During the car accident claims process, virtually all drivers will eventually be forced to settle claims with an insurance company, via an insurance claims adjustor. Of course, if a settlement figure cannot be reached or another driver was not insured, a driver can resort filing a lawsuit to recover damages, but more often than not, it is in both parties (liable insurance company and injured driver) to settle claims outside of the courts via an informal claims settlement. An integral tool, at least aspect of perspective, when it comes to negotiating and settling car accident claims with an insurance company is an understanding of the motives of a car insurance company. The following article briefly outlines some of the psychology, intention, or motives of insurance company claims adjustors in claims negotiation.
Insurance Companies Care about the Bottom Line
An insurance company is a for-profit business, but unlike most businesses, the company has already made the profits and now must retain them. By settling claims and mitigating liability for accidents and other events, an insurance company is often forced to payout a given settlement amount on behalf of their clients, or in car accidents, drivers using their insurance coverage. Therefore, for an insurance claims adjustor working for an insurance company, he or she is looking to payout as little as possible to resolve a claims case and ultimately, relieve their employer (the insurance company) of all liability. Seems somewhat ominous, but the sheer number of claims each year, the legal rights of injured drivers, and decades of handling claims cases have made negotiations process rather uniform and mundane, often working in the favor of individual drivers.
Insurance Companies Need to Settle Claims Efficiently
In short, the longer it takes an insurance company to settle a given accident claim, the more costs an insurance company incurs. Furthermore, the undetermined amount of liability in place until a car accident claim is settled is also unnerving for insurance companies. In short, an insurance claims adjustor seeks to settle claims quickly and for as little as possible. With thousands of claims to settle each day, the process has become one of initial offer, counter offer, re-counter, etc. until both parties reach agreement, typically with all this being done over the phone.
Insurance Companies Need to Settle Claims Not Lawsuits
Typically, an insurance claim following an accident is not a legal action per se, but rather, is an informal dispute settled outside of the court jurisdiction. This works in favor of both sides and is essentially the byproduct of efficiency. However, a driver always has the legal right to settle a claim inside the courts system, which will require filing a lawsuit and going through other applicable legal loopholes. This means both parties, especially the insurance company, can stand to lose a great deal of money simply to settle the claim, let alone pay it out. In short, an insurance company is often reasonable enough to recognize that unrealistic claims settlement offers can lead to lawsuits and bigger costs. By offering a reasonable settlement amount, most drivers will respond favorably, and in turn, most insurance companies do actually make reasonable, albeit negotiable, offers in car accident claims.
Getting Legal Help with Car Accident Claims
Having legal counsel during a car accident claim negotiation, especially claims involving injuries with costly medical damages expected to continue into the future, can be immensely beneficial. While insurance companies are willing to negotiate a reasonable settlement offer, a victim must give them reason to do so, often by extensively documenting a claim in a manner that would make it a viable legal case, if necessary. Having legal counsel handle these and other aspects of car accident cases is beneficial.
