How Much to Ask For in a Personal Injury Settlement?

Do you have injuries from a car accident, work-related accident, or other accident that isn’t your fault? If you do, you deserve fair redress in a personal injury settlement. Most people need clarification as to how much they should ask for. In such cases, a skilled and experienced personal injury lawyer like Rosensteel Fleishman, PLLC, comes in handy. 

It’s important to note that personal injury claims include incidents that led to permanent injuries, impairment of bodily functions, loss of limb, or death. So, if you wish to pursue a personal injury settlement without the help of a lawyer, here is what you should do while determining how much to ask for.

Arrive at a Fair Figure

You start by sending a demand letter to the other party. You can calculate redress by calculating economic or special damages based on factual figures such as your medical bills after the accident. A fair figure is a personal injury settlement that fully compensates your expenses. You deserve redress for all the losses incurred after the accident. These losses may include the following:

• Medical expenses already incurred.
• Reasonable future medical costs you may incur, such as physical and mental therapy
• Lost wages or other forms of income
• Lost working capacity in case of permanent injuries or disabilities
• Pain and suffering
• Loss of companionship
• Property damage

No hard and fast method calculates redress for emotional distress, pain, suffering, loss of companionship, etc. A personal injury lawyer will use one of these two methods:

1. Daily

This method values your pain and suffering daily. Your annual salary will guide the lawyer and multiply that value by the period (measured per day) your recovery takes.

1. Multiplier

This method uses the value of other redress forms, such as medical bills. It multiplies this value with a set number between one and five, depending on the severity of the injuries.

Start With a Figure Higher than What You Expect

You begin the negotiation process in your demand letter by requesting higher redress than you will eventually accept. Start high because the insurance adjuster will come in with a low figure. This helps prepare the ground for back-and-forth engagements with counter-offers until both parties agree. The final amount depends on your (or your lawyer’s) personality, the adjusters’ personality, and other variables in the claim, like uncertainty about whether your injuries are permanent.

However, do not make an outrageous settlement demand. The adjuster will counter it with a meager amount, drawing out the process. Make the figure higher but sensible. A general rule of thumb is 75% to 100% above what you would settle for.

Do Not Accept Less Than You Deserve

The other party will try to offer you a low amount to gauge whether you understand your claim’s worth and probably test your resolve. When they make the first offer, they respond based on whether the proposal is reasonable. You can go slightly lower than your initial demand to show goodwill, but do not jump at the initial offer. Lawyers are adept at these negotiations, and you are better off with a skilled lawyer to negotiate on your behalf.

Ask the Other Party to Justify Their Offer

The other party might make a meager offer as a tactic to break you. Stick to your initial amount in the demand letter and ask for a justification for their low request. Ask them to explain why they think your settlement should be so low. Make notes of their rationale and draft a letter responding to their points. Depending on the justification, you can slightly lower the initial demand and wait to see if they accept that figure before you reduce it again.

Include the Demand Amount in the Last Paragraph

In the last paragraph, demand for a specific amount as redress for pain and suffering endured, lost wages, or other losses that fall under damages. Before you state the amount, reiterate your argument’s strongest points and other unique facts, such as extensive treatment, permanent injury, extended recovery period, or dangerous behavior exhibited by the insured before the accident. An experienced personal injury lawyer will understand how to detail the damages in the demand letter.

Engage a Personal Injury Lawyer 

If you have yet to engage a lawyer and things are not proceeding as you hoped they would, consult a personal injury lawyer. A lawyer is critical if your compensation is for serious injury and exceeds a few thousand dollars, if you seek future damages, or if there is a dilemma about who was at fault.

The question of how much to ask for when demanding personal injury compensation is tricky. You might ask for too much or too little, complicating the issue. Engaging an experienced personal injury lawyer saves you the trouble of calculating the claim, negotiating for a worthy settlement, and dealing with the nitty-gritty of the case.