The Art Of Negotiation: Strategies For Dealing With Insurance Adjusters

Negotiating with an insurance adjuster can be a daunting task, especially if you are not an experienced negotiator. However, with the right preparation and strategies, you can effectively negotiate a fair settlement. Here's an introduction to help you navigate the process and achieve a favourable outcome.

First and foremost, it's crucial to understand the role of an insurance adjuster. They are professionals hired by insurance companies to investigate claims and determine the extent of the company's liability. While they are supposed to provide reasonable settlements, their primary goal is to minimise the company's expenses. As a result, their initial offers are often far less than what you truly deserve.

To negotiate successfully, start by determining the value of your vehicle and the costs of any medical treatment you may need. Gather estimates from multiple mechanics and compare them to online valuation tools like Kelley Blue Book or Edmunds. Additionally, keep detailed records of all your medical procedures, expenses, and any other related costs. This documentation will be essential during the negotiation process.

When negotiating, always have a desired settlement amount in mind, along with the minimum you are willing to accept. Don't be afraid to counter their initial offer, as it is common for adjusters to start with a lowball figure. Ask them to justify their offer, and then provide a counter-argument based on the evidence you've gathered. Emphasise the emotional impact of the accident, including any pain and suffering you've endured.

Remember, you have the right to turn down offers that don't meet your expectations. Show the adjuster that you are willing to renegotiate by making minor adjustments to your demands. Maintain a respectful and professional tone throughout the process, and don't be afraid to seek legal advice if needed.

By following these steps and standing your ground, you can effectively negotiate with an insurance adjuster and secure a fair settlement that covers your damages and losses.

Know the value of your car and have evidence to support your claim

Knowing the value of your car and having evidence to support your claim is crucial when negotiating with an insurance adjuster. Here are some detailed instructions to help you through this process:

Understand Your Car's Value:

Firstly, it's essential to determine your car's fair market value. This value represents the price your car would have sold for before it was damaged or just before the accident. You can use reputable online guides such as Kelley Blue Book, NADA Guides, AutoTrader, CAP, Percayso, and Glass's to assess the current market value of your vehicle. These guides consider factors like mileage, age, make, and model to determine the vehicle's condition.

Provide Supporting Evidence:

Once you have an understanding of your car's value, it's important to gather evidence to support your valuation. This can include:

• Mileage records: Keep track of your car's mileage over time, as it's a critical factor in determining its value.
• Service history: Regular service records can demonstrate that your car was well-maintained and in good condition before the accident.
• Mechanic affidavits: Get written statements from mechanics who have worked on your car, attesting to its condition and value.
• Independent engineer or expert reports: Consider hiring an independent engineer or expert to assess your car's condition and provide a detailed report.
• Pre-existing damage assessment: If there was any pre-existing damage to your car, have evidence of what it would cost to repair it.
• Advertisements: While not always given much weight, you can look for advertisements of similar vehicles to get an idea of their market value.

Understand Diminished Value Claims:

If your car has been in an accident, you can file a diminished value claim to compensate for the loss in value due to the accident. There are three types of diminished value claims:

• Immediate diminished value claim: This is a rare type of claim that seeks compensation for the loss in value immediately after an accident and before any repairs are made.
• Inherent diminished value claim: This type of claim considers the stigma associated with a vehicle's accident history, which can reduce its resale value.
• Repair-related diminished value claim: If the repairs after an accident are not done properly or are of poor quality, this type of claim allows you to seek additional compensation for the further loss in value.

Negotiate with Adjuster:

When negotiating with an insurance adjuster, remember that their initial estimate is a benchmark and not the final claim payment. You have the right to get your own estimates from mechanics or garages and compare them to the adjuster's. If there is a significant difference, be prepared to negotiate and provide your supporting evidence. Remember that your goal is to ensure your car is adequately repaired, and the insurance company aims to avoid paying inflated repair bills.

By following these steps and knowing your car's value with supporting evidence, you'll be better equipped to negotiate with an insurance adjuster and receive a fair settlement for your claim.

Negotiate with the adjuster, ask them to justify their offer and form a counter-argument

Negotiating with an insurance adjuster can be a challenging process, but it is important to remember that everything is negotiable. Here are some tips to help you navigate the negotiation and get a fair settlement:

Understand the Adjuster's Tactics:

Insurance adjusters may use different tactics to minimize the settlement amount. They might offer a low initial amount, hoping that you will accept it without negotiation. They may also delay responding to your demands or avoid your calls, putting pressure on you to accept their offer. Some adjusters might even deny your claim or try to shift the blame to reduce their liability. It is essential to be aware of these strategies and not be intimidated.

Do Your Research:

Before negotiating, take the time to determine the value of your claim. Calculate your special damages, including medical expenses, repair or replacement costs, lost wages, and other out-of-pocket expenses. Also, consider your general damages, such as pain and suffering, emotional distress, and loss of quality of life. Remember that general damages are harder to quantify, so be prepared to negotiate on those. Additionally, research local market prices for similar vehicles to support your argument for a higher value.

Ask for Justification:

When presented with a low offer, don't immediately accept it or lower your demands. Instead, ask the adjuster to justify their offer. Request specific reasons for the low amount and make notes on their response. This information will be valuable in formulating your counter-argument.

Form a Counter-Argument:

After considering the adjuster's justification, respond with a counter-argument letter. Start by summarizing their offer and explaining why it is unacceptable. Provide additional documentation or evidence to support your claim and address any concerns they have raised. End your letter by clearly stating the amount you are willing to settle for and request a timely response.

Emphasize Emotional Points:

While negotiating, don't focus solely on the financial aspects. Emphasize the emotional impact of the accident on your life. For example, explain how the accident has caused pain, suffering, or interference with your daily activities and ability to care for your family. These emotional points can be compelling factors in getting the insurance company to offer a fair settlement.

Remember, you have the right to negotiate and ask for a better offer. Stay patient, respectful, and persistent throughout the process. If you feel overwhelmed or unsure, consider seeking legal assistance from an attorney experienced in handling insurance claims.

Don't accept the first offer, it's likely to be low. Counter with a figure higher than their offer

Negotiating with an insurance adjuster can be a tricky process. It is important to remember that insurance adjusters are trained to reduce compensation and deny liability. They are not on your side, and their goal is to save the insurance company money. Therefore, it is crucial that you do not accept their first offer, as it is likely to be low. Here are some tips to help you negotiate with an insurance adjuster and get a fair settlement:

• Do your research and know your value: Before negotiating, take the time to determine the value of what you are claiming for. For example, if you are claiming for a car, get estimates from mechanics and check the value of similar vehicles online or on websites like Kelley Blue Book or Edmunds. This will help you understand the true value of your claim and ensure you are not lowballed.
• Prepare a counteroffer: If the adjuster's initial offer is far below your estimated value, be prepared to negotiate. You can start by asking the adjuster to explain their justification for their offer. Then, present a counteroffer that is higher than their initial offer but lower than your original demand. Remember that you can negotiate multiple times, so don't be afraid to go back and forth a few times until you reach a fair settlement.
• Get everything in writing: Always get the settlement offer in writing. An unethical insurance adjuster may say one thing on the phone and deny it later. By getting the offer in writing, you protect yourself and ensure that everyone agrees on the terms.
• Seek legal help: If you feel overwhelmed by the negotiation process or believe that the insurance company is acting in bad faith, consider seeking legal assistance. An experienced attorney can help you navigate the process, protect your rights, and get the compensation you deserve.
• Be prepared and organised: Before negotiating, make sure you have all the necessary documentation and evidence to support your claim. This includes things like repair bills, medical records, police reports, eyewitness statements, photos, and videos of the incident. Being well-prepared will help you make a strong case and improve your chances of a successful negotiation.
• Know your bottom line: Before entering negotiations, decide on the minimum settlement amount that you are willing to accept. This number should reflect the true value of your claim and cover all your damages. Don't reveal this number to the adjuster, but keep it in mind during negotiations to ensure you don't settle for less than what you deserve.
• Emphasise emotional points: In addition to the financial impact, don't forget to consider the emotional toll that the incident has taken on you. For example, if the accident has prevented you from caring for your child or returning to work, be sure to mention this during negotiations. While there is no dollar value on emotional distress, including these points can help strengthen your case and persuade the insurance company to offer a fair settlement.

Emphasise any emotional damage and how it has affected your earning ability

Emotional damage can have a significant impact on your ability to earn a living. It can affect your performance at work or school, your relationships with colleagues and clients, and your overall motivation and drive. Here are some ways to emphasise the impact of emotional damage on your earning ability:

• Highlight any changes in your work performance: If you are experiencing emotional distress, it may be difficult to focus on your work or maintain the same level of productivity. This could lead to missed deadlines, decreased quality of work, or difficulties in collaborating with colleagues.
• Discuss the impact on your relationships: Emotional trauma can affect your ability to form and maintain strong working relationships. If you are struggling to connect with colleagues, clients, or customers, it may be a sign of emotional damage.
• Explain any absence from work: If you have had to take time off work due to the emotional damage, be sure to emphasise this. It shows that your earning ability has been directly impacted by the trauma.
• Provide medical evidence: If you have been receiving treatment for emotional distress, such as therapy or counselling, include this information. It adds credibility to your claim and demonstrates the severity of the emotional damage.
• Detail the specific emotional issues you are facing: Be transparent about the emotions you are experiencing, such as anxiety, depression, anger, or guilt. Explain how these emotions are impacting your ability to work and earn an income.
• Connect the emotional damage to the incident: Explain how the incident has caused or contributed to the emotional damage you are experiencing. This could be through flashbacks, nightmares, or difficulty coping with similar situations.

Remember, it is essential to be honest and transparent when discussing emotional damage. Provide as much detail as possible to support your claim and ensure a fair outcome.

Get the final settlement in writing

Getting the final settlement in writing is a crucial step in the negotiation process with an insurance adjuster. Here are some detailed instructions on how to get your final settlement in writing:

• Title the document: Begin by giving your settlement agreement a clear and descriptive title, such as "Settlement Agreement and Release." This title indicates the nature and purpose of the document.
• Identify the parties: Introduce the parties involved in the agreement and define their roles. Include names, addresses, and a statement confirming their capacity and authority to enter into the agreement. You may also want to state that the parties have the authority to bind their respective entities if applicable.
• Provide a description of the dispute: Describe the "who," "what," "when," "where," and "how" of the dispute. Be as detailed as possible to ensure both parties are on the same page about the specific incident and what is being settled.
• Include a statement about the consideration: Specify what one party will receive in return for releasing the other party from legal liability. This could be a monetary payment, repairs, replacements, or promises. Ensure that the consideration is something of value and is not illegal, fraudulent, or criminal.
• Address the scope of the release: Determine whether the settlement agreement resolves all claims, including unknown and future claims, or only specific claims. It is generally advisable to resolve all claims related to the dispute to avoid future complications.
• State any conditions: If the settlement agreement is conditional, meaning certain actions must be completed for the resolution, clearly outline these conditions. For example, if the settlement is contingent on repairs being made, specify the timeline and requirements for those repairs.
• Address admissions of fault or liability: Decide whether the settlement agreement will include any admissions of fault or liability. In some cases, the party providing the settlement payment may not want to admit wrongdoing. You can include a clause stating that the settlement is not to be construed as an admission of liability.
• Determine confidentiality: If desired, include a confidentiality provision that obligates both parties to keep the terms of the settlement agreement confidential. This is especially relevant in business settlements or situations where sensitive information is involved.
• Provide space for signatures: At the end of the document, include a section for all parties to sign and date the agreement. This signifies their acceptance of the terms and conditions outlined in the settlement agreement.
• Present the settlement agreement to a judge (optional): If your settlement agreement arises from ongoing litigation, you may want to present it to a judge for approval. This step is not always necessary but can provide additional enforceability.
• Obtain a written settlement agreement: Once you have reached a verbal agreement with the insurance adjuster, confirm the terms in writing. This protects both parties by setting clear expectations. The written agreement should outline the settlement amount, what injuries or damages it covers, and the expected timeline for receiving settlement documents.

Frequently asked questions