Typically, insurance companies settle auto claims through negotiations with a claimant following their initial demand letter. Insurers are profit-driven companies, so they will try to settle claims as cheaply as possible. The first offer that a victim receives may fall well short of their needs. You should be prepared to go through a bargaining process, and you should recognize that the insurance adjuster is not on your side, even if they seem friendly. If negotiations fail, you may need to file a lawsuit.