Personal injury rulings frequently make the headlines. The millions of dollars granted by juries tend to make news highlights. But settlements get less attention.
That’s because nondisclosure agreements ensure that most settlements remain confidential, but other factors are also at play. Personal injury settlement amounts are typically not as high as verdicts, hence less thrilling.
Nevertheless, understanding how settlements develop may be crucial since most personal injury claims end in settlements, not trials, particularly if you have a personal injury or are considering a settlement offer.
This post outlines what to anticipate from a personal injury settlement. Read on to learn.
Settlements Are Quite Common in Personal Injury Claims
You’ve probably heard that most felony cases are resolved before trial. That is true. About 94% of these cases are settled through plea bargains instead of going to court.
Do you think that the same numbers apply to civil cases? Numbers vary, but around 95% of civil claims are resolved through settlement.
Litigants can settle for any phase in the litigation process- even before the lawsuit is filed or after it is closed (when the winning party makes a settlement offer to discourage the losing party from filing an appeal).
How personal injury settlements work
The goal of a settlement in a personal injury claim remains the same regardless of the stage of the case at which it is reached. In a settlement, the plaintiff agrees to take a certain amount as a bargain for withdrawing the case.
Settlement negotiations are not easy to navigate for both parties. The plaintiff, or the person claiming to have suffered harm and is seeking compensation, risks accepting a lesser settlement than they could win in court.
The defendant offers to compensate immediately to save on the cost of a potential lawsuit. However, the verdict might take any direction.
There’s a logic to aphorisms like “a bird in the hand is worth two in the bush.” Most plaintiffs prefer assured personal injury settlement amounts instead of gambling at trial, even though trials may result in substantial amounts.
Personal injury lawsuit outcomes
Almost all personal injury cases settle. In fact, the U.S. Department of Justice found that only 5% of personal injury claims make it to trial.
According to a 2005 study by the Bureau of Justice Statistics,
- The success rate for plaintiffs in personal injury claims that went to trial was roughly 50%.
- Auto accident lawsuits had the uppermost success rate, at 61%.
- Claimants only won in 19% of MedMal lawsuits.
That means you are only guaranteed of getting compensation by accepting to settle. This is important for anyone who is considering accepting a settlement offer.
Statistically, you have a 50/50 chance of getting compensation if you refuse the settlement offer. You will receive a greater amount than the settlement offered or get nothing.
Of course, other possible outcomes exist besides taking a settlement or trial. Lawsuits may be withdrawn at any point and for various reasons.
The claimant can withdraw the lawsuit, but the presiding judge may also do so on the grounds of a motion filed by one of the parties in question or sua sponte (the court’s volition).
What Are the Typical Personal Injury Settlement Amounts?
Personal injury settlement amounts depend on the details of every case. At least in theory, compensation is dependent on the extent of damage caused.
For this reason, estimating the usual compensation award, even for similar cases, is challenging. An auto accident that results in a fractured arm will differ from one that results in amputation.
However, the above study provides some useful information (as of 2005):
- 50% of the plaintiffs got not more than $24,000.
- The average settlement for all claims analyzed was $31,000.
- The average settlement awarded for all auto accident claims was $16,000.
- The average settlement in premises liability claims was $90,000.
- In cases of medical negligence, the average settlement was $679,000.
- In cases involving defective products, such as pharmaceutical drugs with unidentified adverse effects, the average settlement was $748,000.
What Affects Personal Injury Case Outcomes?
Both parties in a personal injury case consider various factors when determining whether to settle or proceed to trial. They consider:
- The severity of injuries suffered
- The effect of the injuries on the claimant—for instance, to what extent do they interfere with everyday life
- The cost of medical care and length of recovery
- Injury-related psychological and emotional harm
- The certainty of fault – are there any doubts about who is liable?
- Cost of the litigation
- The time it might take to get a court ruling
- Costs beyond the trial, such as newsworthiness. To what extent will the case’s publicity damage the defendant’s reputation and profession?
Some states have restrictions that cap the amount a judge can grant if a case goes to trial. Some restrictions apply only to parts of the compensation, such as emotional suffering damages.
Sometimes, a judge grants a plaintiff thousands of dollars, but the state legislation will limit that amount to a percentage of the judge’s award.
You may be assured that your lawyer and the attorneys on the other party will be aware of any such statutes if they exist in your state.
How an Attorney Helps with Personal Injury Settlement Amounts
Having a lawyer on your side when negotiating a settlement cannot be overstated.
After all, statistics show that about 90% of personal injury cases handled by a lawyer result in settlements. Even the experience of working with a lawyer alone is priceless.
A personal injury lawyer helps in various ways. They can help:
Advocate for your rights
The other party will have a group of legal experts when you are involved in a personal injury claim. One side of the negotiation table will have insurance providers represented by attorneys with experience handling personal injury claims and settlements.
If you don’t have a lawyer, you will be alone on the opposite side of the negotiation table. The knowledge and insight of your attorney can significantly influence the outcome of the settlement negotiations.
They will begin understanding every detail of your case during the initial consultation and will work to determine the best approach to obtaining a fair settlement or court verdict.
A lawyer will draw on their experience when determining your claim’s value and settlement offers made to you.
Negotiate settlement offers
Even if you know the extent of your injuries, there are several things to consider when negotiating personal injury settlement amounts that you might not have thought about. Your lawyer can handle them with ease.
For instance, can you account for the income you lost during recovery and if your injuries have long-term impacts?
Do you know that if a vehicle insurance provider declines a fair settlement offer and loses the case in some states, the provider—not the at-fault driver—is responsible for paying all damages, including those that exceed the policy limit?
So, if you make a settlement offer that isn’t above the limit, the insurance provider will be compelled to accept it.
If you engage a lawyer specializing in a certain kind of injury, as many personal injury attorneys do, you will benefit from their extensive negotiation skills.
Your attorney also likely has a rapport with the insurance provider’s legal representatives. That doesn’t imply making inappropriate arrangements, but working together often may result in a respectful working environment and fairly equitable dealing.
File a personal injury lawsuit
Filing a lawsuit is essentially the only option left for the plaintiff if the preliminary settlement negotiations—frequently a step in the claims process—fail. Insurance providers often avoid lawsuits since they may be costly and tedious.
As stated earlier, most insurance providers have legal counsel. But lawyers do not come cheap; the longer a lawsuit drags on, the more costly it becomes.
The insurer might not be very concerned if you file a winning case alone since you are not an attorney. But suing might be even more persuasive if you have a skilled personal injury lawyer.
Personal Injury Claim Timelines
Before proceeding, you must confirm that the deadline for filing a personal injury case hasn’t passed. Every jurisdiction has its statute of limitations, which sets deadlines for filing personal injury cases following an accident.
Some states give up to six years to file claims, while others only allow a year. The typical statute of limitations for personal injury claims is two to three years.
However, you would need to file much sooner if your damage was caused by a government agency, such as a military doctor or a police car, due to the government’s unique legal processes.
You may avoid running late by hiring a lawyer and getting started on your case immediately. Besides, this helps ensure that the evidence is not lost or the witnesses won’t forget crucial information.
How Are Personal Injury Settlements Issued?
Once you accept a settlement offer from the insurance provider, the settlement process should take an average of a year.
In one survey, the average duration between an accident and a settlement is 11 months, although some got compensation in weeks.
The insurer will send the settlement to your lawyer if you work with one. Most personal injury lawyers operate on a contingency fee basis, keeping a portion of your compensation once you get it. You only pay the lawyer if you win the case or receive compensation.
Talk to an Experienced Personal Injury Attorney Today!
As you have noticed, personal injury settlement amounts vary. Numerous factors affect the value of your claim and subsequent settlement, including the type of injury, medical costs, pain, suffering, etc.
Do not rely on average settlement amounts of other claims to determine your settlement value. Legal Giant’s partner attorneys can investigate the unique details of your case and determine how much you should get in compensation.
Our partner personal injury lawyers will do everything to ensure you and your loved ones receive the fair settlement you need and deserve.
Contact us at (855) 740-5024 for a free, no-obligation consultation.
