In Pennsylvania, and throughout the United States, insurance companies do business in the same way. Motorists are often not wise to the ways that these companies use to keep from paying the full value of auto insurance claims. Often, they take the first offer given to them. In reality, this is the last thing that they should be doing.
The insurance adjuster is often the company’s first line of defense. The insurance company knows the value of your vehicle and your claim. However, they are banking on the fact that the claimant does not. Thus, their offer is more often than not an attempt to lowball the claim. Some do not know that the amount that the insurance company says they will pay is the opening offer and that they have the ability to reject it and counteroffer.
When the amount comes in below the value of the claim, one should present a written demand letter to the insurance company with the amount that they expect to be paid and a statement of their position. They should still view this as part of the negotiation and keep a little bit of room to settle from their position. In other words, while the insurance company lowballs, a claimant should add to the value of their claim knowing that the insurance company will counteroffer with a lower number.
Most people can be forgiven for not knowing how insurance companies work because they do not deal with them every day. However, a car accidents attorney has experience in how these companies operate on a daily basis and could help a client navigate the tangles process of making an insurance claim. The attorney may assist their client in settlement negotiations and could inform their client how far below value the insurance company’s offer is.