Most personal injury cases are settled by the insurance company for the at-fault party and the victim before they go to court. Even if your personal injury lawyer files a lawsuit, the case may be settled before the trial.
When you negotiate a personal injury settlement, you want to receive the maximum compensation for your claim. You deserve to be fairly compensated for the pain, suffering, and monetary losses caused by another party’s negligence and wrongdoing. However, the amount you will receive depends on many factors, including your negotiating skills.
What Is the Negotiating Process for a Personal Injury Case?
Negotiating a personal injury settlement consists of several phases. Although personal injury cases have unique factors, most cases include:
Filing an Insurance Claim
The process begins when you file an insurance claim. The insurance company will then investigate the claim to determine if its insured is liable for your damages.
Remember, insurance companies want to avoid liability for claims. Be cautious when speaking with an insurance adjuster or claims representative, as the company may use your comments against you by blaming you for the accident.
Reservation of Rights Letter
You will likely receive a letter from the insurance company stating it is investigating your claim and reserves the right to deny it due to insufficient coverage or your alleged responsibility for the accident.
Complete Medical Treatment
You should complete medical treatment before attempting to negotiate a settlement, as you cannot possibly know the full extent of your damages until your doctor releases you from their care. It is possible that you will have a permanent impairment that could result in future damages.
An insurance company may make a settlement offer before you complete medical treatment. Initial offers, whether made before or after you complete your medical treatment, tend to be lower than the value of your damages.
Beware of the statute of limitations for personal injury cases. The Illinois statute of limitations for most personal injury lawsuits is two years from the date of injury.
You will likely lose your right to pursue a court case if you miss the deadline. It is best to talk with an attorney after an injury or accident as soon as possible because an exception to the rule could change the deadline.
Calculating Damages
Illinois personal injury laws allow injured parties to seek damages for their monetary losses and suffering. The damages in a personal injury case may include, but are not limited to:
- Medical bills
- Scarring and disfigurement
- Rehabilitative therapy
- Impairments and disabilities
- Lost wages and benefits
- Emotional distress and mental anguish
- Diminished earning capacity
- Loss of quality of life and enjoyment of life
- Out-of-pocket expenses
- Pain and suffering
- Long-term care
Hiring a personal injury attorney improves your chances of receiving a fair settlement. In addition to understanding the value of your economic and non-economic damages, an attorney can protect your rights, gather evidence, and handle negotiations with the insurance company.
Settlement Demand Letter
Your attorney can prepare a settlement demand letter to send to the insurance company. Demand letters address the facts of the case, including the cause of injury. They also include a legal analysis explaining why the defendant is liable for the victim’s damages and a settlement demand for a specific amount.
Response and Negotiations
The insurance company will consider your settlement demand. They could accept or decline it. In many cases, insurance companies make a counteroffer. Experienced injury lawyers know there will likely be back-and-forth negotiations as both parties try to get the amount they desire.
Settlement or Trial
Your attorney will prepare a settlement agreement if you agree to a settlement amount. The insurance company will issue a settlement check when all parties sign the agreement. However, if negotiations fail, you will need to sue the at-fault party and take the case to court.
Factors That Impact How Much Your Personal Injury Claim Is Worth
Successfully negotiating a personal injury settlement requires you to understand the factors that impact the value of your damages. Factors that could increase or decrease the value of your claim include, but are not limited to:
- The type and severity of your injuries and impairments
- Whether you contributed to the cause of your injuries
- The insurance policy limits
- The evidence proving fault and liability
- The impact of your injuries on your life
It is essential to document your damages. Keep copies of all invoices, bills, and receipts. Also, make notes detailing your recovery, including struggles with pain, emotional distress, and performing tasks.
Get Help With Negotiations From an Experienced Chicago Personal Injury Lawyer
If you need help negotiating your insurance claim, reach out to a Chicago personal injury lawyer at Powell and Pisman Injury Lawyers today at (312) 635-5400.