Negotiating With an Insurance Company
How to succeed in negotiating your insurance claim.
Whether you have a personal injury claim, were in a car accident, or were on the receiving end of medical malpractice, after you submit a demand letter to an insurance company, it's time to negotiate.
If you have presented an insurance company with an organized demand letter and the proper supporting documents (see Write a Winning Demand Letter), your claim negotiation process will probably consist of nothing more than a few phone calls with an insurance claims adjuster. Following is a brief explanation of how negotiations usually work and some suggestions to help you succeed during the various stages of the process.
How the Negotiation Process Works
During the first call with the insurance adjuster, you and the adjuster will each make your points about the strengths and weaknesses of your claim. Then the adjuster will make an offer to settle your claim for an amount lower than what you requested in your demand letter. You will counter with a figure higher than the adjuster's offer but lower than your original figure. Typically, after two or three phone calls you will agree on a settlement figure somewhere in between.
| Reservation of Rights Letter |
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If you receive a "reservation of rights" letter from the insurance company, don't be alarmed or intimidated. This letter informs you that the company is investigating your claim, but that it is reserving its right not to pay you anything if it turns out that the accident is not covered under the policy. The letter simply protects the insurance company by preventing you from claiming that the company's insurance policy covers your accident just because it began settlement negotiations with you.
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