How to Deal with Auto Insurance Company Settlements

If you have been involved in an automobile accident or filed a claim on your auto insurance policy, then you know that you will need to settle with the insurance company in order to close the case.  Dealing with an auto insurance company regarding claim settlements is not difficult.  You just need to talk with the company and let them know what you expect.

1. Keep record of any costs that you have incurred during the claim process.  You should keep receipts and written quotes for damage.


2. Listen to the auto insurance company representative.  Let him or her explain the process and what the company will do for customers during a settlement.


3. Prepare an approximate settlement cost based on your expenses, damages and time involved in the claim.  You do not need to let the company know what you expect initially.


4. Wait for the company to make a settlement offer.  Usually the longer it takes, the more money you will be entitled to receive.


5. Ask for the settlement in writing.  This is to protect you as you begin the settlement process.  You don’t want someone to come back and say that you were never offered a specific amount.


6. Review the offer from the auto insurance company.  Be sure to look at all the details, even if it is not as much as you expected or it is more than you expected.


7. Respond to the insurance company with a request for an additional amount on your claim settlement.  Most insurance companies will make a low offer initially expecting the customer to make a counteroffer. 


8. Use caution when you submit your counteroffer.  You don’t want to aim too high; otherwise, the company may stop working with you and wait for you to hire an attorney.


9. Add 10 to 25 percent more than the settlement offer.  This is acceptable, depending on the amount of the claim and the inconveniences you incurred.


10. Agree upon a settlement and sign the paperwork.  Once you cash the settlement check, you can no longer request additional money from the company regarding this claim.  It may take a few times with offers and counteroffers.  Most insurance companies would rather settle with you directly then work with an attorney.