Negotiating with an Insurance Company


After you submit a demand letter to an insurance company when you have a personal injury claim following a car accident, medical malpractice or another situation that left you injured, the next step is to negotiate with the insurance company.

In Las Vegas, Nevada and other part of the United States, negotiation usually consists of a few phone calls with an insurance claims adjuster. Here is what you can expect:

Initial phone call with insurance claims adjuster: During the first call with the adjuster, you and the adjuster will state both the strengths and weaknesses of your personal injury claim. The adjuster will make you an offer to settle. This is typically lower than what you request in your demand letter. You should counter that with an amount higher than the adjuster’s offer but lower than the number you originally requested.

In most cases, after two or three calls back and forth, you and the insurance claims adjuster will agree on a settlement that is somewhere in the middle.

Reservation of rights letter: This is a letter from the insurance company in which it states that it will be investigating your claim but is reserving the right not to pay you it the accident is found to not be covered under the policy. Don’t panic if you receive such a letter. Its purpose is to protect the insurance company and usually, it means settlement negotiations have begun.

There are a few more tips to help when you are negotiating with the insurance company. These are as follows:

Never accept a first offer: The first offer an insurance company makes is typically too low. Never jump at that offer because you will be shortchanging yourself.

Ask adjuster to justify low offer: Ask the adjuster for specific reasons why a low offer is acceptable. Take notes on what they tell you and then write a letter responding to the adjuster’s explanations. You can use this as further negotiations toward your settlement.

Have an amount in mind: Keep a specific settlement amount or range in mind. You can always adjust that amount when speaking with the adjuster.

These are a few of the most valuable tips on how to negotiate with an insurance company regarding your personal injury claim. Speak with your attorney for more information and to get everything you’re due.