When our personal injury lawyers meet with crash survivors and other victims of negligence, most of them have questions about insurance settlements. Itās no surprise that people are curious about the negotiation process and settlement values. After a crash, most victims want to rebuild and gain closure, and a settlement often represents the end of their insurance claim.
In this article, our experienced injury attorneys outline some of the most frequently asked questions about settlements. And weāll give you answers in plain English.
What Is a Settlement?
When you settle an insurance claim or lawsuit, you accept a sum of money. In exchange, you give up your right to any other compensation. The at-fault party and their insurance company donāt admit to any wrongdoing; instead, they are simply offering you money to make your claim go away.
There are two common forms of settlements:
- Lump-sum: You receive a single settlement payment shortly after you and the insurance company come to an agreement
- Structured: You get scheduled payments over time, which can vary in size and frequency depending on the terms of your settlement
No matter how your settlement is structured, one thing is almost always certain: once you finalize a settlement, you canāt go back and demand more compensation or reopen your claim.
What Does an Insurance Adjuster Do?
Claims adjusters are insurance company employees who process and evaluate claims. Their job is to minimize the companyās expenses, not to issue payments quickly and fairly. Adjusters minimize expenses by looking for any potential issue or weakness in your claim: inconsistent medical records, damaging statements, legal technicalities.
Unfortunately, many insurance adjusters will try to get accident victims to make mistakes or accept low settlement offers. Look out for the following tactics if youāre trying to handle an insurance claim on your own:
- Recorded statements: If youāre unrepresented, the adjuster may pressure you to make a recorded statement. Then, the adjuster will try to get vague, misleading, or inaccurate statements, often asking leading questions about your injuries, symptoms, and the facts surrounding the crash or incident. The adjuster will use this information against you later on. To protect yourself, itās in your best interest to consult a lawyer before you agree to make any written or recorded statements.
- Independent medical examinations: If the insurance adjuster schedules an IME (independent medical examination), you typically have to attend the appointment. However, these exams are rarely (if ever) independent and impartial. The doctor is a paid consultant who will likely favor the insurance company. IME reports are often used to reduce settlement values and deny insurance claims.
- Discouraging you from calling a lawyer: Insurance adjusters understand that knowledge is power. If you know the real value of your case and how injury claims work, youāll make better decisions, which may result in a higher settlement or jury award. Thatās why adjusters discourage people from calling injury lawyers. Donāt fall for the adjusterās claims that lawyers are ātoo expensiveā and will āslow the process down.ā At Crosley Law, youāll never pay an attorneyās fee unless we recover compensation for you, and weāve built a reputation for our efficient and aggressive strategies.
- Unreturned phone calls: The longer insurance claims go on, the more likely the victims are to give up and accept a low settlement offer. Thatās why some adjusters use delay tactics. The adjuster may avoid returning phone calls and ignore your questions. When the adjuster does this, theyāre hoping that youāll decide your legal claim isnāt worth the trouble.
- Victim blaming: Texas uses a legal standard called ācomparative faultā in injury claims. If you contributed to your car wreck, the insurance company could reduce your compensation by your degree of fault. If you were 51% or more to blame, youāll get nothing. Sometimes, adjusters try to blame victims to reduce or eliminate their compensation. Donāt assume the adjuster got it right ā our lawyers have noticed a pattern of unfounded victim blaming in recent claims.
You may encounter these tactics whether youāre the policyholder or youāre filing a claim against an at-fault driver after an auto accident.
When Should I Settle My Injury Claim With the Insurance Company?
Settling a claim involves a level of risk; youāre giving up your right to demand any additional compensation. Thatās why many people wait until their injuries have improved as much as possible before they settle. (Lawyers sometimes refer to this as āmaximum medical improvementā or MMI.)
While you can settle before you reach MMI, you should do so with extreme caution. When youāre actively healing, itās hard to foresee your future medical needs. Unexpected infections, complications, and repeat surgeries are common. Weād strongly encourage you to schedule a free consultation with one of our lawyers before you finalize an early settlement.
How Much Should I Get in an Insurance Settlement?
When injury lawyers calculate settlement values, they consider many factors. Your claimās strength and the settlement amount will depend on:
- How much insurance coverage applies to your claim
- The extent and severity of your injuries
- Your current medical bills
- How much medical treatment you will need in the future
- Whether you can return to work
- Whether you can live independently or need help with daily tasks
- Your pain and suffering
- The cost of repairing or replacing your damaged property
- Funeral and burial expenses
- The potential for punitive damages
Youāll need to collect all of your medical bills, insurance policies, accident-related receipts and expenses, and other information as part of your analysis. Itās not easy to calculate all of these losses, especially when youāre recovering from a catastrophic injury. At Crosley Law, we carefully calculate our clientsā settlements, often consulting with life planners, medical experts, and other specialists.
We also identify each at-fault party and insurance policy that applies to our clients. Many victims donāt realize that injury claims can involve more than one negligent party and insurer. While multiple sources of liability can add complexity to your claim, it can also lead to a better settlement or verdict.
How Do Settlement Negotiations Work?
Negotiating a settlement requires a comprehensive strategy, clearly defined goals, and an understanding of the claimās real value. If you start your negotiations without a plan, itās easy to make mistakes and undervalue your claim.
“Negotiating a settlement requires a comprehensive strategy, clearly defined goals, and an understanding of the claimās real value. If you start your negotiations without a plan, itās easy to make mistakes and undervalue your claim.”
Sometimes, the insurance company will start negotiations by making a settlement offer. Other times, they will ask you to propose a settlement value in a demand letter. Realistically, this first offer or demand is rarely your final number. The insurance company most likely offered you a lot less than your case is worth, and you probably asked for more than you expect to get.
From there, your lawyer and the insurance adjuster will go back and forth, responding to offers and counteroffers. If you reach a point where no progress is being made, your lawyer may suggest mediation or another form of alternative dispute resolution (ADR) to get negotiations moving again.
What Is Mediation?
Mediation is a powerful tool that can help settle insurance disputes. During mediation, a specially trained mediator guides the parties through negotiations. The mediator will look for areas of agreement and common ground, with the goal of finalizing a settlement.
Typically, mediation starts with everyone in the same room. Each side presents their argument, and the mediator will usually ask some questions.
Then, you and the insurance companyās representatives will go into separate rooms. The mediator will meet with you and your lawyer to discuss your demands privately. The mediator will do the same with the insurance company, often relaying messages back and forth.
At Crosley Law, weāve had remarkable success with mediation. In 2018, we negotiated the highest mediated settlement in Texas.
What Happens if We Canāt Agree on a Settlement?
No one can force you to accept a settlement. If you and the insurance company canāt agree on a fair settlement figure, you can take your case to trial. While a trial always involves risk, itās sometimes necessary.
At trial, a jury will listen to the facts and arguments from both your personal injury lawyer and the insurance companyās attorney. Then, the jury will issue a decision either awarding you compensation or denying your claim.
When settlement is impossible, our injury attorneys carefully prepare cutting-edge trial presentations and perform detailed jury research. Our goal is to get you the compensation you deserve and the resources you need to recover.
Crosley Law: Get Answers to Your Insurance Settlement Questions
Crosley Law is one of San Antonioās most respected personal injury law firms. Weāve built a reputation for our sophisticated approach to negotiating settlements, mediation, and litigation. If you need help understanding your claimās value, contact us today. Weāll set up your free initial consultation and give you advice about your case at no cost.
To schedule your free consultation today, call Crosley Law at 210-LAW-3000 | 210-529-3000 or fill out our online contact form.
The contentāÆprovided here isāÆfor informational purposes only and should not be construed as legal advice on any subject.