How Do I Know If I Have a Good Settlement Offer?

Out-of-court settlements often happen in personal injury cases. Most lawsuits of this nature typically end in a settlement offer before it even reaches trial. 

But is settling a personal injury case better than taking it to court? That depends. There’s no denying that settling is the easiest and fastest way to get justice and compensation. However, it’s hard to say if all settlement offers are fair. 

If you’re wondering whether or not you’ve got a good offer in your hands, we’re here to help. In this blog, we’ll discuss what a fair and reasonable settlement offer looks like and the factors that affect the settlement amount. 

What Does A Good Settlement Offer Look Like?

Truthfully, it’s challenging to say whether an offer is good or bad. After all, no personal injury case is the same. What looks like a fair settlement in one case could be disproportionate in another. 

So, to help you out, here are the factors you have to consider when determining whether you have a reasonable settlement offer:

Present & Future Medical Expenses 

A good settlement offer will cover all the current and future medical expenses you might accumulate as you recover from your injuries. Depending on your injury’s severity, you could end up needing long-term care or rehabilitation, which costs a lot.

Emotional Trauma

Emotional trauma is another type of injury you may sustain after a devastating incident. 

A lot of personal injury victims often suffer from depression, anxiety, PTSD, and other similar conditions after the accident. 

With this in mind, a good settlement offer should also cover the pain and suffering you’ve experienced. Although these damages are hard to measure, your settlement offer should allow you to get professional help for your emotional distress. 

Property Damages

Another important factor you have to consider when evaluating a settlement offer is property damages. If you were in a car accident and your vehicle was badly wrecked, a reasonable offer will reflect the cost of its repairs or its fair market value.

Lost Wages & Lost of Earning Capacity

If you had to leave work for a few days after the incident due to your injuries, a reasonable settlement offer would include your lost wages.

For example, you suffered a traumatic brain injury that left you unable to work for days. A good settlement offer will include the earnings you would’ve made had you been able to go to work. 

The same rule applies if you lose your capacity to earn or work. 

Some victims are unfortunate enough to sustain debilitating injuries, preventing them from ever working again. Should this be the case for you, you should only accept a settlement offer that considers this matter.

Calculating Settlement Offers in Personal Injury Cases

No law currently provides a specific method or formula for calculating settlements in personal injury claims. However, several lawyers and insurance adjusters use a mathematical method called the multiplier method as a starting point when creating settlement offers. 

With this approach, they calculate the victim’s overall expenses, from their medical bills to lost wages, and multiply it by a number ranging from 1.5 to 5. 

The multiplier varies depending on the severity of the injuries. For example, if your injuries are minor, your multiplier will range from 1.5 to 3. Alternatively, if you suffered significant or permanent bodily damage from the incident, your expenses will be multiplied by 5. 

Factors That Affect a Settlement Offer

Aside from your losses and damages, insurance adjusters also have to consider other factors when calculating a settlement offer:

Liability

Since California is a pure comparative state, liability is one of the most important factors that could affect your settlement offer. 

Under the comparative negligence law, an injured victim’s compensation will be reduced by their percentage of fault. If you were found responsible for 30% of the incident, and you filed a $100,000 claim, you’ll likely end up with a $70,000 offer. 

Coverage Limits

Not all insurance coverages are the same. Most have varying liability limits. For example, some policies only cover minor injuries, which means they can only give a small settlement offer. 

Conversely, if the other party’s insurance has a high liability limit, you could get a more reasonable amount for your severe injuries. 

Pre-existing Injuries

Pre-existing injuries are another vital factor that could affect your settlement. This is because it drastically changes the worth of your injuries and the time you’ll need to recover. 

If you already have a pre-existing condition, the other party could argue that it could have contributed to the severity of your injuries. The same argument could be made if you included chronic pain in your claims. 

Quality of Life

As mentioned earlier, insurance adjusters will also examine how your injuries affected your quality of life. Will you still be able to go to work after the incident? More importantly, will you still be able to enjoy life just like you did before the accident? 

If the incident left you unable to return to work or enjoy life, you could receive a higher settlement amount.

Get Help Securing A Good Settlement Offer Today

Choosing to settle a personal injury case is one of the biggest decisions you’ll make. Although it’s the easiest way to get justice for your losses, fairness is not guaranteed. 

Insurance companies will try their best to get you to settle for the lowest amount possible. Because of this, you must understand what makes a settlement offer reasonable.

If you need more assistance with evaluating the true value of your case, Adamson Ahdoot is here to help. 

Adamson Ahdoot is one of California’s most trusted civil litigation firms. Our team of experienced lawyers, with over 100 years of combined experience, will help you distinguish a good settlement offer from a bad one. 

We specialize in handling various personal injury claims, from devastating accidents to wrongful deaths. Moreover, we handle each case we receive with the intimacy of a small firm and the expertise of a larger one.

Rest assured, we’ll fight for your right to a reasonable settlement. To learn more about our services, call us at (800) 310-1606 or visit our website.