Settlements

March 28, 2025 by Will Pemberton

After an accident, dealing with an insurance company can be one of the most stressful parts of the recovery process. When an insurance company makes a settlement offer, it may seem tempting to accept and move on.

However, initial offers are often lower than what you may be entitled to. If you reject an insurance settlement offer, understand that the claims process will continue. You will not automatically be denied compensation because you rejected the offer.

The Negotiation Process After a Rejection

Settlement rejections lead to negotiations, which can follow these steps:

Counteroffer Submission: You or your lawyer may present a counteroffer with a more reasonable amount, backed by evidence. That may include medical bills, lost wage documentation, and expert opinions.
Insurance Response: The insurance adjuster may either accept the counteroffer, provide a revised offer, or request additional documentation.
Further Negotiations: Several rounds of offers and counteroffers may take place before both parties reach an agreement.

Negotiations are a common part of the claims process. Claimants should be prepared to justify their counteroffer with clear documentation.

Why You Might Reject an Insurance Settlement Offer

Insurance companies aim to minimize payouts, and their first offer is often not their best. You might reject a settlement for several reasons:

The offer does not fully cover medical expenses, lost wages, or other damages.
Future medical treatments or complications have not been accounted for.
You believe you deserve compensation for pain and suffering that was not considered.
The offer was made before the full extent of your injuries was understood.

Rejecting an offer does not mean you will not receive compensation. Instead, it signals to the insurance company that you are willing to negotiate for a fairer amount.

Potential Delays and the Risk of a Stalemate

Rejecting an initial settlement can lengthen the claims process. Insurance companies may delay negotiations in hopes that you will accept a lower offer out of frustration. In some cases, they may refuse to budge, leading to a stalemate.

At this point, you may need to decide whether to continue negotiating, pursue alternative dispute resolution (ADR), or consider litigation.

Alternative Dispute Resolution Options

If negotiations stall, ADR methods such as mediation or arbitration may help resolve the dispute without going to court:

Mediation: A neutral third party helps facilitate discussions between you and the insurance company to reach a settlement.
Arbitration: A neutral arbitrator reviews evidence from both sides and makes a legally binding decision on the settlement amount.

The National Association of Insurance Commissioners notes that ADR can often be faster and less costly than litigation. (Source: National Association of Insurance Commissioners)

Filing a Lawsuit

If negotiations fail and ADR is not an option, you may need to file a lawsuit. Litigation involves:

Filing a Complaint: A formal lawsuit is filed against the responsible party (often the insurer) in civil court.
Discovery Process: Both sides exchange evidence, interview witnesses, and build their cases.
Trial or Settlement: Many cases settle before trial, but if not, a judge or jury will determine the final compensation amount.

Note that civil litigation can take months or even years. However, it provides an avenue for claimants to receive fair compensation when negotiations fail.

The Risk of Losing at Trial

While litigation can lead to a higher payout, it also carries risks. If the court rules in favor of the insurance company, you may receive nothing. Additionally, trials involve court fees, expert witness costs, and extended time commitments.

Final Considerations: When to Accept a Settlement

Deciding whether to accept a settlement requires weighing:

The certainty of receiving compensation now vs. the possibility of more later.
The costs of further legal action.
The strength of the evidence supporting your claim.

Claimants should carefully review any settlement agreement to ensure it fully covers their losses before accepting.

What If I Reject a Car Accident Settlement?

If you reject a car accident settlement, negotiations may continue, but if no agreement is reached, your case could proceed to trial. For example, suppose the insurance company offers $20,000, but your damages exceed $50,000.

Rejecting the offer means your attorney may file a lawsuit, gather evidence, and argue your case in court. A judge or jury may award a higher amount—or less. Litigation also extends the timeline and adds legal costs.

Achieving a Fair Resolution

Rejecting an insurance settlement offer is a strategic decision that can lead to better compensation but may also extend the claims process. Whether through negotiation, ADR, or litigation, understanding your rights and options can help you achieve a fair resolution.

For more information regarding your insurance claim, we suggest connecting with an accident attorney.

February 26, 2025 by Will Pemberton

When you are in a car accident, you often worry about vehicle damage and medical costs. However, there are also other losses. These include physical pain and emotional distress, or commonly known as “pain and suffering.”

So, will a car insurance company pay you for pain and suffering damages?

A quick answer: Possibly. It is common for car insurance policies to include pain and suffering compensation in them. So, it’s certainly plausible that a car accident victim would receive a pain and suffering award. Let’s unpack what we mean by that, starting from the top.

Understanding Pain and Suffering

“Pain and suffering” encompasses the physical discomfort and emotional anguish resulting from an injury. This can include chronic pain, limitations on daily activities, depression, and a diminished quality of life. Unlike medical bills, these losses don’t have a direct monetary value, making them more challenging to quantify.

Types of Car Insurance Coverage

Car insurance policies are designed to protect drivers financially in the event of an accident. The coverage for pain and suffering largely depends on the type of insurance and the specifics of the policy.

Liability Coverage: If you’re at fault in an accident, your liability coverage pays for the other party’s damages, including their pain and suffering. However, it doesn’t cover your own pain and suffering.
Uninsured/Underinsured Motorist Coverage (UM/UIM): This coverage protects you if you’re involved in an accident with a driver who has insufficient or no insurance. In many states, UM/UIM can cover your medical expenses and, in some cases, pain and suffering, depending on the policy terms.
Personal Injury Protection (PIP): PIP, required in some states, covers medical expenses and lost wages regardless of fault. However, PIP typically doesn’t cover pain and suffering.

Filing a Claim for Pain and Suffering

To seek compensation for pain and suffering, you generally need to file a third-party claim against the at-fault driver’s insurance. This process involves:

Documenting Your Injuries: Maintain detailed medical records, including diagnoses, treatment plans, and any prescribed medications.
Recording the Impact: Keep a journal of how the injuries affect your daily life, noting any physical pain, emotional distress, and limitations on activities.
Consulting Professionals: Mental health professionals can provide documentation of emotional distress, which can support your claim.

Calculating Pain and Suffering

Insurance companies often use one of two methods to estimate pain and suffering damages:

Multiplier Method: This approach involves adding up your actual damages (like medical bills and lost wages) and multiplying that sum by a number between 1.5 and 5. The multiplier reflects the severity of your injuries and their impact on your life. For example, if your medical expenses total $10,000 and a multiplier of 2 is used, your pain and suffering would be valued at $20,000.
Per Diem Method: This method assigns a daily dollar amount to your pain and suffering and multiplies it by the number of days you’ve been affected. For instance, if the daily rate is $100 and you experience pain for 200 days, the total would be $20,000.

It’s important to note that these calculations are starting points. The final amount can vary based on factors like the credibility of your documentation, the insurance company’s policies, and state laws.

State-Specific Considerations

Insurance regulations and coverage options can vary by state. Full tort, for example, allows for the recovery of pain and suffering damages without restrictions, while limited tort may limit the ability to claim these damages unless the injury is severe. Understanding your state’s specific laws and insurance requirements is essential when considering claims for pain and suffering.

Challenges in Receiving Compensation

While it’s possible to receive compensation for pain and suffering, several challenges can arise:

Policy Limits: Insurance policies have maximum payout limits. If your damages exceed these limits, you may not receive full compensation.
Proving Non-Economic Damages: Unlike medical bills, pain and suffering are subjective and harder to quantify. Providing thorough documentation and professional testimony can strengthen your claim.
State Laws: Some states have caps on non-economic damages or specific thresholds that must be met before claiming pain and suffering. Familiarize yourself with your state’s regulations to understand your rights fully.

Steps to Protect Yourself

To enhance your chances of receiving fair compensation:

Review Your Policy: Understand what your insurance covers, including any provisions for pain and suffering.
Consider Additional Coverage: Purchasing UM/UIM coverage can provide extra protection if you’re involved in an accident with an uninsured or underinsured driver.
Seek Legal Advice: Consulting with a legal professional can provide guidance tailored to your situation and help navigate the complexities of insurance claims.

A Final Note

While car insurance can cover pain and suffering under certain circumstances, it’s not always straightforward. Understanding your policy, state laws, and the claims process is vital to ensure you receive the compensation you deserve. By staying informed and proactive, you can better navigate the aftermath of a car accident and address both the tangible and intangible impacts on your life.

February 21, 2025 by Will Pemberton

Emotional distress is an important part of settlement calculations. However, its influence can vary greatly depending on the case details, the location, and the evidence presented. The monetary influence of emotional distress on a claim can be from very little to quite a lot. Like many personal injury issues, it’s complicated. Should we dive in?

What Is Emotional Distress in a Personal Injury?

Emotional distress refers to the mental suffering an individual endures following a particular event or circumstance. In this case, emotional distress is a reaction to an injury.

Injury claims may associate emotional distress with post-traumatic stress disorder (PTSD). They can also include anxiety, depression, and a general decline in quality of life.

Unlike physical injuries, emotional distress is not always immediately visible, which makes proving its impact more challenging. However, it is a valid component of a personal injury claim and can significantly increase a settlement amount.

How Is Emotional Distress Calculated?

Economic damages like medical bills are relatively easy to calculate. For those, there’s generally a paper trail. When it comes to non-economic damages, it’s not quite as straightforward. As an element in pain and suffering calculations, claims will arrive at emotional distress amounts by:

Multiplier Method: This method adds up all economic damages, like medical bills and lost wages. Then, it multiplies this total by a number, usually between 1.5 and 5. This number depends on how severe the emotional distress is.
Per Diem Method: This gives a daily dollar amount for the emotional pain experienced. It then multiplies this by the number of days the victim has suffered.

In either case, the strength of the evidence plays a critical role in determining the final amount.

Factors in Emotional Distress Compensation

Several factors can influence how much emotional distress contributes to a settlement:

Impact and Duration: Severe PTSD or chronic anxiety often leads to higher settlements than temporary stress.
Medical Proof: Records from a mental health professional can strengthen a claim. That includes diagnoses, therapy sessions, and prescriptions.
Witness Accounts: Statements from family or friends who note behavioral changes can help validate distress claims.
Injury Severity: More traumatic injuries usually lead to higher emotional distress awards.
Defendant’s Actions: If the injury resulted from intentional harm, there may be an increase in compensation.

Challenges in Proving Emotional Distress

Because emotional distress is subjective, proving its impact can be more difficult than demonstrating physical injuries. Defendants may claim that the distress is faked or unrelated to the accident. To strengthen a claim, injury victims should consider the following:

Keeping a journal to document daily emotional struggles, nightmares, or panic attacks
Seeking professional mental health treatment and maintaining records of therapy sessions
Providing testimony from medical experts who can explain the link between the injury and psychological distress

The Role of Expert Witnesses in Emotional Distress Cases

Expert witnesses can play a crucial role in validating emotional distress claims. Psychologists and trauma specialists can provide professional assessments of a victim’s mental health. They can also accurately connect the victim’s condition to the injury.

Their testimony shows how distress affects daily life, work, and relationships. This makes it harder for insurance companies or other parties to downplay the suffering. Expert opinions can also support treatment plans, reinforcing the need for compensation that covers long-term psychological care.

Realistic Expectations in Emotional Distress Settlements

While emotional distress can significantly impact a settlement, it is important to have realistic expectations. Courts and insurance companies often examine non-economic damages carefully. Large payments for emotional distress are rare unless the case is extreme.

That said, emotional distress can still add tens of thousands of dollars to a settlement when backed by solid evidence. In cases of severe trauma, emotional distress can be much greater. This is especially the case when victims suffer a permanent disability or wrongful death.

Emotional Distress & Your Injury Claim

By documenting their psychological impact and seeking professional support, injury victims can improve their chances of securing fair compensation. While money cannot erase trauma, a well-supported injury claim can offer financial help for emotional recovery.

February 18, 2025 by Will Pemberton

Compensation for pain and suffering is calculated in a few ways.

Multiplier Method: One method is the “multiplier” method. This method multiplies actual damages by a number that shows how severe the injury is.

Per Diem Method: Another way of calculating pain and suffering is the “per diem” method. This method gives a daily dollar amount for the suffering experienced.

Pain and Suffering in Personal Injury Cases: Calculation Methods Explained

In personal injury cases, “pain and suffering” refers to the physical and emotional distress resulting from an injury. Calculating compensation for these non-economic damages is complex. It involves measuring personal experiences in a way that makes sense in terms of numbers. This is where the two methods come into play.

1. Multiplier Method

This approach involves adding up all actual economic damages (such as medical bills and lost wages) and multiplying the total by a number typically between 1.5 and 5. The multiplier reflects the severity and long-term impact of the injury.

Factors Influencing the Multiplier:

Severity of Injury: More severe injuries generally warrant a higher multiplier.
Recovery Duration: Longer recovery times can increase the multiplier.
Impact on Daily Life: Significant disruptions to daily activities may justify a higher multiplier.

Example: If an individual incurs $10,000 in medical expenses and lost wages, and a multiplier of 3 is deemed appropriate, the pain and suffering damages would be $30,000.

2. Per Diem Method

This method gives a set amount of money for each day a person suffers from their injury until they fully recover.

Determining the Daily Rate: The daily amount can be based on how much the person usually earns or another fair amount that fits their situation.

Example: If the daily rate is $200 and the person suffers for 100 days, their pain and suffering compensation could be $20,000.

Considerations in Calculating Pain and Suffering

Difficult to Measure: Putting a dollar amount on pain and suffering is hard because it depends on personal experiences.
Judge and Jury Decisions: In a trial, the judge or jury decides how much compensation is fair based on the evidence.
State Laws: Some states have limits on how much money a person can get for pain and suffering.

Insurance Company Considerations

When dealing with insurance claims, companies often use software like Colossus. Such software evaluates factors like medical expenses and injury severity to estimate pain and suffering payouts.

Insurance adjusters may try to reduce these damages. This is especially true in car accident cases where blame is unclear.

Proving Pain and Suffering

Since pain and suffering damages are subjective, proving them requires strong evidence:

Medical Records: Documenting physical injuries, treatments, and ongoing medical care.
Expert Testimony: Medical professionals can testify about the severity of injuries and long-term impact.
Personal Journals: Plaintiffs may keep journals detailing their daily pain levels and emotional distress.
Witness Statements: Family, friends, and co-workers can attest to changes in the victim’s quality of life.

Challenges in Proving Pain and Suffering

Proving pain and suffering can be hard. This is because interpretations are personal and do not have clear proof, like medical bills. Plaintiffs must demonstrate the extent of their emotional distress, chronic pain, or long-term suffering through compelling documentation.

Medical records, expert testimony, and psychological evaluations can help establish the severity of the injury. Personal journals detailing daily struggles, as well as witness statements from family and friends, can further support claims.

Strong legal arguments and thorough evidence collection are crucial in persuading insurance adjusters, judges, or juries to recognize the true impact of pain and suffering.

Pain and Suffering Laws: Wisconsin vs. Other States

Pain and suffering compensation varies by state, with some jurisdictions imposing limits on non-economic damages.

In Wisconsin, personal injury cases generally have no cap on pain and suffering, except for medical malpractice claims. In those claims, the cap for non-economic damages is $750,000.

By contrast, California limits non-economic damages in medical malpractice cases to $350,000.

Some states, like Washington, have no statutory limits on pain and suffering awards at all.

These variations highlight the importance of understanding state-specific laws when seeking compensation, as they can significantly impact settlement negotiations and trial outcomes.

Pain and Suffering in Catastrophic Injuries

Catastrophic injuries—such as permanent disabilities, severe disfigurement, or PTSD—often lead to higher pain and suffering awards. These injuries have long-term effects that impact a person’s daily life, mental health, and ability to work.

When determining compensation, courts and insurance companies consider factors like:

Ongoing medical treatment
Emotional trauma
Loss of enjoyment of life

For example, a person with a spinal cord injury from a car accident may require lifelong care. And someone with PTSD from another traumatic event might struggle with anxiety and depression for years.

Because these conditions cause lasting hardship, victims often receive higher settlements or court awards to account for their suffering. Proving the full impact of a catastrophic injury requires: medical records, expert testimony, and statements from family and friends. These statements typically discuss how the injury has changed the victim’s life.

Keep in Mind...

Calculating pain and suffering damages involves a blend of established methods and subjective judgment. The multiplier and per diem methods provide frameworks, but individual circumstances and jurisdictional nuances play significant roles in determining the final compensation.

January 22, 2025 by Will Pemberton

If you’ve ever been involved in a legal dispute, you might have heard your lawyer suggest settling the case out of court. Settling means resolving the issue without going to trial, often through negotiation or mediation.

While some people believe that taking a case to court guarantees justice, lawyers often recommend settling instead. Why is that? And when do they decide that going to court is the better option? Let’s explore these questions.

The Benefits of Settling Out of Court

There are several reasons why lawyers prefer to settle cases out of court:

Cost-Effectiveness: Trials can be expensive. In fact, they can cost tens of thousands of dollars. Court fees, expert witness fees, and other expenses add up quickly. Even if you win, the costs can eat into your compensation. Settling out of court is often more affordable for everyone involved.
Time Efficiency: Legal cases can drag on for months or even years. Waiting for a court date, preparing for trial, and dealing with appeals can be time-consuming. Settling allows clients to resolve the matter quickly and move on with their lives.
Predictability: In court, the outcome is determined by a judge or jury. Even with a strong case, there’s always a risk of losing. Settling out of court gives both parties more control over the outcome.
Privacy: Court cases are public, meaning the details of your case can become a matter of public record. Settling out of court keeps the details private, which can be particularly important in sensitive cases.
Reduced Stress: Going to court can be emotionally draining for the plaintiff, especially if they are an injury victim. The process involves multiple hearings, cross-examinations, and the possibility of facing the opposing party in a confrontational setting. Settling out of court is usually less stressful for everyone involved.

Why Lawyers Might Take a Case to Court

While settling is often the preferred route, there are situations where going to court is necessary or advantageous. Lawyers might recommend this option when:

The Settlement Offer is Unfair: If the insurance company or the opposing party offers a settlement that is far below what the client deserves, going to court might be the only way to secure fair compensation. For example, if the insurance company offers a lowball amount, a lawyer may decide to take the case to trial to fight for a better outcome.
Liability is Disputed: In some car accident cases, the parties involved may disagree on who was at fault. If the other driver denies responsibility and their insurance company refuses to settle, the case may need to go to court for a judge or jury to decide.
The Case Involves Complex Issues: Some cases are too complicated to resolve through negotiation. If an accident involves multiple vehicles and conflicting witness statements, a trial may be necessary to sort through the evidence and determine liability.
The Defendant Refuses to Negotiate: Occasionally, the opposing party might be unwilling to negotiate or cooperate in reaching a settlement. In such cases, going to court may be the only way to resolve the dispute.
Seeking Punitive Damages: In rare cases, a lawyer might take a case to court to pursue punitive damages. These are awarded to punish the at-fault party for particularly reckless or malicious behavior. For example, if a car accident was caused by a driver who was extremely intoxicated, a lawyer might argue for punitive damages in court to hold the driver accountable.

Real-World Example: Settling vs. Going to Court

Imagine a car accident case where a driver suffers serious injuries after being rear-ended at a stoplight. The at-fault driver’s insurance company offers $20,000 to cover medical bills and property damage. However, the injured driver’s lawyer calculates that the true cost of medical care, lost wages, and pain and suffering is closer to $50,000.

In this scenario, the car accident lawyer might first try to negotiate a higher settlement. If the insurance company agrees to a reasonable amount, the case can be resolved quickly. However, if the insurer refuses to budge, the lawyer may recommend taking the case to court to fight for the full compensation the client deserves.

The Role of Mediation

Before taking a case to court, some lawyers will attempt mediation. Mediation is a process where a neutral third party helps both sides reach a compromise. It’s less formal than a trial and can save time and money. Many car accident cases are successfully resolved through mediation, allowing clients to avoid the stress of a courtroom battle.

Final Thoughts

While the idea of having your day in court might sound appealing, lawyers often recommend settling out of court for practical reasons. Settling can save time, money, and emotional energy while providing a more predictable outcome. However, there are times when going to court is the best or only option, especially if the other side is unwilling to offer a fair settlement or when the case involves complex issues.

If you’re involved in a legal dispute, trust your lawyer’s advice. They have the experience to assess your case and determine the best course of action. Whether it’s negotiating a fair settlement or fighting for your rights in court, their ultimate goal is to achieve the best possible outcome for you.

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What Happens When You Reject an Insurance Settlement Offer?