You may be feeling overwhelmed by medical bills, lost wages, and insurance claims if you have been injured in an accident. One of the most important parts of your recovery may be the negotiation process, which could determine just how much compensation you receive.
Whether you are dealing with a difficult insurance adjuster or contested liability, understanding how personal injury settlement negotiations work can empower you to make the best decision for your case.
What Is a Personal Injury Settlement Negotiation?
A personal injury settlement negotiation is the process through which someone who has been injured attempts to reach an agreement on compensation with the at-fault party to avoid trial. This compensation typically covers economic damages, such as medical bills and lost wages, as well as non-economic damages for pain and suffering or emotional distress.
These negotiations typically occur before a case goes to trial, but they can also take place at any stage during litigation. More than 90 percent of personal injury cases are resolved through settlements rather than trials. This can expedite resolution and reduce legal costs for everyone involved.
What Is the Role of a Personal Injury Lawyer in Negotiations?
A personal injury lawyer acts as your advocate and negotiator throughout the claims process.
While you are recovering from injuries, your lawyer will be:
- Gathering medical records, accident reports, and witness statements
- Evaluating your financial losses and how much may go into your pocket
- Communicating with the insurance company
- Making demands for compensation
- Negotiating counteroffers
- Advising you on whether to accept a settlement or proceed to litigation
Insurance adjusters are trained to minimize payouts, often using tactics designed to pressure you into settling quickly and for less than you deserve. An experienced personal injury lawyer will understand these tactics and know how to counter them effectively.
When Do Negotiations Typically Begin?
Negotiation typically begins after you have reached maximum medical improvement (MMI). This is the point at which your condition after an accident has stabilized, and further medical treatment is unlikely to change your prognosis significantly.
Waiting until you reach MMI will help your lawyer accurately calculate your current and future damages, including potential compensation for long-term care or disability costs.
Your lawyer will start the negotiation process by sending a demand letter to the at-fault party and their insurance company. This letter will outline your injuries, provide supporting documentation, and propose a settlement amount.
How Do Insurance Companies Respond in Negotiations?
An insurance company may do the following after receiving your demand:
- Accept the demand and agree to pay
- Reject the demand outright
- Make a counteroffer
Counteroffers are common and may be significantly lower than your initial demand. A personal injury lawyer can help you evaluate whether you should accept an initial offer.
Countering opens the door to back-and-forth negotiations, where each side argues for their valuation of the case. This can last for weeks, months, or years, depending on the complexity of your case and the willingness of both parties to compromise.
What Happens if Negotiation Fails?
You cannot force a party to settle a claim or lawsuit. If negotiations reach a standstill, you may need to file a personal injury lawsuit for rightful compensation. Litigation may take longer and involve additional expenses, but it could be the only way to pursue full compensation.
Negotiations often continue even after a lawsuit is filed. Many cases settle during discovery or even in mediations before trial. Filing a lawsuit can serve as a strategic move to pressure the insurer.
What Factors Influence Settlement Negotiations?
Several key factors can impact the outcome of your negotiation:
- Severity of your injuries: More severe injuries often lead to higher settlements. Permanent disabilities, long-term medical care, or loss of earning capacity can significantly increase the value of your claim.
- Medical treatment and documentation: Comprehensive medical records that link your injuries to the accident can strengthen your case. Gaps in treatment or a lack of documentation can weaken it.
- Liability and fault: Your negotiation position is stronger if there is clear evidence that the other party was liable. In cases where fault is disputed, your lawyer may need to present evidence such as eyewitness testimony, video footage, or expert analysis.
- Insurance policy limits: The amount of available insurance coverage often caps how much you can realistically recover. Your lawyer may explore other avenues of compensation if the at-fault party is underinsured.
- Your lawyer’s reputation and experience: Insurance companies are more likely to negotiate fairly when they know your lawyer has a history of successful litigation. A strong legal team signals that you are prepared to go to trial if needed, which puts pressure on the insurer to offer a fair settlement.
These are just some of the many factors that may influence settlement negotiations in a personal injury case. A Scranton personal injury lawyer can help evaluate which factors may strengthen or weaken your negotiations.
Contact Our Scranton Personal Injury Lawyers for a Free Consultation
If you’ve been injured and are navigating a complex claims process, don’t face the insurance company alone. The experienced team at Fellerman & Ciarimboli Law, PC understands the nuances of personal injury settlement negotiations and will fight to ensure you receive the full compensation you deserve.
Contact our Scranton personal injury lawyers today at (570) 714-4878 for a free consultation and let us advocate for your best possible outcome.
