When you suffer injuries because of someone’s negligence, you can file a personal injury claim or lawsuit to obtain damages. Many personal injury claims result in a settlement offer instead of taking the case to court. Settling a personal injury claim is a difficult decision, and you should take the time to determine whether to settle, continue to negotiate, or sue.
Learn more about settlement offers in this article, including how long you must consider an offer. Then, speak to a personal injury lawyer about whether you have a strong case. The attorney will inform you if there is a strong possibility of compensation. These attorneys offer their initial consultation for free, so there is no cost or obligation.
Personal Injury Settlement Overview
A settlement offer in a personal injury claim is usually a proposal by the insurance company or the defendant to resolve the case by paying you a certain sum. It is the formal, legal way to say that the case should not go to court, which will take time and incur significant legal expenses on both sides. Instead, the settlement is intended to compensate you partially for your losses and damages without going through a trial. But it isn’t as easy as signing a document and receiving a check in the mail. The settlement process takes time and involves several steps.
Following a car crash, for example, you might have initial medical bills and some lost income in the initial weeks. An insurance company might make an offer covering the amount of your current financial losses. However, you have no idea what your future losses might be, and this offer does not account for any non-economic losses like pain and suffering.
You are not required to accept the opening settlement offer. The initial offer doesn’t usually represent the claim’s actual value and is just an opener for the insurance negotiations. Your personal injury attorney may respond with a counteroffer in a formal letter, considering many factors, including your pain and suffering. That letter will detail why the opening offer isn’t enough.
The insurance company may take a few weeks to respond to your attorney’s counteroffer. Depending on the case, this process could continue for several weeks or months. Usually, a final settlement offer is made by the insurance company, and they’ll tell you that. It is up to you and your personal injury lawyer to settle the case or file a lawsuit.
Why Would You Settle A Personal Injury Claim And Not Sue?
Many people file personal injury claims after accidents every year involving cars, trucks, slip and falls, and more. The idea is to receive fair compensation from the liable party for your medical bills and other losses. Most personal injury claims can eventually go to court in a personal injury lawsuit. This doesn’t usually happen. Most personal injury claims end with an insurance settlement. Why?
- The case is resolved faster: If you broke both legs in a car accident and can’t work, you probably need money immediately. It’s often better to receive ‘some’ money in a month or two for certain instead of waiting months more for a possibly larger amount. But you could lose a personal injury lawsuit, meaning you don’t receive anything. You would have waited months longer for nothing.
- Lower legal costs: Going to court in a lawsuit is expensive for both sides. Your attorney won’t charge you per hour, but the higher legal expenses will be deducted from any award you receive at trial. Settling is less expensive.
- Lower stress: After a major injury, you may not want the stress and uncertainty of a court trial hanging over you for months. You may have to testify, but you don’t know if you will win. Injured parties have medical bills and life expenses and often can’t work, so not knowing when or if a case will resolve favorably is mentally taxing. A settlement allows you to obtain a certain amount with less stress.
Your personal injury lawyer will lead the insurance negotiations and offer advice about whether to accept an offer, negotiate further, or go to trial. The choice is yours, but your attorney has handled many cases like yours and probably knows best.
How Long Do You Have To Consider A Settlement Offer?
It’s understandable to want to move on from the accident and get money in your pocket. But you should take your time considering the insurance settlement offer. There is no timeline for how long you have to consider the offer; most insurance companies will provide a deadline to make a settlement decision, usually a few days or weeks. The insurance company may withdraw or make a less favorable offer at that point.
The time to consider the settlement offer can take the following forms:
- Expedited or immediate response time: Some settlement offers by insurance companies may come with a required response in 24 or 48 hours. Usually, settlement offers with this short deadline are undesirable ‘lowball’ offers. The adjuster wants to dangle a few dollars before you with a short deadline and tempt you to accept. Based on the earlier example, the adjuster might offer a meager $5,000 settlement offer when your actual economic damages are $25,000 or more. This isn’t a fair offer.
- Standard response time: Most personal injury claims have a more reasonable response time for settlement offers, usually one or two weeks.
- Negotiated time frame: In some cases, especially ones involving serious brain or spinal cord injuries, both sides may negotiate a time frame that allows a detailed consideration of the offer. You may have between 30 and 60 days in this case.
Overall, you should feel manageable pressure from the insurance company to decide on a settlement offer quickly. If the insurance company does that to you, it’s probably a low offer you should reject immediately.
What To Consider When Assessing A Settlement Offer
There are several aspects of a settlement offer to consider before deciding. Your personal injury lawyer will help you to review the following aspects of the offer and case:
- Current medical costs: This is usually the most pressing concern when an injury victim is pursuing a personal injury claim. Medical costs for injury cases are astronomical in the US. You could have tens of thousands in medical bills simply for a day or two in the hospital to stabilize your condition.
- Future medical costs: Serious injuries will incur steep future medical expenses that should be understood before making a settlement decision. You may need long-term care, rehabilitation, future surgeries, and more. If your future care needs are roughly $50,000 and the current offer is only $10,000, this isn’t nearly enough to ensure a proper recovery.
- Lost earnings: If you cannot work or cannot work in the same job after the injury, the offer should account for your lost income. If you will be unable to work or in the same work in the future, the offer should include lost future earning ability.
- Property damage: Was your car totaled in the accident? The offer should provide fair market value for the totaled car.
- Pain and suffering: If your serious injuries have caused you serious pain or mental trauma, the settlement offer should provide fair compensation. If you broke both legs in a car crash and the settlement offer only has money for medical bills and lost income, you should decline the offer and negotiate for pain and suffering.
Remember Long-Term Injury Consequences
A serious injury after an accident can have both short-term and long-term consequences. It is essential to consider your long-term prospects when making any settlement offer. If you have a permanent injury, such as a brain injury or paralysis, it is vital to consider the long-term costs of your condition. For example, a paralysis victim will require months or years of care and physical therapy to live and hopefully regain function.
Long-term, serious injuries also can impact your quality of life. Your injury could prevent you from running, swimming, playing with your kids, and many other things you love to do. It is vital to consider these grave consequences when assessing a settlement offer.
As you consider the settlement offer, avoid the following mistakes that all too many injury victims make:
- Making a settlement decision too fast: Take your time to go over the proposal with your attorney. Understand how much the settlement offer is, why it was offered, and the amount you will receive after all expenses are paid.
- Taking the first offer: Being desperate for money after an accident may tempt you to settle too quickly. The first offer is rarely the final one. Most initial settlement offers are low and shouldn’t be accepted. The insurance company may simply try to get you to take a low settlement before a personal injury attorney gets involved.
- Not hiring a personal injury attorney: An experienced injury lawyer will have handled at least dozens of cases like yours and can effectively negotiate for you. Don’t try to ‘save money’ by not hiring an attorney because you could end up with less money.
- Not considering future expenses: Many personal injury victims don’t hire an attorney or fully consider their future medical and other expenses. You could end up with much less money than needed for a full recovery.
- Not knowing about past, similar cases in your area: Your personal injury attorney will know many recent cases like yours and what they settled for. They can tell if the current offer is fair compared to similar cases.
- Not talking to experts: Your personal injury attorney may speak with actuaries, medical professionals, and vocational experts to calculate the value of your claim. Without an attorney, you wouldn’t have access to this important expertise.
An experienced personal injury lawyer will consider all of the factors above and decide if the offer fairly pays you for your losses.
How To Negotiate For A Better Settlement
Insurance companies are well-known for relying on aggressive, shady tactics to encourage injury victims to settle for less than they should. Their job is to minimize what they pay, not compensate you fairly. The insurance provider could try to blame you for the accident, question the severity of your injuries, and slow your claim process to encourage you to give up. Personal injury attorneys know the insurance and negotiation games and can work to obtain a better settlement offer:
- Personal injury lawyers are experienced negotiators: Lawyers know how to prepare a counteroffer backed by evidence to establish fault and secure a higher settlement. They can also counter any argument that the insurance company makes to pay less than you deserve.
- Personal injury attorneys are strong communicators: Your attorneys will handle communications with the insurance company while keeping you informed. You won’t ever make a statement that damages your claim.
- Personal injury attorneys know when to settle and sue: Most claims end in a settlement, but your attorney knows if more money is possible in a settlement. They also know when to call the insurance company’s bluff and file suit.
Remember, the complicated personal injury claim process has many personal, financial, and legal consequences. Your decision about settling a claim can majorly affect your health, quality of life, and finances. Deciding on this crucial situation correctly is imperative to your future. When serious injuries and damages are involved, you should always have a personal injury attorney review your case. Going it alone when so much is on the line is always a mistake.
Contact A Personal Injury Attorney Today
If another person injured you in an accident, you should file a personal injury claim for damages. A personal injury attorney can review your case for free and outline your legal options. Your attorney will assess who was at fault in the accident and your injuries and offer an opinion on the case’s value. For additional information, speak to a personal injury attorney in your community today. You don’t pay legal fees unless the attorney secures compensation for you.
