Whether you were the victim of medical malpractice, or involved in a car accident, or you have a Personal Injury case in Wichita, submitting a demand letter to an insurer means that negotiations are necessary. In most cases, negotiations are as simple as a few calls to a claims adjuster. Below is a brief explanation of insurance negotiations, as well as some tips to help you negotiate effectively.
How Negotiations Work
During your initial call to an insurance adjuster, you and they will each list the weaknesses and strengths of your claim. Then, the adjuster typically makes a settlement offer that’s lower than the amount in your demand letter. You can counteroffer with a figure somewhere between the two amounts, and after a few back-and-forth phone calls, you’ll come to an agreement with the insurer.
The Reservation of Rights Letter
If you receive such a letter from the other party’s insurer, you shouldn’t feel afraid or intimidated. The letter is to inform you that your claim is being investigated, and that the company reserves the right to not pay you if your accident isn’t covered under the other party’s policy.
Determine a Settlement Amount
As a part of the demand letter assembly process, you should decide the value of your claim. Before you talk to your insurance adjuster and within your range, decide on a minimum amount you should accept. The minimum amount is for your purposes–not something you should disclose to the other side’s insurance adjuster.
Don’t Accept the First Offer
When you receive your first offer, it might be so low that it’s unacceptable, or it might be reasonable but still too low. If you receive a reasonable offer, you can pose a counteroffer that’s a bit lower than the amount in your demand letter. Doing this shows the insurance adjuster that you’re willing to be reasonable, which should get you a fairer settlement.
Get a Settlement in Writing
When you and the other party’s insurer come to an agreement, you should immediately confirm it in writing. The letter should be concise, stating the amount agreed upon, the damages covered by the settlement, and the date you expect to receive your settlement papers from the insurer.
