After suffering a traumatic accident, filing an insurance claim may be the last thing on your mind. However, filing a personal injury claim is crucial to get coverage or reimbursement for medical bills, property damage, and other accident-related expenses.
If you are not at fault, you will file a claim with your insurance company, and they will take care of your medical bills and other damages while pursuing recovery of the expenses from the other party’s insurer. If you were at fault, your insurance company would need to assess the damages and reimburse you for your medical costs and property loss.
It is important to note that an insurance company’s job is to pay as little as possible within the law. Insurance companies may offer a settlement amount that does not cover all of the damages from the accident, and they never compensate you for emotional distress or pain and suffering.
An insurance company wants to be in charge of the negotiation process. Most insurance companies bank on accident victims’ lack of understanding about the ins and outs of the insurance settlement process, so they can negotiate a settlement value that is less than you deserve.
Negotiating with an insurance company is tricky, so hiring a personal injury lawyer is necessary to receive the compensation you deserve. Personal injury attorneys can view your accident’s evidence and fight for a fair settlement.
Having legal representation with a reputation for taking cases to trial forces the insurance company to offer a fair settlement. If they do not provide a fair settlement, some attorneys will take them to trial, and their total monetary output will go far beyond what they would have had to pay if they had settled fairly. Attorneys that are known for taking cases to trial receive much higher settlement values than those that do not. Choose your personal injury lawyer based on their credentials to ensure you receive the highest compensation.
How Do Insurance Companies Negotiate Settlements?
After an accident, the insurance company’s job is to contact accident victims to collect facts and information related to the claim.
An insurance provider will contact you to give you a settlement offer and explain what the settlement covers. Several factors determine settlement value, including the severity of injury sustained, fault of the other driver or car manufacturer, and more evidence from the accident scene.
Attorneys that do not go to trial rarely see the highest settlement values because insurance companies know they will settle rather than go to trial.
Investigation
An insurance adjuster will collect information about your specific accident claim to determine the cause and level of damage.
In an initial investigation, an insurance company is trying to collect all of the necessary information and evidence they need to determine a settlement amount. They will assess evidence from the police report, witness statements, and accident photos in their investigation.
Suppose any injuries sustained in the car accident require medical treatment. In that case, the insurance company will ask for copies of medical bills for treatment you have already received and a medical assessment from a health practitioner to determine the scope of physical harm. Seeking medical care if you have suffered physical or emotional damage is essential. If you seek medical or emotional damages in your settlement, these medical records are required.
Initial Offer
Typically, an insurance company has a limit on the compensation they can pay you. Based on the policies of the specific insurance company, they may have to adhere to a particular settlement value.
An insurance adjuster uses the information gathered from the investigation to estimate an appropriate settlement amount. Typically, the insurance company uses software to generate this settlement amount.
This initial offer is generally a minimum settlement figure the insurance company is willing to pay based on the investigation. Accepting the initial offer is not recommended often since this is generally the minimum compensation you deserve.
Demands
Meet with a personal injury attorney to determine reasonable demands and move forward with settlement negotiations.
The demand letter helps to justify your desired settlement offer. The right personal injury attorney will demand the maximum compensation you deserve based on the facts of the case. Demanding the maximum amount out of the gate allows room to negotiate a fair settlement.
What to include in a demand letter
The purpose of a demand letter is to negotiate with an insurance company to get maximum compensation for accident damages. Use appropriate and professional language in your letter to receive respect and consideration from the insurance company. There are several key components to include in your demand letter.
medical costs
Include anticipated and actual medical costs in your letter. By including the true value of your medical care and expected medical expenses, an insurance company can see how much your injuries from the accident will cost. An attorney can guide you through this process by helping to assess your injuries and determine expected costs. Lawyers use a multiplier method when calculating medical expenses based on specific injuries and records. They may also have you evaluated by a physician to ensure they have included all your injuries and the extent of those injuries in their calculations.
lost wages
Include specific lost wages due to injury. If you are unable to work as a result of your injury or have missed a significant amount of work due to medical visits, you may be able to receive insurance coverage. Your employer should be able to provide the details of how many days you were unable to work and the total amount of your lost wages on their company letterhead. This letter will function as official documentation for your records.
pain and suffering
Insurance companies do not typically cover pain and suffering automatically. You will need an attorney and the threat of a lawsuit to receive fair compensation for any pain and suffering you experienced due to the accident. Pain and suffering compensation can include physical injury, emotional damage, ongoing health issues, and other factors. An attorney can assist you in finding an appropriate estimate for pain and suffering.
property damage
Include any property damage estimates as a result of the accident. If you have vehicle damage associated with the accident, include repair estimates from an auto-repair company. Any other property loss can be documented through similar repair estimates, or you can meet with a lawyer to determine an appropriate compensation amount.
Negotiation Process
Negotiating a reasonable offer can take a while since insurance companies want to pay as little as possible.
Independent mediators may be required to reach a compromise. These mediators can determine how much compensation is appropriate from an unbiased lens. The insurance company may also request an independent medical examination from a healthcare provider.
Many personal injury claims can be negotiated outside of court; however, there are some instances where a trial may be necessary. If an insurance company is unwilling to negotiate or provide a fair offer, it may be time to seek legal action.
Tips for Negotiating with Insurance Company
Consult legal help early on to assist with every stage of the process. An attorney can assess your personal injury claim and determine the appropriate next steps for you.
Be prepared to negotiate by having a minimum amount you are willing to accept. After consulting with an attorney about how much compensation you deserve, you can determine this minimum amount and negotiate confidently.
Always have your argument prepared. A car insurance company has been through the legal process countless times and has insurance adjusters experienced in negotiation. Having an attorney who is just as experienced can enhance your argument. Focus on documentation and your strongest points instead of a laundry list of details.
How a Personal Injury Lawyer Can Help
Attorney McDonald is in the top 1% of board-certified lawyers in Pennsylvania by the National Trial Board of Advocacy and has been annually recognized nationally as one of the Top 100 Trial Lawyers in the United States since 2011. Awarded a PA Super Lawyers recognition for the past ten years, McDonald At Law has extensive experience maximizing client compensation.
McDonald At Law has 30 years of civil trial experience and a track record of getting their clients the maximum compensation they deserve. An attorney with little-to-no trial experience will obtain less compensation for clients because the insurance company knows they will not be going to trial.
At McDonald At Law, we make it clear to the insurance companies that we are willing to fight for our clients because when they do not offer us the top value available, we take them to trial and let the judge and jury decide. You can schedule a free consultation with a McDonald At Law attorney to assess your claim and take action toward receiving the compensation you deserve.