It is not uncommon to find ourselves on the receiving end of someone else’s carelessness and negligence. Although the other party may not be willing to take full responsibility of their actions, there will always be an obligation of compensate to the injured if negligence is proved. These differences between the victim and the accused party often leads to improper compensation, necessitating the services of a skilled personal injury attorney.
In this article, we will expound on the personal injury negotiation process. We will also shed light on what the attorney roles are in every stage of the negotiation process.
Prior to Settlement
Even when the injured person has a valid claim, it is advisable to have a thorough medical examination before proceeding to seek settlement. Involving a certified physician ensures that the proper treatment plan (including the costs) is clear. Most Michigan personal injury attorneys will insist on having as much information as possible concerning the victim’s current and future medical needs in order to ascertain the right amount of settlement.
Reservation of Rights Letter
A reservation of rights letter refers to a letter that the insurance company sends to the accident victim in regards to their claim. The main aim of the letter is to inform the victim that the claim investigations are already underway. At this stage, the insurance company makes it clear that it is reserving the right to not pay anything on the claim upon discovery that the said accident is not covered in the insurance policy.
However, no attorney will be intimidated by a reservation letter. If anything, this letter is viewed as just an insurance company’s way of protecting their interests.
Settlement Amount
Every experienced personal injury attorney will have a targeted settlement amount already set before contacting the insurance company. To ascertain the right settlement, it is paramount to consider future economic loss caused by the victim’s inability to earn income. Other factors to consider will be victim’s lost wages, medical expenses, lost consortium, property damages and more.
Once the attorney has quantified all the pertinent factors, the expected settlement becomes clearer.
Demand Letter
To kick off the settlement negotiation, the personal injury attorney will send a demand letter to the insurance company. The demand letter will provide all the details of the quoted settlement together with the cost justifications.
The demand letter may end with a statement indicating the willingness to got to go court if the victim does not get a satisfactory compensation.
Policy Limits
At this point of the negotiation process, the attorney will have to know the insurance policy’s limits and how it affects the requested settlement (considering that the insurance company will not settle anything beyond the policy limits).
An attorney’s intention is to get the entire amount provided by the policy, and will demand explanations when the insurance company denies this request. An experienced attorney will know how to use the insurance company’s reasoning to their benefits.
Strengths of a Claim
Since the attorney will be a position to know more about the case than the insurance adjuster, they should be able to negotiate for the highest compensation.
The strength of a claim is determined by impact of the accident on the victim’s life and extent of the other party’s negligence. How well the attorney articulates these matters to the insurance adjuster determines how easy the push for the right settlement will be.
Initial Conversation
At this stage, both the attorney and the insurance adjuster discuss their views on both the strengths and weaknesses of the proposed settlement value. Conflict in valuation is likely to arise at this stage considering the insurance adjustor’s main job is to pay as little as possible for every claim submitted.
However, at some point, these parties ought to agree on a settlement amount.
Writing
After the attorney and the insurance adjuster have reached an agreement on the settlement value, it is time to put it in writing.
The agreement will clearly indicate the specific amounts to be paid, including the causes. The agreement will also indicate the time these amounts will be paid.
Conclusion
It is important to note that there are hardly any guarantees when it comes to getting an insurance settlement. As such, one need to be extremely professional and respectful in the midst of the insurance adjuster’s actions.
