Settlement is a word you hear quite often in personal injury law.
It is an official agreement intended to resolve a dispute or conflict. In a personal injury case, the settlement is usually financial compensation intended to offset the costs the plaintiff incurred from their injuries. Most often, this compensation comes from the at-fault party’s insurance company.
You might think getting the insurance company to pay is the hard part, but it’s not. Insurance companies are eager to write accident victims a check for their injuries as soon after their accident as possible.
Unfortunately, not every settlement is created equal. The trick is getting the insurance company to pay what the accident victim deserves, and that’s where our Nashville personal injury lawyers come in.
The Dangers of Accepting a Quick Settlement
Many accident victims feel tempted to accept the insurance company's initial settlement offer. After all, bills start piling up immediately after an accident, and most people don't have the savings to cover those costs out of pocket.
The insurance company knows accident victims feel financial pressure, and they take full advantage of the situation by making a lowball settlement offer shortly after the accident.
However, accepting this quick check is one of the worst things an accident victim can do for two reasons:
- The offer will be for far less than what the victim deserves.
- Once accepted, the victim can never return to the insurance company and ask for more money.
It's unfortunate, but insurance companies are not on the side of accident victims. They are, first and foremost, businesses whose primary objective is to protect their bottom line. Every dollar they pay out in claims is a dollar they lose in profit. Therefore, they do everything possible to pay accident victims as little as possible.
One common tactic is to call victims soon after the accident, express sympathy for their situation, and then offer to send them a check to help cover immediate expenses. They may even say they're accepting full liability for the accident. It sounds great, but the caveat is that the victim must sign away their right to any future compensation to get the money.
Unfortunately, many victims take the bait. It's understandable, as they are in a vulnerable state physically, emotionally, and financially after their accident. But that quick money comes at a steep cost. Once they sign that release, there's no going back for more compensation, even if their damages exceed what the insurance company paid.
Why the Initial Offer is Never Enough
The insurance company's first offer rarely compensates an accident victim fully because:
It does not account for future medical expenses.
Many accident injuries require ongoing medical treatment that can last for months or even years. The costs can easily reach hundreds of thousands of dollars. However, that first settlement check will only cover the immediate medical bills with no consideration for the extensive care needed down the road.
It does not compensate for lost future income.
Severe injuries often force victims to take significant time off work or even leave their job altogether if they can no longer perform their duties.
The insurance company's quick settlement will include some money for lost wages, but only for the work the victim has missed up to that point. It will not factor in the income the victim will lose in the future because they had to leave their job or take a lesser-paying position. Over a lifetime, this unaccounted-for income amounts to a substantial sum.
It does not properly compensate for pain and suffering.
Alabama allows accident victims to pursue compensation for the physical injuries and financial losses they suffered and the intangible, non-economic damages commonly referred to as pain and suffering. This includes the physical pain and discomfort and the emotional and mental anguish victims experience.
Pain and suffering is highly personal and difficult to quantify, which is why it often makes up the largest portion of a victim's overall compensation. However, the insurance company's initial offer will include little to no money for pain and suffering. In fact, they may tell the victim that there's no way to put a dollar value on what they've been through. That's simply not true.
The Role of an Attorney in Securing Fair Compensation
The best way for accident victims to ensure they receive a settlement that addresses the full extent of their damages is to hire an experienced personal injury lawyer to handle their claim.
Insurance companies know which personal injury law firms in the area have a reputation for accepting lowball offers and which ones will put up a fight. Simply having a lawyer sends a message to the insurance company that the victim is serious about pursuing maximum compensation.
A good personal injury lawyer will accurately calculate both the victim's economic damages, such as current and future medical expenses and lost income, as well as their non-economic pain and suffering damages. Many firms, including ours, work with medical and vocational experts to get the most accurate figure possible. The attorney will then send a demand letter to the insurance company detailing the victim's damages and demanding appropriate compensation.
How the Settlement Negotiation Process Works
The settlement negotiation process begins once the insurance company receives the demand package. The company will review the information and determine how much compensation they believe the victim is owed. They will return a counteroffer to the attorney, likely offering far less than you demanded. At that point, the attorney and insurance adjuster will go back and forth until they reach an agreed-upon number or determine that a settlement is impossible.
Throughout this process, the attorney will advise the client of each offer and the pros and cons of accepting. While the attorney will offer guidance and recommendations, the ultimate decision of whether to accept a settlement offer lies with the client.
If the client is satisfied with an offer, the attorney will accept it on their behalf. The insurance company will then send the settlement checks to the attorney to disburse to the client after deducting attorneys' fees and case expenses.
What Happens if a Settlement Cannot be Reached
If the insurance company refuses to make an acceptable settlement offer, the case will proceed to trial. Litigation tends to favor the accident victim, as juries are generally more sympathetic than insurance companies. They understand the immense toll a severe injury can take on a person's life and are often willing to award significant damages. However, taking a case to trial is risky, time-consuming, and expensive, so it's usually in both parties' best interests to settle.
Some firms avoid trial at all costs and advise their clients to accept a settlement for less than they deserve. But at our firm, we prepare every case as if it's going to trial and have no qualms about arguing in front of a judge or jury if needed. The insurance companies know we don't back down, which incentivizes them to bring a fair offer to the table in the first place.
The Importance of Patience
In addition to hiring the right attorney, one of the most important things accident victims can do to improve their chances of receiving a good settlement is to be patient. Investigating an injury claim, gathering evidence, and negotiating with the insurance company takes time. It's not a process that can or should be rushed.
Our clients often face mounting medical bills and other costs and are anxious to receive a check. But we also know from experience that good things come to those who wait. The clients who trust our process and allow us the time we need to build a strong case are the ones who end up with the best outcomes.
We have a network of medical professionals and funding companies we can refer clients to if they need assistance covering costs while their case is pending. We've found that relieving financial stress enables clients to make clear-headed decisions focused on their long-term well-being rather than their immediate needs.
It's never worth resolving a case quickly for less than its full value. Doing so could leave a client without the resources they need to pay for future care and damages.
Contact a Personal Injury Lawyer from Cory Watson Attorneys Today
At Cory Watson, we’ve been fighting the big insurance companies for our clients for more than 30 years. That experience has earned us a reputation for being unrelenting in our pursuit of maximum compensation for our clients.
We don’t take small settlement checks from the insurance company because doing so would financially compromise our client in the long term. They deserve money for current and future medical bills, lost wages, and the pain and suffering their injuries have caused. Anything less is an insult.
Call our personal injury attorneys today for a free consultation if you’ve been injured in a car wreck, fall, or other accident. We’ve helped hundreds of accident victims in Alabama get the compensation they deserve, and we’re ready to put that experience to work for you.
Call or text (205) 328-2200 or complete a Free Case Evaluation form today!