Accident victims have a legal right to obtain compensation after an accident. This is often done through settlement negotiations between the involved parties. In fact, most personal injury claims are settled out of court, with only three percent decided through a trial.
The US Department of Justice found that, on average, about half of all personal injury lawsuits are successful for the person bringing the lawsuit (the plaintiff). So, if you bring a personal injury lawsuit, there’s a 50-50 chance you’ll win.
However, the success rates can vary depending on the type of case. For example, in cases where someone was injured in a car accident, the plaintiff had a slightly higher chance of winning – about 60 percent. But in cases where someone was injured due to medical malpractice (like a mistake made by a doctor or hospital), the plaintiff’s success rate was much lower, at only 19 percent.
This begs the question, how are settlement negotiations done in personal injury cases? Read on to learn more.
The Role of Insurance Companies in Settlement Negotiation
Insurance companies are at the heart of personal injury claims. In most cases, the at-fault party will have a liability insurance cover responsible for compensating the victim’s damages.
To do this, the insurance company must first investigate the magnitude of the injuries and the type of damages to compensate for. After their investigation, the insurance company offers the victim an initial settlement offer. This amount may be insufficient to cover the injured party’s losses, and the victim may turn it down and negotiate for a higher amount.
Most insurance companies are unwilling to pay compensation and will settle for the lowest amount possible. For this reason, it is crucial to have reliable legal counsel when filing a compensation lawsuit. Your lawyer will help calculate your damages’ value and negotiate with the insurance company.
The Negotiation Process
Negotiation for personal injury cases is done through mediation. This is a method of dispute resolution where a neutral third party (mediator) steps in to help the disputing parties reach an agreement.
Both the insurance company and the injured party present their claims to the mediator, who then helps them arrive at a favorable and acceptable decision by both parties. The parties must submit supporting evidence such as documentation, hospital expenses, lost income, and other bills resulting from the accident.
Why You Need a Personal Injury Attorney
Personal injury attorneys are crucial to the success of a settlement negotiation in the following ways:
- They help injured parties understand and estimate the value of their claims
- They help gather and present evidence to support the victim’s claims
- They handle the legal paperwork
- They negotiate with insurance companies
Remember, different states have different rules regarding personal injury claims. Depending on the jurisdiction, the insurance company might take a different approach toward settling a personal injury claim. Moreover, each state has its statute of limitations when filing such a lawsuit.
In some cases, several parties may be liable for your accident, some of which could be government entities. You might face particular restrictions in lawsuits against government bodies. Unless you are familiar with these requirements, it may be challenging to navigate the legal system, especially if you are still recovering.
Therefore, finding a qualified personal injury attorney is as essential as filing a claim. They will ensure your claim is made within the statute of limitations and represent you in the subsequent proceedings. Most lawyers work on a contingency fee, and you will not be required to pay anything upfront until your claim is settled.
The Settlement Agreement
Once both parties reach a settlement agreement, they will sign a written form containing the settlement amount and other agreed terms. Once this is done, the defendant pays the plaintiff, freeing the insurance company from further liability.
If the parties cannot make a joint decision, the claim proceeds to court, where the judge or jury decides the way forward.
Final Thoughts
The settlement negotiation process is often long and complex. A personal injury claim could take months, if not years, before both parties agree.
“Hiring a personal injury lawyer can be beneficial as they have the knowledge and training to navigate the legal system, negotiate settlements, and represent you in court,” says injury lawyer John Yannone of Price Benowitz Accident Injury Lawyers, LLP. “This can help reduce the stress and time involved in dealing with a personal injury case, allowing you to focus on your recovery,”
