Looking for advice in negotiation with insurance

What is the name of your state? California
Got rear-ended while ago and my wife got injured.
After I fixed my car, we submitted the claim to insurance for the amount of $4725 for medical bills and pain and suffering.
Insurance came back to me on Friday with an offer of $2400. We had asked for $4725. I know insurance does not cover the car depreciation but I am trying to collect as much as I can to cover that depreciation. the last time I showed my car, accident showed up in a car fax report and sales guy told me that my car value has dropped for an amount of $1500 because that.
They are offering $1000 more than what our bills cost (they cost $1300). Do you know what this extra $1000 is based on from their view point? I think if I knew what this $1000 was based on, I could negotiate to get more .
Any tip for negotioantion?

Thanks
Paymon

Hi paymon this is eaglescout i am not a lawyer ok? but my wife also was 'rear ended' in an auto accident, and perhaps what we went thru, years of negoation thru Insurance, and thru lawyer, might be of some help. First, it sounds like the accident was NOT her fault? Also your state California does not have a 'no fault' policy but ours KY did so things were different on medical payments from the get go.. But if I am wrong and Claifornia now has no fault, things would be similar to ours and PIP would get invloved in Medical payments.

Anyway all they (insurance) want to pay you is the blue book value (averages and then less) if the car were even totaled.. and you can go on line to kelly blue book and get an estimate of what your car is worth.. go to [url]http://www.kbb.com/[/url]

That will give you a starting value on the car. Doing the math, what I see is $4725 your figure on car + medical+ pain and suffering less - $1,300 (you medical?) or to fix the car =$ 3,425. So the car probably was not in the 'totaled' consideration, just fixing. Did you get estimates of this amount before? Do you have receipts? Are you dealing with the other guy's insurance? Is yours involved at all? Did you report it to your insurance company?


If there is documented of any medical treatments, payments ($1,300 is not a lot of medical payments in a rear end collision in my opinionm one MRI would cost $1,700 FYI) anway it might be best that you give them a counter offer of 80 % of your figure and then say if they don't pay the figure you will see a lawyer. But be prepared to do that if you say that. In fact, you probably can contact several 'lawyers' free in your area to see if they are willing to take it on a contingincy basis...they will take appox 1/3 of the settlement, but will increase settlement for sure and insurance guys will get serious, you have a winner and the lawyers know it, it's a no brainer for a lawyer, he calls, writes a few letters. But it could take around one year minimum to get things resolved if you go through a lawyer. However chances are it would be settled quickly for these amounts involved. Since some injury might be present.

Insurance guys know how to play the game. Tell them you want a fair value for the car repair (know what the value of the car is now) have receipts for fixing, as depreciation is not an issue on fixing the car only on totaled cars. And any medical receipts..Then the 'suggestion' of getting a lawyer involved might make them increase offer. Give them a say 'two (2) weeks to reconsider and to get back to you with their final answer. In that two (2) week period YOU call several lawyers who specialize on auto accidents in this 'range' (it's small stuff/small range) and just talk verbal iems over the phone, don't make any commitments. You may find one or two that will say YES, I will take it on the contingincy. But stall until you hear your final offer from insurance guy, then make your decission. Chances are they would come up with better offer, but not to the 80% value. But after that, if you say you don't take the offer you should then get that lawyer involved, when you do that and your lawyer talks to them from that time on..not you and you never talk to the insurance guy until it is over.

One final comment, next time you talk to insurance guy don't even mention 'pain and suffering' that is a very hard to figure into situation and would involve future medical exams. If she is hurt, back, neck, knee, the lawyer should know and go from there..however the time issue on seeing/documenting injury can hurt you. Also I 'hope' no other accident related issues were involved? No seat belts? Stopping where she shouldn't have etc? In othter words I hope its clearly 100% the other guys faul...or your in a different ball game

good luck

Thanks for the great response eaglescout.
Couple points. I was driver and my wife was sitting in passenger sit when it happened. It was totally other driver's fault.(I have a police report)
It heppened that we both have the same insurance.
Insurance paid for my car repaired seperately.($3200)
Then they contacted my wife directly and asked for medical bills. She sent all of them to the insurance($1300) and she attached the claim for amount of $4725(Suggestion from a frind), In the letter we did not talk about pain and suffering, basically we just mentioned that we went to too much hassle and we are asking for this amount.
Now they are getting back to us with different amount. My concern is trying to get as much as I can in order to cover my car depreciation. I did my homework and figured out that insurance does not pay for Car depreciation directly. My car is fine but if I decide to sell it today or trade it I will get less amount compare to the time prior to accident.(I have not figured out how much exactly but my best guess is something between $1500 to $2000). My car value used to be 13K. (Brand new Nissan truck)
I don't know why they came up with $2300 offer and how I can increase it. Your suggestion is though out another number(80% of first clame). Any other tips?

I really appreciate it.
P

Just adding my two cents. I worked with attorneys who represented injured parties, so maybe this may help a little

The formula my attorneys used to negotiate settlements was 3 times the amount of one's medical bills. That amount would include loss of work, pain and suffering, and time away from work to see the doctor. If a case settled before trial, my attorneys would charge a lesser amount than a third of the settlement. Usually about 20 or 25%, depending on how much discover they had completed.

I'm in New Mexico and am not familiar with California attorneys, but maybe this will give you something to go on.

As to the vehicle, did you say that it was totalled? Here, the insurance companies request 3 estimates and usually will pay the middle estimate. And that is all they will pay. Nothing for depreciation.

Hope your wife is doing ok and good luck!

lawcreeping through the halls of justice**************

ah.. a clear picture..

Another question: how long ago was the accident? your car settlement and your injury settlement are different. you have settled on the car. now its the injury thing only. It does get tricky when both cars have the same insurance company, like how do you 'sue' your own company (which your not going to do for this amount and they know it) and what affect would/could that have you on keeping insurance with them? The depreciation of the car, in my opinion, can't be helped. if your car is 'fixed' and runs and was not totaled (which gets on car records like carfax) then just keep it until you sell it and an accident is not an issue. depending on the guy/girl who purchases the car in the future, they might not even get the car examined priror to selling (which I do all the time, have found some interesting 'things' under the hood/car...like BENT FRAME. but that's the old 'buyer beware.)

So, it wouldn't hurt to (1) go back to them again, and repeat that the offer is not good enought, that you want 80% x _______(you put in amount) and that you don't feel your wifes injuries are being taken care of. (2) make a call only to a lawyer to feel him/her out on what they could do would do. (3) see if they come back with a better offer. (4) make your decission (5) try to let them know you want to keep things fair..but you don't see it as fair now. best thing is a counter offer and perhaps it might be forth coming.

Regarding my wife, she required and will requires weekly treatments for a damaged nerve in her knee that hit a gear shift. it was just below 'surgery' (can't do that on nerve damage) but 'above' doing nothing about it. The negoations/final settlement from our lawyer included future acupunture treatments--the only thing that helpes her out. Has your wife seen a doctor? Say to the insurance guys that you want something for future doctor treatments, like you want her to go 'in and get it rechecked' that might ratch it up a notch' on the counter offer.

good luck,

My car is fine but if it does not have the same value as before(Prior to accident). The accident shows up in Car Fax report.
If I decide to sell it today or trade it I will get less amount compare to the time prior to accident.
Again, My car is not totalled, it has been repaired and it functions.

Thanks for your advice
P