8 Auto Accident Settlement Negotiation Tips

Insurance companies will often pressure you to settle quickly. Do not settle immediately. It is never in your best interest to settle quickly. Insurance providers will try to settle fast with you in an attempt to keep their costs low and profits high.

A qualified car accident lawyer is the best front-line defense and tool when negotiating with insurance companies. Without someone on your side, helping to guide you through the process, insurers will likely attempt to take advantage of your limited experience. We strongly suggest that you speak to a car accident attorney if you feel that your insurance company is not offering fair compensation. Most car accident lawyers, like us, offer free auto accident case reviews.

When you or a loved one have been involved in a car collision, the days afterward can be difficult. If anyone was critically injured, the complications can be infinitely more severe. It is imperative that you understand the basics of how to negotiate your auto accident settlement with the insurance company.

A car collision settlement will take into account all of your injuries, the pain and suffering you endured, and other losses like damage to your vehicle and unearned wages. Car wreck settlements compound all these points and more, creating a complicated situation.

Many insurance providers specifically shape the settlement process as a daunting challenge. It is possible to reach a fair settlement while preparing your argument yourself, but it is infinitely harder. This is where a motivated, experienced car accident lawyer can make all the difference.

Important To Remember!

If you have received a settlement offer from an insurance company, we highly recommend you to NOT take the initial settlement offer. Speaking with an experienced car collision lawyer is in your best interest. An attorney has the experience and training necessary to determine if you are receiving a fair settlement. Always consult with legal counsel when talking to the insurance companies. If you are currently going through a similar situation, contact the experienced car collision lawyers at the Law Offices of Larry B. Litt. Our team of legal experts are prepared to get you the justice and fair compensation that you deserve. We ask nothing upfront and offer free consultations to look over your case. We take no fee unless you win.

The following 8 tips below will set you on the right path towards negotiating a fair auto injury settlement with the insurance company after a car accident.

1. Initiate a Claim as Soon as Possible After an Auto Accident Collision

Following a car accident, your first move should be to contact your insurance company immediately. It is important to open a claim as soon as possible after a car collision. Communicating all details about your car crash accurately is priority number one when talking with your insurance provider. Remember, the sooner you contact, the more accurate your recollection regarding the collision will be.

If you are not able to immediately fill out a claim with your insurance carrier, try to write everything down. It is critical to note everything you remember about the accident.

2. Keep Accurate Records About the Accident

In conjunction with step one, you should keep a file of records about your car accident that is organized chronologically. This file should include a police accident report if one exists, records of doctors’ visits and all medical treatment, bills for vehicle repairs, photographs of the claimed damages, and anything else relevant to your auto collision.

Keeping physical and digital records of everything listed above is also heavily recommended. You will rely on these documents often during negotiations, and having them readily available can help expedite the settlement process.

3. Calculate a Fair Settlement

Before you send a demand letter for settlement to your insurance company, you must determine what you believe your claim is worth. When arriving at a figure, you should take into account all of the following:

  • The cost of your medical past, present and future expenses,
  • The amount of income you lost as a result of your injuries if you were unable to work,
  • Whether you are permanently disabled or will require long-term medical care,
  • Any pain and suffering you endured after the auto collision, and
  • The cost of repairing or replacing your vehicle and any other property that was damaged in the auto wreck.

Based on this information, decided on a minimum settlement figure that you would be willing to accept. If you can not determine a fair accident settlement, a top board-certified Baltimore lawyer may be able to help.

4. Send a Detailed Demand Letter to the Insurance Company

Once you calculate what you think your claim is worth, send a demand letter to the insurance company. Describe the car collision, your injuries, the medical treatment you received, any ongoing health issues you have, how badly your vehicle was damaged, and any other losses you incurred as a result of the auto accident. Then, tell the insurance company how much money you demand as a result of the circumstances. Because the insurance company will likely reply with an offer for an amount lower than what you had asked for in the demand letter, you should ask for between 25 and 100 percent more than what you would be willing to settle for.

This is where having an experienced legal expert in your corner can help during this critical step. A knowledgeable lawyer can help you draft a proper request and advise you going forward. Finding an attorney specifically experienced with car accidents can be extremely beneficial during this process.

It is important to remember that you must have evidence and documentation to back up everything in your demand letter. A lack of evidence can prevent you from getting the offer you deserve.

5. Do Not Accept the First Offer

There is one thing you must understand: The priority of the insurance company adjuster is to maximize profit, and they will therefore try to pay you as little as possible for your injury and property damage claim.

When the insurance adjuster makes an initial settlement offer, it will almost assuredly be too low. A first settlement offer that is unreasonably low might be a tactic by the insurance company to see if you know what your claim is really worth. This is when having a car accident attorney or an experienced legal expert can come in handy.

An experienced car accident attorney can sit down with you to review the initial settlement offer, helping you to understand your next step. Odds are, the offer will be low as previously mentioned. A lawyer can communicate on your behalf, helping to negotiate a better settlement. It also sends a message to the insurance adjuster that you are taking this situation seriously.

After the initial settlement offer is received and reviewed with your legal counsel, ask the insurance adjuster to justify his or her low offer and give you specific reasons why your claim is so low. Respond to each of the points he or she makes in a reply letter explaining why you can not accept the settlement offer. Do not propose a lower figure – wait to see if the insurance adjuster will increase their settlement offer.

If the first settlement offer is reasonable but still too low, you may want to counter with a somewhat lower amount than you had asked for in your demand letter. If you make a reasonable counter-demand, the insurance company will be more willing to compromise.

6. Emphasize the Points in Your Favor

Before this can be done, you will need to formulate a proper communication strategy with your legal expert. Your argument will need to be weighted in truth, so having evidence to support your points can be key if the insurance provider decides to be difficult.

When communicating with the insurance company, emphasize the strongest points in your favor. Do not waste time going over undisputed facts; focus on what is most important to you. If you suffered an injury that will require lifelong medical care, discuss how this will affect your quality of life and finances over time. If you missed a significant amount of work, reiterate the total amount of wages you lost and how missing work impacted your family. Make it clear to the insurance company that you must be compensated fairly for your injuries and other losses.

7. Get Everything in Writing

You or your accident lawyer should take detailed notes about all of your conversations with the insurance company. Ask that all settlement offers be presented to you in writing. If anything is discussed over the phone or in person, make sure a copy of the transcript is received by you and your legal counsel. If a transcript is not available. It is alright to ask for everything discussed during a meeting to be re-addressed in an email.

If you reach a settlement agreement, make sure that is it memorialized in a dated written contract that is signed by all parties to the agreement.

8. Know When To Hire an Attorney

If you fail to arrive at a fair settlement agreement after negotiating with an insurance company, you may need to hire a car accident attorney. An experienced accident lawyer can help you evaluate your situation and determine whether a lawsuit is necessary.


The Law Offices of Larry B. Litt are experienced car accident attorneys who represent injured clients who have been involved in car, motorcycle, Uber, and Lyft auto accidents in Baltimore and surrounding areas. For a free and confidential consultation about your case, contact us at 443-844-1528. We are available 24/7/365.