A Guide to Negotiating with Insurance Companies in New Jersey

When you’re involved in a personal injury case, negotiating with insurance companies can feel like a daunting task. Insurance adjusters are trained to protect their company’s bottom line, often offering the lowest possible settlement. In New Jersey, where specific state laws and timelines govern personal injury cases, understanding how to negotiate effectively can make all the difference.

This guide walks you through the process, offering practical tips and highlighting when to bring in an attorney.

Understanding How Insurance Companies Operate

Insurance companies are profit-driven entities. Their goal is to pay out as little as possible, so they often start with lowball offers or attempt to shift blame onto you. Here’s what you need to know:

• Tactics Adjusters Use:
  Adjusters may pressure you to settle quickly, downplay your injuries, or even question the validity of your claim. They rely on your lack of familiarity with the process to protect their interests.
  
• New Jersey’s Comparative Negligence Rule:
  Under N.J.S.A. § 2A:15-5.1, New Jersey follows the comparative negligence rule. Your compensation can be reduced if you are found partially at fault. If you’re more than 50% at fault, you may be barred from recovering damages altogether.
  
• Statute of Limitations:
  In New Jersey, the statute of limitations for personal injury claims is two years from the accident date. If you don’t file within this timeframe, you lose your right to sue, which insurance companies may use to their advantage.

Preparing for Negotiations

Preparation is key to maximizing your settlement. Here’s how you can get ready:

1. Gather Evidence:
   Compile all relevant documents, including:
   • Police reports
   • Medical records and bills
   • Photos of the accident scene and your injuries
   • Witness statements
     
2. Understand Your Claim’s Value:
   Calculate both economic and non-economic damages. Economic damages cover measurable expenses like medical bills and lost wages. Non-economic damages include pain and suffering, which are harder to quantify.
   
3. Review New Jersey-Specific Policies:
   Familiarize yourself with state-specific policies like Personal Injury Protection (PIP) coverage, which is mandatory for all drivers in New Jersey and may cover some medical expenses regardless of fault.
   

Tips for Negotiating with Insurance Companies

When the time comes to negotiate, these strategies can help you stand your ground:

• Stay Calm and Professional:
  Emotions can run high after an injury, but keeping your composure will show the adjuster you’re serious and prepared.
  
• Know When to Push Back:
  Don’t accept the first offer. Insurance companies expect negotiations and often start low to test your resolve.
  
• Highlight Key Evidence:
  Reference specific pieces of evidence, like detailed medical records or expert opinions, to support your claim.
  
• Be Ready to Walk Away:
  If the adjuster refuses to offer a fair settlement, be prepared to involve an attorney or pursue legal action.
  
• Reference Notable Cases:
  For example, in Campione v. Soden, 150 N.J. 163 (1997), the New Jersey Supreme Court highlighted the importance of evidence in personal injury claims. Such cases demonstrate the weight that documented evidence carries during negotiations.

When to Involve an Attorney

While it’s possible to negotiate with insurance companies on your own, certain situations call for legal representation. Here’s when you should consider hiring an attorney:

1. Severe Injuries or Long-Term Impact:
   If your injuries require extensive medical treatment or result in a permanent disability, an attorney can ensure you receive compensation that reflects the full extent of your losses.
   
2. Disputed Liability:
   If the insurance company claims you were at fault, an attorney can gather evidence to challenge this assertion under New Jersey’s comparative negligence laws.
   
3. Unreasonable Settlement Offers:
   If negotiations stall or the adjuster refuses to offer a fair amount, an attorney can leverage legal avenues to push for a better outcome.
   
4. Statute of Limitations Concerns:
   If the two-year deadline is approaching, an attorney can file your case promptly to preserve your right to compensation.

Common Mistakes to Avoid During Negotiations

Negotiating with insurance companies can be a minefield, and even small missteps can negatively impact your claim. To protect your rights and maximize your settlement, steer clear of these common mistakes:

1. Accepting the First Offer:
   Insurance companies often make low initial offers, hoping claimants will accept without question. Always evaluate the offer against your documented damages and negotiate for a fair settlement.
   
2. Providing Too Much Information:
   While you must cooperate with the insurance company, avoid oversharing. Stick to the facts and never speculate about fault or the severity of your injuries. Anything you say can be used to minimize your claim.
   
3. Ignoring Medical Treatment:
   Skipping doctor’s appointments or failing to follow prescribed treatments can weaken your case. Insurance adjusters may argue that your injuries aren’t as severe as you claim if you don’t adhere to your treatment plan.
   
4. Delaying Your Claim:
   Time is of the essence in personal injury cases. Delays in filing your claim or providing requested documentation can signal to the insurance company that you’re not serious about pursuing compensation.
   
5. Going It Alone in Complex Cases:
   If your case involves severe injuries, disputed liability, or extensive damages, handling negotiations without legal expertise can be costly.

By avoiding these pitfalls and preparing thoroughly, you’ll be in a stronger position to negotiate effectively.

How Rosengard Law Group Can Help

At Rosengard Law Group, we understand how overwhelming and stressful negotiating with insurance companies can be, especially while recovering from an injury. Our experienced attorneys are here to guide you through the process, ensuring your rights are protected, and you receive the compensation you deserve.

We’ve successfully represented clients in cases involving:

• Personal injury claims stemming from vehicle accidents
• Disputed liability under New Jersey’s comparative negligence rule
• Denials of rightful compensation for medical bills, lost wages, pain and suffering

Don’t face the insurance companies alone. To schedule a free consultation, call (856) 284-6446 today.