What to Do Before Accepting a Car Insurance Settlement

If you are involved in an auto accident, your insurance will cover your expenses.  What you might not realize, however, is that most insurance agents have quite a lot of leeway in deciding how much money you will receive for your claim – and it’s their responsibility to settle for as little money as possible.  Before you accept a car insurance settlement, make sure that the amount that you are being offered is reasonable.

How to Get a Reasonable Car Insurance Settlement

The first step you should take is to determine the value of your car insurance settlement yourself.  Document your expenses and find out exactly how much the car repairs cost.  Check your policy carefully to find out whether extras like rental cars should be covered in your car insurance settlement.  Be proactive about this – you don’t have to wait until you receive an offer from your adjustor!

Whether you have written a demand letter or waited for an offer from your adjustor, you should then compare the amount of the offer with your estimation.  If it is a reasonable offer, your troubles are over.  If the proffered car insurance settlement seems too low, you can dispute it with the insurance adjustor.  However, his maximum settlement amount has probably been set by his superiors; at some point, he will no longer be able to negotiate with you.

If you are unable to resolve your car insurance settlement amount with your adjustor, you have a few options.  You can ask to speak to the adjustor’s immediate superiors, who might be able to authorize a higher settlement amount.  You could ask that the dispute be taken to mediation; or you could hire a lawyer who specializes in car insurance settlement claims to argue on your behalf.

If You Cannot Get a Fair Car Insurance Settlement

If your negotiations come to nothing and you are not able to convince your car insurance agent to cough up a reasonable settlement, you can complain to the Department of Insurance.  These agencies track complaints and problems with insurance agents and can help you resolve your issue.  If all else fails, you can take your car insurance settlement claim to court and have a judge review your case.

Note that this is not an exercise to try to get everything you can out of your car insurance settlement, but rather to get a fair and reasonable response to your claim.  To ensure that you don’t get stuck with an agency that refuses to make fair settlements, review the experiences that other customers have had before you settle on an agent.