Trusting an insurance company is a cardinal mistake made by too many accident victims. Insurance companies may seem friendly and act as though they have your best interests in mind, but in reality, they are experts trained in minimizing claim payouts to protect their own profits. Knowing how to negotiate an insurance payout can be an important skill that makes a major difference to your future after an accident in California.
Why You Should Not Accept the First Settlement Offer
An insurance claims adjuster is the title of the person who will be assigned to your claim after you file with an insurance company after an accident such as a car crash or slip and fall. The adjuster’s job is to convince claimants to settle for as little money as possible. The insurance company can use many tactics to achieve this goal. One of the most common is offering a low first settlement offer. The insurer’s hope is that the claimant does not fully comprehend the value of the claim or isn’t aware that negotiating is an option.
The insurance company knows that the average claimant is eager to resolve the claim as quickly as possible and may be willing to jump at the first settlement to do so. Another reason why initial settlement offers are set at a low value is to leave room for negotiations. The insurance company expects claimants or their legal representatives to negotiate for a higher value before accepting. For these reasons, the initial settlement generally should not be accepted before consulting with a Orange County personal injury lawyer.
What Can You Negotiate on an Insurance Payout?
In California, a personal injury claim has the potential to make a victim “whole again.” Both economic and non-economic damages (or financial compensation) are available to the average claimant. This can include:
- Medical bills
- Property damage
- Rental car costs or transportation
- Out-of-pocket costs
- Lost wages
- Lost capacity to earn
- Permanent disability or disfigurement
- Home or vehicle modifications
- Pain and suffering
When negotiating a fair settlement from an insurance company, you have the ability to argue the amount of any of these categories of compensation. You can strengthen your ability to negotiate by collecting evidence to support your claim: medical records, documentation of your missed work, pictures of your injuries and property damage, and witness statements.
Tips for Negotiating an Insurance Settlement
If you receive an initial settlement offer from an insurance company, review it carefully with an attorney. Then, negotiate the value of the settlement to pursue the amount of financial compensation you truly deserve:
- Start by knowing how much your claim is worth. With help from an attorney, you can calculate not only your existing expenses but your future needs, as well, such as long-term medical care.
- Gather and organize all of your relevant evidence to support your claim. Strong proof of your losses can make it harder for an insurance company to minimize your payout.
- Respond to the settlement with a counteroffer. Your letter should politely reject the initial settlement and offer a reasonable counteroffer, along with an explanation of why you believe you deserve more money.
You may be impatient to reach a settlement after a harmful accident in California, but try not to rush the process. Accepting the very first settlement will likely lock you into an amount that is less than you deserve. Instead, bring your case to a personal injury attorney for professional assistance negotiating a fair payout.