Common Insurance Negotiation Tactics

Your family depends on your financial support to enjoy a decent standard of living, which is the reason why insurance is especially important once you start a family of your own. It means the people who matter most to you in your life may be protected from financial hardship if the unexpected happens.

General insurance shields you and your assets from the financial risk of something going wrong. It can’t stop something from happening, but if something unexpected does happen that is covered by your policy. It means that you won’t have to pay the full cost of a loss.

Insurance is a contract, represented by a policy, in which an individual or entity receives financial protection or payment against losses from an insurance company. The company pools clients’ risks to make payments more affordable for the insured.

Why Negotiation is Important In Insurance?

Just as the famous John F. Kennedy quote goes, “Let us never negotiate out of fear. But let us never fear to negotiate.”

Negotiation is a very important aspect regarding business and other related establishments. Good negotiations contribute significantly to business success, as they: help you build better relationships. deliver lasting, quality solutions.

Through this article, you’ll be able to figure out the core importance of negotiation, and how it will help you develop a good relationship for your own betterment.

One of the most powerful strategies to negotiate is to convince the party towards you.

This can be executed by asking questions and building negotiation roots with the insurance company.

Here, you’ll get to know the methods by which Insurance companies will fall for you by these simple tactics which I am going to illustrate.

1.   Have a Settlement Amount In Your Mind.

It’s very important that you know what you are going to negotiate about and it’s also very essential that you have already decided the amount you are going to negotiate with the insurance company.

Before you come up with any amount, make sure you’ve already decided on a minimum amount which you will accept! This figure is for your own information, so you can keep a bottom line on which you will agree with the insurance adjuster. You may also hire a public adjuster to help you with this process.

The reason is when you are negotiating, it’s very likely for you to come under pressure, so when you’ve already settled yourself with a bottom line of the amount, the negotiation will become a piece of cake for you!

2.   Do not jump to an offer!

This part of the section is very important for you to understand. So, make sure you read it very carefully!

When your insurance adjuster offers you an amount. Always remember the first offer will be very low. In reality, the adjuster is actually checking whether you are aware of what you are claiming the insurance for.

So, do not put a lower amount in your demand letter. Instead, put a counter-question and ask why the amount is so low. Even if you think the amount is good for you, don’t instantly agree to it.

Why won’t you increase the amount of your insurance if you can?

After that, write a letter about all the factors that the adjuster mentioned. Before you jump into lowering your amount make sure you wait for the reply of the insurance adjuster.

Now, if the adjuster gives a reply about the amount, you may slightly decrease the amount. Through this tactic, you will now have a fair amount with which you can settle the claim!!!

3.   Attack With Emotional Points.

Sometimes emotional pain can be more painful than physical pain.

Always remember sentiments and emotions are not always chemical defects found in a losing side!

It can actually help you to win over a negotiation.

During negotiating, don’t hesitate to go all over the facts and terms again and again!

You just need to make sure that you are emphasizing your strongest emotional points and try to take over the negotiation towards your side. Trust me the tables will turn in your favor!!

Suppose you can emotionally attract the adjuster to your side by sending the photo of your smashed car and how badly you were injured. And if the injury compromised you from looking after your child (if you have any) then also mention that your child has suffered as well.

These emotional attachments and disastrous losses of yours will surely force the insurance company to come up with a fair settlement.

And you’ll surely take the Golden Goose With You!!!

4.   Make Sure to Plant The Settlement in Writing.

Put the final nail in the coffin by confirming the terms in a letter, after you have reached a final settlement with your adjuster.

This letter of yours can be short, sweet, and buttery. Then you mention the amount for which you have settled and also state what damages or injuries the settlement covers and don’t forget to mention the date by which you expect the amount to receive.

Through this, you’ll be able to get what you have wanted.

Hope this article will now help you to negotiate with the proper tactics and turn the tables towards you.








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