Strategies For Negotiating With Insurance Adjusters After A Collision: A Comprehensive Guide

Negotiating with an insurance adjuster after a car accident can be a stressful and daunting process. It is important to remember that the adjuster works for the insurance company and will try to keep the claim payout as low as possible. Therefore, it is crucial to be prepared and know your rights when entering negotiations. Here are some key steps to follow when negotiating with an insurance adjuster:

1. Determine the value of your vehicle: Before negotiating, independently assess the value of your car by considering factors such as its year of manufacturing, the value of similar vehicles online, and using resources like Kelley Blue Book or Edmunds.

2. Gather evidence: Collect all the relevant documentation, such as repair bills, property damage estimates, the police report, eyewitness statements, and photos of the accident scene.

3. Calculate a full settlement amount: Figure out what you are legally owed by considering all economic and non-economic damages, including medical bills, lost income, property damage, and pain and suffering.

4. Know your bottom line: Have a clear idea of the minimum settlement you are willing to accept, and don't let the adjuster talk you into accepting less.

5. Don't accept the first offer: Insurance adjusters often start with a lowball offer to test your knowledge of your claim. Reject the initial offer and counter with a higher amount.

6. Get the settlement in writing: Once you reach an acceptable settlement, make sure to get it in writing to protect yourself and ensure the adjuster upholds their end of the agreement.

7. Consider hiring an attorney: If you feel overwhelmed or unsure about the process, consider consulting or hiring an experienced car accident attorney who can guide you through the negotiations and ensure you receive fair compensation.

Determine the value of your car

Determining the value of your car

After a car accident, the value of your car will be determined by a claims adjuster with your insurance company if it's a first-party benefits claim, or from the other driver's insurance company if it's a third-party benefits claim. In both cases, the adjuster is incentivized to pay out the minimum amount, so knowing the true value of your car is important for negotiations.

Getting estimates

Get an estimate from your own trusted mechanic, and take the car to at least two other mechanics for estimates. Check the value of your car at websites such as Kelley Blue Book, Edmunds, or NADA Guides. You can also get an estimate from a qualified mechanic, though this is optional if you just need a ballpark figure.

Local market prices

Do your own research into the pricing of similar cars in your local market. The closer the example to your own car, the more leverage it will give you. If the insurance company is choosing base model vehicles, for example, and your vehicle had many options, you likely have a good argument for a higher price.

Features and conditions

Point out low mileage, excellent interior and exterior condition, and any handy features to your insurer as "value points". Make sure they know about features that you have added to your vehicle after purchase, such as an enhanced sound system, that may add value.

Comparable vehicles

Find comparable vehicles for sale online, and check their value. Location can have an impact on a vehicle's value.

Online tools

Take advantage of online tools to get a ballpark value of your vehicle and print out the results. Go to KBB.com or the National Automobile Dealers Association's (NADA) website.

Certified Collateral Corporation (CCC) report

Ask for your CCC report, an itemized list of your vehicle's features that an adjuster uses to help determine the market value of your car. Look over the CCC report and ensure your vehicle's features and trim level are listed correctly.

Negotiate with the auto insurer

Negotiating with an auto insurer can be a daunting task, especially if you are not an experienced negotiator. However, there are several steps you can take to get a fair settlement. Here are some tips to help you through the process:

Know the Value of Your Car

Before entering negotiations, it is crucial to have a clear understanding of your car's value. This includes considering factors such as the year of manufacturing, the value of similar vehicles online, and using resources like Kelley Blue Book (KBB) or Edmunds to get an estimate. Additionally, getting a written estimate from a trusted mechanic can provide valuable support for your claimed amount.

Start with a Settlement Amount in Mind

When presenting your demand letter to the insurance company, have a specific figure in mind. This amount should be based on the evidence you have gathered and reflect what you truly deserve. It is essential to be firm and not settle for an amount that is far below your expectations.

Don't Take the First Offer

Insurance adjusters often employ negotiation tactics, such as starting with a lowball offer to test your knowledge of your claim. It is in their best interest to keep the payout as low as possible. Therefore, it is recommended to reject the initial offer and provide a counteroffer that is lower than your initial demand but still higher than their first offer.

Emphasize Emotional Damage

If the accident has caused any emotional trauma or affected your earning ability, be sure to include this in your negotiations. Settlements often take emotional damage into account, and you deserve compensation for all your injuries, both physical and mental.

Get the Settlement in Writing

Once you have reached an agreement with the insurance adjuster, make sure to get the final settlement offer in writing. This protects both parties and ensures that the agreed-upon terms are clear and enforceable.

Know Your Bottom Line

Throughout the negotiation process, keep your bottom line in mind—the minimum amount you are willing to accept. Don't let yourself be pressured into accepting an offer that doesn't meet your needs. Remember, you have the right to walk away from any offer that doesn't align with your expectations.

Seek Legal Assistance if Needed

If you feel overwhelmed or unsure about handling the negotiation process on your own, consider consulting with an experienced attorney. They can guide you through the complexities of the insurance claims process and ensure your rights are protected.

Get a written estimate

Getting a written estimate from a professional body shop or mechanic can be a powerful tool when negotiating with an insurance adjuster. It is a good idea to get at least three written estimates, which should include a detailed breakdown of the repairs to be done, as well as the costs for parts and labour. This will help show the adjuster that your vehicle is worth more than their appraisal.

When getting a written estimate, make sure to choose a well-established collision repair shop with a history of performing quality work. Check their reputation and read reviews from other car owners. The shop should be properly licensed and registered as required by your state.

If you need to get your car back on the road quickly, don't wait for the insurance adjuster to assess the damage before obtaining estimates. You can pay for the repair yourself and then request reimbursement from your insurer. However, keep in mind that it may be more difficult to get the full amount reimbursed after the work is completed, especially if you go with the highest estimate.

In addition to a written estimate, you can also use online tools to get a ballpark value of your vehicle. Print out the results and bring them to the negotiation. Find comparable vehicles for sale in your local area that match your vehicle's year, make, and model. The closer the example to your own car, the more leverage it will provide in the negotiation.

Know your bottom line

Knowing your bottom line is a crucial aspect of negotiating with an insurance adjuster after a collision. Here are some detailed instructions and considerations to help you establish and maintain your bottom line during the negotiation process:

• Determine the value of your claim: Before entering negotiations, it is essential to understand the full value of your claim. This includes considering factors such as the severity of your injuries, the duration of your recovery, any permanent or future medical needs, lost wages, impairments, and pain and suffering. You can gather evidence such as medical reports, repair estimates, and comparable market prices for your vehicle. Having a clear understanding of your claim's value will help you set a realistic bottom line.
• Be prepared and organised: Collect and organise all the relevant documents and evidence to support your claim. This includes medical records, repair estimates, police reports, eyewitness statements, photos or videos of the accident scene, and proof of income. Having a well-organised portfolio of evidence will strengthen your position during negotiations and make it more difficult for the adjuster to lowball your claim.
• Start with a settlement amount in mind: When presenting your demand letter to the insurance company, have a specific settlement amount in mind. This amount should be based on the evidence you have gathered and your understanding of your claim's value. Your bottom line is the minimum amount you are willing to accept, and it is crucial to stick to it throughout the negotiation process.
• Don't take the first offer: It is common for insurance adjusters to start with a lowball offer to test your knowledge of your claim. Reject the initial offer and provide a counteroffer that is lower than your demand letter but still above their initial offer. Remember that you are under no obligation to accept their first offer, and it is in your best interest to negotiate for a fair settlement.
• Be a good-faith negotiator: Maintain professionalism and honesty during the negotiation process. Provide documentation and evidence to support your arguments, and ask the adjuster to justify their offers. Being a good-faith negotiator does not mean accepting an unfair settlement; it means approaching the negotiation process with integrity and a willingness to find a mutually agreeable solution.
• Know when to seek legal assistance: If you feel overwhelmed or unsure about the negotiation process, consider consulting an experienced attorney. They can guide you through the complex world of insurance claims and ensure your rights are protected. Attorneys can also help you determine a realistic bottom line and provide valuable insights into negotiation strategies.

Remember, your bottom line is the minimum settlement amount you are willing to accept. It is essential to have a clear understanding of your claim's value and to be firm in your negotiations. Don't be afraid to walk away from an offer that doesn't meet your bottom line, as it is your right to seek a fair and just settlement.

Get the settlement offer in writing

Getting a settlement offer in writing is a crucial step in the negotiation process with an insurance adjuster. While verbal agreements may be made, it is important to have a formal, written record of the final settlement amount. This protects both parties by setting clear expectations and helping to ensure they are met.

Once you have reached an agreement with the insurance adjuster, it is essential to request a written statement outlining the terms of the settlement. This statement should include the specific settlement amount, the injuries and damages covered by the settlement, and the date by which you will receive the payment. Additionally, the statement should include any relevant estimates, evaluations, and deductions used in calculating the final settlement amount, as well as the source of these values.

Obtaining a written settlement agreement ensures that there is a clear and mutually agreed-upon record of the negotiations and their outcome. It provides protection for both parties and helps to prevent any potential misunderstandings or disputes that may arise in the future.

It is important to remember that you should not agree to sign any documents or accept any offers until you have received the agreed-upon settlement offer in writing. This allows you to carefully review the terms and ensure that they align with what was discussed during the negotiation process.

By following this step, you can ensure that you have a detailed and official record of the settlement and can confidently move forward with the knowledge that your rights and interests are protected.

Frequently asked questions