As if getting into a car accident in California weren’t bad enough, trying to get compensation for your injuries and repair bills can feel like someone is adding insult to injury. One reason this recovery process can be so difficult is because of low-ball settlement offers from car insurance companies.
If you’ve been in a car accident and have received a low settlement offer from the insurance company, then Maison Law can help. Our car accident attorneys can help you negotiate your insurance claim and receive full compensation. We offer free consultations and case evaluations, so don’t wait to contact us.
Factors That Affect the Size of a Settlement Offer
You have bills and paystubs that clearly show how much the accident has cost you in terms of vehicle repairs, medical expenses, and lost income. So why is it so hard to get full reimbursement from the insurance company? There are multiple reasons as to why the car insurance company is low-balling you, some of which may include:
- A dispute as to the extent of your personal injuries, including how long it will take you to fully heal.
- What proportion of your damages include non-economic damages, like pain and suffering and emotional distress.
- Applicable car insurance policy limits or caps.
- How plaintiff-friendly the county is in terms of personal injury lawsuits.
- How egregious or sympathetic the liability party’s conduct was in causing the accident. Juries view honest mistakes far differently than intentional or reckless conduct.
- How credible and sympathetic you come across as a witness should you need to testify at trial.
- Whether the at-fault driver’s liability is obvious or questionable.
- The amount of evidence you have to prove fault and the overall strength of that evidence. Traffic camera and dash cam footage is far more credible than your word against the defendant’s word.
Why Car Accident Cases Often Settle
Most court cases, both civil and criminal, settle before trial. One main reason for this is purely logistical: the current civil and criminal court systems don’t have the capacity to take every case to trial. Litigants understand that not settling means even further delays getting through an already slow court docket.
A second main reason is risk aversion. Neither side wants to risk losing at trial, so to avoid this uncertainty, they agree to settle a case for a compromised amount. The plaintiff ensures they get some sort of recovery and the defendant avoids the scenario where they have to pay a massive judgment if they lose in court.
Next, sometimes each side wants closure and to move on as quickly as possible. Maybe a defendant honestly believes they can go to trial and win. But the idea of a trial, then having to fight an appeal makes them question whether it’s worth fighting the case.
A fourth reason is cost. Litigating a case is expensive. There are attorney’s fees, court costs, expert witness fees, administrative costs, paying for a stenographer, etc. So imagine a plaintiff is offered $50,000 to settle their case. If they go to trial, they can expect to have to spend another few years in court for the chance to win $100,000. Even if they won, that could be another $20,000 or $30,000 in litigation costs. When all is said and done, the additional money they might receive isn’t worth the extra few years to get it and the risk of getting nothing at all.
Fifth, there’s confidentiality that comes with a settlement. Trials are public, and so are the pleadings, motions, and filed documents. Parties may wish to avoid making public their medical information or other personal details if their case makes it to trial.
Finally, there’s the preservation of business and personal relationships. Maybe the two people involved in the car accident know each other. If they litigate, things might get personal and hinder their ability to work (or live) together in the future.
So it’s clear that in most cases, both sides want to settle. But how do they come up with a settlement amount they’ll both agree to?
Determining What a Fair Settlement Offer Should Be
There are two components to a fair settlement amount. The first component is somewhat simple to calculate. It looks at quantifiable facts from the case, such as:
- Vehicle repair bills
- Out-of-pocket medical expenses
- Lost wages
- Added cost-of-living expenses due to the injury. This may include having to hire an in-home care nurse or other professional to complete chores around the home that the victim can no longer do themselves.
- The non-economic damages awarded in similar car accident cases in the past for things like pain and suffering, loss of consortium, and emotional distress
You add up all these numbers, then multiply them by the probability of winning a case at trial, and you have a rough estimate of what the case is “worth” and therefore, what it should settle for. But car accident cases aren’t always this straightforward. Other variables can make it harder for both sides to agree to a settlement number. Some of these factors include:
- The personal risk aversion either side has to litigation.
- Whether there’s personal animosity between those involved in the accident.
- How quickly each side wants to move on and end the dispute.
- How stressful the car insurance or lawsuit process is to each side.
- The existence of permanent disfigurement or scarring from the accident.
- How reprehensible the at-fault driver’s conduct was in causing the accident.
Just one of these “soft” factors can make an otherwise generous settlement offer unacceptable to one side and result in protracted negotiations or no settlement at all.
How To Maximize a Car Accident Settlement Offer
After getting into a car accident, there are steps you can take to ensure your case settles for the largest amount possible:
- Getting treated by a medical professional. This is important not only for your health and safety, but for creating a record of your injuries. Insurance companies want proof that you were hurt and won’t just take your word for it.
- Get an estimate for vehicle repairs. You’ll need paperwork to justify whatever amount you claim is needed to repair or replace your damaged vehicle.
- Do what your doctor tells you to do. If you ignore your doctor’s recommendations, it makes it easier for the insurance company to say your injuries aren’t as bad as you say they are. It also makes it easier for them to offer a lower settlement amount because you’re not getting the medical treatment that’s being recommended to you.
- Keep good notes. Details about the accident and information about how your life has changed because of the accident can be helpful for refreshing your recollection when preparing for trial.
- Keep an eye on the calendar. Under California law, you have two years from the date of the car accident to file a lawsuit to recover for your injuries. One of your biggest pieces of leverage during settlement negotiations is the threat of going to court. If you miss this two-year statute of limitations deadline, you lose this leverage. This deadline is just six months if the at-fault driver worked for a government entity, like the USPS.
Contact a Car Accident Settlement Lawyer from Maison Law
Insurance companies are looking out for themselves first, their insureds second, and you third. As a result, it’s common for insurance companies to try and take advantage of car accident victims, especially if they don’t have an attorney. If you try to negotiate a settlement by yourself, it’s likely that you’re going to get low-balled or will be missing out on a contractual or legal right by accepting the settlement offer.
Sometimes, the insurance company’s offer is as high as it’s going to be and maybe you should accept it. But it’s worth having a car accident lawyer, such as one from Maison Law, to confirm you’re not missing anything and are getting the most compensation you can reasonably expect to receive. Contact us today for a free consultation and case review. You pay nothing until we recover money on your behalf.
