Negotiating a Settlement With State Farm

Negotiating a fair car accident claim with State Farm.

Thinking of negotiating with State Farm after an accident? Don’t do anything before reading this article and seeking a free legal opinion! If you've been injured, we may be able to do the negotiating for you for no out-of-pocket cost.

While their friendly ads on TV portray State Farm as a company dedicated to the welfare of injured individuals, make no mistake; State Farm is a for-profit insurance company which exists for the sole reason of making as much money as possible. After all, businesses exist to make a profit, and the insurance industry is no exception.

The reality about State Farm’s negotiation tactics.

When it comes to claims of property-damage only, the process is pretty straight-forward without much room for negotiation. On the other hand, if you have a bodily injury claim, the insurance company will do everything in their power to limit the value of your claim.

Unfortunately, State Farm is not going to offer an unrepresented claimant anything close to a fair settlement with regard to your injury claim. They are driven by the need to make as much profit as possible, and this is done by paying out less in claims than they collect in premiums.

Additionally, State Farm simply has no reason to offer you a fair settlement or negotiate in good faith.  There’s nothing in the law that says State Farm must pay you 100% of your damages, or even pay you at all following an automobile accident. State Farm will likely offer you a small settlement in order to close your claim, but without leverage, you have no negotiating power with them. You can threaten a lawsuit, but if you’re not represented by an attorney, they honestly don't care. State Farm handles countless claims and potential lawsuits on a daily basis. Can you say the same? If you have never beaten them before in court, they simply have no reason to fear you.

State Farm and the Three D’s.

State Farm is notorious for using the three D’s approach: deny, delay and defend. This enables them to have an upper hand, especially if you approach them without seeking legal counsel first. The reality of the matter is that you have no chance of getting the settlement you deserve if you decide to go up against the machine that is State Farm, pro se. By working with an experienced injury attorney, you’ll be able to develop a negotiation strategy that will go a long way in paying for the treatment of your injuries, chiropractic therapy, lost wages, psychological and emotional pain, and so much more.

Never counter a settlement offer!

Countering the insurance company's settlement offer is one of the worst things you could do, and is exactly what they want. Doing so will only hurt your case. Let's say, for example, that you were injured in a car accident and initially believe your case is worth $20,000. You demand $20K, State Farm offers you $3,000, and you then counter with $10,000. They’ll still say no, but you’ve now just admitted that you’d take $10,000 on a claim which may be worth much more.

Let’s say that after treatment, you’re left with $12,000 in hospital bills, $5,000 in chiropractic treatment, $8,000 in lost income, and permanent injury to a limb. In retrospect, a $10,000 settlement offer would now seem like an insult, so you decide to hire a lawyer. Your lawyer wants to send out a demand for $100,000, but unfortunately State Farm has you on tape saying that you’d settle for $10,000. The moral of the story: before trying to negotiate your own settlement, ask for a free consultation with a local personal injury attorney. The advice is free, and they exist solely for this exact type of situation.

A personal injury lawyer will not cost you anything out of pocket!

Contrary to popular belief, a personal injury lawyer does not actually cost you anything out of pocket. If you find an attorney who agrees to take your case, they'll do so on contingency. You never pay your attorney a dime as the attorney only gets paid a percentage of the award IF they are successful in securing a settlement or trial victory.

If nothing else, we recommend that you at least call a law firm simply to get their free expert legal opinion regarding the strength of your case, as well as the options available to you.