How to Understand a Settlement Offer From an Insurance Company
Most people don't think too much about their insurance policy until they must file a claim. When trying to understand a settlement offer from your insurance company, patience is key. Take the time to read all paperwork carefully, ask plenty of questions, and be willing to stand up for your needs. Whether it's an auto insurance, medical insurance, or homeowner's insurance claim, you must keep in mind that the insurance representative is only there to protect the company's interest. It is your responsibility to act as your own advocate.
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Instructions
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Understand the claim process. Most people do not want to negotiate a claim because they do not understand how the insurance business works. When asking for a settlement offer from your insurance company, you need to file a claim and then call your adjuster to discuss the claim. You can expect an initial offer that is well below what you want. You will then counter his claim with a higher one and continue this process until you are both happy with the amount you have come up with.
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Calculate your compensation amount to use as a benchmark when negotiating. This amount should include medical costs, any salary lost for the time you could not work, repairs to your auto, or any other relevant expenses that you believe the insurance company should be responsible for paying. If you're having trouble coming up with a suitable figure, there are several Web sites with online calculators you can use to determine typical awards for various types of claims.
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Ask the adjuster to justify any offer he gives because it will likely be lower than your claim amount. This is only a negotiating tactic.Make notes on what he tells you, then write a letter to the adjuster and the insurance company. When the reply comes, the insurance company should be more agreeable to a larger amount.
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Get settlement amount in writing. Once you have agreed on the amount, make it official. If you get it in writing, the company will not able to go back on its word.
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Tips & Warnings
Professional legal assistance can be expensive, but talking to a lawyer is an excellent idea if your case involves the potential for a very large settlement. Many lawyers will work for a percentage of the settlement you win, so you won't have to pay any legal fees upfront.
When negotiating a settlement offer with your insurance company, do not tell the adjuster your desired compensation amount. You do not want her to know the dollar figure you will settle for early in the negotiation process.
