Negotiating to win maximum car accident settlements
Insurance companies are in business to pay out as little as possible before they start writing checks to accident victims. Unfortunately, insurance adjusters are well trained in negotiating tactics to achieve this.
On the other hand, accident victims tend to have little to no experience when it comes to winning maximum settlements in car accident cases. It doesn’t help that some are uninformed about insurance policies and the overall settlement process.
By learning negotiation strategies that work, accident victims can significantly improve their chances of winning top settlements.
In this article, I will review all of the best negotiation strategies to help you win maximum car accident settlements. I have broken it down into simple steps so you can learn how to negotiate like a pro.
If you are serious about winning maximum compensation, keep reading…
What you’ll discover:
- Why Most Accident Settlements Are Too Low
- What Makes Car Accident Negotiations Different?
- 6x Expert Negotiation Strategies That Work
Why Most Accident Settlements Are Too Low
Done properly, negotiating car accident settlements is a great way to increase your final payout.
In fact, if you are an accident victim that has yet to start fighting for fair compensation — here are three reasons why you should.
Insurance Companies Start With Lowball Offers
Negotiating settlements with insurance companies is one of the best things that accident victims can do to maximize payouts. Here’s why:
Insurance adjusters are trained to offer as little as possible before they cut checks to accident victims. When victims know the tactics of insurance companies and fight back with solid evidence — their settlements increase.
Better negotiations lead to higher settlement amounts.
One recent study showed that accident victims who negotiated their settlements received an average payout of $30,416, while those who accepted the first offer received significantly less compensation.
Negotiating intelligently is one of the smartest things you can do to increase your final settlement value.
Build Leverage & Documentation
If evidence were ammunition, every accident victim should stockpile as much as possible.
Insurance companies like to pay as little as possible before they start writing checks to accident victims. How can you force them to pay what they deserve? Build an unbeatable case through solid documentation.
If your case involves an auto accident injury and you can prove it with ironclad evidence that includes comprehensive medical records, witness statements, and expert testimony, you automatically create leverage that forces insurance companies to pay.
Insurance companies know that the stronger your case is the more it will cost them to fight. Documentation is what tells them to either settle fairly or prepare for expensive litigation.
Maximize Long-Term Financial Recovery
Securing future medical coverage is one of the most underrated benefits of proper settlement negotiation. When done right, settlement negotiation does two things:
- Covers immediate medical bills.
- Secures compensation for future medical needs.
By negotiating your settlement intelligently, you also maximize future financial recovery.
When you negotiate in a professional manner, you force insurance companies to take your case seriously, which in turn immediately increases your credibility and the value of your settlement.
What Makes Car Accident Negotiations Different?
Negotiating car accident settlements is different. In fact, the most important difference in car accident cases is the fact that most of these cases involve multiple types of damages. Each type of damage will require its own specific form of documentation. These include the following:
- Medical expenses.
- Lost wages.
- Property damage.
- Pain and suffering.
Negotiation is hard work on its own… But it takes on another level of difficulty when you have to calculate fair compensation for very different types of damages. The key here is to make sure that you have solid documentation supporting every category of damages. This is different from other types of simple property damage claims. Accident cases that involve injuries will always have to be treated differently.
Professional Negotiation Strategies
Now that we have addressed the basics. Let’s take a look at a few professional negotiation strategies that actually work.
My team and I use these exact tactics to generate results, so if they can do it… then you can too.
Read through all the strategies, pick a couple that you like and implement them until you get the results that you want.
Remember, car accident settlement success is as simple as that!
Never Accept The First Offer
I know it’s hard to believe, but preparation is still king when it comes to car accident settlements.
Here’s why: Insurance companies always start with lowball offers to see if you understand the true value of your case. The first offer almost always covers only immediate visible costs. It usually ignores long term damages.
For example, statistics show that typical car accident settlements can range from $15,000 to $100,000+ depending on the severity of the injuries. However, first offers are usually 25-50% below fair value.
For this reason, experienced negotiators never accept first offers and instead present comprehensive counter-demands.
Document Everything In Writing
This is one of my favorite negotiation strategies. Here’s how it works:
Every conversation, every email, and every offer should be put in writing to create a legal record.
Why? Successful negotiators win higher settlements because they can prove what was discussed and agreed upon. Documentation of all interactions means that insurance companies can’t change their positions later.
Create a filing system that keeps track of all correspondence, settlement offers, medical records, repair estimates, etc. Send follow up email summaries after phone conversations.
Calculate Pain and Suffering Properly
If you are looking for an easy way to justify higher settlements… Properly calculating pain and suffering may be your most valuable negotiation tool.
The sad truth is most settlements focus on economic damages way too heavily. The real money is made from properly calculating non-economic damages such as pain and suffering.
My two favorite methods of calculating pain and suffering are:
- Multiplier method – This method multiplies the total economic damages by 1.5 to 5.
- Per diem approach – Assigns a daily dollar amount for the pain.
Statistics indicate that average medical expenses incurred following a serious car accident injury requiring hospitalization can reach $57,000. This is why properly calculating pain and suffering is so important.
Understand Policy Limits & Coverage
Policy limits are the maximum compensation available to you from an insurance policy regardless of your actual damages.
Insurance coverage is a key factor to consider when negotiating your settlement. Always research state minimum coverage requirements, at-fault drivers’ policy limits, your own uninsured motorist coverage, and umbrella policies.
Request copies of all insurance policy declarations from each insurer to identify which ones have the highest compensation pools.
Stay Professional During Negotiations
Professional communication builds credibility, which leads to higher settlement offers. Maintaining composure shows adjusters that you are serious about your case.
Insurance adjusters are very familiar with emotional victims that inadvertently hurt their own cases through outbursts. Professional negotiators that are able to stay calm throughout the process will always get better results.
Treat all interactions like a business transaction. Be respectful but firm when you speak and follow up promptly.
Know When To Get Legal Help
Negotiations are a process that sometimes reach points where professional legal assistance becomes necessary. When this happens, here are the warning signs that you should look out for.
- Settlement offers well below documented and justified damages.
- Insurance company delay tactics.
- Complex liability or coverage disputes.
- Severe or permanent injuries.
Getting legal help means bringing on professional assistance that can increase the value of your settlement exponentially.
The Bottom Line
You now have 6 powerful negotiation strategies to help you get maximum car accident settlements. Insurance company negotiations are difficult and require both patience and preparation.
Remember that you must commit the time and effort necessary to master these strategies if you want to see results.
If you do not have the experience, many accident victims make the choice to work with legal professionals who have been doing this for a long time.
One important point to keep in mind is that proper preparation and professional presentation is the foundation of all successful settlement negotiations.
