QuestionA year ago I was in an auto accident, although the damage to my car was not severe, I have so far over $11000 in doctor bills, my pain doctor says I will still need treatment for a long while along with my orthopedic doctor. I have whiplash, a herniated disc and numbness in my left side due to the accident. Also, something else with a disc in my back, I can't remember what it is. My case is due to be settled per my lawyer. I live in ky. And was wondering what the average settlement is?
AnswerHi Lynn,
I am very sorry to hear of your serious bodily injuries. You must be suffering daily, and I do hope that you can get some kind of relief from your treatments—or perhaps even a surgery.
There is no such thing as an "average settlement". Settlement values vary with a great number of factors. Your medical history, the prognosis, and the possibility of future loss of income are three big ones. Why don't I give you some of the main factors that influence the value of insurance settlements and let you judge where you stand?
But first let's understand together what you are really asking: "Can I have faith that my attorney is going to get the best value for me?"
Even if we had the key to the $3 million valuation software called Colossus, what would that information do for you? It would be useless since you have no idea whether your claim factors put you above, below, or in the middle of claims.
A better way would be for you to seek a second opinion with a local attorney who can interview you and review your file. Do NOT be afraid to ask for that, and do NOT let your attorney pick a friend to do the second opinion.
Here are SOME TIPS ON VALUATION—these are loose guidelines only, since we are prohibited from giving valuation on big cases in light of the exposure to a malpractice claim. Plus, as you read these factors, you will see that one could not ever guess at even an "average" value, since some aspects of these factors could be off the charts, hence, tipping the scales.
How does one figure out what to ask for? Quick Answer: get as much as you can. Figure out what would make you happy, and increase that amount by at least 50%! The value is what you, your attorney, and the adjuster agree it will be. Well, if that is not scientific enough for you, let’s learn a bit more about valuation of personal injury claims.
Valuation is not like going to a drive-in for a fast food meal. It takes time and study of many factors, including liability and medical records. Plus, one would like to meet the claimant to see how she will “sell” to the other side and to the jury. Those online sources that mention a "rule of thumb" is just that: a gross estimate.
SHORT ANSWER: A common theme among those who still think a “rule of thumb” formula will put you in the valuation ballpark is to multiply the medical specials times a number from ONE to FIVE (depending upon factors, some of which I will give you later—or all of which are fully discussed in the members' side of my website, dealing with insurance settlements www.SettlementCentral.Com ). Then that figure is the total value of the personal injury portion of the claim. Of course there is a long list of factors to consider for adding or deducting from the total.
But that rule of thumb is absolute nonsense in your case. Your injuries are WAY MORE SERIOUS than the meager amount of your medical expenses. In other words, a mere $11K in no way reflects the seriousness of the injuries you have sustained.
Let's take a look just two factors that put the lie to the general use of this rule of thumb. An obvious one is that of the "herniated disc and numbness in my left side." You may have a condition that is not surgical, and yet it will provide DAILY interference with your enjoyment of life. Constant pain can lead to depression. NOW NOWHERE in the so-called formula approach is that kind of problem accounted for since there will not be continued medical expenses.
A second, not so obvious, but very important factor that shows how inaccurate a “rule of thumb” formula can be is just plain location of the trial. Let's start with geography. Values differ from state to state, and within each state. City values are often different than rural values on claims, especially if the economy is tenuous in small towns. And the differences can be HUGE between these areas, even if only 20 miles apart. And, unfortunately for you, Kentucky is a "red state", meaning its voters are more conservative. Hence, the general approach is for people to stop whining and get on with their lives without any truely compensatory award.
Having said all of that, Lynn, let's look at what the adjuster and your attorney might be arguing over to get to the best value. The reason for giving you these is so you can backup your attorney and point out your strong points for valuation.
1. LIABILITY DISPUTE
This is a big one because it most dramatically affects value.
2. Trauma suffered
The value of your claim increases with a bigger crash, and decreases with a low damage tripping wherein one catches himself. Why? Just human nature.
3. Medical special damages
Cost of medical and related health care expenses; higher costs usually equate to an increase in value (excepting, of course, cases of gross overtreatment).
4. Type of injury
Where does the injury fall within the insurance industry's "hierarchy list" of valuing injuries? Irrespective of which injury may cause more pain, injuries are valued according to seriousness, tendency to be persistent or permanent, and whether or not they need objective proof to be believed (e.g. a broken bone versus soft tissue strain). Your disc problems are seen in an MRI result, so they are provable.
5. Type of medical care
Where does the medical care fall within the insurance industry's "hierarchy list" of valuing medical care? Orthopedists at the top, chiropractors near the bottom.
6. Prognosis- future care—permanency of injury or pain and suffering—does your doctor recommend 6 months of care, or were you done treating 4 months ago? Even if you are done treating, will the doctor predict future problems?
7. Your medical and claims history, prior accidents, prior injuries or treatment of the same area of the body.
8. Impairment of quality of life. Emotional distress fits in here.
9. Quality and persistence of pain suffered.
10. Quality and thoroughness of her medical records.
11. Lost wages.
OK, Lynn, you now have some ideas of how your facts might fit upon this framework for valuation. Now, have confidence that you are entitled to go and hire your own second opinion, AND DO SO. This is a very significant case, and one would not want to rely upon the opinion of one attorney with so much at stake.
What if your attorney needs the badly needs the money and so is willing to compromise your claim just to get the settlement done? Even if I could give you the average settlement, how would that allow you any teeth in your argument with the attorney. NO, get some horsepower on your side by paying a couple hundred bucks to have a competent attorney review your entire file. Who knows, she might come up with some valuable suggestions for your existing attorney.
I trust that my extra time here has produced some information that has been of value to you, and thus I would respectfully request that you take the time to locate the FEEDBACK FORM on this site and leave some feedback for me.
Best Wishes,
Dr. Settlement, J.D. (Juris Doctor)
http://www.SettlementCentral.Com
