Settling a Personal Injury Case: The Primary Factors

First things first: if you are attempting to settle a personal injury case without a lawyer on your side, you're probably making a big mistake. This isn't always the case; while a lawyer can almost certainly get you more money, it may only be enough of a difference to cover his or her fees, in which case you have wasted your time. But to forge ahead with negotiations without so much as consulting with a lawyer is a bad idea. Still, some people do it, and if you feel that talking directly with the insurance company is in your best interests, you should at least know the factors that go into determining a settlement.

Direct Damages

These, by and large, constitute your hospital bills and lost wages. If you have been permanently disabled, you probably want compensation that allows for projected wages for the rest of your life. This is going to be hard to come by in a negotiated settlement and it's going to be nearly impossible without the help of a lawyer. When you attempt to negotiate directly without hiring a personal injury attorney, the opposing insurance company has nothing to be afraid of. Even if the facts of the case are blindingly obvious, the results of a negotiation are going to hinge on how seriously the other side takes you. Without a lawyer or the threat of a protracted, costly lawsuit hanging over their heads, there is little incentive for them to settle a large sum.

Non-Economic Considerations

Damages in a personal injury case aren't limited to those in black and white. Most states allow for non-economic damages such as "pain and suffering" and a decreased quality of life. These are tough to put a financial price tag on, which is just one more reason why you would be better off hiring legal counsel.

Your Bottom Line

You can hardly hope to have a successful negotiation if you aren't sure what "success" means to you. Before you begin talking money, you need to have a figure in mind. This should be the minimum amount you'll accept as a settlement. Use the above factors to arrive at a number you feel is appropriate. While you can, and probably should, aim for more, you need to know the figure below which you will not drop. If the insurance company can't meet this number, you'll know you need to proceed with a lawsuit. Do not allow proceedings to become so protracted that you miss your filing window.