How Do Personal Injury Lawyers Negotiate with Insurers?

Knowing how to negotiate with insurance companies is key after a car accident or other personal injury. Unfortunately, that can be tough. They may not have your best interests in mind, and it’s easy to accept a lowball settlement offer if you don’t have legal support. 

If you or someone you love has been hurt, it’s important to understand the process involved to compensate you for medical bills and lost wages. When it comes to gaining the most from your personal injury claim, having legal representation can make all the difference for victims. Reach out to The Kindley Firm, APC for guidance on your claim. 

Writing a Demand Letter

First, you and your lawyer need to know what damages you’ve suffered and what those damages are worth. Once you’ve settled on the amount of compensation you’re due, it’s time to put those figures in writing. 

In many cases, that number may be more than what the insurance company is offering. Your personal injury lawyer will draft a demand letter that clearly states your demands for compensation and what will happen if they don’t compensate you. The purpose of a demand letter is:

• To formally communicate in writing with the at-fault party to avoid filing a lawsuit
• To provide them with a notice about the compensation you think you should receive
• To begin negotiations outside of court with lawyers on both sides

Keep in mind that insurers often want to pay out as little as possible to victims and may act in bad faith, so demand letters may be rejected unfairly. Even so, ensuring you have all the right information can help you avoid settling for less. 

The Contents of the Demand Letter

There are certain things that are normally found in effective demand letters in an attempt to negotiate with the opposing side. Below is a sample of those elements:

• An overview of the facts of the incident
• A description that details each item that’s being claimed for your damages
• An explanation of why the amount being demanded falls within industry standards
• Case-related matters that affect the situation
• Total damages for the accident

A demand letter is usually the first attempt to negotiate with the insurance companies and their lawyers. Once you’ve sent the demand letter, you and your lawyer may then begin the mediation process. 

The Mediation Process

Mediation is a process in which a neutral third party helps both sides reach a settlement. Mediation is less formal than a trial, but the lawyers at our firm take mediation seriously and work as hard as we would for trial proceedings. 

Mediation can be helpful because it allows both sides to find a solution without going to court. Even if you decide to move forward with a lawsuit, mediation can help resolve some issues so that you’re able to focus on getting ready for trial.

If mediation fails, it’s usually due to a few common factors:

• The inability or refusal of one side to effectively negotiate
• One of the parties refuses to communicate at all
• The at-fault party makes things difficult for you out of fear of losing money or damaging their reputation

The goal of negotiations is to get you a fair settlement and avoid trial.  However, if you wind up facing a judge, our lawyers will take action and seek compensation for your damages. 

Filing a Personal Injury Lawsuit

If you decide to file a lawsuit, it doesn’t mean negotiations come to a halt, but it’s important to be patient at this stage. If you were seriously injured, the insurance companies may offer a settlement that seems as high as what they would pay if you went to court. 

Insurance companies don’t negotiate with people that they don’t believe have a good case against them. They may be making you an offer because they know they risk paying out a large sum if you go in front of a judge. In these cases, your lawyer may believe you’ll get a better result in court and move forward with your lawsuit.

Fortunately, your personal injury lawyer is ready to represent you during this difficult situation. Your lawyer has the tools you need to prove you’re due compensation from your insurance company. That takes the pressure off you as they navigate your claim and you focus on your health and recovery. 

Let Us Negotiate on Your Behalf

When you’re hurt in a serious accident, you need a lawyer who knows how insurance companies work. Seeking out an attorney from The Kindley Firm, APC gives you a better chance to get compensated when you’re hurt. 

Ready for a free consultation about your next steps when dealing with insurance companies? Reach out by calling 619-550-1313 or filling out the following online contact form.