Once the personal injury compensation negotiation process begins to heat up in your case, you will need to have an effective strategy in place. Following these six clearance tips is a great start.
1. Keep in mind a specific liquidation amount
In preparing your personal injury claim letter, you have determined a range of what you believe your claim is worth. Before speaking to an insurance adjuster about your claim, decide on a minimum settlement amount that you would accept within that range. This figure is for your information, not something you would like to disclose to the appraiser. But before the offers and counter-offers start coming and going, help if you already have your profits in mind.
Remember, you don't have to stick to the amount you originally set for yourself. If the appraiser points out facts that you have not considered but that clearly undermine your claim, they may need to lower the minimum number a bit. And if the appraiser starts with a low liquidation offer or a number close to the minimum, or if they discover evidence that reinforces your claim, you may want to look. Learn more about the factors that affect the value of your personal injury settlement.
2. Don't jump on a first offer
It is standard practice for insurance adjusters to start negotiations by offering a very low amount first. With this tactic, the appraiser is trying to find out if you understand the value of your request and your patience.
When making a first offer, your response should depend on whether it is reasonable but too low or so low that it is clearly just a tactic to see if you know what you are doing. If the offer is reasonable, you can make a slightly lower counter offer than the amount in the request letter. This shows the appraiser that you too are reasonable and willing to compromise. A little more bargaining should quickly lead you to a final winning amount that you both find fair. In these negotiations, don't worry about reviewing all the facts. It is enough to point out the strongest points in your favor, for example, that the policyholder was completely at fault.
3. Ask the regulator to justify a low offer
If in your first conversation, the appraiser bids so low that it's obviously just a negotiation tactic to see if you know how much your request is really worth, don't immediately reduce the amount you put in the request letter. Instead, ask the appraiser for specific reasons why the offer is so low. Take notes from the conversation. Then write a short letter that answers each of the factors mentioned by the appraiser. Depending on the strength of the regulators ratios, you can lower your demand slightly, but wait to see if the regulator gives up before going down.
The next time you speak to the appraiser, start by asking for a response to your response letter. The appraiser should now make you a reasonable offer which can lead to a fair final settlement figure.
Learn more about how to respond to a low liquidation offer.
4. Emphasize the emotional points in your favor
As you negotiate, bring out any emotional points that support your statement. If, for example, you've sent the appraiser a particularly strong photo of a wrecked car or a serious-looking injury, take a look. If a bottle of beer was found in other drivers' car, refer to the possibility of alcohol consumption. If similar incidents occurred in a similar way in that place, remind the appraiser. If your injury has interfered with your ability to care for your child, mention that your child has suffered as a result. While there is no way to put a dollar value on these factors, they can be very powerful in getting an insurance company to settle a claim.
5. Wait for a response
Don't reduce your demand more than once until you have a new offer from the appraiser. Never reduce demand twice without an increase in supply by the appraiser concerned; it's not just a good deal.
If the appraiser gives multiple reasons for a low bid, review each one. Once all the appraisers' arguments have been resolved, you will either get a reasonable offer or have learned that there is no reasonable offer and you will need to try to exert additional pressure on the insurance company.
6. Know when to hire a lawyer
If at any point you feel that negotiations are not going as planned, you may want to consider speaking to a personal injury attorney, especially if:
You are seeking compensation for serious injury, pain and suffering in excess of a few thousand dollars. An insurance adjuster is unlikely to take an unrepresented claimant seriously when the claimed damages amount to tens of thousands of dollars or more. You're looking for future damage. If you are claiming a future loss of income or costs of medical treatment that you will need later on, you may want a lawyer to help you effectively terminate a settlement. There is a question of guilt. If there is any doubt as to who is to blame for the underlying incident, you may need a lawyer to properly come up with your argument. Learn more about hiring a lawyer or handling your complaint.
7. Put the agreement in writing
When you and the appraiser finally agree on a number, immediately confirm the agreement with a letter to the appraiser. The menu can be short and sweet. See this sample transaction confirmation letter to get an idea of what this document might look like.