How to Negotiate a Car Insurance Claim with State Farm Insurance in Texas
Filing an insurance claim after a car accident is already stressful, but negotiating with State Farm Insurance can make the process even more challenging. Many policyholders find themselves facing delayed responses, lowball offers, or outright denials when seeking fair compensation for damages and injuries.
McGilberry & Shirer has handled countless car accident claims across Texas, helping victims secure the compensation they deserve. This guide walks you through how to negotiate effectively with State Farm, what to expect, and when to hire an attorney.
Understanding State Farm’s Insurance Claim Process
1. Reporting the Claim
After an accident, report your claim to State Farm as soon as possible. You can do this through:
- State Farm’s website
- State Farm mobile app
- Phone call to a claims representative
- Speaking with a State Farm agent
Provide clear details about the accident, including the location, date, and damages sustained. An adjuster will be assigned to your case to investigate and determine liability.
2. Investigation & Adjuster Review
State Farm’s adjuster will:
- Review the accident report
- Inspect vehicle damage
- Analyze medical reports (if applicable)
- Speak to witnesses
At this stage, the insurance company will attempt to reduce their payout by assigning partial fault to you or questioning medical claims.
3. Initial Settlement Offer
The first settlement offer from State Farm is usually lower than what you deserve. They expect claimants to accept without negotiating, which is why having a strong counteroffer and supporting evidence is crucial.
Common Tactics State Farm Uses to Reduce Payouts
1. Offering a Quick but Low Settlement
State Farm often makes a fast initial offer, hoping claimants will accept before realizing the full extent of their damages.
2. Delaying the Claims Process
Prolonging the process pressures victims into accepting lower payouts to cover urgent expenses like medical bills and vehicle repairs.
3. Disputing Liability
Adjusters frequently argue that their policyholder was not entirely at fault, which reduces the amount they have to pay.
4. Downplaying Injuries
State Farm may claim that your injuries are minor or that certain treatments were unnecessary, lowering the medical compensation portion of your claim.
5. Using Your Statements Against You
Recorded statements can be twisted to weaken your case. Never give a recorded statement without consulting a lawyer.
How to Strengthen Your Claim Before Negotiating with State Farm
1. Gather Strong Evidence
The more documentation you have, the stronger your negotiation position. Collect:
- Police reports confirming accident details
- Photos and videos of the accident scene and vehicle damage
- Medical records detailing treatment and long-term care needs
- Witness statements to support your version of events
- Proof of lost wages if the accident caused you to miss work
2. Avoid Quick Settlements
State Farm’s first offer is rarely the best offer. Reject initial lowball settlements and counter with a well-documented demand.
3. Know the Value of Your Claim
Calculate all damages, including:
- Vehicle repair or replacement costs
- Medical bills (current and future)
- Lost wages
- Pain and suffering compensation
Knowing what your claim is worth prevents you from accepting less than you deserve.
4. Stay Off Social Media
Posting about your accident or injuries can be used against you. Insurance adjusters monitor social media to find any reason to discredit your claim.
5. Be Careful with Recorded Statements
Anything you say can and will be used against you. If the adjuster asks for a recorded statement, politely decline or consult a lawyer first.
Negotiation Strategies to Get a Fair Settlement
- Reject the First Offer and Counter with Evidence: If the first offer is too low, decline politely and present your counteroffer with supporting documentation.
- Use Policy Limits as Leverage: If damages exceed the policy limit, State Farm may settle quickly to avoid further legal action.
- Request Justifications for Low Offers: Ask the adjuster why they believe your claim is worth less. If they cannot provide a clear explanation, push for a higher settlement.
- Get Repair Estimates from Independent Shops: State Farm may undervalue vehicle repairs by using its own affiliated repair shops. Always get a second opinion from an independent mechanic.
- Escalate the Claim If Necessary: If negotiations stall, request a supervisor review or file a complaint with the Texas Department of Insurance.
When to Hire an Attorney for Your State Farm Claim
- State Farm Denies Your Claim: If the company refuses to pay, an attorney can challenge their reasoning and appeal the denial.
- The Offer Is Too Low: Insurance companies lowball claims hoping you won’t fight back. An attorney can negotiate for a higher settlement.
- Your Injuries Are Severe: Serious injuries often require long-term treatment. Don’t settle for a quick payout that won’t cover future medical expenses.
- State Farm is Stalling Your Claim: If the company delays responses or demands unnecessary paperwork, legal pressure can force them to act.
- Liability Is Disputed: If State Farm argues you were partially at fault, a lawyer can help prove their policyholder’s responsibility.
What If Negotiations with State Farm Fail?
- Mediation or Arbitration: If State Farm refuses to settle, mediation involves a neutral third party helping both sides reach an agreement.
- Filing a Lawsuit: If mediation fails, filing a personal injury lawsuit forces the insurance company to defend itself in court.
- Going to Trial: If the case goes to trial, a judge or jury will determine the final settlement amount.
McGilberry & Shirer: Your Texas Car Accident Lawyers
Dealing with State Farm Insurance after an accident can be frustrating. They often delay, deny, or offer unfair settlements. At McGilberry & Shirer, our expert car accident lawyers fight for the maximum compensation you deserve.
If you’re struggling with a State Farm claim in Texas, let us handle the negotiations while you focus on recovery.
Call us today at 972-764-8675 for a free consultation!
