Basics of Dealing with Insurance Companies
An accident leaves you injured, inconvenienced, and violated. What is next? To receive compensation, you probably must deal with the other party's insurance adjuster or your insurance company's adjuster. Either way, dealing with an insurance adjuster can be frustrating. A good attorney can help deal with the adjuster and relieve the frustration.
Negotiation
Your lawyer likely will begin the negotiation process by letting the people responsible know that you are injured and that you intend to file a claim for damages.
Your lawyer will examine the circumstances of your injury. You can help your attorney by providing copies of the:
- Police Report
- Traffic Tickets Given to the Other Person and You
- Accident Scene Photos
- Witness Contact Information
- Medical Records and Bills
- Photos of Your Injuries
- Pay Stubs
- Work Attendance Records
- Documentation Showing How Your Injury Has Affected Your Life
Your lawyer may delay negotiations with the insurance company until your injuries have stabilized enough to understand accurately the injuries permanent effects. This takes time, but do not pressure your lawyer into negotiating prematurely with the insurance company, as you may undervalue claim and find yourself paying for unforeseen expenses such as hidden medical problems.
After your attorney gets the necessary information about your injury and damages, your attorney will write a "demand letter" to the insurance company. The letter will explain:
- Reasons the Other Party is Responsible the Injuries and Damages
- The Extent of Your Injuries
- The Past, Current, and Future Effects of Your Injuries
- Past, Current, and Future Medical Treatment Requirements
- Lost Past, Current, and Future Income.
In the letter, your attorney will likely demand a specific amount of money to settle your claim. Your attorney will base the amount demanded on factors such as medical expenses, your age, your profession, your residence, the nature of the injuries, and intangible factors. Insurance companies move slow so do not expect a quick response to your attorney's demand letter.
The adjuster will likely offer to settle your claim for far less than the amount requested in your demand letter. Your attorney may choose to make a counteroffer of an amount between the adjuster's offer and the amount contained in the demand letter. If the offer counteroffer cycle breaks down, your attorney may choose to go forward with a trial.
Settlement
If your attorney and the insurance adjuster agree on a compensation amount, your attorney will write a confirmation letter to the adjuster. The confirmation letter will include the general terms and conditions of the settlement.
To receive your compensation, you will have to sign a document that releases the insurance company from any further liability. Your lawyer will help you read this release and answer your questions.
After you have signed the release, your attorney will deduct attorney fees and expenses from the compensation received from the insurance and deliver the remaining funds to you. Your attorney should provide you a detailed accounting of the expenses and fees deducted from your compensation.
Most insurance claims settle at the adjuster level. If your attorney and the insurance adjuster cannot settle your case, a trial may take place to get compensation for your injuries and damages. Civil trials require special skills so you should pay special attention to an attorney's credentials.
