Car accidents happen every day and more than three million people get injured in those crashes every year. An astounding two million of those car accident victims suffer permanent injuries that will pain them for the rest of their lives. The sooner you can settle your car accident claim, the sooner you can start focusing on your recovery.
How to Settle a Car Accident Claim Without a Lawyer?
However, if you’re like most people, you’re likely wondering if hiring a car accident attorney is really necessary. Here’s how to settle a car accident claim without a lawyer so you can make the best decision for your needs and your finances.
Evaluate the extent of your damages
Before you can start working toward a settlement, you need to make sure you have a clear idea of the damages you suffered. This goes beyond the physical damages done to your vehicle and any injuries you suffered. Total up the expenses you’ve incurred since your accident happened. Include everything from car repairs and medical expenses to income lost from missing work.
You may also be able to add future expenses to your total list of damages. For example, if your injuries prevent you from working in your regular job for several years, make a note of it. You may be able to add those future lost wages to your total damages.
Keep in mind that calculating the exact total of your damages can be difficult. You need to think about every possible expense you could have so you can get the largest settlement possible. There’s no harm in overdemanding at first as long as you’re prepared to negotiate the settlement amount.
Speak to the insurance adjuster
Before you can start working toward a settlement, you need to speak with the insurance adjuster to find out what they’re willing to cover after you file your claim. They’ll look at the damage done to your car and any medical expenses you have relating to the accident. They’ll use this information to calculate a payment amount that’s fair in their eyes. It’s rare for those payments to be enough right from the beginning.
You’ll need to negotiate with the insurance provider to get the most out of your settlement. Anytime you’re speaking with the insurance company, put your emotions on the back-burner. You need to be calm, cool, and collected when you speak with them so you can better pay attention to what they say and identify any problems with their stance as they come up.
Craft your demand letter
Once you have an idea of what the insurance company is willing to pay, it’s time to craft your demand letter. This is your chance to explain why the insurance company’s settlement is too low and why you need more money. Take care to explain the extent of your injuries and losses in as much detail as you can, using actual numbers if possible.
Point out why the other driver is responsible for those additional expenses and why their insurance company needs to pay you what you’re owed. Though it’s rare that the demand letter will be enough to increase your settlement amount to a level that you want, it’s the starting point. It signals to the other insurance company that you’re willing and ready to fight for what you deserve.
Once they receive your letter, they’ll submit a counter-offer. At this point, you’re free to either accept the counter-offer or continue to negotiate. If you accept the settlement, you’re done and you can focus on getting your life back to normal. However, if you continue to negotiate, you’ll likely end up needing to take the case to court if you want to get the most money possible.
Do your due diligence before going to court
Before you make an appearance in court, do your research. Understand the costs you’ll face just for bringing a case before a judge. There are administrative charges, court fees, and the potential for further lost income as you’ll have to spend time in the courtroom rather than at work.
If at all possible, try to settle the car accident claim out of court.
You’ll meet with the other driver’s car accident attorney and come to an agreement on an appropriate settlement. This will save you time, money, and spares you the expense of having to hire an auto accident attorney to represent your case.
If you decide to go to court, make sure you research the types of settlements other drivers in your position received in previous lawsuits. This will help you better understand your options and your chances of winning. Remember, if you lose, you could end up having to pay the other drivers’ attorney fees. The more prepared you are for your court appearance, the better off you’ll be.
Await the judge’s verdict and accept the settlement
After hearing your case, the judge will make a decision on how much of a settlement you deserve. If you represented yourself well, that amount will be higher than what the insurance company initially offered. However, if you weren’t able to make a solid case, the judge may declare that the insurance company’s original settlement was enough. Once you accept the settlement, you’ll be able to close out your car accident claim and move on with your life.
Understand that representing yourself isn’t always best
While it is possible to represent yourself in court and settle a car accident claim without hiring a car accident lawyer, it’s not the best idea. Attorneys have extensive experience helping clients get the money they deserve. Even better, they can streamline the settlement process so you get your money more quickly. If you do end up going to court, they’ll be able to mount your case and argue on your behalf against the insurance company’s experienced legal team.
Now you know how to settle a car accident claim without an attorney
If you’ve been in an accident, the first thought on your mind is likely how to save money. Now that you know how to settle a car accident claim without an attorney, you’re ready to start presenting your case, but that doesn’t mean you should go it alone. Instead of trying to represent yourself, let the team at Kerley Schaffer help you get the money you deserve. Contact us to schedule a free consultation today.
While it's important to understand what you're getting into, it's always possible to handle your own personal injury claim without hiring an attorney. And in cases where your injuries are relatively minor and the other side's fault is pretty clear, it may be more economical to negotiate your own personal injury settlement, rather than handing over one-third of your award to a lawyer (which is common practice under personal injury lawyer fee agreements).
In this article, we'll offer some tips on figuring out damages in a personal injury case—in other words, how much your case is worth. Once you factor in the other key issues (evidence of liability, your own potential negligence, availability of insurance coverage, etc.) you’ll be ready to write your demand letter.
Because this page is long, we’ve broken it down into the following sections:
- When To Consider Self-Representation
- Important First Steps & Tips
- Estimating Your Damages
- Sending Your Demand Letter
- Countering and Accepting a Settlement
When To Consider Self-Representation
It's certainly possible to represent yourself in a personal injury claim after an accident come away with a satisfactory result. This is especially true if you have experience handling your own legal matters in the past, and you're able and willing to stand up for yourself and your case.
But when deciding whether self-representation is your best option, it helps to consider two key factors.
How badly were you hurt? If you slip and fall in a store and suffer a few bruises, the store may not put up much of a fight, and they may offer a quick settlement to cover your medical bills with a little extra thrown in for your inconvenience. Everyone is (relatively) happy.
But if you were involved in a serious car accident, have undergone extensive medical treatment, lost a fair amount of income, and have experienced significant pain and suffering as a result of your injuries, you may want to at least discuss your case with an experienced injury attorney. When losses ("damages" in legalese) are significant, the stakes increase for everyone—for you because you want fair compensation for your injuries, and for the defendant (usually an insurance company) because they don’t want to pay a large amount to resolve the case. This is when things get adversarial, and it's also when you want someone who has experience with the (often hostile) back and forth of litigation.
Is it clear that the other party was at fault? If it’s obvious that the defendant or one of its employees is to blame for your accident—you’ve got witnesses who will testify on your behalf, for example—you may find it easier to prove fault, and to get a satisfactory settlement on your own.
But, as with the severity-of-injury issue discussed above, you can expect more of a fight if it is not so clear that the defendant is responsible for causing the underlying accident. The defense may even point the finger back at you and say that you weren’t watching where you were going when you slipped, or you were driving too fast and could have avoided the car accident, or you fell down some stairs because you were on your phone (not because the stairs were faulty). Again, in this kind of situation, it’s usually worth the cost of hiring a lawyer.
Important First Steps & Tips
First steps to be taken before sending a demand letter to the other side's insurance company:
- Take pictures of the property damage, the accident scene, and the injuries.
- Get a copy of the police report (for a car accident case)
- Get the medical treatment you need, as soon as possible.
- Use any "personal injury protection" ("PIP") insurance coverage to pay initial bills, and then use your health insurance. Get copies of all records and bills.
- Do not give a recorded statement to the other person's insurance.
- Make sure you understand the time limits for your claim—the personal injury statute of limitations varies by state.
Do not write about your accident on social media. This info can get to the other side of your case, and can be taken out of context to damage your case or minimize your injuries.
Estimating Your Damages
There are two types of damages in most personal injury cases:
- damages capable of exact calculation (often called "special" damages), and
- damages not capable of exact calculation ("general" damages).
- Damages Capable of Exact Calculation—Special Damages
Special damages include property damage (costs to fix or replace your car after an accident), lost earnings and lost earning capacity, medical bills, and other financial losses attributable to your accident. They are capable of exact calculation because they can usually be added up. Since medical bills and property damage in an accident claim are pretty straightforward, let's look at how lost earnings work.
Lost Earnings
Lost earnings are exactly what they sound like—how much money have you lost, and how much do you stand to lose, as a result of your injury?
How does this work? Let’s say you earn $50,000 per year, that you have been totally disabled for one year due to a serious back injury suffered in a car accident, and that you are now only able to return to a part time job earning $25,000 per year. You have lost earnings of $50,000, and a lost earning capacity of $25,000 per year for the remainder of your work life expectancy (if your injuries are long-term or even permanent).
Work life expectancy is based on federal government statistics and is a statistical measure of how many more years a person is reasonably expected to work, based on that person’s age and other factors. Now the challenge is to calculate what $25,000 per year for some future time period is worth.
Present Value
Because future lost earning capacity involves a calculation of losses that may extend for many years into the future, it generally has to be calculated in terms of its present value. Present value is a financial concept that involves determining the value of a future stream of income (i.e., your weekly paycheck) as if it were all in a bank account today.
In other words, how much money does your employer need in a bank account today in order to pay you your salary for, say, the next twenty years? This is a complex financial calculation, and is customarily performed by an economist your lawyer would hire as an expert witness in your case.
Problems in Calculating Lost Earnings and Lost Earning Capacity
Three problems often arise in making lost earnings claims:
- you are not working at the time of the injury
- but for the injury, you had plans to take a new job for more pay, or
- you are self-employed.
If you are unemployed at the time you're injured, you can generally claim your earnings from your previous job as your earning capacity as of the time of the injury. If, for whatever reason, you have not worked for many years, the defense attorney will argue that you have no earning capacity and should have no lost earning claim. It can be hard to rebut this argument. In this situation, you and your lawyer will have to work together to formulate a plan for making a lost earnings claim.
If you are retired, then you have no lost earning claim.
If you got hurt the week before taking a new job for higher pay, you can generally claim that higher pay rate as your earning capacity.
If you are self-employed, the defense attorney will carefully examine your business records and tax returns to see whether your actual records support your lost earnings claim. For any type of employee, the general rule is that, whatever you tell the government in your tax returns about your earnings is what you must tell the defense attorney and the jury.
Damages Not Capable of Exact Calculation
This category of damages includes pain and suffering and mental anguish that result from your injuries. There are no exact guidelines for determining the settlement value of an injured person’s pain and suffering. These types of damages are not capable of exact calculation.
How to Value Pain and Suffering in Trying to Settle Your Case
This is the big question. Lawyers and writers have often talked about a “multiplier” in personal injury cases, used by insurance companies to calculate pain and suffering as being worth some multiple of your special damages. But that is only true up to a point. Juries do not use multipliers when they are in the jury room trying to determine your damages, and there are many other factors that affect the outcome of a case, including:
- the nature and extent of the plaintiff's injuries
- whether the plaintiff is a good or bad witness
- whether the jury likes the plaintiff
- whether the jury thinks the plaintiff lied
- whether the jury thinks the defendant or the defendant’s witnesses lied
- whether the plaintiff has a criminal record
- whether the plaintiff’s injuries are easy for the jury to understand
whether the plaintiff’s medical treatment appears to be “soft;” that is, whether the vast majority of the plaintiff’s medical bills are physical therapy and/or chiropractic treatment, as opposed to physician’s or hospital bills.
Sending Your Demand Letter
On the typical timeline of a personal injury claim, the demand letter is the jumping-off point for serious settlement negotiations.
But the demand letter is usually only sent once an investigation into the circumstances of the accident (including fault) has been made, and the extent of the injured person's losses are known—or those damages can be reasonably forecast if future medical care or lost income is expected.
In short, it's best to send a demand letter only after you have taken a thorough look at the impact of your injury on all aspects of your life, and made a reasonable valuation of your injury claim. This is important because in your demand letter, you will be detailing for the insurance carrier or the defendant:
- exactly why the insurance carrier or defendant is liable for the injuries
- the nature and extent of your injuries and resulting medical treatment
- your financial losses that can be linked to the accident and/or your injuries, and
- any other losses you've incurred, including pain and suffering.
- To get an idea of what a good demand letter looks like, see our page of Sample Demand Letters.
Countering and Accepting a Settlement
Remember, the insurance adjuster will probably low-ball you but then you can start to negotiate. It's okay if your demand is on the high side - this will give you room to negotiate later. Learn more about responding to a low personal injury settlement offer.
Consider the Counter-Offer and Decide
Consider the counter-offer, and then decide if you want to accept it or not. If you do, fine. Take the money, and sign a release. If you don't, get ready to file a personal injury lawsuit in court.
Very Important Questions and Answers for How to settle a car accident claim without a lawyer
How do I get a pain and suffering settlement without a lawyer?
Get a copy of the police report (for a car accident case) Get the medical treatment you need, as soon as possible. Use any "personal injury protection" ("PIP") insurance coverage to pay initial bills, and then use your health insurance. Get copies of all records and bills.
How do you negotiate a settlement without a lawyer?
- First Step In Handling Your Car Accident Case On Your Own
- Take pictures/video of the property damage, accident scene, and injuries.
- Obtain a copy of the police report.
- Seek medical treatment ASAP.
- Use your personal injury protection (PIP) policy to pay initial bills, then use your health insurance.
What is the average settlement for a minor car accident?
For relatively minor injuries with no ongoing complications, such as 'soft tissue' or 'whiplash', the average settlement will tend to be between $10,000 and $25,000. For more substantial orthopedic injuries that necessitate surgery, physical therapy, or ongoing care, settlements can run anywhere from $50,000 to $75,000.
What is a reasonable settlement for car accident?
Your average car accident settlement might be approximately $21,000. It is likely to fall somewhere between $14,000 and $28,000. The settlement is generally higher for more severe or permanent injuries. You'll also get paid more if the other driver was found to be driving under the influence.
What is a good settlement offer?
Most cases settle out of court before proceeding to trial. Some say that the measure of a good settlement is when both parties walk away from the settlement unhappy. ... This means that the defendant paid more than he wanted to pay, and the plaintiff accepted less than he wanted to accept
What is a fair settlement for pain and suffering?
You can recover up to $250,000 in pain and suffering, or any non-economic damages.
How can I prove my pain and suffering?
Some documents your lawyer may use to prove that your pain and suffering exist include:
- Medical bills.
- Medical records.
- Medical prognosis.
- Expert testimony.
- Pictures of your injuries.
- Psychiatric records.
How is a settlement paid out?
How Is a Settlement Paid Out? Compensation for a personal injury can be paid out as a single lump sum or as a series of periodic payments in the form of a structured settlement. Structured settlement annuities can be tailored to meet individual needs, but once agreed upon, the terms cannot be changed.
How long does car accident settlement negotiations take?
15 to 90 days
Your lawyer may respond by providing evidence that supports your demand amount, such as your medical records. This process continues until you and the insurance company agree on a final settlement amount. This process takes 15 to 90 days, on average.
Can you sue for emotional distress after car accident?
If you experienced mental distress or trauma after a car accident, you may be able to recover compensation for emotional distress as a part of your overall pain and suffering damages. ... And it's important to note that emotional distress damages are typically only awarded in cases of severe injuries.
What is the average payout for a rear end collision?
around $70,000 to $100,000
The average settlement value of a truck accident case involving a rear-end collision (where a truck rear-ends another vehicle) is around $70,000 to $100,000. The median jury award in rear-end truck accident cases is $93,909 and 12% of verdicts in these cases are over $1 million.
How much is a neck and back injury settlement?
In an average car accident case that involves a relatively minor soft tissue neck or back injury, the accident victim may expect to receive a settlement anywhere between $2,500 and $10,000 from the at-fault person's insurance company.
How do insurance companies determine settlement amounts?
In short, the medical special damages number multiplied by 1.5 to 5 plus lost income is the number that an insurance company will typically start with to negotiate a settlement. Keep in mind that an insurance adjuster will not inform you of what formula they used to come up with the worth of your claim.
How much does Geico payout for pain and suffering?
About 97% of this GEICO car accident settlement was for pain and suffering. This means that they paid around $122,400 for pain and suffering.
Should you accept first settlement offer?
To put it bluntly, no. You should not accept the insurance company's first settlement offer. Why? Because the amount of money you are awarded in your settlement is extremely important—not just for covering your current medical bills, but also for helping you get back on your feet
How do you respond to a low settlement offer?
- Countering a Low Insurance Settlement Offer
- State that the offer you received is unacceptable.
- Refute any statements in the adjustor's letter that are inaccurate and damaging to your claim.
- Re-state an acceptable figure.
- Explain why your counteroffer is appropriate, including the reasons behind your general damages demands.
How much should I ask for a Personal Injury Settlement?
A general rule is 75% to 100% higher than what you would actually be satisfied with. For example, if you think your claim is worth between $1,500 and $2,000, make your first demand for $3,000 or $4,000. If you think your claim is worth $4,000 to $5,000, make your first demand for $8,000 or $10,000.
How long does it take to negotiate a settlement?
Then it can take anywhere from weeks to months until you reach a settlement that you will accept. Some people accept the first or second offer, while others may accept the third or fourth counteroffer. Obtaining your settlement may take from two weeks up to a month.
How much should I ask for in pain and suffering?
You'll need to provide a reasonable and credible basis to justify the amount, and back it up with evidence. Unless the accident left you critically or permanently injured, your demand for pain and suffering will probably be between one and three times the amount of your special damages.
How much money can you sue for a car accident?
As an individual you can sue for damages for bodily injuries resulting from an auto accident if your claim is for $10,000 or less, a $7,500 limit applies if a defendant is covered by an automobile insurance policy that includes a duty to defend.
Can you claim for anxiety after a car accident?
Compensation claims for anxiety can be made, however, if you have not suffered any physical injuries in the accident, then the anxiety you are experiencing must be serious enough to fall into a specific class of psychiatric symptoms that are a recognised condition for the claim to be successful.
Why do insurance companies lowball?
An insurance company may give a low offerbecause they also know how urgently you may need money after an accident. No matter the damages, bills or lost wages you need to cover, an insurance company thinks you will eagerly accept any offer, even if it is a lowball settlement.
What is a good settlement offer for a back injury?
In these cases, settlement values can go into the millions. For more minor neck and back injuries, settlements are generally smaller, such as $10,000 to $100,000. The only way to get an accurate portrayal of the value of your injury claim is through a consultation with an attorney
What happens when you win a settlement?
After the judge, or a jury, grants you your award or judgment, you must still pursue or “execute” on the judgment. Lawsuits typically resolve with one of two different outcomes – you receive an order from the court requiring the party to do something (or refrain from doing something) or you receive a monetary award.
Do Lawyers lie about settlements?
If the case doesn't settle during a settlement negotiation, anything that was said during those negotiations remains privileged. The court noted that although settlement negotiations are confidential, the lawyers are not allowed to lie.
Can a lawyer take your settlement check?
While your lawyer cannot release your settlement check until they resolve liens and bills associated with your case, it's usually best to be patient so you don't end up paying more than necessary
Is it better to settle out of court or go to trial?
Settlement is faster, less expensive, and less risky. Most personal injury cases settle out of court, well before trial, and many settle before a personal injury lawsuit even needs to be filed. Settling out of court can provide a number of advantages over litigating a case through to the (often bitter) end.
Why is my accident settlement taking so long?
Sometimes a car accident settlement can take a long time because of problems with the case. Your attorney may need to take some time to investigate the accident and prove that the other driver is liable. Another problem that could prolong a settlement of your case is if the insurer does not accept the evidence.
How much do insurance companies pay for pain and suffering?
That said, from my personal experience, the typical payout for pain and suffering in most claims is under $15,000. This is because most claims involve small injuries. The severity of the injury is a huge factor that affects the value of pain and suffering damages.
How long should I go to physical therapy after a car accident?
While it generally takes a fracture eight weeks to heal, you could spend more or less time in physical therapy, depending on your situation. You might have a soft tissue injury after your accident. If that's the case, you can expect to spend around six to eight weeks in physical therapy.
How much should I settle for a neck injury?
Settlements are highly variable. In our experience, successful monetary recoveries for simple injury may range anywhere from $2500 to $50,000. On the other hand, if the neck injury or back injury requires a surgical procedure such as a neck fusion, then the monetary award could reach hundreds of thousands of dollars.
Do insurance companies want to settle out of court?
If the defendant's insurance company is relatively confident that your personal injury lawsuit will succeed in court, they may choose to settle beforehand and avoid having to pay attorney's fees and court costs.
How are settlements calculated?
To get a dollar figure that might represent the value of the general damages, an insurance adjuster will add up all the "special" medical damages (remember those are your quantifiable losses) and multiply that total by a number between 1.5 and 5 (that's the multiplier).
How much do lawyers take from settlement?
In the majority of cases, a personal injury lawyer will receive 33 percent (or one third) of any settlement or award. For example, if you receive a settlement offer of $30,000 from the at fault party's insurance company, you will receive $20,000 and your lawyer will receive $10,000.
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