How to Negotiate a Car Insurance Claim and Settlement

Negotiating a car insurance claim can be a stressful and traumatic experience that no one wants to deal with. When your vehicle is crumpled on the side of the road and you have sustained an injury or two, it is the last thing you want to think about. However, it is also one of the most important and overlooked steps in the process of making yourself whole. One of the biggest problems is that car owners typically want more than their vehicle is worth, and this leads to big fights and hurt feelings. With the proper steps you can prepare yourself for this process and ensure you get a fair settlement on your vehicle.

Step 1: Have the Right Mindset

Before beginning this process, get your head in the right place. The biggest problem you will face is the urge to be greedy and get every last penny for your car, or more than the vehicle is actually worth. Vehicles can be difficult to estimate in terms of actual cash value. Each insurance provider has their own process of arriving at this number based on the vehicle, the condition and the mileage. While you want the maximum amount of money possible, the insurance company is only legally obligated to make you “whole”. Making a driver whole is to pay for the actual value of the vehicle, in it’s current, pre-accident condition, and nothing more.

Step 2: Research Similar Vehicles

With your head in the proper place you should spend some time doing some research. Using blue book values and websites, such as Kelley Blue Book (www.kbb.com), you can input the numbers to get a good idea of how much value your car had prior to the accident. You can also search vehicles for sale in your city with similar statistics. Make a list of all of these vehicles for sale and print out copies of the blue book value so you have some raw statistical data on hand.

Step 3: Gather any Additional Information

Next you should gather any receipts or auto repair documentation, particularly in regards to aftermarket upgrades. You can use these to prove you have added to your car over the years and increased its value. Without them, items such as new rims, stereos, speakers or other additions may be lost.

Step 4: Negotiate

Now you are ready to talk to your insurance company about the settlement. You are under no obligation to accept a claim, especially if you think it is unfair. Listen to their offers and keep a cool head. Be prepared to offer counterpoints and come ready with your data on what a similar vehicle will cost you. This can be a nerve-wracking process, and the insurance company will put a lot of pressure on you to accept your offer. In fact, they may withdraw rental car coverage after their “final” offer in order to pressure you to accept. Remember that this is a negotiation and while you shouldn’t be greedy, you also shouldn’t get the short end of the stick. If the insurance company is offering you a fair settlement, and you can replace your car with a similar one without cost to you, then you are probably getting a fair deal. If you choose not to accept the offer, you can attempt to file a court case (if you think you have been wronged). However, if they are close to the blue book value and you can replace your vehicle for what they are offering, you will most likely lose your case. Once you settle you will be paid for your loss and you can get a new vehicle.