Car Insurance Claim Settlement: Learn How To Negotiate It?

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


Compare & Save upto 85%* on Car Insurance
Processing
Get Car Insurance starting
@ only 2094/year#
  • Renew Policy In2 Minutes

  • 20+ Insurers To Choose From

  • 51 Lakh+ vehicles insured

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

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.

Written By: PolicyBazaar - Updated: 14 July 2021

Find similar car insurance quotes by body type

Hatchback Sedan SUV MUV
Search
Disclaimer: Policybazaar does not endorse, rate or recommend any particular insurer or insurance product offered by an insurer.

Why buy from Policybazaar?

  • 24x7 Claims Assistance
    NEW
  • Cashless Assurance
  • 3-Day Repair Assurance
  • Free Pickup & Drop
  • Self Video Claims
  • Windshield Claims At Home
View Plans

Car insurance articles

Recent Articles
Popular Articles
Can I Buy Car Insurance Before Buying A Car?

28 Nov 2022

You usually don’t need car insurance while shopping for cars...
Read more
How Can I Buy New Car Insurance In India?

23 Nov 2022

With everything going online, buying new car insurance in India...
Read more
Difference Between Zero Dep and Comprehensive Car Insurance Policy

18 Nov 2022

If you are new to the motor insurance world, you must have...
Read more
How do I Renew Car Insurance After an Accident in India?

17 Nov 2022

A car insurance policy only protects your car till its expiry date...
Read more
Essential Parameters To Be Used To Compare Car Insurance

15 Nov 2022

Purchasing car insurance is just like buying any other essential...
Read more
Check Car Insurance Status Online on Parivahan Sewa/ RTO?
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
Multiple Ways To Check Your Car Insurance Status Online
With everything going digital, checking vehicle insurance status online has become easier than ever. It not only...
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
Transferring Car Insurance from One Person to Another
An integral part of selling a car, for both the buyer and the seller, is ensuring a successful car insurance...
Read more
How to Find Car Insurance Details by Registration Number?
As a car owner, it is mandatory to have a car insurance policy under the Motor Vehicles Act, 1988. Sometimes, you...
Read more