Injured in an Accident
Settlement Offer Review
A Settlement Offer Should Be Evaluated in Context.
When the insurance company makes an initial settlement offer, it is often a starting point for negotiations and may not represent the most that the company is willing to pay.
It also does not necessarily mean the offer is entirely unreasonable.
The important question is whether the offer fairly reflects the strengths, weaknesses, risks, and potential value of your claim.
That requires more than looking at the number.
What Is the Insurance Company Evaluating?
When an insurance company makes a settlement offer, it is evaluating the case from its own perspective.
Among other things, it may consider:
- How the accident happened
- The available evidence
- Disputed issues concerning fault
- The nature and extent of the injuries
- Medical treatment and diagnostic findings
- Prior medical conditions
- Lost wages or other economic losses
- Whether additional treatment may be necessary
- The credibility of the parties and witnesses
- The likelihood of success if the case is litigated
- The cost and risk of taking the case further
The offer reflects the insurance company’s assessment of those issues.
It does not necessarily reflect yours.
The Amount of the Offer Is Only Part of the Analysis.
A settlement offer should not be evaluated in isolation.
I want to know what evidence supports the claim, what evidence may hurt it, what the medical records show, what the defense is likely to argue, and what risks would exist if the case were litigated.
A larger injury does not always produce a larger settlement.
A strong liability case can be weakened by medical issues.
A serious injury can still present problems if causation is disputed.
A case with significant damages can lose value if the evidence concerning fault is poor.
Every claim has to be evaluated as a whole.
What Happens If You Reject the Offer?
Rejecting an offer does not end the negotiation process. However, before another offer is made, the insurance company will often require a demand. A demand is simply a statement of how much you would be willing to accept to resolve the claim. The insurer may then make another offer in response to the demand or may wait for more evidence before changing its position.
There may also be circumstances where accepting a reasonable offer is better than continued litigation, which may drive up costs and drag the process out unnecessarily.
The decision should be based on an informed assessment of the case, not simply on whether the number initially feels high or low.
What Is the Case Actually Worth?
There is rarely a single precise number that represents the value of a personal injury claim.
Case value is usually better understood as a range.
That range depends on the evidence, the injuries, the venue, the credibility of the witnesses, the quality of the medical proof, the defenses available to the insurance company, and the risks of litigation.
An experienced evaluation should identify not only what supports a higher value, but also what could reduce it.
That is the analysis I provide.