Settling Auto Insurance Claims Without Lawyers

Posted on Dec 2nd 2009, 04:06 pm, under Auto Insurance 101

When you're involved in a car accident, you don't want it to be a financial headache. And the last thing you want to do is spend more money by getting lawyers involved. The average fee that a lawyer typically charges is around a third of your total claim amount. You'll end up with considerably less money than if you had successfully settled the claim on your own. Therefore, it is often in your interest to dispense with lawyers' services and settle your own auto insurance claims, especially when they are relatively small.

If you're thinking about settling your claim yourself, you should go through your insurance policy thoroughly. Focus on the necessary conditions section and familiarize yourself with the responsibilities of the insured party. If you don't uphold these duties (such as limiting losses), you may weaken your case later on.

Collect as documentation as possible on your accident. Take lots of photographs of injuries you may have sustained and of the scene itself. Keep your copy of the police report on the incident. If you weren't the one at fault in the accident, this latter document is especially important. 

After the accident, don't wait to visit a doctor. See one immediately and inform him or her of any injuries and pains the accident may have caused, no matter how trivial they seem. If you delay your medical checkup until after you file a claim, your insurance company will take this as a warning sign.

Furthermore, never miss any future appointments with your doctor. Follow all medical advice to the letter. Failure to do so will make your injury claim appear less serious to the insurance adjuster, and they could allege that you didn't do everything you could to take care of your health after the accident. (Wondering what an insurance adjuster does? See it here.)

When you are ready to file the claim, write a formal introductory letter addressed to the claims adjuster. Include all relevant photos and documentation, such as the medical report and police report. Here's a sample letter to help you get started.

So just how much should your claim be? There is no hard and fast rule for this, but a good rule of thumb is to base it on your total medical expenses, and then add all income lost due to inability to work multiplied by three. Then, it will depend on your evidence and negotiating skills from there. You may also let your insurance provider make an offer and then proceed from that amount.