many cases, drivers find themselves entangled with insurance companies to get claims paid in a timely fashion. Dealing with the aftermath of a car accident can be a stressful situation. In many cases, drivers find themselves entangled with insurance companies to get claims paid in a timely fashion. If you're wondering how to negotiate an ...

What to do when an adjuster comes in near your minimum?

Additionally, if the first offer from an adjuster comes in near your minimum amount, you may want to consider increasing that amount .

How much do personal injury attorneys take?

Most personal injury attorneys take a cut of one-third of the settlement amount, so it has to be a high amount to make it worthwhile to hire an attorney. If you're negotiating a settlement, use these tips to increase your chances of a positive outcome.

What should you consider when calculating a fair settlement?

When calculating the fair settlement amount, be sure to consider: Any suffering and pain caused by the accident. The cost of any required medical care and other related expenses.

How to describe a car accident?

Outline any injuries you sustained as a result as well as any medical treatment that was required for the injuries and ongoing health issues. Describe the extent of damage caused to your vehicle. Discuss any other losses or damages that occurred as a result of the accident.

What should you do when handling a claim with your insurance provider?

Keep all communication, negotiations, and agreements in writing, by email, fax, or mail. Phone conversations during the claims process are not only stressful, they give the insurance claims adjuster the upper hand, because you might give away too much information or get confused during a long phone argument. To keep it simple, just keep everything in writing.

How long does it take to get medical bills back after recovering?

After you’ve fully recovered, request copies of all medical bills and receipts from your doctors. It may take a few weeks after you’ve recovered for the final invoices to be generated, so be patient. Draft a demand letter to the auto insurance company adjuster.

Can a personal injury attorney take a minor accident?

Most personal injury attorneys will take on relatively minor accident claims, too, so don’t just assume that your personal injury claim is too “small” to warrant legal help or at least a free consultation with a licensed attorney.

Do claims adjusters have your best interest in mind?

A claims adjuster does not necessarily have your best interest in mind. If you don’t prepare your case well, you’ll create hurdles for yourself later, and if you don’t take the right steps at the right times, you could preemptively block yourself from certain opportunities to reach a good settlement. Table of Contents.

Can you handle your type of claim on your own?

For those interested in handling their accident claims process on their own, just like closing a real estate deal, doing your taxes, or investing your finances, there are certain aspects you can handle yourself. But, just as in those other fields, it’s best to leave the “heavy lifting” of larger deals, bigger settlements, serious injuries, and complex negotiations to a professional, namely a personal injury attorney. Most personal injury attorneys will take on relatively minor accident claims, too, so don’t just assume that your personal injury claim is too “small” to warrant legal help or at least a free consultation with a licensed attorney.

How to qualify for an accident settlement?

If you want to qualify for an accident settlement payment, it’s extremely important to document your case properly. It’s not enough to tell authorities how the accident happened and what damages you’ve suffered. You also have to bring proof of all the claims you make, if you want to have credibility.

What happens if you get in a car accident that is not your fault?

If you’ve been injured in a car accident that wasn’t your fault, you should know that by law, you are entitled to receive compensation for the damages you’ve suffered.

What documents are needed to prove an accident?

This means you have to collect evidence in the form of medical records, prescriptions, bills, receipts and all other documents that might serve as proof of the impact the accident had on your life and wellbeing. These documents will help you build your case and increase your chances of reaching a positive settlement.

Do insurance companies work against you?

However, insurance companies and defense attorneys will work against you and do everything in their power to minimize the amount of compensation you receive. Besides, people generally lack information on these matters and can be confused about the whole car accident settlement process.

Can a minor mistake be a settlement?

Seemingly minor mistakes can have a major impact on the outcome of a car accident settlement. One such mistake is not following the treatment plan that your doctor prescribed for you after the accident. The insurance company can use this against you to claim you’ve made your injuries worse on purpose. So, make sure you go to all your medical appointments and follow your doctor’s recommendations.

Is it easy to settle a car accident?

Negotiating a car accident settlement is anything but easy. It can be extremely difficult to navigate all the ins and outs of the settlement process while also trying to recover from the traumas you’ve suffered. That’s why seeking legal support and hiring an experienced car accident lawyer is always the best course of action. This will take most of the load off your shoulders and guarantee the success of your car accident settlement.

How do car accident claims get settled?

Most car accident claims are settled by negotiating directly with the insurance company. Preparation and organization are essential when it comes to negotiating a settlement.

How to calculate a reasonable settlement for minor injuries?

A reasonable settlement amount for minor injuries can be calculated by adding up your special damages, then multiplying the total by one or two times to account for your pain and suffering.

Why do adjusters need an organized demand packet?

An organized demand packet helps the adjuster justify your settlement and helps you easily reference items during negotiations.

Why does my adjuster stop calling me?

Some adjusters out there might use bad faith negotiating tactics, but most of the time, when the adjuster stops returning calls or seems to be ignoring you, it’s because they’re lazy or just plain overwhelmed with work.

What to do if you are at fault for a car crash?

Send a notification letter to the at-fault driver’s insurance company. This lets them know you intend to seek compensation for injuries from the crash.

What to do if paramedics arrive at an accident scene?

If paramedics arrive at the accident scene, let them evaluate you. Don’t hold anything back. You may have internal injuries or brain trauma that’s masked by the shock and distress of the crash.

How to figure out the value of an injury claim?

Figuring out the value of your injury claim starts with adding up your hard costs. Hard costs are expenses with a dollar value verified by bills or other documentation. Adjusters call hard costs “special damages.” Then you add an amount for “general damages” like pain, suffering, and emotional distress.

When should you begin negotiations on your injury claim?

After you have recovered from your injuries and obtained all the documentation you need , there is no reason to delay. Send a demand letter to the insurance company and begin settlement negotiations. But remember, it is important to have all necessary evidence to back up your claim -- police reports, witness statements, photographs, and medical treatment records and bills. A lack of evidence can doom your case, or at least leave you with a settlement that doesn't cover your losses. (Use this Checklist of Records to Gather After a Car Accident .)

How many times do you have to go back and forth with an adjuster before you get a settlement?

Ideally, negotiations will go on as long as necessary, until a fair agreement is reached. The settlement negotiations could be completed in one discussion (or one exchange of letters), but, more likely, you will have to go back-and-forth with the adjuster several times before you get the adjuster's very best settlement offer. Some lawyers have a hard and fast rule: they won't settle an injury case without discussing the claim and exchanging figures with the adjuster at least three times.

What is the normal response from an insurance adjuster?

The normal response from the insurance adjuster is an offer that is less than they are really willing to pay. The back-and-forth process continues until the claim is resolved or until it is decided that it can't be settled, that your views of the value of the claim are simply too different.

What to do if your offer is less than your goal amount?

If the offer is less than your goal amount, you have to decide whether to invest the time and expense of going to court to try to get more. If the offer is far less than you think is reasonable, you should probably reject it and go to court.

Can you negotiate settlement in a car accident?

No. Settlement negotiations in a car accident claim are much like the back-and-forth negotiation system that most car dealerships still use. (In fact, don't be surprised if, during the negotiations, the adjuster tells you she has to speak to her manager, just like a car salesman might.)

Can you mention settlement negotiations?

You can't mention settlement negotiations at all. Keep in mind that the adjuster doesn't know for sure what will happen if you take your case to court, any more than you do. However, you should give some consideration to the arguments and to the evaluation of the insurance company in deciding whether to settle.

Can you settle a car accident case if you don't have any experience?

You can succeed in settlement negotiations in your car accident case, even if you don't have any experience.

Mistake 1: Trusting the Insurance Adjuster

The adjuster is not your friend. Insurance claims adjusters are trained to engage claimants in informal discussions. They try to get you to relax, so you let your guard down. Being too relaxed makes it much easier for the adjuster to get you to say things they can use against you. Be on your guard at all times.

Mistake 2: Speaking Without Thinking

Your chance to negotiate a fair settlement can be ruined with just a first few words of introduction with the adjuster. Take this common exchange, for example:

Mistake 3: Giving a Recorded Statement

Don’t agree to give your recorded statement. It’s not a good idea to give a recorded statement without an attorney to represent you. Once you give a recorded statement, your claim will be limited to the specifics of that statement. The only one who can benefit is the insurance company.

Mistake 4: Signing a Blanket Medical Release

Don’t sign any medical releases right away. Standard insurance company release forms allow the company to gather all your medical information for the past five to ten years. Protect your medical privacy. The adjuster doesn’t need that information at the start, and should never need your entire health history to settle a minor injury claim.

Mistake 6: Overlooking Important Evidence

You’ll need solid car accident evidence to prove the other driver’s liability (responsibility) for the crash and to prove the extent of your injuries.

Mistake 8: Ignoring Your Medical Records

The adjuster will go over your medical records with a fine-toothed comb. It’s a lot to read, but make sure you read and understand everything that’s in your doctor’s notes and treatment records. You need to be able to defend the nature of your injuries, why your doctor prescribed treatments, and why you needed to be off work.

Mistake 9: Discussing Prior Injuries

Don’t discuss any pre-existing injuries. You can set back your claim by admitting you have a prior injury too soon in the claims process. If you tell the adjuster about it, they’ll be quick to say your latest injury is just an exacerbation of your previous one. You need a doctor to evaluate how one injury is related to the other.

How long does it take to settle a car accident claim?

Most car accident claims are resolved during the settlement process. Claims may be settled within weeks or months, but some cases may take a year or longer. Each case is unique and may involve different factors that affect the timing of a settlement.

What are the steps involved in a car accident claim?

The typical steps involved in a car accident claim include: You receive medical treatment for your injuries and reach maximum medical improvement. The insurance company investigates the accident. The insurance company determines who is at fault and to what degree. You receive a reservation of rights letter from the insurance company.

What are common disputes in car accident claims?

Common disputes involved in car accident claims include: Whether the insured was liable for the accident. Whether your own negligence contributed to the accident. Whether the insurance policy covered the accident . The extent of your injuries. Whether your injuries were due to pre-existing conditions.

What is settlement negotiation?

The settlement negotiation process is similar to purchasing a car. You may make a demand for a high amount of compensation and then the insurance company may respond with a very low offer. You may ultimately resolve your claim somewhere in the middle. During the negotiation process, the insurance company will try to show weaknesses in your claim.

What happens if you counteroffer an insurance settlement?

If you counteroffer, your lawyer needs to prepare a letter to the insurance company and describe why you believe you are eligible to more compensation. This process will proceed until you and the insurance company agree on an offer.

What does an insurance lawyer do during a negotiation?

During the negotiation process, the insurance company will try to show weaknesses in your claim. Your lawyer may respond by providing evidence that supports your demand amount, such as your medical records.

What to do if you are injured in a car accident?

If you were injured in a car accident, we recommend that you seek legal representation as soon as possible. Our experienced lawyers at Peter T. Nicholl Law Offices are prepared to investigate your claim and handle all communications and negotiations with the insurance company on your behalf.