QuestionUsually there are two ways to start a negotiation for a settlement for an auto accident injury case. One can demand compensation first or the at-fault driver’s insurance makes an offer first. Do you think which way is better for the injured person to start the negotiation, demand compensation first or let the other car insurance make the offer first and why? Thank you for your answer.
AnswerIn the end, it probably does not matter too much as the claim rep is going to come up with a settlement range before making any offer or responding to your demand. He/she is not going to offer anything outside that range regardless who starts.
That being said, you might be able to set the tone and direction of the negotiation by starting first. You should roughly plan your offers in advance. Plan on making about 3 counters before you settle, with your movements getting smaller each time. This indicates you are getting closer to your final offer and the claim rep will recognize this. The claim rep's job is to try to settle the claim within his/her evaluation range but at the lowest end of it.
For example, if you think the claim is worth $5,000, you might start at $7,000, the go to $6,000, then $5,500, then $5,000. Wait for the claim rep to offer more before you lower your demand each time.
Make sure you have written your arguments in advance in brief, one line sentences that you can reference as you negotiate. Stay calm and professional and do not make it personal.
