Walk through the steps of a successful Iowa auto accident claim, from filing the claim to negotiating a settlement.

Every day, more than 50 people are injured in Iowa traffic accidents. Iowa is a “fault” state, meaning an accident victim will file a claim against the at-fault driver’s insurance company.

Iowa defines fault as “… one or more acts or omissions that are in any measure negligent or reckless toward the person or property of the actor or others …”

You might choose to settle a minor injury claim yourself directly with the insurance company. More serious injury claims are best handled by an attorney. Either way, most insurance claims follow the same steps in the settlement process.

1. File a Car Accident Insurance Claim

As soon as possible after the accident, notify the at-fault driver’s insurance company of your intent to file a claim. You are only giving the insurer notice of your claim. You won’t be ready to discuss a settlement until after you recover from the crash.

The company will acknowledge your claim with a standard “Reservation of Rights” letter. This basically says that the insurance company will take a look at your claim, but they reserve the right to deny it.

Don’t worry about the Reservation of Rights letter. Iowa has Unfair Claims Practices laws that prohibit insurance companies from denying claims without a good reason, after a thorough investigation of the facts.

When your claim includes injuries and property damage, the insurer may separate it into two claims and assign different claim numbers and adjusters. Keep track of your claim numbers and be sure to reference the correct number in all communications.

Iowa Minimum Auto Insurance Limits

Iowa drivers are required to carry auto insurance coverage with bodily injury limits of no less than $20,000 per person and $40,000 per accident, with $15,000 for property damage. In many cases, this may be the maximum payout you can expect for injuries.

Always speak to an attorney if you’ve suffered moderate to severe injuries. An experienced attorney may be able to pursue other sources of compensation and get you a higher settlement.

It’s not uncommon for a big-name insurance company to insure both drivers involved in a traffic accident. Because claims are handled at the policy level, you still need to formally file an insurance claim against the other driver’s policy.

2. Avoid Recorded Statements

Soon after filing your claim, someone from the insurance company will ask you for a recorded statement. It’s okay to politely decline. You are never obligated to give the at-fault driver’s insurance company a recorded statement.

Don’t be cajoled or bullied into giving a recorded statement. If the adjuster gets pushy, tell them you’d like to talk to a lawyer first.

Adjusters are trained to ask leading questions and trick you into saying something they can use to deny or minimize your claim. That’s why car accident attorneys advise claimants never to give a recorded statement without an attorney present.

Avoid giving any kind of statement before consulting an attorney. If you decide to give a statement on your own, plan ahead and never submit to questioning when you’re nervous, medicated, tired, or in pain.

3. Decline Early Offers

Expect to get an early lowball offer to settle your claim, especially if the adjuster thinks you’re struggling financially. (Yes, they will look you up on social media.)

It’s in your best interest to decline the offer. Tell the adjuster you don’t want to discuss a settlement while you are still recovering from your injuries.

The adjuster is not your friend, even if they seem sympathetic. The adjuster is motivated to get you to settle as quickly as possible for as little as possible. The more money they save for the company, the bigger their next bonus.

You will never get a fair settlement offer before your injuries have fully healed. You have no idea how much more medical care you might need, the complications that may develop, and how much work you might miss.

4. Settle Your Vehicle Damage Claim

Property damage claims can be settled much faster than most injury claims, assuming the insurance company accepts liability on behalf of their insured.

The at-fault driver’s insurance company will pay the cost to repair your car, or the current book value if it’s a total loss. Many companies will also pay for a rental car while your vehicle is in the shop.

If you have collision coverage on your own auto policy, you may choose to use it for your vehicle repairs. In turn, your insurer will seek reimbursement from the other driver’s insurance company, and can even get your deductible back for you if the other driver has enough coverage.

However you decide to handle your property damage claim, be sure to read and understand everything you are asked to sign. You don’t want to accidentally settle your personal injury claim when signing the car repair release forms.

5. Prepare a Compensation Demand

Active settlement negotiations begin when you send a demand letter to the insurance company, explaining your losses and the amount of money you want to resolve your claim.

Fair compensation for minor to moderate injury claims can be calculated by adding up all your economic costs, like medical bills and lost wages. Then add one or two times that amount for your non-economic damages, like pain and suffering.

Enclose copies of all your bills, receipts, and a copy of your wage loss verification with the demand letter.

Also include evidence of fault, like witness statements or the police crash report, to prove the other driver caused the crash. You can obtain a crash report from the Iowa State Police or from the Iowa Department of Transportation, depending on the police agency that investigated your accident.

Serious injury claims must be handled by an experienced attorney. Compensatory damages for severe injuries include the cost of future medical care, loss of income potential, replacement services, and a much higher amount for pain and suffering.

Iowa currently has no limits on car accident damages. However, Iowa lawmakers are considering a bill that would limit non-economic damages from car accidents to $250,000.

6. Negotiate a Final Settlement

The adjuster will likely respond to your demand letter by saying they can’t come close to the amount you are seeking. They will usually counter with a much lower offer.

Adjusters use many tactics to minimize payouts. They might question the necessity of your medical treatment or diagnostic tests, like a CT scan or MRI, or they might challenge the amount of time you missed work. Calmly and deliberately address each issue, using your medical records and other evidence to support your position.

Be patient. You can expect a few rounds of negotiations. Professional negotiators understand that both sides must give a little before reaching a compromised settlement.

Always counter by offering a slightly lower amount than your previous demand. Never negotiate up from the adjuster’s low offer.

When you reach an agreement, verify the amount and terms in writing. Carefully review the formal settlement and release documents before signing. Once you settle, there’s no going back.

7. Handle Failed Negotiations

Sometimes you just can’t get the adjuster to come off an unacceptably low offer. Or, the adjuster is stringing you along, with repeated requests for medical records and bills you already sent.

Most car accident claims settle out of court, but sometimes it takes filing a lawsuit to induce the insurance company to pay adequate compensation. Your attorney will continue negotiations right up to the trial date of your court case.

Under Iowa’s statute of limitations law, you have two years from the accident date to settle your personal injury claim or file a lawsuit against the at-fault party. If you miss this cutoff, you can lose your right to recover any compensation.

Most law firms offer free consultations to car accident victims. You can get a professional legal opinion on the strength of your case and an estimated settlement value. Most reputable attorneys will take your case on a contingency fee basis, meaning they don’t get paid unless they settle your claim or win your case at trial.