Car Insurance Claim Settlement: Learn How To Negotiate It?

Get Car Insurance starting at only ₹2,094/year #
Car Insurance

Negotiating for a fair settlement to receive the deserved payout is a critical step, if you have filed an insurance claim settlement for a car accident, a personal injury claim, or both. It is also imperative to know the terms, conditions, and declarations of your policy to assess and how car insurance settlements work, because a claim cannot be made unless the policy covers the damages.

Read more

  • Renew policy in 2 minutes*

  • 20+ Insurers to choose

  • 1.2Cr+ Vehicles Insured

Car Insurance

#TP price for less than 1000 CC cars. All savings are provided by insurers as per IRDAI approved insurance plan. Standard T&C apply.

Get Car Insurance starting at only ₹2,094/year #
Looking for Car Insurance?
    Other models
    Other variants
    Select your variant
    View all variants
      Full Name
      Mobile No.
      We don’t spam
      View Prices
      Please wait..
      By clicking on “View Prices”, you agree to our Privacy Policy & Terms of Use
      Get Updates on WhatsApp
      Select Make
      Select Model
      Fuel Type
      Select variant
      Registration year
      Registration month
      Save & update
      Please wait..
      Search with another car number?

      We have found best plans for you!! Our advisor will get in touch with you soon.

      This is not where it ends. Negotiating a car accident insurance settlement claim involves a lot more, and these tips can assist you in securing a favorable settlement by providing a better understanding of car insurance settlement process.

      Tips to Negotiate Car Insurance Settlement Claim

      1. Initiate the Car Insurance Claim As Soon As Possible

      After a car accident, the insurance company should be contacted immediately and a claim should be initiated at the earliest, so the smallest details can be recalled accurately, while any property damage and/or injuries can also be reported.

      2. Maintain Detailed Records

      Besides knowing what your car insurance claim is worth, it is also vital to maintain a file with all records of the car accident, arranged in chronological order. The file should have doctors’ visit records, medical bills, car repair bills, a police report if there is one, and all other relevant bills/receipts related to the accident. These documents are the cornerstone of the car insurance settlement process and help expedite the process.

      3. Work Out an Insurance Claim Settlement Amount

      While putting together the demand letter, you should be able to evaluate and decide on a minimum acceptable, fair insurance claim settlement amount within that range.

      It is good to keep your bottom line in mind while negotiating, however, it is also necessary to be slightly flexible about the figure that you have decided. If the claims adjuster indicates certain facts you skipped considering, but which could make your claim weaker, your decided figure may have to be lowered to some extent. Should the adjuster begin with an offer close to your minimum, you may want to consider revising your figure upward.

      Read More-: Top Car Insurance Companies in India

      4. Send a Detailed Demand Letter

      In the demand letter to your insurance company, justify the figure you have arrived at, supported by the following details:

      • Description of the car accident and the resultant injuries suffered.
      • Medical treatment received, and all related treatment/medicine costs.
      • Loss in regular income caused due to the accident/injuries.
      • Suffering endured after the accident.
      • Cost of vehicle repair/replacement and any other property damaged due to the accident.
      • If you require long term medical care.
      • If you are permanently disabled.

      To keep a buffer, you could ask between 25-100% higher than the amount you would be willing to settle for.

      The letter should be backed by all the necessary documentation and evidences. Remember, lack of evidences may dampen all your efforts.

      5. Highlight Your Strongest Points

      In the negotiations, emphasize the strongest points in your favor. For instance, that the other party was at fault, that you had a traumatic injury, the exact nature of the injuries you suffered, that your medical costs were very high, etc.

      You may also put forth the emotional perspective to support your claim. If you have a photograph of a serious-looking injury or the smashed car, refer to it. If your injury is such that you will need lifelong medical care, mention how this impacts your finances, work, and quality of life. Although a price cannot be put on the emotional factors, if they are put forth correctly, they could be powerful enough to get the insurance company to settle the claim fairly.

      6. The First Offer is Not the Last

      The first offer made by the insurance adjuster is sometimes too low – this could be a possible tactic to judge if you know what your claim is actually worth. It is better not to immediately lower your demand letter amount. Judge how reasonable or unreasonable the offer made to you is. If the offer is too low, you may ask for a justification, make notes, and follow it up with a letter responding to each factor mentioned by the adjuster. However, if the offer is reasonable, you could make a counter offer slightly lower than your demand letter amount. This shows that you are being reasonable. With a little more bargaining, you should be able to get a final settlement that both parties consider fair.

      7. Get the Settlement in Writing

      Make notes of all communication of insurance claim settlement with the company and insist that all settlement offers are in writing. The letter must have the final amount for which you have settled, the damages or injuries covered in the settlement, the approximate date by which you can expect the settlement documents from the insurance company, etc. Once a mutual agreement is reached, ensure that a signed and dated hard copy of the agreement with all the necessary details is in place.

      8. Know When to Seek Legal Advice

      In the event that you are unable to arrive at a fair settlement agreement after negotiations with the insurance company, you may need to hire a car accident lawyer. An experienced lawyer can help you correctly evaluate your situation, expedite negotiations, and write a final settlement letter to push the company to work more diligently on your claim. A lawyer is also the best judge of when to end the negotiations and file a lawsuit if need be.

      9. Rigorous Follow-Ups

      Claim adjusters handle hundreds of claims; hence it is not advisable to wait for your insurance claim settlement to come through. Stay in regular touch with your adjuster and keep following up – this will ensure that your file moves up to the top of the pile.

      Irrespective of whether you are hiring a lawyer or not, the above tips will assist you in negotiating a fair deal in case your car meets with an accident.

      Find similar car insurance quotes by body type

      Hatchback Sedan SUV MUV
      Save upto 85% on Car Insurance
      Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.
       Why buy from policybazaar

      Car insurance articles

      Recent Articles
      Popular Articles
      IDV in Car Insurance

      22 Feb 2024

      In layman's terms, the IDV full form is the Insured Declared Value
      Read more
      Must-Have Car Insurance Addons for Brand New Cars

      31 Jan 2024

      Investing in a full-coverage car insurance policy is essential for
      Read more
      No Claim Bonus (NCB) in Car Insurance

      29 Jan 2024

      No Claim Bonus (NCB) is a reward given by an insurer to a
      Read more
      How to Choose the Right Car Insurance for Your First Car?

      17 Jan 2024

      Buying their first car is no less than a milestone unlocked for
      Read more
      Things To Know Before Purchasing Sedan Car Insurance

      12 Dec 2023

      The type of four-wheeler you purchase also impacts its insurance
      Read more
      Check Vehicle or Car Insurance Status/Validity Online
      It doesn’t matter if you are an excellent driver or take your car out only once in a few months; your car must be
      Read more
      Getting Your Duplicate Car Insurance Policy is Easy-Here’s How!
      Losing your car insurance documents can be daunting. In such a state of affairs, the first thing that comes to your
      Read more
      Find Car Insurance Details By Registration Number
      Sometimes, you may face situations when you need car insurance or vehicle owner details but cannot readily access
      Read more
      How to Transfer Car Insurance Policy?
      An integral part of selling a car for both the buyer and the seller is ensuring a successful car insurance transfer
      Read more
      Comprehensive Insurance Vs Third Party Insurance
      Comprehensive car insurance offers protection to the insured car against third-party liabilities and own damages due
      Read more

      #Rs 2094/- per annum is the price for third-party motor insurance for private cars (non-commercial) of not more than 1000cc

      *Savings are based on the comparison between the highest and the lowest premium for own damage cover (excluding add-on covers) provided by different insurance companies for the same vehicle with the same IDV and same NCB. Actual time for transaction may vary subject to additional data requirements and operational processes.

      View Plans
      Download the Policybazaar app
      to manage all your insurance needs.