Expert: Bennie719 - 7/14/2008

Question
After a recent Auto accident with personal injury, and time lost from work, I am about to meet with the insurance company to determine a settlement. The other driver was at fault, so his insurance will be paying the claim. I feel ready, and have done my homework. All medical bills are on the table my vehicle has been replaced, and personal injury issues are resolved. My question is what happens if we can not reach a settlement? I know that this is a bargaining process, but in the event we are unable to reach a mutual settlement what do I do?  Is there any "next step" or do I accept a settlement that I believe may be unfair?

Answer
Hi Spencer,
Settling a personal injury claim is an adverse position between yourself and the adjustor.  You desire to receive full value for your claim and the adjusters job is to settle for the lowest amount.

Your question states that you are well prepared but gives me no details from which I might draw a conclusion.  On this basis, I strongly urge you to have him make an offer before you present your demand.

Generally, an adjusters first offer is slightly less than 2/3 of your demand.  At that point, the negotiation process begins which can take a period of several weeks to several months.  At each negotiation meeting, you will need to lower your demand slightly as the adjuster increases his demand slightly.  Hopefully, through this method, you will be able to reach a settlement of about 85% of your demand.

If you are unable to reach a satisfactory settlement before the expiration of the statue of limitations, then you have no choice but to settle for the last offer presented to you or secure an attorney.

Any personal injury attorney will be willing to handle your claim on a contingency basis, but their fee is going to be a minimum of 33% of your settlement.

Good Luck,
Bennie