Strategies To Negotiate With Auto Insurance Adjusters

Negotiating with an auto insurance adjuster can be a daunting task, especially if you're not an experienced negotiator. It's important to remember that insurance adjusters work for the insurance company and their goal is to resolve claims by paying out as little as possible. Here are some tips to help you navigate the process and get a fair settlement:

- Determine the value of your car: Before negotiating, it's crucial to know the true value of your car. Get estimates from multiple mechanics and check online resources like Kelley Blue Book or Edmunds.

- Prepare evidence: Gather all the necessary documentation, including repair bills, property damage quotes, the police report, eyewitness statements, and photos or videos of the accident scene.

- Calculate a full settlement amount: Figure out what you are legally owed, including medical bills, lost income, property damage, pain and suffering, and any other relevant costs.

- Know your bottom line: Decide on the minimum settlement amount you will accept, and don't let the adjuster talk you into accepting less.

- Be wary of the first offer: Insurance companies often start with a lowball offer to test your awareness of your rights. Don't be afraid to reject it and counter with a higher amount.

- Emphasize emotional damage: If the accident has caused emotional trauma, be sure to include this in your negotiations. It can affect your earning ability and should be considered in the settlement.

- Get the settlement in writing: Once you reach an agreement, make sure to get it in writing to protect yourself and ensure the insurance company upholds their end of the deal.

- Consider hiring an attorney: If you feel overwhelmed or unsure about the process, consider consulting an experienced personal injury attorney. They can guide you through the negotiations and help you get a fair settlement.

Know the value of your car

Knowing the value of your car is crucial when negotiating with an auto insurance adjuster. Here are some detailed and instructive tips to help you through this process:

Understand the Factors Affecting Your Car's Value

The value of your car is not just about its purchase price. Several factors can influence its worth, including its manufacturing year, make, model, body style, mileage, and any upgrades or modifications. These factors are considered when determining the actual cash value (ACV) of your vehicle, which is the amount it was worth before any damage occurred.

Get Multiple Estimates and Valuations

Don't rely on just one source for estimating your car's value. Take your car to at least two or three trusted mechanics and ask for detailed estimates. These estimates should include a list of necessary repairs, replacement parts, and labour costs. Additionally, check online valuation tools and websites like Kelley Blue Book (KBB) and Edmunds to get an idea of the current market value for your vehicle's year, make, and model.

Research Comparable Vehicles

Look for similar vehicles for sale in your local area or with the same zip code. Compare their prices and features to get a sense of the market value for your car. This will provide you with concrete examples to support your negotiation.

Consider the Impact of Location

Location can influence a vehicle's value. Be sure to find comparable vehicles in your specific region or zip code, as prices can vary depending on local market conditions and demand.

Get a Certified Collateral Corporation (CCC) Report

Request a CCC report from your insurance company or adjuster. This report contains an itemized list of your vehicle's features and is used by adjusters to determine its market value. Review the report thoroughly to ensure that your vehicle's features and trim level are listed correctly. Any discrepancies or missing information can impact the valuation.

Understand the "Betterment" Clause

Some insurance policies include a "betterment" clause, which means they may not cover repairs or replacement parts that improve your car's condition beyond its pre-accident state. In other words, if the repairs increase the value of your car, the insurance company may not cover the full cost. Be prepared to demonstrate how the repairs are necessary and will not increase the value of your vehicle.

By following these steps, you will be well-informed about the value of your car, which is essential when negotiating with an auto insurance adjuster. Remember to gather as much evidence and documentation as possible to support your claims and always keep a level head during the negotiation process.

Be prepared with evidence

Evidence is key to a successful negotiation with an auto insurance adjuster. It is important to remember that insurance adjusters are trained to reduce compensation and deny liability, so you need to be well-prepared with supporting evidence to back up your claim.

Gather Records and Documentation:

Make copies of all relevant documents, such as auto repair bills or estimates, quotes for property damage, the police report of the accident, eyewitness statements, photos or videos of the accident scene, property damage, and injuries, and pay stubs or contracts showing your salary or wage amount. Having strong evidence will give you a solid foundation for your claim and will make it more difficult for the adjuster to refute your arguments.

Calculate a Full Settlement Amount:

Using the evidence you've gathered and your personal experience, calculate what you are legally owed. This should include all pertinent past, current, and future economic and non-economic damages. Consider factors such as medical bills, lost income, property damage, pain and suffering, and any other costs related to the accident. Knowing your desired settlement amount and the minimum you are willing to accept will help guide your negotiation strategy.

Know Your Bottom Line:

Keep in mind the minimum settlement amount that you are willing to accept. This number is for your information only and doesn't need to be shared with the adjuster. Having this number in mind will help ensure that you don't settle for less than what you truly deserve. Remember, you can always adjust your expectations slightly during the negotiation process, but don't compromise too much.

Be Prepared to Counter a Low Initial Offer:

It is common for insurance adjusters to make a very low initial offer to test your awareness of your rights. Don't be alarmed, and don't immediately lower your expectations. Instead, ask the adjuster to justify their offer and provide specific reasons for the low amount. Make notes of their response and then write a brief letter addressing each of the points they mentioned. Depending on the validity of their arguments, you may slightly adjust your desired settlement amount, but don't compromise too much before seeing if the adjuster will budge after receiving your reply.

Emphasize Emotional Points:

In addition to the factual evidence, don't be afraid to emphasize the emotional impact of the accident. For example, you can mention how the accident has caused you pain and suffering, interfered with your ability to care for your family, or resulted in long-term physical effects. While these types of losses cannot be quantified, they can still play a role in influencing the adjuster to offer a higher settlement amount.

Calculate a full settlement amount

Calculating a full settlement amount is a critical step in negotiating with an auto insurance adjuster. This amount serves as the basis for your demands and provides a starting point for discussions. Here's a step-by-step guide to help you calculate a comprehensive settlement amount:

Step 1: Determine Economic Losses

Start by calculating your economic losses, also known as "special damages." These are the out-of-pocket expenses and financial costs associated with the accident. This includes:

• Medical Expenses: Add up all your medical bills, including hospital stays, doctor's visits, medications, and any other treatments.
• Property Damage: Calculate the cost of repairing or replacing your vehicle and any other damaged property.
• Lost Earnings: Determine the income you lost due to missing work while recovering from your injuries.
• Future Lost Income: If your injuries will impact your ability to work in the future, estimate the income you will continue to lose.

Step 2: Assess Non-Economic Losses

Non-economic losses, or "general damages," are more challenging to quantify. These include pain and suffering, emotional distress, mental anguish, and the negative impact on your daily life. Insurance adjusters typically use a multiplier to calculate these damages. Here's how you can do it:

• Choose a Multiplier: Select a number between 1.5 and 5. The more severe, long-lasting, and painful your injuries are, the higher the multiplier. Consider factors such as the extent of your injuries, the medical treatment required, future treatment needs, and any permanent or long-lasting effects.
• Multiply Medical Special Damages: Take the total medical special damages (your medical expenses) and multiply them by the chosen multiplier. This will give you an estimate for your non-economic losses.

Step 3: Add Up Economic and Non-Economic Losses

To calculate your total settlement amount, simply add up your economic and non-economic losses. This will give you a comprehensive figure that represents the full extent of your losses.

Step 4: Consider Comparative Negligence

Note that your settlement amount may be adjusted based on the concept of comparative negligence. Depending on the state you're in, if you are found to be partially at fault for the accident, your settlement may be reduced by your percentage of fault. In some states, if your fault exceeds a certain threshold (often 50%), you may not be eligible for any compensation.

Step 5: Be Prepared to Negotiate

Remember, the insurance adjuster will likely try to offer a lower settlement amount to protect the interests of the insurance company. Be prepared to negotiate and provide justifications for your settlement demands. It's a good idea to consult with an attorney, especially if your case is complex or involves significant damages. They can guide you through the process and help ensure you receive a fair and reasonable settlement.

Don't accept the first offer

The first offer made by an insurance adjuster is often a lowball amount to test whether you know how to negotiate or understand the value of your car. Even if the offer seems reasonable, you should always negotiate. Remember that insurance adjusters are incentivised to pay out as little as possible, so you may need to fight for what you deserve.

Before you begin negotiating, do your research. Determine the true value of your car by getting estimates from several mechanics and checking the value of similar vehicles online. You should also calculate what you believe to be a fair settlement amount, taking into account any pain and suffering caused by the accident, medical costs, lost income, and the cost of repairing or replacing your vehicle.

Once you have a number in mind, send a demand letter to the insurance company. Outline the details of the accident, your injuries, the damage to your vehicle, and any other losses or damages. Include your settlement amount, but be aware that the insurance company will likely counter with a lower offer. Make sure to include any relevant documentation or evidence to support your claims.

If the insurance company's first offer is inadequate, decline it and ask for a better one. Ask the adjuster to explain their justification for their offer, and use this information to form a counter-argument. Remember to keep a level head and objectively weigh the strengths and weaknesses of their offer.

Get the settlement offer in writing

Getting a settlement offer in writing is the final step in negotiating with an auto insurance adjuster. This step is important as it protects both parties by setting appropriate expectations and helping to ensure they will be met. The written settlement agreement should be concise and only include a few key pieces of information:

• The agreed-upon settlement amount
• The date when you expect to receive additional documentation or the settlement amount
• What damages and/or injuries are covered by the settlement

Before agreeing on a settlement, it is important to determine the value of your car and the costs of your medical treatment. This will help you decide on a minimum settlement amount that you are willing to accept. It is also crucial to have all the necessary paperwork regarding your damages and injuries and to be prepared to negotiate with the adjuster. Remember, you don't have to accept the first offer, and it is within your rights to turn it down.

Frequently asked questions