Negotiating a Car Accident Settlement: How to Get More Than the Minimum Offer in Kentucky

You’ve been in a car accident; the insurance company has made you an offer, and your first impulse is to accept it quickly because you need the money. Don’t do it!  Chances are the offer is for far less than your case is worth.

Insurance companies are out for profit, and the less they pay out, the more money they make. As a result, they often try to deny or minimize payouts, and accident victims anxious for cash rush to accept their first offer. It is better to exercise patience and negotiate for more than that first, minimum offer. An experienced personal injury attorney can help determine whether an offer is fair and can often help you maximize your compensation so you get what you deserve.

Before You Negotiate: Crucial Preparation

Before negotiating with an insurance adjuster, you should be fully prepared and take steps to increase the chances of success.  Crucial things to do include:

Understand Kentucky’s No-Fault System. Under Kentucky law, all motorists must buy at least $25,000 per person, $50,000 per accident in bodily injury liability insurance, and $25,000 in property damage liability insurance. You must also have at least $10,0000 in personal injury protection coverage (PIP) for all motor vehicles except motorcycles. After an accident, you first turn to your own (PIP) coverage for medical expenses and lost wages, regardless of fault. However, if your injuries are severe or expenses exceed PIP limits, you may pursue additional compensation from an at-fault driver. According to the Kentucky Department of Insurance, the serious injury threshold can be met with $1,000 in necessary medical expenses, a broken bone, permanent disfigurement, permanent injury, or a victim’s death.

Know Your Insurance Policy Benefits. In addition to basic no-fault insurance, Kentucky also offers optional types of insurance, including increased limits for medical benefits, collision, comprehensive and uninsured/underinsured motorist insurance. Carefully review your insurance policy to understand your coverage, limits, and any relevant clauses that may affect your claim. You need to know what you are entitled to in order to negotiate effectively.

Gather Evidence. You will need evidence to support your claim and justify the amount you are asking for, including:

• Photographs and videos of the accident scene, damage to property, and injuries
• Police reports
• Medical and rehabilitation records and bills
• Statements from eyewitnesses
• Documentation of lost wages.

Calculate All Damages. Thoroughly assess all damages, including:

• Current and future medical and rehabilitation expenses
• Lost wages and diminished earning capacity in the future
• Property damage
• Physical and emotional pain and suffering.

The Car Accident Claim Negotiation Process

There are several steps in the claim negotiating process. In order to negotiate effectively, consider the following:

Send a Demand Letter. Once you know your insurance policy limits and have calculated your damages, you can use this information to craft a detailed demand letter outlining your claim, the injuries and damages you suffered, and the settlement amount you expect as a result. You should include evidence that establishes liability and demonstrates damages, injuries, inability to work and function, medical treatment received, and the costs you have sustained and will incur in the future. It is a good idea to have the help of a car accident lawyer when crafting this letter.

Don’t Accept the First Offer. Remember insurance companies know accident victims have immediate financial needs or lack of understanding about long-term impacts of their injuries, which can worsen and require more expensive care over time. They are likely to make low initial offers hoping you’ll accept quickly, but the first offer is almost never the best. Once you accept their offer, you cannot renegotiate should you develop long-term consequences and additional expenses.

Negotiate Strategically and Patiently. Insurance adjusters are accustomed to negotiating, so to go up against them, you need to be patient, persistent, and prepared. You should:

• Present a well-documented claim outlining all damages, current and expected in the futur
• Provide evidence that supports your claim
• Stay focused, be prepared for multiple rounds of negotiation, and counter lowball offers with facts and documentation
• Consider hiring an attorney to handle negotiations.

Utilize the Services of a Car Accident Attorney. Insurance companies are more likely to take negotiations seriously when you have an attorney on your side willing to take your case to court.  Your Kentucky car accident attorney can help by:

• Crafting a convincing and comprehensive demand letter
• Evaluating all damages to assess what your claim should be worth
• Investigating to gather and preserve crucial evidence
• Hiring experts in accident reconstruction to determine fault
• Handling communications and the negotiation process with insurance adjusters and their attorneys.

Common Mistakes to Avoid

The following are common mistakes that can prevent you from getting maximum compensation for a car accident:

Accepting an Offer Too Soon. Do not let insurance adjusters push you to accept a quick settlement before the full extent of injuries and damages is known. Remember that the first offer is almost never the best and may not account for future medical needs or ongoing effects of your injuries.

Posting on Social Media. Nothing you post on social media is private. Insurance adjusters may monitor your social media accounts to find evidence that you can do activities that contradict reported injuries.

Admitting Fault and Allowing Recorded Statements. Recorded statements may be used to undermine your claim, and adjusters know how to ask questions that trap you into responses that could imply fault or downplay injuries. Kentucky has a pure comparative fault rule that states that if you are found to be partially at fault for the accident, your settlement will be reduced by the percentage of fault you bear. This rule guides insurance adjusters when they are evaluating car accident claims and their overall value, and court settlements consider this as well.

Not Considering the Statute of Limitations. In Kentucky, there is a statute of limitations (KRS § 304.39-230), a deadline to file auto accident claims. In most cases, you are allowed no more than two years from the date of the collision to file a lawsuit. If you do not file in time, the courts are likely to refuse to hear your case.

Failing to Get Legal Representation. Insurance companies prefer dealing with unrepresented individuals who lack knowledge of the system and what a fair settlement would be. They are more likely to negotiate in good faith if you have an experienced car accident attorney on your side who is willing to take your case to court if necessary.

Get Legal Help Negotiating a Car Accident Settlement

If you or a loved one has been injured or someone has died in a car accident, having an attorney negotiating for you can help maximize the chances of getting the compensation you need to cover your costs.

Kentucky attorney Billy Johnson of the Johnson Law Firm has been helping injury victims and their families put their lives back together since 1998, and is ready to help you. Billy knows how to negotiate and deal with insurance companies, their pesky adjusters, and the lawyers who protect them from paying claims. Let Billy handle all negotiations and legal hurdles involved with winning full compensation, so you can focus on your recovery.

Call us today at 606-437-4488 for a free, no-obligation consultation.