What Is a Personal Injury Settlement?

A personal injury settlement is an agreement between an injured person (the plaintiff) and the party responsible for the injury or their insurance company (the defendant). Negotiating a settlement is a way to resolve a legal dispute without going to trial; however, some cases do require litigation.

The settlement typically involves the defendant paying a sum of money to the plaintiff in exchange for the plaintiff agreeing not to pursue further legal action related to the injury.

Personal injury settlements generally cover various types of losses, including:

1. Medical expenses: This includes costs for hospital stays, doctor visits, medications, rehabilitation, and any future medical care related to the injury.
2. Lost wages: If you have lost income because of days off of work, you can be compensated for that. You can also be paid for potential future loss of earnings caused by the long-term effects of your injuries on your ability to complete job functions.
3. Pain and suffering: Non-economic damages to compensate for physical pain and suffering, which can include emotional distress caused by the injury.
4. Property damage: If any personal property was damaged in the incident (e.g., a car in an auto accident).
5. Loss of consortium: Compensation for the impact on the plaintiff's relationship with their spouse or family.
6. Out-of-pocket expenses: Any other costs directly related to the injury or its aftermath.

The specific losses covered in the settlement and the amount of compensation can vary widely depending on:

• The nature and severity of the injury
• The circumstances of the incident
• The amount of  fault attributed to each party

To maximize your settlement, you will need to understand the common tactics insurance companies use to minimize your payout. In this blog, we outline what insurers may try to do to negotiate a lower settlement and offer tips on how to combat these tactics.

Insurance Adjusters Are Not There to Act in Your Best Interest

Insurance companies are businesses primarily focused on maximizing profits and minimizing payouts. When you're pursuing a personal injury claim, it's crucial to understand that the insurance company representing the at-fault party is not acting in your best interest. Their primary goal is to settle claims for as little money as possible, which often conflicts with your need for fair compensation.

Insurance Company Settlement Tactics

Common settlement negotiation tactics insurers may employ include the following:

• Denying liability without a thorough investigation: Insurance companies often quickly deny liability for a claim without conducting a proper investigation. They may dismiss your claim outright, hoping you'll give up or accept their decision without question. This tactic is designed to discourage claimants from pursuing valid claims.
• Contacting you shorting after the accident with an offer: Insurance companies may reach out very soon after an accident with a settlement offer. This quick contact is designed to catch you before you fully understand the extent of your injuries or damages. They hope you'll accept a lowball offer before consulting with a lawyer or getting a comprehensive medical evaluation.
• Pressuring you into accepting a low offer: One common tactic insurance companies employ is offering lowball settlements. Insurance adjusters know that many people are vulnerable and in need of immediate funds after an accident, and they try to capitalize on this desperation. They may reach out soon after an accident with what seems like a generous offer, hoping you'll accept before fully understanding the extent of your injuries or long-term medical needs. These initial offers are typically far below what your claim is actually worth.
• Delaying the claims process: On the flip side of quick offers, insurance companies might intentionally drag out the claims process. They may repeatedly request unnecessary information, take a long time to respond to communications or cycle your case through multiple adjusters. This tactic can be particularly effective if you're facing financial pressure from medical bills or lost wages. The hope is that you'll become frustrated or desperate enough to accept a lower settlement just to end the process.
• Misrepresenting the law or coverage information: Some insurance adjusters may provide incorrect information about the law or policy coverage. They might claim certain damages aren't covered when they are or misrepresent statutes of limitations or other legal details. This tactic takes advantage of most people's limited knowledge of insurance law and policy details.
• Asking you to provide a statement: Insurance companies often request recorded statements shortly after an accident. While this may seem routine, it's actually a tactic to gather information that could be used against you. They may ask leading questions or try to get you to admit partial fault.
• Requesting blanket medical waivers: Insurers frequently ask claimants to sign broad medical release forms. While they may claim this is necessary to process your claim, these blanket waivers often give them access to your entire medical history. They may then use this information to argue that your injuries are pre-existing conditions or unrelated to the accident. This tactic allows them to fish for any information that could potentially reduce or deny your claim, even if it's not directly relevant to your current injuries.

Tips for Maximizing Your Settlement

You can combat insurance company settlement tactics using the following tips:

• Retain an attorney: Having an experienced personal injury attorney represent you can be a powerful defense against insurance company tactics. An attorney understands these strategies and knows how to effectively counter them. They can handle all communications and negotiations with the insurance company on your behalf, protecting you from potentially damaging statements or unfair pressure tactics. Your attorney can also ensure that the insurer has all the necessary information and evidence to conduct a thorough claim investigation, including detailed medical records, expert opinions, and documentation of all damages.
• Collect needed evidence: Thorough evidence makes it harder for insurance companies to dispute your claim or offer lowball settlements.
• Be honest about pre-existing conditions: While it might seem counterintuitive, being upfront about any pre-existing conditions can actually strengthen your case. It prevents the insurance company from later claiming you were dishonest, which could damage your credibility. Your attorney can also work to prove that your condition was worsened because of the accident.
• Adhere to medical treatment instructions: Following your doctor's orders and attending all scheduled appointments not only ensures the best possible recovery but also creates a clear record of your injuries and treatment. This documentation makes it difficult for insurers to claim that your injuries are less severe than reported or that you contributed to their worsening by neglecting treatment.

Here to Protect Your Right to Fair Compensation

Given these realities about insurance companies and their tactics, it is advisable to approach personal injury claims with caution and seek experienced legal representation to protect your interests and ensure you receive fair compensation for your injuries and losses.

At Houston Washburn Law, our attorney has been representing clients in personal injury matters for a decade. Known for being compassionate and thorough, Attorney Washburn assists clients throughout Georgia with a range of personal injury matters, including:

• Car accidents
• Truck accidents
• Other motor vehicle accidents

Give us a call at (770) 766-8966 to get started on your case today.