How do we determine what a fair settlement is?

A fair settlement is an amount that you and the insurance company agree on. It is not our goal to take advantage of insurance companies or to reach settlements that are unfair to anyone. (Nor would the insurance company let that happen.) Rather, we work with you to arrive at an amount that is reasonable.

In considering settlement options we also take into consideration your hopes and fears. For clients who are anxious to take their cases to trial, we will push settlement negotiations to the limit, knowing that we are prepared for trial if we can’t reach a settlement. For clients who do not want to go to trial, we approach settlement negotiations in the same way, except that we will be hesitant to reject the insurance company’s highest offer if it means we will end up in trial.

Here are some important factors on which cases are evaluated:

  1. Fault. You can’t recover your losses from another person unless that person was negligent. Juries (and, consequently, insurance companies) tend to be more willing to award higher damages for cases where the nature of the fault is extreme than where the fault is an honest mistake. It will be easier to recover damages in a claim against a drunk driver than in a claim against a mother who makes an unintended mistake while driving her children to daycare.
  2. Property damage. When the event that caused your injury includes extensive physical damage, it will be easier for a jury (and, consequently, the insurance company) to appreciate that you were injured. It is easier to accept an injury from an explosion than an injury from someone bumping into you. In a motor vehicle collision, it can very difficult to recover damages when there is little or no vehicle damage. Many people have been seriously injured in low speed vehicle collisions, whether the vehicles are damaged or not. (After World War II, General Patton was killed in a low speed vehicle collision in which there was only minor damage to the car and everyone else in the car walked away without injury.) But the nature of the general public is to accept the notion that such injuries cannot occur from events that we generally perceive as “minor.” The harsh reality is that insurance companies will be hesitant to offer more than nominal amounts to settle motor vehicle injury claims when there is minor car damage, because they know that juries are usually reluctant to award more than nominal damages.
  3. Preexisting medical conditions. If you have never been injured before, the insurance company will probably have a higher evaluation of your claim. If you have had prior injuries or adverse medical conditions, the insurance company will probably discount your claim. It is easy for defense attorneys to argue to a jury that a person’s claimed injuries are a result of his or her prior medical condition. The insurance company will take that into consideration in deciding how much money it will offer in order to settle your claim.
  4. Nature of your injury. Obviously, serious injuries have a higher claim value than minor injuries. If you see a doctor or therapist briefly and your injury resolves so that you have no further problems from it, your claim will have a low value. If you receive permanent injuries, your claim will generally have a higher value. The more obvious your injury, the greater its value. For example, a broken bone that is visible on x-ray will generally result in a higher award than a muscle injury that cannot be detected by any form of medical imaging. This is ironic, since most bone fractures heal as good as new, but some injuries to “soft tissue” (including muscles, tendons, and ligaments) never fully heal and cause lifelong problems.
  5. Consistency. From start to finish, the evaluation of your case will depend on whether it presents a consistent picture. Inconsistencies in your evidence will hurt your case. If you give different accountings of how the accident happened, or the injuries you received, or how your injuries have affected your daily life, you will have a hard time getting a recovery for your loss. If you fail to tell your doctor of prior injuries or medical conditions, the record in your case will be forever flawed and it will lower the value of your claim.
  6. Integrity. You are the single most important ingredient in your claim. This is a different way of emphasizing the need for consistency (section e. above), but it is so vital that it warrants repeating. The highest claim evaluations are given for people who are honest, candid, motivated, and likeable. The lowest claim evaluations are given for people who are perceived as less than honest, tricky, lazy, or unfriendly. In negligence claims, juries (and, consequently, insurance companies) distrust claimants who appear “out to get” the other person. If the defense has evidence it can use to argue that you are trying to “get rich off the system,” your case runs the risk of losing entirely. Your claim will be seriously damaged by anything – no matter how small it may seem – that indicates you might be trying to hide something. If claims adjusters, attorneys, and juries see you as the kind of person they would like to have as a friend or neighbor, your claim will have its maximum value.
  7. Your attorney. It should be no mystery that insurance companies are influenced by the attributes of your attorney. Attorneys who are honest, aggressive, fair-minded, and skilled will be able to negotiate higher settlements and win higher jury awards than attorneys who are inexperienced or who are perceived as untrustworthy. Integrity is a vital element for your attorney, just as it is for you. Your attorney’s medical knowledge is essential in working with your doctors and presenting your case to the insurance company and at trial. You attorney’s ability to stand up to courtroom battles will weigh heavily in the insurance company’s evaluation of your claim, and in the trial itself.

Personal Injury Claims