Many claimants accept the car insurance company’s first offer, without reviewing the details of the offer. They assume their auto insurer is offering a fair payout for their car in its current condition. Many times, insured parties don’t know what to expect. This is exactly what an insurance adjuster needs to get the upper hand.
An adjuster is trained to investigate every claim they accept. They are trained to ask questions, demand answers and make sure every detail of the claim is clarified and accounted for. An insurance company’s first offer is almost never fair. They have already factored in the repair cost of your vehicle, before they even know how much it will actually cost to fix your car. In addition, they have already paid a claims adjuster to investigate the claim, and that person has an interest in minimizing the payout they must make to you.
Insurance companies are in the business of making profits. They are under no obligation to pay you a single penny, for any reason. They only have an obligation to pay what the law requires them to pay. Therefore, it is in their best interest to offer you as little as possible. They will do everything within their power, to make sure you receive nothing whatsoever.
The difference between winning or losing a case is how well the claimant’s lawyer documents and clarifies everything. After all, it is the job of the adjuster to find any holes in the claim. Here are five tips on how to negotiate with car insurance adjusters about car total loss.
1. Know Your Value
It’s important to know what you are willing to pay for your car. It’s equally important to know what the insurance company is willing to pay you. Most of the time, one of you will be surprised by what the other is willing to pay. Don’t assume things. Ask. Be specific. Get a car valuation report done on your vehicle. This will give you a detailed description of the current condition of your car. Such evaluation should consider the following:
Your car has:
a. Condition – How many miles on it? How many miles are left? Is it a brand new car? Old car? A collector’s item? An accident-prone car? An extremely safe car? What kind of tires does it have? Are they original equipment, or do they need to be replaced? Does the car have an alarm system? Anti-theft devices? If so, what kind? Does the car have a GPS system? A built-in cell phone? Satellite radio? How many owners has it had? How many miles has it been driven by those owners?
b. Damage – How much does it cost to repair the car? Make a list of everything that needs to be repaired. Include things like brakes, belts, fluids, tires, electrical components, steering, exhaust, interior and exterior paint, glass and chrome. Also include any items that were not covered by your insurance policy. Things like carpet cleaning, furniture restoration and other non-auto items.
c. Year – What year is your car? Is it a classic car? Or a modern car? What model year? Is it a Chevy Cavalier, or a Cadillac Cimarron? A Honda Civic, or a Ford Taurus? Make sure you are clear and precise about the exact model and year of your vehicle.
d. Mileage – How many miles does it have on it? Is it less than 100,000 miles?
2. Understand how the car insurance company will use the information you provide
Most likely, the adjuster will ask you for the name of a licensed repair shop, that has made previous repairs to your car. Ask for the name of the person making the offer, instead. Ask for their business license number, and the date they were issued the license. If they don’t have a license, ask for their permit number, and the date they were issued the permit.
3. Keep detailed notes of every conversation you have with the adjuster
In addition to writing down the exact words each of you use, also write down the date and time of each conversation. Make sure you get the name and contact information (phone number, fax number, address) of the person with whom you are speaking. If possible, get the name and contact information of the person’s supervisor or the person’s “case manager”. This way, if necessary, you can escalate your complaint to a higher authority.
If possible, get the name and contact information (phone number, fax number, address) of the person making the offer, instead of the person authorized to make the offer. Don’t make the mistake of thinking all insurance companies are the same. They are not. Not all insurance companies are hard-nosed, profit-only organizations. Some of them actually have people who care.
4. Always be ready to explain or clarify any and everything about your claim
Be ready to explain or clarify any and everything about your claim. Don’t make the mistake of assuming the adjuster knows the answers, and is only making an offer in good faith. That is not true. They are out to get you. They are trained to investigate claims, and they will use any and all loopholes they find, to minimize the amount of money they must pay you.
5. Hire the Right Attorney
If Necessary – If all else fails, hire an attorney. Don’t let one little thing stop you from getting what you deserve. If all else fails, hire an attorney. You should never have to go this route, but sometimes it is necessary. If so, make sure your attorney is experienced in handling auto insurance cases. Ask around. Ask your friends and relatives if they know of anyone who has used an attorney recently, for a car claim, and if so, ask if that attorney did a good job for them. A bad attorney can cost you thousands, even tens of thousands of dollars. A good attorney, however, can get your entire claim paid in full, plus maybe an extra bonus for the good work he or she does on your behalf.