Who Do Most Personal Injury Cases Settle?

(Photo : Markus Spiske via Unsplash)

If you have been injured in an accident caused by negligence, you probably have already what happens next can be a complicated and frustrating process. 

The good news about having experience with personal injury claims is that they almost always follow a predictable and logical path, step by step. This involves hiring and searching for an attorney, learning the basics of personal injury law, filing a claim, collecting evidence, trying to settle and, if necessary, going to court.

According to the Bureau of Justice Statistics in 2005, 96% of personal injuries lawsuits (also known as "torts") were settled in state courts. The means the chances of your case going to a trial are remote. 

The Reason Insurance Companies Want to Settle

A personal injury lawsuit is where an injured person (called the "plaintiff") sues for damages from the person who caused the plaintiff harm. Most cases result in the plaintiff paying the insurance company of the defendant.

Insurance companies that insure against personal injury generally offer quick settlements for a number of reasons. Insurance companies save time and money by offering quick settlements. Because most plaintiffs don't fully understand their injuries, they often accept settlements quickly and sign releases that deny them the right to sue.

Before you accept any offer of settlement from the defendant's insurance provider, it is essential your fine a personal injury attorney. An attorney can help you understand the settlement process before you accept an offer, or assure you that the settlement is fair.

There are several reasons a settlement generally is preferable to both parties.

Settlements Prevent the Unpredictability of Trial

Personal injury can be unpredictable. Although you might believe that proving fault (also known as "liability") in an accident case will be straightforward, witnesses may not appear as credible at the trial or your accident reconstruction expert might not testify.

Even more unpredictable is proving fault. Insurance companies worry that a jury may award more damages to sympathetic plaintiffs than the case is worth. Plaintiffs worry they will receive less than the settlement offer and will have to pay more for litigation costs and attorney's fees.

In order to avoid unanticipated results and manage their risks, defendants and plaintiffs settle more than 95% of cases. Most cases are settled quickly, particularly when the liability and damages are clear.

Settlements Cost Less Than Trials

Litigation can be expensive, with costs adding up quickly and lasting for many years. Plaintiffs and defendants, or more often their insurers, are ordered to pay for depositions, and court costs, along with travel expenses and expert witness fees.

Settlements are Faster Than a Court Trial

The litigation process may not be completed in the time that plaintiffs can afford. Plaintiffs who are seriously injured often have mounting medical bills as well as lost income. The quicker the case settles the sooner plaintiffs can get out of potentially crippling debt and continue their lives.

It is usually easier to collect a settlement than to get a judgment. You will need to wait for your check to arrive after you have settled a car accident case. The defendant may appeal if you win at trial. It might take up to a year for the appeal decision to be made. You might not be allowed to collect if the amount of the judgment is greater than the defendant's insurance coverage or the defendant has limited assets.

The Role Of Attorneys if you Decide to Settle

A majority of plaintiff attorneys are paid by a contingency fee agreement. Most attorneys receive around 33% of any pretrial settlement, and 40% after trial starts. The quicker the case settles the faster the attorney is paid. A quicker settlement is more profitable for a plaintiff's attorney, as trials and pre-trial preparation take so much time that there is no guarantee of a better result.

Practically speaking, there aren't many law offices that can handle every case that goes to trial. Lawyers often have to handle multiple cases simultaneously. Lawyers would not have enough time to work on every case and to try them all if every case went to trial. The criminal justice system is similar.

The Personal Injury Settlement Process

You have the right to receive compensation if you are hurt in an accident as the result of someone else's negligence. 

Sometimes, you will receive a settlement offer quickly. Other times, you may need to negotiate for a better deal. Talk to a lawyer if you have questions about the settlement process or the value of your case before you accept an offer. Find out how an attorney can assist you with your accident case.

Because there are so many ways a person might be injured, this example of a settlement in a car accident represents what occurs in more personal injury cases.

Typical Car Accident Settlement: What Is a Car Injury Worth?

There are no two car accident cases exactly alike, so it is impossible to predict the value of your claim or the length of the settlement process. The policyholder's legal liability to others for bodily injuries or property damage is usually covered by liability insurance. Insurance Information Institute statistics show that the average car accident liability claim for 2020 was $20,235 in bodily injury and $4711 for property damages.

A survey conducted by Martindale-Nolo asked readers in the United States to share their experiences with car accident cases between 2015 and 2020. While the average settlement award was $23,900 overall, most readers received less that $10,000. 35 percent of readers received less than $5,000, and 23 percent received more than $20,000 in settlements. The average award for readers who sustained injuries was $29,700. It was $16,700 for those who did not sustain any injuries.

Not surprisingly, almost all readers received money as a settlement (98%) rather than in a court verdict after trial. The outcome of claims by readers was improved with legal representation. Readers without lawyers received an average payout of $13,900, while those with lawyers received $44,600.

Average Car Accident Settlement Time: How Long Does it Take to Get a Car Accident Settlement?

Most cases are resolved quickly. 56 percent of respondents to the Martindale-Nolo survey reported their personal injury claim was resolved in less than seven months after their car accident. It took just 10.7 months to get a car accident settlement. This was a mere 0.7% increase from the average of a year.

Sometimes, however, faster is not always better. It took 17 months on average for readers who sent demand letters to negotiate their claims, compared to those who did not (8.8 months), and they received settlements almost twice as high. Although it can take longer to settle a case than if you have an attorney or suffered from injuries, these factors tend to result in higher payouts.

Your Role in Gaining the Highest Possible Settlement

A personal injury settlement negotiation is somewhat like trying to bargain for something in an outdoor market. Both you and the buyer (the adjuster) know how much an item (your injuries) is worth. The adjuster and you know what the insurance company will pay. However, neither side knows what the other side will pay or receive. You go through a process where you test each other. It's a dance of bluffing and bluster, which sometimes takes just two to three phone calls.

The typical personal injury settlement goes through these stages:

• In your letter of demand, you ask for a large amount.

• The insurance adjuster will tell you what is wrong with your claim. 

• These arguments can be answered by you.

• To determine if you are in a rush to settle, the adjuster will make a low counteroffer.

• You accept a few of the adjuster's arguments, and you make another demand that is slightly lower than the one in the demand letter.

• The company's offer is increased by the insurance adjuster.

• Either you accept the amount, or you make another demand.

This process is usually straightforward. How quickly you settle an accident claim will determine how it turns out. This is due to how well you have prepared each stage of your case (investigation, supporting documents and demand letter), how much you are willing and able to settle, and how fast you can do so.

Subjects of negotiation with an Adjuster

An insurance adjuster can ask questions or dispute facts during negotiations to limit your rights to compensation. These questions or disputes could concern:

• Coverage. The extent of the accident coverage provided by the policy.

• Liability. Which party was responsible for the accident? What is your share of liability?

• How severe your injuries were. The extent of your injuries.

• The extent and nature of your medical treatment.

• What type of medical treatment was required and how long it took.

• Also, whether there were any preexisting conditions that could have contributed to the loss (damage) you claim.

An adjuster should be able to ask reasonable questions. You should also respond with reasonable answers. Some questions and arguments may not be legitimate and could be misinterpreted as unfair settlement tactics to reduce the value of your case.

How to Negotiate a Successful Injury Claim

Your actions during settlement negotiations will make the process go smoothly, quickly, with minimal stress and aggravation, and result in a satisfactory settlement. These are the basics of dealing with a claims adjuster. Check out these tips to negotiate with insurance companies.

Keep your records organized. 

Keep track of any conversation you have with the adjuster. Write a letter confirming that either you or your adjuster have stated that they will do or won't do a particular thing or that it is due to happen by a specific date and send it to them. Keep a copy of every letter you send. You must promptly provide information to the adjuster if you have given permission.

Be patient. 

Even though you might have had to wait for income and medical records, don't rush to settle your claim. Claim adjusters will often use this strategy to get you to accept a lower initial settlement offer, and then see if your patience allows them to move on to the next stage. Do not accept a first settlement offer unless you are not able to wait. Your settlement will often increase if you wait. After some time, the adjuster will want to settle your claim quickly.

Be persistent.

Being patient can also be a side effect. Do not allow the adjuster to take over your claim. If an adjuster says he or she will do something, make another offer or talk to a supervisor. Get a date. You should put everything you have agreed to in a confirmation letter. When that date arrives, call and politely request a reply. Set a reasonable deadline for you to receive information or a revised settlement offer if you have requested it. Do not pester an adjuster by calling each day. However, make sure that the adjuster is aware of your presence and that you will continue to follow up on your claim.

Keep calm and be straightforward.

Insurance adjusters are often overworked and underpaid. They hear many stories every day. They are human and don't take threats or abuse well. Keep your cool, even if the adjuster is inconsiderate or unresponsive. It is your job to demonstrate to the adjuster that the process works and that you are honest. Tell the adjuster that you are confident in what you have stated. Do not show emotion. You will most likely receive a good faith settlement offer if you tell the adjuster that you are making a good faith claim.

If negotiations for personal injury settlements have stopped or been broken off, most adjusters are eager to settle personal injuries claim quickly and efficiently. There are always some adjusters who, because of their personality, negotiating style, or company policy, are willing to bluff and stall long after all documents have been reviewed, and all arguments made.

They will often offer a low initial offer, then continue to stick with it without giving any explanation. They want to intimidate or frustrate you into accepting a settlement that is lower than the value of your injury claim.

What are your options if the personal injuries settlement negotiations have stalled or broken down completely?

Persistence (often) pays

It is possible to get an adjuster to change his mind by calling or writing every week, or every ten days, to request a fair and reasonable settlement offer. Reaffirming your resolve to be patient and persistent, and not abandon your claim, can help you get an adjuster to make a fair settlement offer. Learn more how to respond to a low personal injury settlement offer.

Do not show that you aren't willing to file a lawsuit

Adjusters dislike lawsuits. If a personal injury lawsuit has been filed, it means that lawyers will soon become involved. Costs will rise, and the claim file could be taken from the adjuster and given an insurance company lawyer, claims manager, or even a judge. This may leave a mark on the adjuster's record. A lawsuit can cause upset in the insured, which could lead to lost business for the insurer. A claims adjuster will want to avoid this. You might be able suggest to the company that if they don't make a fair offer by a specific date, they will file a lawsuit. Also, to hire a personal injuries lawyer to represent you.

While the threat of a suit can sometimes be a way to get an adjuster to settle, it only works if there is a possibility of a lawsuit. Uninsured motorist coverages, as well as some no fault car insurance policies, require that any unresolved claims be submitted for arbitration. The insured cannot file suit. Before you threaten to sue, make sure you have the legal authority to do so. (For more information on arbitration for car accident claims.

Talk to an attorney

Most personal injury lawyers work on a contingent fee basis, meaning they take a portion of your settlement. However, some will be willing to meet with you for an hourly rate while you handle your claim. You might consider meeting with a lawyer who is experienced in personal injury cases if you and your claims adjuster are stuck.

All your documents, papers, notes, correspondence, and other documentation are required. The lawyer may highlight a particular rule or fact that you can use with your next contact with an adjuster after a brief review. A lawyer might be able help you file a suit to protect your rights within your state's statutes of limitations.

Sometimes, an adjuster will accept a new idea or legal theory as part of the settlement negotiations. It is possible to tell the adjuster that you have spoken with an attorney. If a fair settlement proposal is not made, the attorney will take over your claim.

You should know upfront how much a lawyer will charge for an hour and what time the lawyer will spend reviewing your case. Find out more about and what questions to ask before you hire a personal injury lawyer.

Talk to the Supervisor of Adjusters

You might negotiate a better deal with another adjuster if you are unable or unwilling to settle your claim. An adjuster is usually assigned a supervisor and an overall claims manager. If you are at an impasse or the adjuster does not respond to your claim promptly, you can politely suggest that you might reach an agreement. 

Talk to the claims supervisor.

Asking the adjuster to bring in the supervisor may cause the adjuster not to accept the settlement offer.

Allow some time for the adjuster to promise to contact the supervisor and review the file. An adjuster might offer a better settlement. If the adjuster wants to talk with your supervisor about the matter, you can agree on a date when the adjuster will give you the results.

Ask for the name of the supervisor if the adjuster refuses to talk with you. Write or call the supervisor and mention how many times you have spoken with the adjuster. Also, explain that the adjuster has not made a reasonable settlement offer to you and has not given you satisfactory reasons. Mention any inappropriate settlement tactics or delays the adjuster. Ask the supervisor to review the file.

Ask for a written explanation of the reasons the insurance company is settling the matter. This statement could be useful in any subsequent steps, such as contacting the claims manager who is responsible for the supervisors and adjusters. The supervisor will give you the name of the claims manager. Next, go back to the manager and describe the problems you had with the supervisor and adjuster. The claims manager may authorize an increase in settlement offers to avoid more hassles with persistent claimants.

Use the "Bad Faith" Card

Your insurance company, as well as the other party's, has to agree to negotiations in good faith. Failure to do so can lead to severe financial consequences for the company. The carrier will be more likely to pay attention if you bring up the possibility of "bad faith". Find out more about insurances and "bad faith" in injury cases.

You may be interested in a complimentary attorney consultation if you have been hurt in an accident, slip and fall, medical malpractice or other unfortunate events. After you've done some research on a personal injury lawyer in your region, you can schedule an initial consultation to get answers to questions you may have. 

After you have discussed the options and strategies with your attorney, it's time to move on to the details. 

Many personal injury lawyers work on a contingency basis. This means that they only get paid if you receive compensation. That is the best option for both of you. 

Many times, victims of injury cannot afford to pay for legal representation. A contingency allows individuals to get legal representation that they otherwise wouldn't be able to. It also gives attorneys the incentive to work hard to make you as much money as possible.