Negotiation is an extremely important part of the personal injury settlement process. When someone gets hurt because of another person’s carelessness or negligent conduct, the injured victim has a right to be compensated for their losses. However, the parties often disagree on the amount of compensation that is due.
Negotiation is typically the process used to reach an agreement and resolve the personal injury claim. Keep reading to learn more about negotiation and where and how it fits into a standard personal injury case.
Personal Injury Settlement Process
No two injury claims are the same. For instance, a car accident claim may be very different from a slip and fall accident claim. However, the general steps that the claims follow are very similar:
Receive Medical Treatment
First, a victim typically receives medical treatment for their injuries. The amount of treatment required and the total cost of medical bills can have a significant impact on the final settlement amount and the negotiation process.
In most cases, the victim should reach maximum medical improvement (MMI) prior to starting settlement negotiations. This allows both parties to understand the victim’s full medical diagnosis and future health outlook.
File the Claim
Most personal injury claims involve some type of insurance, and you typically file a claim with the insurance company to start the process. The insurance company will investigate your claim and determine whether it is covered under the terms of the policy.
If you have a lawyer on your side, the initial claim is often accompanied by a demand letter. Your lawyer should have a good idea of the value of your claim prior to contacting the insurance company.
The demand letter states the basis for the claim, an overview of your damages, and a specific amount of compensation that you are demanding as settlement.
The value of your claim should include all your damages, such as:
- Medical bills
- Lost wages
- Future reduced earning capacity
- Pain and suffering
- Loss of quality of life
- Emotional distress
An adjuster will be assigned to your claim, and the insurance adjuster is likely to contact your attorney for a conversation about your claim.
Understand Insurance Policy Limits
Insurance policy limits can play a large role in overall negotiations to settle your claim. Your lawyer knows that the insurance company cannot make an offer higher than the policy limits. In some cases, they may go ahead and demand full policy limits in the initial demand letter, especially if your case involves severe or catastrophic injuries.
Go Through Discovery
If a lawsuit has been filed, the parties will go through discovery. This process allows both sides to gather evidence and uncover all the facts associated with the claim.
Common discovery methods include:
- Interrogatories
- Requests for admission
- Requests for production
- Depositions
Once discovery is complete, each side has information about the strengths and weaknesses of their case. This is when settlement negotiations typically get very serious.
Participate in Negotiation
Both parties to the claim use the information they have to put what they believe is a proper value on the case. Typically, the insurance adjuster will make an initial settlement offer. This offer is usually much lower than the amount requested in the demand letter.
The attorney is likely to make a counteroffer that is lower than their original demand but higher than the initial offer from the adjuster.
The negotiation process can take anywhere from a few days to several months, depending on the complexity of the claim. There may be many phone calls, meetings, and other interactions before both parties agree on a settlement amount. In some cases, mediation may also be part of the negotiation process.
Put the Settlement in Writing
Once a settlement has been reached, the agreement must be put in writing. The outcome of the negotiation is not official until the settlement agreement has been signed. In some cases, it must also be approved by a judge.
Benefits of Negotiating a Settlement For a Personal Injury Claim
Most personal injury claims are settled without going to trial. There is a reason why so many settlements are negotiated. The main reason is that negotiating a settlement allows you to determine the outcome of the case. Going to trial is risky, and the outcome can be unpredictable when your case goes to a jury.
You could potentially be awarded more compensation at trial, but you could also walk away with nothing. Negotiating an agreement allows both parties to arrive at a figure they believe is fair, given the facts of the case.
Contact the Salinas Personal Injury Lawyers at Mercado Kramer, LLP for a Free Consultation
If you need help negotiating a settlement, you should consider hiring an attorney. They can put a proper value on your claim and help you negotiate a top-dollar settlement. For more information about how we can help, contact Mercado Kramer, LLP at (888) 311-4050 to schedule a free consultation with a Salinas personal injury lawyer today.
