Negotiating a Car Accident Settlement: How to Get More Than the Minimum Offer
January 2, 2025- Categories: Vehicle Accidents
If you are badly injured in a car accident you didn’t cause, the other driver’s insurance company will usually pay you a settlement to cover your medical care and other accident-related expenses. However, many people make the mistake of thinking the insurance company has their best interests at heart. The truth is that the only goal of insurance companies is to pay out as little as possible. Most will give you an initial lowball offer and hope you accept. It’s up to you to negotiate an increased amount. It’s important to know what you’re getting into before you negotiate: crucial preparation often makes the difference between a satisfactory settlement offer and one that comes up short.
While you can negotiate a car accident settlement yourself, in almost every case, having the help of an experienced attorney will get you better results.
The Car Accident Claim Negotiation Process
Negotiating car accident claims isn’t an overly complex process, but it can be frustrating. It’s important to always remain professional and polite — even when that seems next to impossible. Here’s a look at how the process typically works:
- You put together a claim and send it to the at-fault driver’s insurance company.
- An insurance adjuster looks at your claim and determines how much they think your case is worth.
- The adjuster comes back with a settlement offer.
- You make a counteroffer, backing it up with details from your claim.
- This process continues until you reach an agreement.
- You get the agreement in writing and receive a payout.
If you simply cannot find a number you and the insurer agree on, you may determine it’s time to file a lawsuit. This process is more complex, so it’s wise to have the help of a lawyer.
Before You Negotiate: Crucial Preparation
Being Ready Makes All the Difference
Preparing to negotiate a claim is an important process. The better prepared you are, the more likely you will be to see things go in your favor.
Put Together Your Supporting Documentation
Before you even file your claim, you should compile as much supporting documentation as you can. Generally, you want to be able to prove the accident happened and substantiate the costs you’ve incurred as a result. These are some of the documents you should include:
- Police report of the accident
- Copies of all medical bills
- Proof of lost wages
- Photos of your injuries
- Accident journal (a log of how your injuries have impacted your life).
Always make sure you send copies and not original documents. You should have your own file of supporting documentation (and ideally have it in both digital and physical form).
Calculate What Your Case Is Worth
Each insurance company uses its own method for calculating the worth of a claim. Unfortunately, companies don’t publish an exact formula, but you can use a similar strategy to get a rough estimate of what your case might be worth.
To estimate the worth of a case, you can add up the total monetary costs you have from the accident and multiply them by a particular number — often called a “pain and suffering multiplier.” The multiplier is usually between 1.5 and 5, and the more severe the accident, the higher the number becomes. For example, if the driver who caused your accident made a minor error and your injuries healed with no lasting damage, your multiplier might be 1.5. However, if a drunk driver caused a crash that left you paralyzed, that multiplier might be closer to five.
Once you calculate your case’s estimated value, write it down — you may want to use this as a reference point when considering the initial settlement offer.
Decide on a Minimum
Before negotiating, you should always have a firm bottom-line number. It’s easy to get caught up in negotiations, so it’s always good to have a definite settlement minimum. However, make sure you don’t tell the insurance company this number!
Are you having trouble finding a fair settlement amount that you and the insurance company can agree on? Give Neale & Fhima APC a call today at 888-407-2955.
Common Mistakes to Avoid
Increase Your Chances of a Reasonable Settlement
Before you start negotiating, you should be familiar with common claim negotiating mistakes. Knowing what tactics to avoid can make the negotiation process significantly easier. These are some of the most common errors that can hurt your claim:
Accepting the First Offer
When an insurer gives you an initial offer, it’s a test to see if you know your claim’s true value. This offer is almost always much lower than your claim is worth. Some people are so eager to get any kind of compensation at all that they accept this offer.
Giving a Statement
The at-fault driver’s insurance company might ask you to give a statement about the accident. Don’t do this! Insurers look closely at statements like these to find reasons to deny your claim.
Not Having a Lawyer
While it’s true that you can negotiate a settlement yourself, having a lawyer is almost always in your best interests. A lawyer will be able to offer you a more precise valuation of your claim. They also will show the insurer you’re serious. If you have an attorney, the insurance company knows you’ll be willing to file a lawsuit if they don’t come up with an offer you’ll accept. As a result, they’re more likely to give you a fair payout.
Need Help Negotiating an Accident Claim?
A fair accident claim can mean the difference between being comfortably supported during your recovery and facing significant financial challenges. It’s possible to negotiate with the insurance company yourself, but in nearly every case, having an experienced car accident attorney by your side results in a better settlement.
If you’ve been hurt in a car accident you didn’t cause, you need a legal advocate as soon as possible. Call Neale & Fhima APC today at 888-407-2955 or get in touch online to schedule a free consultation.
Attorney Aaron Fhima
Aaron Fhima is a trial attorney who has secured numerous settlements and verdicts against large corporations and some of the largest auto manufacturers in the world. Representing consumers and injury victims throughout the state of California, Aaron’s practice areas include personal injury, and lemon law litigation. Aaron has a long record of success taking on large defense firms; and he doesn’t hesitate to take cases to trial when necessary to enforce his clients’ rights. [ Attorney Bio ]
