How to Negotiate With Insurance Companies
People often get intimidated when it comes to negotiating with insurance companies, but there are a few things you can do to make your negotiations go smoother. First, keep in mind that you are negotiating with people who work for an insurance company, not the entire company itself. Once you get over your intimidation, the process becomes easier.
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Instructions
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Locate the right department. To begin negotiations with an insurance company you have to make sure you've got the correct department that handles the topic of your negotiations. For instance, underwriters handle a different aspect of insurance than claims adjusters. Target your area, then locate the right person.
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Compile your documentation. You must have documented proof to back up your requests. When it comes to negotiating with an insurance company, have copies of letters, receipts, emails--whatever it takes to support your point. If you want a higher payout on an insurance claim, having receipts that justify the item's value carries more weight than arguing that the adjuster's numbers "aren't fair."
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Use the insurance policy as ammunition. Take some time to review the insurance policy and find the sections that support your point. It's hard for an insurance company to deny something when it's spelled out in black and white in one of their own policies.
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Keep a running diary of conversations and contacts. The way in which you document your negotiations can be the difference between getting what you want and letting the insurance company win. Not only is it necessary to document the names, dates and gist of the conversation, go the extra mile and confirm the conversation in an email or a letter just to make sure that everybody is on the same page. In the last line of the letter or email, make it known that unless you hear otherwise, you will assume that everyone is in agreement with the contents of your letter. This forces the insurance company to come back to you in writing if they disagree.
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Remain calm. Depending on the nature of the negotiations, discussions can become heated, so try to keep your cool. The quickest way to have an insurance company place your request on the back burner is to become irate and angry. If the conversation seems to be headed in a negative direction, quickly do whatever is possible to diffuse the situation and end the call until everyone can calm down and cooler heads prevail.
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Tips & Warnings
If you want to be heard, be persistent and have a fail safe follow-up system. Whether you use an online calendar or your cell phone, you need a reminder system to tell you it's time to contact the insurance company to follow up on the open items.
