What to Know Before Accepting a Personal Injury Settlement
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Mary Martin
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Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
Published Legal Expert
UPDATED: Jul 18, 2023
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We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.
UPDATED: Jul 18, 2023
It’s all about you. We want to help you make the right legal decisions.
We strive to help you make confident insurance and legal decisions. Finding trusted and reliable insurance quotes and legal advice should be easy. This doesn’t influence our content. Our opinions are our own.
If you are pursuing a personal injury claim or lawsuit, you are likely to encounter a settlement offer at some point during the process. Before you accept a settlement, you should note that once you sign an agreement, you cannot seek additional damages. Settlement agreements close personal injury cases, so it is a good idea to review one carefully before making a final decision. Consult an attorney with specific questions about the value of your case and the fairness of your settlement.
Negotiating a Personal Injury Settlement on Your Own
If you are handling the case on your own, there is no difference in value, per se, but what you actually are offered and ultimately settle for might be much lower than the true value of the case. Much of your settlement is determined by what documentation you provide to support your claim, your statement and those of witnesses, and your level of knowledge about the value of your case. If you don’t ask for an amount that represents the true value of your claim, then it’s in the hands of the claims adjuster to offer you an amount that may or may not be appropriate. Since insurance adjusters work for the company that makes money by paying you less, it is likely that the value provided you by the adjuster will be less than the true value of your claim.
Negotiating a personal injury settlement on your own is possible, however, you should be prepared to get independent assessments of the value of your case. You will also need to approach your settlement negotiations with confidence and be able to clearly articulate your demands. As with any negotiation, keep in mind that you do not need to reach an agreement – you always have the option of pursuing legal action if you feel your settlement offer is unfair.
Having an Attorney Negotiate Your Settlement
If you hire an attorney to negotiate your personal injury settlement, he will do a thorough evaluation of the claim in order to know what to ask for when it comes time to make a demand for settlement, and be able to provide adequate documentation in support of the requested amount. Having an attorney also changes the settlement dynamic by leveling the playing field. The attorney may also be able to uncover other sources of compensation, which may not be readily ascertainable to you, giving you a complete picture of the money you are owed and how you can pursue it.
Although the goal is the same for both your attorney and the adjuster, i.e., to settle the case, the adjusters’ responsibility to their employer is to pay out as little of the insurance company’s money as possible and to settle claims promptly. Your attorney’s job as your advocate is to get a fair settlement of your claim that represents the true value of your case. Even if you do not want to file a personal injury lawsuit, hiring an attorney will give you the best chance of collecting the insurance money you are owed.
Filing a Personal Injury Lawsuit
If your attorney files a lawsuit, the value of the case will be determined by the evidence presented to the court. Depositions of witnesses may be taken and important documents, such as wage loss information, medical records, etc, may be subpoenaed (legally demanded). All the evidence of your case is presented to the judge or jury to determine the fair compensation of your case.
At any point during a personal injury lawsuit, the insurance company may approach you with another settlement offer. Depending on the nature of the evidence and the strength of your case, this offer may be higher than previous ones. If you can wait out early settlement offers and pursue a lawsuit, you may be able to obtain a settlement that reflects the true value of the case rather than one that compromises value for expediency.
Personal injury lawyers offer free consultations, so it does not hurt to discuss your settlement options and strength of your case before you make any decision.
Case Studies: What to Know Before Accepting a Personal Injury Settlement
Case Study 1: Negotiating a Personal Injury Settlement on Your Own
John, a construction worker, suffered a severe back injury due to a workplace accident. He decided to handle his personal injury claim without hiring an attorney, believing he could negotiate a fair settlement with the insurance company on his own.
However, lacking legal expertise, John struggled to present a compelling case. He failed to provide adequate documentation to support his claim’s true value, leading the insurance adjuster to offer a settlement much lower than what he deserved. In the end, John settled for an amount significantly below the actual worth of his case.
Case Study 2: Having an Attorney Negotiate Your Settlement
Sarah, a victim of a car accident, sought the help of a skilled personal injury attorney, Emily. Emily thoroughly evaluated Sarah’s claim, gathering all relevant evidence to support her demand for a fair settlement. With Emily’s guidance, Sarah’s case gained strength, and she was able to understand the true value of her claim.
Emily successfully negotiated with the insurance company, leveling the playing field and advocating for a settlement that genuinely reflected the damages Sarah suffered. As a result, Sarah received compensation that covered her medical expenses, lost wages, and pain and suffering.
Case Study 3: Filing a Personal Injury Lawsuit
David, a pedestrian hit by a reckless driver, initially received a low settlement offer from the insurance company. Dissatisfied with the offer, David decided to file a personal injury lawsuit with the assistance of his attorney, Mike. The lawsuit provided an opportunity to present the evidence to a judge or jury, who would determine the fair compensation for his case.
As the lawsuit progressed, additional evidence emerged, strengthening David’s position. The insurance company, concerned about the case’s potential outcome in court, approached David with a higher settlement offer during the legal proceedings. David decided to reject the offer and continue with the lawsuit. Eventually, a fair settlement was reached, reflecting the true value of David’s injuries and losses.
Find the right lawyer for your legal issue.
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Mary Martin
Published Legal Expert
Mary Martin has been a legal writer and editor for over 20 years, responsible for ensuring that content is straightforward, correct, and helpful for the consumer. In addition, she worked on writing monthly newsletter columns for media, lawyers, and consumers. Ms. Martin also has experience with internal staff and HR operations. Mary was employed for almost 30 years by the nationwide legal publi...
Published Legal Expert
Editorial Guidelines: We are a free online resource for anyone interested in learning more about legal topics and insurance. Our goal is to be an objective, third-party resource for everything legal and insurance related. We update our site regularly, and all content is reviewed by experts.