Insurer Negotiation Methods Preliminary evaluation Trick

Adjusters will rely on several strategies to achieve the lowest settlement possible. A qualified Michigan motorcycle accident lawyer is absolutely essential in addressing their tactics and representing your interests.

Preliminary evaluation technique

The preliminary evaluation technique is not unlike the What will you take technique, but has a peculiar twist. Suppose, for example, that a Michigan motorcycle accident lawyer has assessed the case to be worth between $40,000 to $50,000. The defendants liability is indisputable and the central issue is value. The attorney tries to settle the case for as close to $50,000 as possible, and perhaps as high as $52,000 or $53,000 if lucky.

Bait and Switch

The attorney sends a demand letter requesting a settlement of $85,000. After months without response, the adjuster answers: I am conducting an initial evaluation of the case before I take it to the claims committee. But I cannot meet your figure of $85,000. My initial evaluation on this case is between $45,000 and $55,000. Is that acceptable?

The adjuster has seemingly agreed to the attorney settlement proposal, with a high point exceeding the attorneys own and a mid-point near to the top of the maximum amount. The attorney assumes that, even if the adjuster lowers the amount to a mid point of $50,000, the case is essentially settled near the A settlement. If the attorney can convince the adjuster to increase the amount to $55,000, she is $15,000 above the low point and $5,000 above the maximum. Thus, she responds with positive comments such as If you come back with $55,000, we will certainly take it.

Several days later the adjuster calls to make a firm offer. The adjuster tells the Michigan motorcycle accident lawyer that the preliminary evaluation was reduced by the committee or the claims supervisor to $35,000. The adjuster claims that he or she coaxed the claims committee to increase their evaluation to a firm $40,000 final offer.

The attorney is now struck with the low point of $40,000. The adjuster has gauged the attorneys positive response to the initial offer as an indication that she would be willing to take a lower range offer, and thus returned with a settlement that was lessened by 25% or more. The very best that she can do now is have the adjuster to move about $1,000 or $2,000, resulting in the case settling close to the lowest end of the range instead of the highest. The attorney is unlikely to go to trial over a difference of $3,000 to $5,000 and is forced her to settle for less than an A settlement.

The best way to counter this tactic is to inform the adjuster she will work with only to a firm offer acceptable to the client.

A capable Michigan motorcycle accident lawyer can deal with any adjusters tactics and try to obtain the maximum settlement you require. For a free initial consultation of your case, call Law Offices of Christopher Trainor & Associates at 1-800-961-8477.