How Insurance Adjusters Decide on a Settlement: A Comprehensive Guide

When it comes to personal injury claims, insurance adjusters are the ones who decide on the settlement amount. To do this, they use a damage formula to calculate the value of the claim, which takes into account medical expenses and other damages. The insurance company will then offer a percentage of this value as their initial settlement offer, usually around 40%. Insurance companies also have access to claims databases that allow them to see if a claimant has ever filed a personal injury claim in the past.

If so, they may adjust their settlement offer accordingly. Additionally, if the injury is particularly severe or long-lasting, they may multiply the number of special medical damages by up to five times. It is important to understand how insurance adjusters work before considering any settlement offers. An adjuster will not make an offer or respond to any requests without reviewing all of the necessary information related to the case.

They will also contact the claimant (or their lawyer) to request additional documentation. If you are negotiating with an insurance company, it is essential to remember that they exist to make money and are likely to offer economic settlements on personal injury claims. There is no industry-wide standard for this process and each case is unique. If you have been injured due to someone else's negligence, you can file a personal injury claim and get a settlement from their insurance company.

To do this, you or your lawyer must submit an organized demand letter and appropriate supporting documents to the insurance company. This will initiate the negotiation process, which may consist of just a few phone calls with an insurance claims adjuster. For more information on how to negotiate an insurance claim, including examples of letters to insurance companies, tips for managing negotiations, and strategies for dealing with an insurance company that refuses to make a fair offer, see How to Win a Personal Injury Claim by Joseph L. Additionally, learn more about how lawyers decide whether to accept a personal injury case and get tips for finding the right personal injury lawyer.

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