How to handle an insurance company

Insurance companies throughout the country do business the same way. Their bottom line does not thrive when they write large checks, so they do what they can to minimize their payouts. This means that claimants need to be wise to the ways of the insurance company when it comes to negotiating the claim.

The first thing to know is that the insurance company is not in the position to be the sole arbiter of what a claim is worth. In other words, since the settlement must be agreed to by both parties, there is a negotiation that can take place beforehand. The insurance company counts on the fact that many people do not realize they have the ability to make a counteroffer to the insurance company.

That is exactly what a claimant should do after they receive the initial offer. First, they should do their own research on the exact value of the claim so that they know exactly how low the insurance company’s offer is. Then, they should present their own demand letter to the insurance company that lays out the exact basis for the claimant’s proposed amount. Just like the insurance company will low-ball its offers, the claimant should seek to come in high because the insurance companies will almost never pay what they are asked. Instead, they will continue to negotiate themselves until a settlement is reached.

Dealing with an insurance company is not easy. These companies have superior knowledge and teams of lawyers to save them money. An accident victim needs the help of their own to counter the insurance company’s structural advantages. They may want to hire a motor vehicle accident attorney to advise them with regard to their claim. The attorney may be able to negotiate on their behalf with the insurance company and file a lawsuit if they cannot reach an agreement.