Recently, I went through an experience in which I had to decide between litigation or choosing a settlement. This was not an easy decision to make especially when the conversation process in my settlement negotiation heated up. Here are the tips and efficient and effective techniques I used to negotiate a settlement. The six settlement guidelines below will help attain a head start.
Think of an Amount for Your Settlement
When putting together your letter for settlements, you should think of a worth it payment. Prior to speaking to the person about your suggestion, you should first have a range of amount where you are only capable of paying. You should only keep this range to your mind and do not reveal it to the person so that when the both of you are deciding on the price for settlement, you have the range in your mind. Doing this will help you prevent unwise decisions. You will be able to know if it satisfies your demands.
But you should not just stick to your own demands. If the person makes reasonable claims, you should try adjusting it down. However, if the person’s claims make your claims stronger, you should adjust it up.
Initial Offers Aren’t always Reasonable
Normally, insurance adjusters begin the negotiation by offering extremely low amounts or may even deny liabilities. This allows them to know if you really know the value of your claims and also to know if you are impatient enough to just take any amount.
Your response on the first offer should depend on either the offer is reasonable or too low or if they are only testing you to know if you know the value of your claims. If it is a reasonable offer, you should then demand an amount just a little bit lower than the original demand on your mind.
This will make the adjuster know that you are being very reasonable making them compromise with your demands. Little adjustments may also be made until both of you agrees to it. You should not bother to go through all the facts again at this kind of negotiation. You just have to let them know your strongest claims, like for example, if the adjuster’s part is the one to be blamed.
Make the Adjuster State the Reasons for a Low Offer
If the first offer made by the adjuster is very low that he just wants to test if you really know the value of your claims. This is something I found out so you could immediately lower your original demand. What you should do is to ask the adjuster for the reasons for that very low amount. Jot down notes about the conversation. You should then write a response about each factor considered by the adjuster. You should adjust your amount depending on the strength of the adjuster’s arguments. Before you lower your demand, you should first try to see if the adjuster will budge to your previous claim.
You should ask for a response to your letter from the adjuster the next time you speak to each other. The adjuster will be able to demand a reasonable offer in which you ca bargain until you arrive at your agreed settlements.
State the Emotional Factors in Your Claims
For example, if you have sent a photo of an accident to the adjuster, you should refer to it. If there are alcoholic drinks found in the car of the accused, refer to it also. If there are similar cases of accidents on that particular location, refer to it again. If you are experiencing difficulties handling your normal life due too that accident, state it to the insurance adjuster. Although money can never compensate for these factors, the insurance company may settle for your demands.
Wait Until There is a Response
Until the adjuster makes a new offer, never lower down your demands more than once. It is not a wise bargaining to reduce your original demands without the intervention offer of the adjuster.
When the adjuster provides more reasons for a lower offer, understand each one of it. After reading those reasons, you are either given a reasonable offer or an unreasonable offer allowing you to pressure the insurance company.
Formally Write the Settlement
When you and the adjuster agree on a certain settlement, you should put it into writing. This letter can be short but sweet with the help of a personal injury lawyer.
