General Auto Insurance And Insurance Settlements

General Auto Insurance

In a clear case of liability, Mr. T made a claim for $5,000. He had out-of-pocket losses of $700 (doctors, hospital bills, etc.) He had no permanent injury. Get general auto insurance quotes.

The insurance adjuster offered to settle for §1,000 and asked Mr. T how he arrived at his demand of $5,000. The answer was that there was a recent jury verdict for $10,000 and Mr. T thought his case was worth almost as much. The adjuster explained that the case in court involved severe permanent injuries while Mr. T had no permanent injury.

Then Mr. T reduced his demand to §4,000 while the insurance adjuster increased his offer to $1,200. The parties arrived at a stalemate and stayed there for two months.

The insurance adjuster was courteous but firm. Mr. T kept calling at the claims office. Whenever Mr. T called, the adjuster explained that the demand was “out of line.”

One day Mr. T called at the adjuster’s office and said, “Tell you what I’m going to do. We’re $2,800 apart. Will you split the difference?” The adjuster countered by asking, “How much does that mean you’ll take?” Mr. T said, “That would be $2,600.” Even though the adjuster had an authorization to pay $2,700, he said he would take Mr. T’s $2,600 offer up with the company.

In a week’s time, the adjuster reported to Mr. T that the company would pay $1,400. Mr. T was exasperated. He said, “Here I came down $1,400 and you only came up $200!” The adjuster replied, “True, but the decrease of $1,400 was only conversation- while the $200 increase was cash that could be put in the bank.” The settlement talk dragged on a few more months. Mr. T came down three hundred dollars and the company moved up to $1,500. Finally Mr. T said he was going on a vacation and wanted to close the case. He dropped to $2,000. The company split the difference and settled for $1,750. Find general auto insurance quotes.

Comment
Nothing wrong with good old-fashioned horse trading. Just human nature at work. The trouble was that Mr. T outmaneuvered himself by offering to split the difference between SI,200 and $4,000. From that point on, the insurance adjuster knew the course the settlement would take. He knew Mr. T did not like lawyers. Mr. T kept coming to the adjuster. The rest was easy.


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