When negotiating a settlement claim, you could miss out if you don't know what to pay attention to. Settlement claims have many aspects such as getting a fitting amount or choosing the method of payout.
If you're wondering, "What should I know about settlements?", you're on the right tracks to making the most of your claim.
Check out this article to learn how to get a good settlement payout when making claims.
Know How Much Your Claim Is Worth
When you write your personal injury settlement demand letter, you'll have to give an estimate of what you believe your claim to be worth.
Before speaking to an insurance adjuster, make up a minimum settlement figure in your mind that you're willing to accept. Keep that figure to yourself or you'll reduce your chances of getting a better deal.
The First Offer Is Only the Beginning
When negotiating with insurance adjusters, they will usually start by offering you a very low amount. It's a tactic to determine if you know how much your claim is worth and are willing to fight for it.
Tailor your response depending on how fair the offer is. If it's too low, the adjuster is clearly just testing you. If it's relatively reasonable, you can counter with an offer that's slightly lower than your requested amount.
It shows that you can be reasoned with and are willing to find a middle ground that suits all parties.
On the other hand, if the offer is excessively low, you should ask the adjuster to justify the number they put forth. Write down their arguments and respond to them in writing.
If your arguments are strong, the adjuster should reevaluate their offer. It pays to pay attention for both parties during settlement claims.
Be Patient
Do not be too eager in your communication and reduce your demand more than once before you've had a new increased offer from the adjuster.
The exchange should be an equivalent back and forth. If you're doing all the heavy lifting by lowering your demand, the adjuster is getting the upper hand in the negotiation.
If the adjuster is still trying to justify a low offer, take the time to go over each reason given and counter it with your arguments.
Put Everything in Writing
Once you've finally agreed on a number, you should confirm it in a letter to the insurance adjuster.
Make sure to keep everything of note in writing. Verbal agreements can always be denied later on.
Structure the Payout
When learning all about settlements, the payout structure is a decisive factor.
You can opt for a lump-sum payout. It has the benefit of liquidity and lets you choose how to invest the money.
Alternatively, structured settlements offer other advantages. While you don't have the entire amount available to you, a structured settlement can allow you to meet your present and future needs.
For instance if you don't quite trust your money management skills, you could choose cash out annuity. Regular, long-term payments offer more security and flexibility for payout structure.
Get Great Settlement Claims
Making the most of settlement claims requires know-how. First, you have to have a good idea of how much your claim is worth.
Then, it's all about knowing how to negotiate for a higher payment. Don't accept a low-ball offer. Put forth your arguments and play up every strength of your case during settlement claims.
Once you have a good amount, get it in writing and choose how you want to get paid, as a lump sum or a structured settlement.
Check out our Legal and Finance articles for more tips on making the most of settlement claims. Don't settle for a mediocre payout, negotiate hard to increase your payment!
