Negotiating a settlement with the insurance company can be complex and intimidating. Insurance companies have teams of experienced adjusters and lawyers whose job it is to minimize the amount they pay out on claims. It can be challenging to deal with this process without legal representation. A personal injury lawyer can ensure you receive everything you deserve in compensation and damages.
You can refuse the insurance company’s initial settlement offer when it does not give you enough money to pay for your damages. The only way to get what you deserve is to reject insufficient settlement offers and hold out for what you are due. Insurance companies know that rejection is part of the process, and they account for it during settlement negotiations.
When you hire an experienced personal injury lawyer for your case, you have a better chance of getting insurance companies to pay more. If you approach them on your own, they will not have any fear of you, which is a powerful motivator for insurance companies. A personal injury attorney can leverage the legal process, forcing them to pay you in full.
If you do not already have a personal injury attorney, now is the time to hire one. A lawyer can pressure insurance companies, using the threat of a lawsuit to get them to raise their settlement offer. Eventually, you can expect their offer to get into the right ballpark, but it will only happen after extensive settlement negotiations.
How the Personal Injury Claims Process Works
After you have suffered an injury in an accident, you will explore the possibility of filing a personal injury claim. The key is that you can prove that someone else owes you money, and you do so by coming forward with evidence that the other party was negligent. You must show that they did something wrong and did not act reasonably under the circumstances. However, proving your entitlement to money is only part of your case.
Insurance companies will review your initial claim and determine whether to accept liability for your injuries. If they do, they will proceed to the compensation phase of your case, which is when your personal injury lawyer must get to work. Insurance companies intend to drag out the process as far as they can without allowing it to progress to the point of a lawsuit.
The Personal Injury Claims Process Is a Negotiation
Insurance companies are on the other side of the table from you and represent their policyholder in the claims or lawsuit process. They will provide the legal defense to their policyholder every step of the way and inherit the legal obligation to pay you up to the amount of the policy limit. Insurance companies also have risks because there is always the possibility that they can be liable to their policyholder in a bad faith lawsuit.
Ultimately, the insurance company does not have the power to determine how much money you may get. The claims process is an arms-length negotiation between two parties who have their own interests. Your goal is to get top dollar for your injuries because it is money that you have lost. Insurance companies aim to settle your claim for as little as possible because that helps them increase their profit. These motivations guide both of your actions in the claims negotiation process.
How a Settlement Negotiation Works
The claims process is no different than any negotiation between two parties. You need to know how negotiations generally work to understand why you may be in for a difficult time. While the circumstances are different, you can think of settling a personal injury claim like buying a car, except you have legal rights to consider.
A negotiator will rarely make you their best offer first because they want to test you to see what you will accept. They always want to have room to raise their offer if they need to do so later in the negotiation. Seldom will any negotiator come into the discussions with one number that you can take or leave.
At the same time, your personal injury lawyer may not necessarily present your bottom line right off the bat. Your personal injury claim will reflect your damages, but you may have some room to compromise and negotiate. Your personal injury lawyer understands that there is little chance that the insurance company will go all the way up to your number to settle your case.
Insurance Companies Will Lowball Your Claim Whenever Possible
Insurance companies know how to negotiate because they do this all the time during their business, and this is precisely what they do and how they strengthen their financial position. They aim to make your claim go away and get you to sign over your legal rights for as little money as possible. Insurance companies make money when they can retain as much of the premiums as possible and keep them invested in the stock market.
The insurance company may lowball a claim to test you and see if it gets lucky by getting you to take a low offer. If you do not have a car accident lawyer, you may be much more vulnerable to accepting one of these unfair offers because you have no idea how much your claim is worth.
A personal injury attorney has years of experience dealing with insurance companies and is well-versed in their tactics to minimize payouts. Lawyers know how to present your case in the most compelling way and use persuasive arguments to push for a fair settlement. They can also anticipate and counter any lowball offers or delays from the insurance company, ensuring that negotiations move forward in a timely manner.
What You Can Get in a Personal Injury Case
Understand that your car accident claim is for all the damages you have suffered due to the driver’s negligent actions. Your damages include the following:
- Medical expenses
- Property damage
- Lost earnings
- Pain and suffering
- Loss of enjoyment of life
- Scarring and disfigurement
- Emotional distress
There are many ways to value a car accident claim. Rest assured that insurance companies will choose the one that is most advantageous to them and pays you the least amount of money possible. That is how they win and make money.
Part of the battle in your car accident claim is fought simply by knowing how much you deserve in compensation and the overall value of your claim. Insurance companies are experts at this fundamental task. Adjusters and statisticians receive extensive training to know how much you should get. Settlement offers are part of an overall strategy to profit at your expense, and your car accident lawyer also has this knowledge because they often see claims like yours.
What Happens When I Reject a Settlement Offer?
Insurance companies make settlement offers with the knowledge and understanding that they are off the table once you say no. However, given that the offer was for something far lower than the value of your case, you can assume that any settlement offer is a baseline for what the insurance company will be willing to offer you in the future. Chances are that you can come back and accept that offer later, although it is likely not in your best interests to do so.
Usually, your personal injury lawyer will make a counteroffer to the insurance company that may move slightly off the amount of your original claim. After that, insurance companies may improve their offer to get you into the same ballpark. Eventually, you may reach a point where you are closing in on a settlement agreement. This process happens with practically every personal injury claim, and you can expect it anytime you are dealing with the insurance company.
Your Personal Injury Lawyer May Threaten or File a Lawsuit
There are times when you and the insurance company have a fundamental difference of opinion, and you may see things in a completely different light regarding the value of your claim. Insurance companies may be trying to blame you in whole or in part when you do not think you are at fault. Any blame can reduce the value of your settlement check, and it may not be something you are willing to accept.
Although most personal injury claims will reach a settlement without a trial, it is always your right to have a jury hear your case and the evidence of your damages. A lawyer can gather the necessary evidence to strengthen your claim. They can obtain police reports, medical records, and expert opinions to support your case and demonstrate the extent of your injuries and damages. This evidence is important in negotiations because it provides undeniable proof of the losses you have suffered.
Assuming you can prove liability in your case, the jury decides how much you deserve. Insurance companies fear this process because juries can be complete wild cards. There is a possibility that a jury can award you punitive damages that the insurance company will need to pay. Insurance companies can even be in jeopardy because their policyholder can sue them for bad faith. Thus, the threat of a lawsuit can be leverage for you in settlement negotiations.
Know What Happens When You Sign a Settlement Agreement
Insurance companies demand that you sign an agreement that releases them from any further liability concerning your claim, which is part of every settlement agreement. The release agreement prevents you from returning for more money in the future if you have underestimated the value of your claim or your injuries turn out to be worse than you thought.
Thus, it is necessary to get things right in a settlement agreement because you do not get any chances to correct your mistakes. A personal injury attorney can fight for you to get everything you deserve, holding insurance companies accountable when trying to lowball your settlement offer. It costs you nothing out of your pocket to get the legal help you need. The significant risk is that you trust insurance companies and try to deal with them directly. Then, you have ended up signing your legal rights away, often for pennies on the dollar.
Why You Need a Personal Injury Lawyer
Insurance companies will attempt to take advantage of you when you are trying to deal with them directly. Even if you know enough to understand that they are trying to underpay you, insurance companies may be slow to respond when you reject their settlement offer. You have a credible threat of litigation if you approach them with a personal injury attorney. Insurance companies know they can get away with quite a bit in the claims process when they are not held accountable by a skilled injury lawyer.
Your personal injury attorney can be the most effective when you hire them as soon as possible after the accident. The insurance company will work to undermine your claim to the fullest extent possible, even before you file it. Hiring a personal injury attorney at the first opportunity is your way to stand up for yourself.
Money is never an issue when affording a personal injury attorney. Because your lawyer works for you on a contingency basis, they will not ask you to pay them any money out of your pocket, nor will they send you a bill of any kind while your case is pending. The only way your attorney gets paid for their time and services is when you win your case by receiving a settlement check or jury award. Never let fears of money stand between you and the legal help you need in an accident case.
Call A Personal Injury Attorney to Handle the Insurance Company’s Offer
Negotiating a settlement with the insurance company is not a task you should tackle alone. Hiring a lawyer with experience in personal injury claims can make a significant difference in the outcome of your case. They have the knowledge, skills, and experience necessary to handle settlement negotiations and ensure you receive the compensation you deserve. Do not hesitate to seek legal representation to level the playing field and protect your rights in the settlement process.
