Evaluating Settlement Offers in Personal Injury Lawsuits

Got an Injury? That’s so unfair.

Insurance offer? Can’t wait to get this over with.

The problem is…

Most people don’t know if an insurance offer is good.

They want the stress to end. They’re worried about paying the bills. They just want the case to be settled so they can move on with their life.

The result? They accept the first offer they get.

Don’t do this.

In this article, you’ll learn:

What Personal Injury Settlement Offers Really Look Like
Red Flags that an Offer is Too Low
The Real Settlement Amounts in Personal Injury Cases
When to Accept and When to Fight

Table of Contents

What Personal Injury Settlement Offers Really Look Like

Let’s face it, personal injury settlement offers are the insurance company’s “best attempt” to settle your case for as little money as possible.

Here’s what most people don’t know:

Insurance adjusters are trained to lowball you. Real lowball you. They assume you’re in a hurry to settle and have no idea what your case is worth.

The fact is that 95% of personal injury cases settle before they ever get to trial. This means that insurance companies are fighting tooth and nail during settlement negotiations.

They know that if they can make your life difficult with a lowball settlement offer, you’ll just take it and be done with it.

Don’t be this guy.

Did you know…

Cases that go to trial actually have a decent chance of winning. Car accident victims win 61% of the time when their case goes to a jury.

Insurance companies would rather settle because they know the math doesn’t work in their favor in court.

Red Flags that an Offer is Too Low

Do you know if the insurance company is trying to lowball you?

Ask yourself these questions:

Did they offer you a settlement very soon after the accident? If they make an offer before you’ve even finished medical treatment, they are trying to get you to accept before the full extent of your injuries becomes apparent.
Are they pressuring you to accept the offer quickly? Insurance companies commonly try to scare you into accepting a low offer. “We need to accept or reject in 48 hours or it will be void.” Don’t believe it.
Is the number they’ve offered you out of nowhere? Oddball amounts like $5,000 or $10,000 are likely the result of a generic formula. They’ve put little to no thought into your actual situation.

Here’s what you need to know…

The initial settlement offer is often only 10-20% of what the case is actually worth.

In some cases, they’re even lower.

The Real Settlement Amounts in Personal Injury Cases

Let’s take a look at the actual settlement numbers in real life.

Personal injury settlements average anywhere between $10,000 to $75,000, but again, that’s a huge range. Each case is different.

Here are some common injury settlement ranges:

Minor soft tissue damage: $2,000 to $8,000
Bone fractures: $15,000 to $50,000 (can go up to $100,000-$500,000 if surgery required)
Severe Injuries: $300,000 to Millions of Dollars

Keep in mind, these are averages. Each case is different and will vary.

Here’s the breakdown:

Economic Damages These are the damages that are easy to quantify. Medical bills, lost wages, future medical costs. You have receipts, medical records, pay stubs, etc.

Non-economic Damages These are the damages that are subjective and more difficult to calculate. Pain and suffering, emotional distress, loss of enjoyment of life. Insurance adjusters are trained to lowball you in this area.

People undervalue their claims all the time. Most people are not fully aware of all the non-economic damages that they’ve suffered. Insurance companies love this because it’s super easy to lowball you in this area.

When Working With a Personal Injury Attorney Makes Sense

Here’s something else most people don’t realize…

If you have anything more than a minor fender-bender, you need help. A qualified Riverside personal injury lawyer can properly evaluate your claim and fight back against insurance companies that will do everything in their power to give you as little money as possible.

Why is this important? Insurance adjusters do this every day. This may be the only time you’ll ever have to negotiate a settlement.

Insurance companies know this and use it to their advantage.

Most people who negotiate on their own without professional help walk away with less money than they should. Sometimes a lot less.

Professional representation evens the playing field.

Insurance companies take you much more seriously when you have a lawyer, and settlements are usually much higher.

When to Accept a Settlement Offer vs. Fight Back

When should you accept that settlement offer?

When should you send that counteroffer and fight back?

Here are the key factors to consider:

If…

The offer more than covers your medical bills with an additional reasonable amount for pain and suffering
You’ve reached MMI (maximum medical improvement)
The policy limits are low and the offer is at or near the policy limit

Then take it.

If…

The offer doesn’t cover your medical bills
You’re still getting treatment
They are making it seem like you were at fault
The offer is ridiculously low compared to similar cases

Then push back.

One more thing about fighting back…

You don’t have to take the first, second, or even third offer. Negotiation is part of the process.

Insurance companies actually budget for multiple rounds of back-and-forth offers during negotiations.

The key is to be patient and strategic.

The Settlement Negotiation Process

Here’s a basic overview of how personal injury settlement negotiations work:

Step 1: You or your attorney send a demand letter detailing the injuries suffered and amount of compensation sought.

Step 2: The insurance company responds with a counteroffer, usually much lower than your demand.

Step 3: Negotiations take place. This can last weeks or months.

Step 4: Agreement reached or decision to file a lawsuit.

Note: Most cases settle somewhere between the initial demand and the first counteroffer.

Avoiding Common Settlement Mistakes

How do you not screw up the most common settlement mistakes?

Never give recorded statements without fully understanding what you’re agreeing to. Insurance adjusters love getting you on the record and then using your words against you later.
Never sign anything without being 100% sure you understand what you’re signing. Settlement agreements are binding and final.
Don’t rush into a bad settlement just to get money now. A “quick” settlement can come back to haunt you later if your injuries turn out to be worse than initially thought.

Key Takeaways About Settlement Evaluation

Settlement evaluation is not rocket science, but it does take knowing a few things about how the process works.

Insurance companies assume most people are uninformed, in a hurry to settle, or both. They make an intentionally lowball offer and hope you take it without really doing your research.

Don’t be this guy.

Remember, 95% of cases settle, but that doesn’t mean you should accept the first offer. Most initial offers are designed to see if you know what you’re doing.

If you have serious injuries, large medical bills, or a disputed fault situation, it makes sense to pay for professional help.