Tips for Negotiating With the Insurance Company

Once you put in a demand letter to an insurance company it is time to begin negotiations.  When you submit a demand letter and support it with the appropriate documents that prove your claim it may only take a few phone calls with a claims adjuster to settle the issue. 

The first call to the claims adjuster is the time to talk about any strengths or weaknesses in your claim.  You will both take time to explain your positions and the adjuster will try to settle your claim for less than the amount you asked for in your demand letter.  You will then make a counteroffer to the insurance adjuster.  This second offer will be lower than your original demand but higher than the insurance company offered you.  This process may go take several phone calls until you both reach a figure that both of you can live with.  The figure will normally fall somewhere between the amount in your demand letter and the lowest amount offered by the claims adjuster. 

Before you send a demand letter, you should have an amount in mind that will repay you for medical bills and other damages.  Before you send the letter, decide on the minimum amount you would settle for.  This is your bottom line and should not be shared with a claims adjuster during any phone conversations.  Never reveal your minimum amount to the insurance company or claims adjuster!  You may need to revise that figure if the insurance adjuster shows you facts that would weaken your injury claim.  Another important fact to remember; if the claims adjuster's first offer is near the minimum you are willing to accept, you may want to readjust your minimum figure upwards.

If you are dealing with the claims adjuster you should never accept the first offer.  It may be a low amount to test how strong your resolve is in claiming damages or to see if you know what you are doing.  If the claims adjuster's first offer is reasonable but you still feel it is too low, you can counteroffer with an amount that is lower than your original demand letter.  This shows the adjuster you are willing to compromise and negotiate in good faith.  It may take a little more bargaining and a few more phone calls but you should receive a settlement that is fair to you.

If the claims adjuster offers you a ridiculously low offer, talk to him.  Ask them why they feel the settlement should be so low.  Make notes about what they tell you and then write another letter responding to each of their points and the proof to back your claim.

It is possible to negotiate with an insurance company for many injury claims.  You will need to be patient, have good records, and have a reasonable amount of negotiating knowledge.  If your personal injury claim is serious or complex, you may ask an attorney's help to get the compensation you are entitled to.  A serious and complex lawsuit will make it worthwhile to hire and pay an attorney experienced in settling claims like yours.