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, there are some key strategies you can employ to get the best possible settlement. It is important to remember that insurance adjusters work for the insurance company and are trained to minimise claim payouts. Thus, their initial offer will likely be far less than what you deserve. Before negotiating, it is crucial to determine the value of your claim by assessing the damage to your property and calculating the costs of any necessary repairs or replacements. Additionally, keep records of all relevant documentation, such as medical expenses, repair estimates, and evidence of emotional distress caused by the incident. When negotiating, always be prepared to justify your claims and be willing to adjust your demands if the adjuster raises valid counterarguments. Remember, you have the right to turn down any offer, and it is common for the negotiation process to involve several counteroffers before a final settlement is agreed upon.

Know the adjuster's role and tactics

Knowing the role and tactics of an insurance adjuster is crucial when negotiating a settlement. An insurance adjuster is someone hired by the insurance company to investigate claims and determine the company's liability. They are trained to reduce compensation and deny liability, and their goal is to save the company money. Therefore, it is essential to understand their tactics and how to counter them.

• Avoiding your phone calls: This tactic aims to make you feel ignored and frustrated, hoping that you will accept a low settlement offer or give up on your claim.
• Delaying action: Adjusters may delay taking action on your claim to cause frustration and increase the chances of you accepting a lowball offer.
• Requesting more details: They may claim that they need more information to process your claim, which is often a stalling tactic.
• Issuing a lowball offer: This is a common tactic where adjusters make an offer that is far below what you expect or need to cover your expenses. They hope that you will accept the offer out of desperation or a lack of knowledge about your rights.
• Threatening or intimidating you: Some adjusters may try to pressure you into accepting a low settlement by threatening to withdraw the offer or take it off the table soon.
• Advising you not to hire a lawyer: By discouraging you from seeking legal representation, they aim to weaken your position and make it easier to minimize your claim.
• Tricking you into admitting fault: Adjusters may ask leading questions or use your statements against you to shift the blame and reduce their liability. Be cautious and avoid admitting any fault, as it can significantly impact your claim.
• Undervaluing your claim: Insurance adjusters may offer a settlement that is lower than the actual cost of repairs or the value of your vehicle. It is crucial to independently determine the value of your car and gather multiple estimates to counter their lowball offer.
• Using confusion and complex language: Insurance policies and procedures can be confusing, and adjusters may take advantage of this by making the process seem complex. They may use technical terms or legal jargon to intimidate you.
• Acting friendly and empathetic: While it is nice to have a friendly adjuster, remember that they work for the insurance company. Their friendliness may be a tactic to get you to lower your guard and reveal information that could be used against your claim.

To counter these tactics, it is essential to be prepared, patient, and firm. Here are some strategies to consider:

• Know your rights: Understand your legal rights and the basics of insurance law. This knowledge will help you communicate effectively and protect yourself from unfair practices.
• Document everything: Keep detailed records of your injuries, treatment, and expenses, and any interactions with the adjuster. Thorough documentation will make it harder for the adjuster to deny or minimize your claim.
• Be patient and don't accept the first offer: Adjusters often start with lowball offers, hoping that you will accept them. Show that you are not easily swayed by rejecting their initial offer and countering with a higher amount.
• Hire a lawyer: Having legal representation sends a strong message that you are serious and knowledgeable about your rights. A lawyer can help you navigate the complex process, protect your interests, and negotiate a fair settlement.
• Don't be intimidated: Remember that you have the right to reject offers and request a fair settlement. Stand your ground and don't let adjusters bully you into accepting an unfair deal.
• Emphasize emotional points: In addition to the financial impact, highlight how the accident has affected you emotionally and psychologically. Explain how it has impacted your life, career, and well-being.
• Get everything in writing: Whether it's the adjuster's offer, your counteroffer, or the final settlement, always get everything in writing. This protects you from any potential misunderstandings or changes in the agreed-upon terms.

Prepare evidence and documentation

Evidence and documentation are critical components of the negotiation process with an insurance adjuster. Here are some steps to help you prepare and maximise your chances of a fair settlement:

• Compile Records and Documentation: Organise all relevant records and make copies of documents that support your claim. This includes auto repair bills or estimates, quotes for property damage, police reports, eyewitness statements, photos or videos of the accident scene and injuries, and pay stubs or contracts showing salary details.
• Determine the Value of Your Vehicle: If your claim involves a car accident, independently assess the value of your vehicle. Consider factors such as the year of manufacturing, the value of similar vehicles online, and refer to websites like Kelley Blue Book (KBB) or Edmunds. Getting an estimate from a qualified mechanic can also help.
• Collect Evidence of Medical Treatment: Keep detailed logs and receipts for all medical procedures, treatments, and expenses related to your injury. This includes future expenses for prolonged treatment or physical therapy. Also, document any over-the-counter medications, crutches, wheelchairs, or other items purchased due to your injury.
• Emphasise Emotional Points: In addition to the financial impact, consider the emotional distress and "pain and suffering" caused by the accident. Provide photos or references to showcase the severity of the damage or injury. Explain how the accident has impacted your daily life, such as your ability to care for your family or perform your job.
• Prepare a Settlement Amount in Mind: Before negotiating, determine a desired settlement amount that reflects the true value of your claim. This should include all relevant economic and non-economic damages. Have a minimum settlement figure in mind that you will not go below, but be open to adjusting this figure based on the adjuster's counteroffers.
• Hire an Attorney: If you feel overwhelmed or unsure about the process, consider consulting an experienced attorney who specialises in insurance settlements. They can guide you through the negotiation process, protect your rights, and help you obtain a fair settlement.

Calculate a full settlement amount

When calculating a full settlement amount, it's important to consider both economic and non-economic damages. Economic damages, also known as special damages, refer to financial losses such as medical expenses, property damage, and lost income. Non-economic damages, on the other hand, are more challenging to quantify and include pain and suffering, mental distress, and loss of enjoyment of life.

To calculate a reasonable settlement amount, it's common to use a multiplier formula. This involves multiplying the total medical expenses (special damages) by a factor, typically between 1 and 5, to estimate the value of non-economic damages. This multiplier reflects the severity of the injury and the impact on the claimant's life. The higher the multiplier, the more serious the injury. For instance, a 1 multiplier may be used for minor injuries with no time off work, while a 5 multiplier is typically reserved for permanent and life-altering injuries.

In addition to the multiplier, other factors can influence the settlement amount. These include the length and extent of recovery, the amount of proof of the other party's fault, and whether the injury was pre-existing or directly caused by the accident. It's also crucial to consider future expected costs, such as ongoing medical treatment or future lost income due to an inability to work.

When calculating a full settlement amount, it's advisable to seek legal assistance. An experienced attorney can guide you through the process, ensuring that all relevant factors are considered and that your rights are protected. They can also help you gather the necessary documentation and evidence to support your claim. Remember, the goal is to obtain a settlement that fully compensates you for your losses and covers all your current and future needs.

Determine your bottom line

When negotiating with an insurance adjuster, it is important to determine your bottom line. This is the minimum settlement amount you can accept to cover your expenses. Knowing your bottom line will help you stay focused and confident during the negotiation process.

To determine your bottom line, start by calculating the full value of your claim. This includes all relevant economic and non-economic damages, such as medical bills, lost income, property damage, pain and suffering, and any other incidental costs related to the accident. Consult with a lawyer if you are unsure what a fair settlement looks like in your case.

Once you have calculated the full value of your claim, decide on a minimum settlement amount that you are willing to accept. This figure should be kept in mind during negotiations but does not need to be shared with the insurance adjuster. Remember that you can always adjust your bottom line slightly if the adjuster points out facts that weaken your claim.

It is important to be prepared and organised when negotiating with an insurance adjuster. Gather all the necessary documentation, such as medical records, repair bills, police reports, eyewitness statements, and any other evidence that supports your claim. Having strong evidence will give you a better negotiating position.

Additionally, be aware of the tactics that insurance adjusters may use during negotiations. They may start with a low settlement offer to test your knowledge of your claim. They may also try to downplay your injuries or question the necessity of your medical treatment. Stay calm and professional during negotiations, and don't be afraid to turn down offers that are below your bottom line.

Get the settlement offer in writing

Getting the settlement offer in writing is a crucial step in the negotiation process with an insurance adjuster. This step protects both parties by setting clear expectations and helping to ensure they are met. Here are some key points to consider:

• Obtain a Written Agreement: After reaching a verbal agreement with the insurance adjuster, it is essential to confirm the terms in writing. This can be done by sending a brief letter to the adjuster, stating the agreed-upon settlement amount, the injuries and damages covered by the settlement, and the expected timeline for receiving the settlement documents. This letter creates a record of the agreement and helps prevent any potential misunderstandings or disputes in the future.
• Detail of the Letter: The letter to the insurance adjuster should be concise and include only the key information. It should state the final settlement amount, the injuries or damages that the settlement covers, and the date by which you expect to receive the settlement payment or relevant documents. It is important to keep a copy of this letter for your records.
• Importance of Written Confirmation: Getting the settlement offer in writing provides several benefits. Firstly, it ensures that both parties are clear on the terms of the agreement and helps prevent any potential disputes in the future. Secondly, it creates a record of the agreement, which can be referenced if there are any issues with the settlement payment or if additional documentation is required. Finally, having a written agreement helps hold the insurance company accountable and makes it more difficult for them to back out of the agreement or change the terms unilaterally.
• Consulting an Attorney: While it is possible to negotiate with an insurance adjuster on your own, consulting an attorney can be beneficial, especially if the settlement involves significant amounts or complex circumstances. An experienced attorney can review the agreement, ensure that your rights are protected, and confirm that the written settlement offer aligns with the verbal agreement. They can also advise on any potential legal implications or risks associated with the settlement.
• Timeline for Written Confirmation: It is important to send the written confirmation of the settlement offer as soon as possible after reaching a verbal agreement with the insurance adjuster. This helps prevent any potential delays in the settlement process and demonstrates your commitment to the agreed-upon terms. It also allows both parties to address any discrepancies or misunderstandings early in the process.

Frequently asked questions