When you’re pursuing a personal injury claim, it can be exciting to receive a settlement offer. It can be the light at the end of the tunnel — a chance to finally put a stressful part of your life behind you. However, deciding when and how to settle is actually one of the most critical parts of any personal injury claim.
Get it right, and you will be able to face the future with greater confidence. However, if you settle too early or for too low an amount, you could be left with regrets and ongoing financial stress. To make the right choice, you need guidance from a personal injury attorney who truly has your best interests at heart.
The legal team at Hauptman, O’Brien, Wolf & Lathrop, LLC, has one focus: pursuing the best possible outcome after your accident. Discover your rights and the compensation you could receive in a free case review. Call us 24/7 at (402) 241-5020 or schedule a call back today.
Now let’s examine all the factors you should consider before agreeing to a settlement.
The Reality of Working With Insurance Companies
Before examining the individual factors that influence when it's the right time to settle a personal injury claim, it’s essential to understand the insurance company’s goal. Every insurance adjuster is trained to protect the company’s bottom line. So the insurance company is not looking out for you – they are looking out for themselves.
If an insurance company realizes you have a strong case, it is in its best interests to offer you a lowball settlement as quickly as possible. It’s also important to remember that insurance company settlements require you to provide a written or verbal release. Once you have done that, it may be impossible to recover further compensation, even if your physical condition gets worse as a result of the accident.
Instead of falling for insurance companies’ bullying tactics, work with a Hauptman, O'Brien, Wolf & Lathrop, LLC, personal injury lawyer. He or she can guide you through the following elements of your claim and advise you on when to settle.
Factor 1: The Seriousness of Your Injuries
Generally, the amount of compensation you are entitled to depends on how severe your injuries are. According to the American Society of Safety Professionals (ASSP), serious injuries can include the following:
- Fatalities
- Amputations
- Internal organ injuries
- Fractured bones
- Severe burns (second or third degree)
- Complete tendon tears
- Cerebral hemorrhages
- Herniated discs
- Any injury that keeps you away from work for more than 30 days
Serious injuries often result in substantial losses. This can be both financially and in terms of lost enjoyment in life.
Financial losses from severe injuries
Financial losses may include:
- Medical expenses: Including hospital stays, surgeries, therapies, and medications.
- Caregiver support: Catastrophic injuries that lead to permanent disabilities may mean you need ongoing caretaker assistance, which is very expensive.
- Adaptations to your home: If your injury causes mobility problems or other difficulties in accessing your home, you may need to make costly adaptations.
- Lost wages: This could include time away from work or lost business opportunities. If you are unable to do the work you did before, you may also be entitled to compensation for loss of future earning capacity.
Calculating financial losses can be very complex. Your personal injury attorney may work with medical and financial experts to calculate the true cost of your future losses. Do not let the insurance company rush you into accepting a settlement before your lawyer has had time to calculate the full financial impact of your injuries.
Non-economic losses from serious injuries
Financial losses are only part of the picture. If you were seriously injured, you may also be entitled to compensation for the following non-economic losses:
- Pain and suffering: The physical pain and anguish caused by a personal injury can have a devastating impact on your life. In some cases, you may have to manage the pain caused by an injury for the rest of your life.
- Emotional distress: Many people suffer from anxiety, depression, and other consequences to their mental health after surviving a harrowing accident. PTSD symptoms can cause ongoing challenges for some victims.
- Loss of enjoyment of life: Some personal injury victims are no longer able to enjoy the activities they loved before their accident. If you have had to give up an active life due to your accident, this should be considered when calculating your compensation.
- Loss of consortium: A serious accident can have a significant impact on your marital relationship. Loss of consortium, which refers to the loss of the emotional and physical benefits a spouse brings to a marriage, is a means to recover financial compensation for these intangible losses.
Wait for Maximum Medical Improvement (MMI)
Maximum Medical Improvement (MMI) is the point when a doctor confirms that your condition has stabilized and you are not expected to make any further significant improvements. Once you achieve MMI, you will better understand how your injuries affect your daily life and your ability to work in the future.
It is crucial not to settle until you have reached MMI. If you accept a settlement too early and your condition gets worse, you will not be able to claim more compensation.
An experienced personal injury lawyer can review all the evidence related to your claim and ensure you receive the medical attention you need. Only once you have reached MMI will your attorney advise you on whether the settlement offer is fair in the unique circumstances of your case.
Factor 2: The Strength of Your Case
A personal injury lawyer will only agree to handle your case if he or she believes it has a strong chance of success. However, that does not mean that every case taken on is equally strong.
In some cases, liability is clear. There may be high-quality, compelling evidence to prove the other party was negligent and that you are owed compensation. This may give your personal injury lawyer leverage to fight for a more substantial settlement. However, not all cases are so straightforward.
Long and complex cases
Some cases are complex, as multiple parties are involved. At times, it can be challenging to find high-quality evidence or credible witnesses, which can lead to disputes about liability. The longer a case goes on, the more tempting it can be to accept the offer on the table and move on with your life.
Insurance companies may also use delaying tactics to increase the pressure on you to accept a settlement. However, if you work with an experienced personal injury lawyer, he or she can keep the pressure up to reduce delays and work towards a fair settlement.
Comparative negligence
If you were partially liable for your accident, you can still recover compensation in many states. However, it may weaken your case to some extent and mean you do not get as large a settlement as you would have if you were not to blame.
For example, in Nebraska, you can still recover compensation if your degree of negligence is less than 50 percent. However, your total compensation will be reduced by your level of negligence, and the state bars you from recovery entirely if you share an equal amount or more of fault with the other party.
So, if the total compensation is $100,000 and you are 40 percent at fault, your compensation would be $60,000. If both you and the other party are equally to blame, you get nothing.
The insurance company would love to make you believe that your partial liability means you are not entitled to compensation or should accept a lowball settlement. However, when you work with an experienced personal injury lawyer at Hauptman, O'Brien, Wolf & Lathrop, LLC, you can receive tailored advice on when it’s the right time to accept a settlement offer from an attorney who is looking out for your best interests.
Factor 3: The Statute of Limitations
Each state has a statute of limitations — a time limit — for filing personal injury lawsuits. For example, in Iowa, you must file a personal injury lawsuit within 2 years in most cases. If you miss this deadline, you may not be able to file a lawsuit, no matter how compelling your evidence may be.
The danger of delays
Most people file a claim with the insurance company first and only file a lawsuit if it is not possible to secure a fair settlement. The insurance company knows that if it delays and you miss the deadline for filing a lawsuit, your bargaining power is significantly weakened.
The value of hiring an experienced attorney
When you work with an experienced personal injury lawyer, you do not have to worry about missing the deadline to file your lawsuit. As long as you approach the attorney in time, he or she can ensure that your legal rights are preserved by filing a lawsuit within the required timeframe.
Don’t Settle Without Consulting Hauptman, O'Brien, Wolf & Lathrop, LLC
Settling a personal injury claim is about more than just accepting money. It can either have a positive or negative impact on your ongoing recovery, financial security, and emotional well-being. This is no time to take a chance or act on unqualified advice. You need the trusted counsel of an experienced Hauptman, O'Brien, Wolf & Lathrop, LLC, personal injury lawyer.
Our personal injury attorneys are committed to protecting your rights and safeguarding your future. To that end, they will relentlessly pursue a fair settlement or fight your case in court if needed. We help clients across Nebraska from our Omaha, South Omaha, and Bellevue offices, and serve Iowans from our Council Bluffs office.
Let us bring our combined 298 years of experience to bear in your case. Schedule a free strategy session about your case by calling (402) 241-5020 or request a call back today and take the first step on the road to justice.
-Factors to Consider Before Settling a Personal Injury Claim
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