Insurance companies tend to offer unfavorable insurance settlements to claimants with damages. This is because insurance companies try to save money by getting claimants to accept deals that are as low as possible, rather than to increase their benefit.
Therefore, the claimant must be equipped with the necessary skills to negotiate an insurance settlement to ensure maximum damage recovery effectively.
This article is designed to cover the essential aspects of preparation for negotiating an insurance settlement.
Determine a Minimum Settlement Amount and Never Accept the First Settlement Offer
After reporting your damages to the insurance company, the next step is receiving a phone call from a person called a claims adjuster whose a job it is to collect information about your accident on behalf of the insurance company.
Before this conversation, determine a minimum settlement amount you are willing to accept in your mind – do not reveal it to the claims adjuster.
This will prevent you from making an impulsive choice that you might regret later in case the claims adjuster offers a final offer. If the adjuster starts with an offer near your minimum amount, you should raise your request.
Never accept the first offer because each claim adjuster is given a range in which to settle the case.
Hire an Attorney to Help you Negotiate
You are not obligated by law to give the claims adjuster a statement about your accident on record. Anything you say to the adjuster can be used against you.
To prevent the adjuster from finding out more things about your case than is necessary which can adversely affect your damage recovery, you can hire an attorney to negotiate for you.
Demand an Explanation for the Low Settlement
When facing a meager settlement, more often than not, this is a negotiation method. If the initial offer is too low, ask the adjuster to explain why. Carefully write down the response as notes that you will use to analyze the validity of the offer later.