Auto Insurance Claims: Personal Injury Settlement Offer, gum graft, personal injury settlement

Question
Hello Bennie,

I was injured when my airbag deployed during an automobile accident nearly two years ago.  I have been through a very difficult time but will limit the information on my case to my most serious injury.

Several of my bottom teeth were displaced during the accident.  Since that time, I have had two root canals, because two of the teeth died as a result of the accident.  I required a gum graft.  I am wearing orthodontic braces to move my teeth back into place, and my treatment plan also includes jaw surgery next year.  Prior to the accident, I had excellent dental health and had already worn braces for two years as a teenager.

My medical bills, both current and future estimates, total $50,0000.  I sent a demand letter to the insurance company for $135,000 and they called me today and said that they can offer only $85,000.  I think my demand of $135,000 was very reasonable, but I am not ignorant of the insurance company's position.

There are only about 3 weeks left before the statute of limitations runs out on this case, and I am prepared to file suit if we do not reach a settlement by the end of this week.  I am considering offering to settle for $115,000.

I have been advised that my case is worth more than this, but I realize that I won't even net this much if I have to go the lawsuit route because of the attorney's fees.

Do you think this is a reasonable course of action for me to take?  Also, the adjuster's offer was by phone; I don't have her offer in writing.  Is she bound to the verbal offer that she made to me, or could she potentially lower it if I try to negotiate for more?  In other words, if I try to get her to come up some, do I have anything to lose?

Thank you in advance for any advice that you can offer.

Answer
Hi Eleanore,
The one key missing from your question is the amount of insurance carried by the at-fault party.  Have you yet determined that amount?
With only 3 weeks left before the expiration of the statue of limitations, I hope you have already consulted with an attorney.
The insurance company can't offer or pay an amount greater than the policy limits of the at-fault party.
The fact that there is an offer of $85K means there are limits of at least $100K.  There could be more.  The next level of coverage is usually $300K.
If the limits are only $100K. It would not be worthwhile to secure an attorney because his fee will be a minimum of 1/3 of the settlement.
Is your health insurance company paying your medical bills and do they require full reimbursement if you recover from a 3rd party?
Since you are simply negotiating with the adjuster at present, her offer is not binding until accepted by you, although I have never known an offer to be lowered just because you increased your demand.

As I see it, the key to your current decision is knowing the limits of coverage carried by the at fault party.  If those limits are $100K, then you should try to settle for an amount as close to that limit as possible.  If the limits are $300K, then you should seriously consider having an attorney file suit if you don't get a satisfactory offer.
I hope this information has been of help.  Although time is short, please wire again if you have learned the policy limits.
Your feedback by rating my answer will be appreciated.
Sincerely,
Bennie
San Francisco Bay Area