After a motor vehicle accident, people may worry about both their healthcare and financial situation. Thankfully, many drivers carry sufficient motor vehicle liability coverage. Filing an insurance claim could be the preferable, if not the only viable, means to recover their losses. Minnesota victims might have questions about how the insurance negotiation process works.
Insurance settlements and negotiations
When a client purchases an insurance policy, the insurance provider covers that person’s risks. If the insured causes negligent damage covered under the procedure, the insurer may be obligated to settle claims resulting from the injury. However, the insurance company might attempt to reduce its losses by offering a low settlement amount.
Claimants would begin the process by submitting a demand letter to the insurance company. The demand letter lists the losses and provides evidence to support the claim. For example, individuals can submit cost estimates for the damage caused to their property and bills for medical care received.
The insurance company would then rely on an insurance claims adjuster to negotiate the settlement. The claims adjuster represents the insurance company, and the person might go back and forth with the claimant over the settlement amount.
Claimants should have a figure in mind about what they will be willing to accept. They could think about the lowest amount acceptable while having an idea about the most reasonable offer. The first offer from claims related to motor vehicle accidents could be lower than desired. However, the negotiations may continue until the parties agree.
Experience could play a helpful role when negotiating an insurance settlement. Accident victims who have never dealt with an adjuster or an insurance company for accident claims may wish to work with a representative.