Insurance companies have a vested interest in keeping insurance settlement offer amounts as low as possible. You can negotiate with the insurance company for higher damage amounts, but sometimes all efforts will fail leaving you with a settlement offer that does not provide full and fair compensation. In some cases the insurance company may even deny the claim in full. If you do not agree with the insurance company’s decision concerning your insurance claim legal dispute of settlement may be necessary.
Filing a Lawsuit Can Lead to Out of Court Settlement
Settling a dispute with an insurance company can be difficult. Once a claim is denied or an amount is offered, it is an indication the company believes it can defend itself in a dispute. You can dispute the settlement proposal, but it often takes litigation to bring resolution. Your lawsuit may be filed against the insurance company of the person who caused the accident or against your own insurance company if it is responsible for settling the accident claim.
If an insurance company does not make a fair settlement offer, you should contact an attorney right away. The attorney will usually file a lawsuit in civil court if negotiations have already failed between you and the insurance company. The lawsuit will trigger new negotiations between your attorney and the insurance company’s legal representative. Sometimes claims disputing an amount can be settled out of court.
Arbitrated or Litigated
If the out of court negotiations do not produce results, it is also possible for your attorney to ask for arbitration. Both parties to the lawsuit must agree to accept the decision of the arbitrator. This is less expensive than going to court, and the arbitrator has the power to make a binding decision. This means arbitration will lead to a settlement that requires both parties to follow through with whatever is decided.
Finally, it may be necessary to go to court and prove your case in civil court.
Counter Claims
When you file a lawsuit, there is a good chance a counterclaim lawsuit will be filed if the insurance company believes it is in their best interests to do so. Called a compulsory counterclaim, it must apply to the original claim.
Consult an Attorney
When you believe an insurance settlement offer is not fair, you should consult an attorney to get assistance. Once an insurance company decides to deny a claim or offers an amount, it will be difficult for an individual to negotiate on their own behalf.
