How to Negotiate with an Auto Insurance Adjuster

June 12, 2013

When an auto insurance adjuster pushes back on a claim, you don't have to accept a reduced offer as final--once you've learned how to negotiate.

No matter what the circumstance, it is wise to know how to negotiate with an auto insurance adjuster. In the unfortunate event that you or someone in your family is in a car accident, you will be forced to deal with either your insurance company or the insurance company of the party that caused damage to you and/or your property.

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What do car insurance adjusters do? 
An insurance adjuster is someone that your insurance company employs to assess the condition of your automobile after an accident. The adjuster will analyze the extent of the damage and work up a report which he or she will submit to your insurance company. This report is an estimate of the amount of money it will cost to fix the vehicle, based on his/her knowledge of parts and labor required for the vehicle in each claim. Put more bluntly, an adjuster has the task of giving you the absolute bare minimum on your car insurance claim. Generally, when negotiating with a car insurance adjuster, they will try to minimize your injuries (whether they are to your vehicle or body). They are trained to downplay your issues, so don't take this personally, as it is the adjuster's job. At first, it might appear that they are not going to back down. If the adjuster concludes that the cost of repair is greater than the value of the car, the report will suggest that the automobile be "written off" and the insurance company can decide to pay the claim in full and send you a check for the blue book worth of the vehicle. However, if the adjuster feels the car can be repaired for a price less than the vehicle's value, then the report will reflect those estimates and the insurance company can cut you a check for the amount of the total damage repair cost.

Negotiating with a car insurance adjuster

Depending on who was at fault for the accident, you will either have to deal with a claims adjuster from your insurance company or the other driver's insurance company. Either way, it can be a nerve-racking phone call. The claims adjuster represents the insurance company, and the insurance company wants to pay out as little money as possible. If you have been injured and/or your car is damaged, you want to get the amount of compensation you feel you are entitled to. In a nutshell, you and the claims adjuster have conflicting interests. Here are some tips for having a successful experience dealing with an insurance claims adjuster.

• Don't let them rush you. Auto insurance adjusters want to get you to agree to a settlement as soon as possible. Why? Because this is their best chance to get you to agree to a low sum. If you are in a situation where you need money right away, you are more likely to agree to a low sum. However, medical bills and repair bills can add up and the final amount you owe may be much higher than your original estimation. It is best to try to get the claims adjuster to wait until you have all of your final bills in.
• Be prepared. Before you talk to your insurance claims adjuster, it is wise to have all of your paperwork in order. You will need proof of loss. Look up the blue book value of your car so you know what your car is worth. Have all of your medical bills in front of you. Also, have all of your auto repair bills in front of you. Make sure you know the total sum of all of the money you will have to pay out before you begin to negotiate with your claims adjuster. Also, have your accident report and appraisal clause with you.
• Consider a lawyer. If you are in a position to do so, it is wise to hire an attorney to represent you. Make sure it is an attorney with experience dealing with car insurance claims. Your insurance claims adjuster deals with car accidents and insurance reports every day. If you are lucky, you will only have to deal with this a few times in your lifetime. Hiring an attorney means you have someone in your corner who knows what they are doing and knows how to deal with claims adjusters. It also sends a message to your claims adjuster that you are well prepared and determined to get a good settlement.
• Always ask for more than what you want. While your injuries or car damage may be nominal, if you do not negotiate well, you might not get everything that you deserve. Do not be intimidated. Negotiating for what you rightly deserve is your responsibility. Remember that your bodily injury may be a problem you for years to come.
• Do not spend the money before you receive it. Car insurance adjusters can sense it if you are hungry. Let him or her know that you mean business and that you will wait for the correct amount of the claim. If you know how to negotiate with car insurance adjusters, you will have a better chance of ending up with the deserved amount.
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Insurance claims adjusters can be intimidating, but if you follow these steps you may have an easier time dealing with them.

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• Ask to speak to the insurance adjuster's supervisor. Be polite but firm, explaining that you sense a stalemate in negotiation and perhaps a fresh pair of eyes on your auto insurance claim may help to resolve this for both parties. Be prepared for push back. However, if a supervisor is requested, the claim adjuster must comply. Move through the process with the supervisor, explaining that it is in both interests to get the claim resolved.
• Write the State Department of Insurance. Call or write the department of insurance for your state, especially if you find unjust delays in the negotiation process (weeks between offers). This could be deemed bad faith on the part of the insurance company. Copy any documentation you may have and outline your demand in writing and your reason for the complaint (delay in settlement, unjust or low balling offer, etc.)
• Consider talking with or hiring an attorney. Speaking with an experienced car accident attorney will let you know if your claim's value is in line and if you are on the right track. A car accident attorney can also negotiate all aspects of your claim and may help win you a larger overall settlement. If you engage an attorney, you must cease all communication with the insurance adjuster and refer him or her or any other communication to the attorney.

If you find that you are not moving towards the insurance settlement you need, consider contacting an attorney. A car accident attorney will step into your insurance claim and work with the insurance adjuster to achieve a fair insurance settlement.

How to Avoid a Rejected Claim

The first line of defense against a rejected insurance claim is to document every dollar spent or lost as a result of your accident. Medical bills, prescription receipts, mileage to and from the doctor, old paystubs that can verify your pay rate, car payment records, and repair estimates, will serve as proof of your damages. Insurance adjusters will never, ever, just “take your word for it.” If the adjuster disputes your claim, provide him with the basis for your number. It is entirely possible that the adjuster’s file is incomplete or contains errors. Often, submission of supporting documents accompanied with a detailed letter outlining why the documents support the claim can be enough to get the adjuster to raise their settlement number.

how to deal with auto insurrance After you file your car insurance claim, you will need to work with an insurance adjuster who researches your accident, studies your policy, and decides how much money you are entitled to. The best way to approach the car insurance adjuster is to be respectful and well prepared. Although the adjuster works for the insurance company that makes money by paying you less, most car insurance adjusters will deal with you fairly, especially if you are respectful, knowledgeable, and prepared to prove the value of your accident claim.

Remember: A car insurance adjuster's main concern is to justify the insurance settlement for the file. Therefore, providing them with the correct documentation to prove your settlement will not only make your car insurance claim go more smoothly, it will also help you get the settlement that you want. 

Negotiating Your Accident Claim with Insurance Adjusters

Negotiating your car insurance claim with an insurance adjuster can be a little intimidating at first. However, knowing your claim value and having all the necessary documentation will give you the tools you need to navigate the negotiation with confidence. Be polite but cautious when dealing with a car insurance adjuster, and always remember that they will ultimately serve the company's interests over yours. A few simple tips to keep in mind as you speak with an adjuster:

• Start your conversation by outlining the overall circumstances that created your auto insurance claim, highlighting the points that support your value of the claim (other driver's negligence, you following rules of the road, what the police report says, etc). Remember, you're not telling the insurance adjuster anything that they probably don't already know, however, you are letting them know that you're an informed claimant and that you understand the value of your auto insurance claim.
• Advise the insurance adjuster of the total of your special damages and the amount you're demanding for the settlement of your accident claim. At this point, don't be surprise if the insurance adjuster breaks off the conversation by saying that they will consider your demand and get back to you. This is to break your momentum. Not contacting you for two or more days may be a tactic to slow you down and to make you think that you have to settle for less. Remember, a well-documented auto insurance claim has merit and when fault is not in question, it is in the best interests of the insurance company to settle. 
• Do not lower your claim value or offer until the insurance company has made a counter offer. If they request documentation to substantiate your accident claim, such as photos or medical records, send the information that you feel will best help your auto insurance claim.
• Keep in mind that showing good faith during negotiations will move your auto insurance claim to settlement. Set the minimum you are willing to take. Understand that the insurance adjuster will start low to save the insurance company as much money as possible. Do not be offended or react emotionally to the process. Stay calm and professional throughout the negotiation process.

Reduce your auto insurance claim's settlement demand gradually and the adjuster will likely come up on his offer. If you find yourself within an acceptable range, consider settling for a mutually agreed upon amount. They will send you a check with a release form to sign. Once signed, that is it! Never sell yourself short by signing a settlement agreement that leaves you stuck with any outstanding medical bills. Make sure the settlement is an amount that covers your bills and adequately compensates you.

Remember:  Being unpleasant with the adjuster will not do you any good. If they are being difficult, take the high road and ask to speak to a supervisor or a different claims adjuster

Type of cars insurance

Types of Car Insurance

The most common type of insurance that is legally required is liability insurance, which covers damages to the other party when you are at fault. However, there are numerous other types of coverage that can offer additional protection from the costs of injuries and property damage to you and your passengers. These include:

• Comprehensive coverage – Pays for property damage after an incident that is not accident-related.
• Collision coverage – Covers damage to your vehicle from a traffic collision.
• Uninsured/underinsured motorist bodily injury coverage – Helps pay your expenses when you've been hit by someone with no or insufficient insurance.
• Uninsured/underinsured motorist property damage coverage – Helps cover damages to your property if you've been hit by an uninsured or underinsured driver.
• Medical expense payments coverage – Helps you pay for your and your passengers' medical expenses, regardless of who was found at fault.

For more information on the various types of coverage available on the market, visit ourCoverages section.

How Insurance Companies Manage Risk

Like all insurance, car insurance rates are assessed based on risk. This means that the insurance provider:

• Calculates your likelihood of making a claim.
• Bases your premium on that level of risk.

Car insurance carriers have found that certain factors statistically affect your chances of getting into an accident, so they use those factors to determine your premiums. They include (but are not limited to):

• Your driving record.
  • Tickets, DUIs, accidents, etc. will make you riskier to insure.
• Your vehicle's make, model, and year.
• Your age, gender, and marital status.
• Your occupation.
• Your credit history.
  • NOTE: Not all states allow use of your credit history to determine your rates.
• Your claims history.
• How many miles you drive per month/year.

If you are a low-risk driver, you'll have an easier time finding cheap rates. If you are high-risk, you'll find that you you'll pay higher premiums, and you may even have a harder time finding an insurance provider to offer you coverage.*

It's important to remember that not all companies calculate risk the same way. Some companies may place more weight on certain factors and less on others, and it may be reversed in another company. Your best bet is to speak to multiple car insurance companies and/or compare car insurance rates online.

Discounts may also factor into your rates. Make sure when you shop around for car insurance to ask about discounts that may apply to you.

* Drivers who've been denied coverage can find it through their state's automobile insurance plan, albeit at a higher premium.

How Car Insurance Works

Car insurance is designed to protect drivers and their passengers from financial hardship after an accident or other vehicle-related incident. Auto insurance, or other proof of financial responsibility, is mandated in every state.

Insurance can be confusing, but it can help you to find the right coverage at the best price to understand more about how it works and why it's required.

Car Insurance Requirements

While the car insurance requirements vary by state, drivers must always prove they can pay damages in the event of an accident. This is called proving financial responsibility.

Some states allow drivers to prove their ability to pay damages by posting a bond or certificate; however, car insurance is typically the easiest way for drivers to fulfill the requirement.

To learn all about the types of car insurance coverage required in your state, visit ourInsurance Requirements section.

Benefits of Car Insurance

Before car insurance was widely adopted and mandated, car accident victims would usually get no form of compensation in an accident. In the event that a victim did sue the driver at fault, those drivers often faced huge costs that could be financially crippling.

Requiring car insurance helps states protect drivers from the enormous costs that can be associated with an accident. It ensures that both:

• The at-fault driver can cover the costs of the injuries or property damagesresulting from the accident without losing huge sums in a lawsuit.
• The victims of the accident can seek the medical care required, pay for funeral expenses, and/or fix their property in a timely manner without paying out of pocket.

Car insurance can give you the peace of mind knowing that you'll be financially covered after an accident.