Negotiation

You could be entitled to compensation for your injuries if you have been injured in a car accident or some other type of accident. However, the insurance company will often disagree with just how much compensation you are owed. Negotiation is typically required to reach a settlement that is agreed upon by all the parties involved.

Negotiation may start before a lawsuit is filed, but it can sometimes continue all the way until a trial begins. Understanding how the negotiation process works and knowing the facts of your case can put you in a better position to get the outcome you desire. Here is everything you need to know about negotiations in a personal injury claim.

When Should I Start Negotiations With the Insurance Company?

When Should I Start Negotiations With the Insurance Company?

You may be ready to start negotiating immediately after your accident. You probably have medical bills piling up, and you might be missing work because of your injuries. Most victims want to get their compensation as soon as possible.

However, you never really want to start negotiating until you understand the full extent of your injuries and have reached maximum medical improvement. Only then will you be able to understand how your injuries may affect you in the long term. At that point, you can start to put a more accurate value on your case.

Starting to negotiate too early in the process is likely to cause you to undervalue your claim. Remember that if you reach a too low settlement, you cannot come back and ask for more money down the road. It is best to wait until you have all the facts and an accurate value for your case before you start negotiating.

How Do Negotiations in Personal Injury Cases Work?

The negotiation process usually starts with you or your attorney sending a demand letter to the insurance company. This demand letter includes a specific amount you are “demanding” to be paid to settle your claim. The demand letter is usually the starting point of negotiations in a personal injury case.

When deciding on the amount for the demand letter, you should consider many factors, including:

  • The amount of your medical bills
  • How much time you missed from work
  • How long you spent recovering from your injuries
  • Whether you will be able to return to work
  • How much pain you experienced
  • How your relationships with others were affected
  • How your quality of life has been affected
  • Whether you will require ongoing medical care
  • The amount of insurance coverage available

In cases involving catastrophic injuries or wrongful death, the amount of insurance coverage available may not cover all your damages. In that situation, you would typically demand the policy limits of the insurance coverage.

The demand letter is often met with a much lower settlement amount counteroffer. You may go back and forth with the insurance company several times, explaining the strengths of your position with the claim. The insurance company will likely raise its initial offer, while you may be willing to lower your initial demand.

If you are able to reach an agreement that you believe fairly compensates you for your injuries, a settlement agreement will be drafted. This agreement covers all the details of the settlement and will be signed by you and the insurance company. If you cannot reach an agreement, a lawsuit will be required.

What Should I Do if The Insurance Company Is Unwilling to Negotiate?

In some cases, the insurance company is unwilling to budge. They may believe their insured was not responsible for the accident or think your injuries are not as severe as you claim. Whatever the reason, you may have to file a lawsuit if you cannot reach a settlement through negotiation.

Once a lawsuit is filed, negotiations may still happen. The insurance company might take your claim more seriously and be willing to raise their initial offer. If not, you may have to take your lawsuit all the way to trial.

Negotiations are usually the preferred way to handle a personal injury claim because they are quicker and less expensive than litigation. Plus, negotiations are more predictable because both sides have a say in the final outcome.

If you have been hurt in an accident, you should seek the help of an experienced personal injury attorney. Your attorney can help put an accurate value on your claim and negotiate aggressively to get you the compensation you are owed. Injury victims who hire a lawyer are usually taken much more seriously by the insurance company, which typically leads to higher settlement amounts.

Talk to a Hamilton Personal Injury Lawyer About Negotiation in Your Case

Negotiating with insurance companies can be challenging, but having an experienced lawyer on your side can make all the difference At Findlay Personal Injury Lawyers, we skillfully handle negotiations to pursue the maximum compensation you deserve. Contact us now at (905) 522-9799 to learn more about how we can advocate for you.