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5 Things You Must Know To Negotiate An Auto Insurance Settlement

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5 Things You Must Know To Negotiate An Auto Insurance Settlement

Two years ago when snow squall hit a highway in Ontario, Canada I was one of the unfortunate people driving. Fifteen vehicles piled up. I was in the middle. A snow squall, by the way, is a snow storm which causes a whiteout, but lasts only few minutes. But in those few minutes I ended up on the wrong side of the auto insurance claim process. I will save the rest of the story for later and get straight to the point. I will assume you have comprehensive coverage, the accident is serious, the car is totaled but there is no injury.

1. Do not admit fault when you start a claim

Before you call the insurance company think about the events and present a clear story. But do NOT admit fault. If you admit fault and the other person does not, you are at 100% fault. The fault is something the insurer determines and we agree, disagree or negotiate because faults are not always clear. There are provincial/state fault determination rules which you and your insurer can use to determine fault.

Always remember to present your story in the best way possible and negotiate for less or no fault. If you don’t, no one will and you will be at fault! No one will tell you this: there is nothing like 50% fault from the premium payment point of view. A fault is a fault and your premiums will hit the roof if you do not negotiate properly. A basic rule of thumb is to save all your negotiations energy for claim settlement and then negotiate fault to the point of being totally absurd.

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2. Do not let the insurance adjuster call you

It is important to recover from the shock and take your time before you can negotiate. If you get a call from insurance adjuster, offer to call back at a time that is convenient to you. Give yourself about 2 hours to call back after you have done your research. Research is mostly about finding the right value to claim. Give yourself at least a week to recover before you call the adjuster. To achieve the best results, it is very important to be fully composed and relaxed when you negotiate. Finding a new, good value car takes at least 20 days. Start looking immediately.

3. Pick an adjuster that is sympathetic to your case

When you call the adjuster, remember you can pick an adjuster if you know how to do it. If the adjuster sounds unsympathetic/unreasonable/hostile, request to talk to another adjuster. Adjusters will refuse. You have to stick to your request and decline to discuss it further. You can tell the adjuster that they are being unreasonable or hostile so you can talk to another adjuster. This is very important. Without the right person all your negotiations will be futile.

4. Calculate the true value of your claim using this method

Always remember that the value of your claim is what it costs you to buy a vehicle similar to the one that was in the accident. Always remember that the value of your claim is what it costs you to buy a vehicle a) similar to the one that was in the accident, b) available in the current market near you. That is not something your insurance company can randomly come up with. You have to show your costs based on what you are able to find in the market. Left to them, they usually come up with much less than what is due to you (potentially leaving you with an option 20% lower than what you deserve).

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Search car sales websites for vehicles on sale within 15 or 20 kms from your city, focusing on finding the same model that has similar kilometers. You should leave the very low priced ones out and pick 3 or 4 higher priced vehicles and average them. Your adjuster may ask you to drop the high priced ones. But never let the adjuster not consider the market price.

Do this search and averaging before negotiating so you know what to expect. Your claim settlement will be an average value plus HST, plus some risk amount for the purpose of negotiation. Never ask the actual value you expect (that is the baseline you are willing to settle for); always ask about 5–10% more and back this up with the average price of vehicles for sale.

Remember to keep a bank fund ready that will allow you to efficiently buy a vehicle when you find it. Do NOT wait for claim money to reach you. Get the best value vehicle you can from money borrowed from the bank and return it once you receive your claim.

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Drive safe. There is almost always something we could have done to avert that accident or escape from it. That something may not be just ‘hitting the break early’, it may be your choice to drive at that time and place. Precaution, at the end of the day, is the best insurance.

So, you may be wondering where is the 5th thing!

5. Do not negotiate with your inner voice when it comes to road safety.

Take that turn, drive slow, or make the call not to drive. Avoid accidents.

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Featured photo credit: Citroen via albumarium.com

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Last Updated on July 20, 2021

Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

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Financial Freedom is Not a Fantasy: 9 Secrets to Get You There

Have you ever considered your life now, and how it would be if you had more time to spend with your family and less worries about money?

Nowadays, financial stress is one of the most troublesome weights in life. If you’ve ever encountered financial stress, you know the difficulty of not having enough income to pay your obligations or bills.

Many people say that money is not the ultimate goal of life. While that’s true, money certainly plays a very significant role. The meaning of financial freedom changes with the different phases of our life, but ultimately, it is something that many people strive for.

In this article, we’ll explain how to capture that financial freedom you’ve been looking for. Read on to learn the secrets to financial freedom.

Break Free of Your Finances

Financial freedom is about having a constant flow of cash from your assets to cover all your regular needs.

When you are not worried about your income, or living paycheck to paycheck, you gain a great sense of freedom. It’s the freedom to be obtain and do what you truly need to make your way through everyday life.

Gaining financial freedom, though, is a process of growth, making small improvements and gaining emotional strength.

Though it seems hard to believe, it is really very simple to get financial freedom.

To do so, you simply need to make sure that your assets exceed your liabilities. In other words, you’ll need to find the sweet-spot where your residuals meet or surpass your expenses. This is something that you can achieve with the proper plan.

While not every person will accomplish financial freedom, the potential for anyone to do so is certainly there. Anyone can achieve this success, regardless of their income level.

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Outlined below are 9 secrets that will help you in your goals of achieving financial freedom.

1. Stop Unnecessary Spending

We often spend money inwardly, instead of objectively.

For example, you may spend when you’re anxious, depressed, restless, exhausted, from fear of missing out, or to please others. This is a very unhealthy way to handle your finances.

To stop this habitual spending, log down all your spending over the course of a month.

Just as some people keep a food diary, keep an expense diary. Remember not to just write down how much and what you spent the money on, also include the circumstances of why you spent the money. Was it an impulse buy at the checkout line or was it something you planned to purchase?

This increased self-awareness could enable you to avoid triggering situations in the future when you are considering an impulse buy.

2. Plan a Monthly Budget

This is a great opportunity to get serious.

Take a seat with your spouse or partner and make a monthly budget based on your income, not your expenses. You are never again going to spend more cash then you have on hand.

Overspending is the thing that led you to more financial obligations. Make sure you decide every month what is coming in and what will be going out and stick to that budget… no matter what.

3. Cut-up Credit Cards

Perhaps you are the type of person who always pays your credit card balance in full before the end of your billing cycle, and enjoys the reward points you gain. If this is the case, then you’re already way ahead of the game.

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If not, you may want to consider ridding your life of the burden that credit cards bring.

Many cards have strategies set up so that if you make a certain number of late payments, they will raise your interest rate much higher. This can really add up in the long run and you won’t be doing your financial situation any favors. If you’re prone to late payments or have a large balance due on your cards, cut them up!

Without proper self control on credit card spending and payments, you are basically throwing your money away. To ensure that you have better control over your spending, use only cash or debit for all future purchases (and don’t forget to pay at least your minimum payment on your cut-up cards each month!).

4. Increase Savings

There is no doubt that for a comfortable retirement you must accumulate satisfactory savings throughout your working life.

It’s good practice to save up to 15% of your income.

Start with your workplace 401(k), if you have one. If not, a Roth IRA (if you are eligible) or a traditional IRA (if you are not eligible for the Roth) are the next logical steps.

Increase in longevity means you might be able to look forward to 25 to 30 years in retirement, or possibly even significantly more. Investing now in good retirement plans will ensure that you have a guaranteed a stable monthly income when the time comes to stop working. [1]

5. Invest Wisely

Consider investing in funds.

Specifically, you will gain higher returns if you invest in different types of mutual funds such as Debt funds, Equity funds and Hybrid funds with a proper balance, although it absolutely relies on your personal preferences and sense of risk taking.

To get the most of these benefits, make sure you are investing in a variety of assets. Another resource of investing in mutual funds is SIP (Systematic Investment Plan) where you invest some money every month in funds. SIP works by averaging the per unit price of the stock.

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Mutual fund investors are aware of the benefits of an SIP (Systematic Investment Plan). For one, it is the most secure way to invest in equity mutual plans so that wealth is created over a long period of time. This plan also helps you to gain a better sense of financial discipline, which will come in handy in all your financial endeavors.

6. Invest in Gold

There isn’t really a better way to invest in gold than to have the physical gold itself in your possession.

You can purchase gold coins and bars from mints as well as from coin dealers and other private sellers.

Another way to invest in gold is through ETFs (Exchange Traded Funds).

These are is similar to mutual funds but they are exclusively investments of gold. ETFs are great because they offer more liquidity; the ETF owns the actual physical gold, stores it, and retains the value of the shares. These shares can then be bought and sold in the stock market, and one big benefit is that the transaction costs of gold ETFs are much lower than the that of physical gold.

With its consistently-increasing demand, investment in gold can be very wise long-term investment to make.

7. Stash Emergency Funds

Whether it’s a cash gift or a work bonus, always try to save any extra money that comes your way rather than making unneeded purchases.

If you get paid every other week, you’ll get an “extra” paycheck (three rather than the usual two) twice a year. Either save those paychecks towards your emergency funds or utilize the money to pay down other obligations, such as loans, credit cards or other debts.

Make it hard to get your cash.

Put your savings in an alternate bank, maybe an online bank that forces you to delay for several business days before transferred money hits your regular bank account.

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8. Find Fabulous Mentors

Find a mentor, such as a friend or family member, who has exceptional control over their finances and pay attention to everything they do.

If you do not have any friends or family that are enjoying financial freedom, then find a mentor online! There are numerous blogs and guru websites featuring the advice of many people who have reached financial freedom, and they exist primarily to let you in on how to achieve it for yourself.

There are also plentiful forums available that share tips and tricks on how to best achieve financial freedom. Read as much as you can and start changing your habits for the better.

9. Be Extra Patient

Patience is the key of financial success.

Being patient can be quite tough, especially when you’re struggling with your finances, but having faith is worth it. You’ll continuously be on the right track if you are taking the proper steps above.

So don’t be discouraged, even if you are only saving a few dollars a month; it all adds up. Within just a few years you’ll look back proudly at your accomplishments and be glad that you had the patience to get there.

Financial Freedom for All

Anyone can achieve financial freedom, regardless of their financial circumstance.

Use the tips provided above to get yourself on the track to financial freedom and toss your monetary concerns out the window. If you wish to achieve a life with financial freedom for yourself and your family then you must adopt a disciplined approach towards your finances.

Following the simple secrets above is a great start to making your money work for you, so you can work less and live more!

Featured photo credit: rawpixel via unsplash.com

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Reference

[1] Hartford Gold Group: IRA Retirement Accounts

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