QuestionI was rear ended in Oct. 2005- I was given an offer last week from the at fault parties auto insurance company. The offer stated that liens from my medical and auto(med pay) insurance would be settled with them directly and thus was not factored into the offer. Is this even right? Shouldn't I be discussing a settlement with my providers directly? Are they trying to cover up the actual total medical bills to minimize my loss?
I ended up with whip-lash that pinched a nerve in my neck causing numbness in my right arm and being unable to hold my head up or turn to the right. I had facet injections in my neck along with 20 something visits to physical therapy. No lasting effects except a shooting pain as if a rubber band was snapped on my neck about 1x a week.
As for the rest of the claim... I lost my job as a direct result of the accident, my termination letter states 'in ability to perform job duties as assigned' as I was taken out of work by docs orders, how do you determine your lost wages when you lose your job altogether? This also caused me to lose my medical insurance... this resulted in poorer health care and not being able to obtain rx's several weeks into treatment.
I police officer witnessed the accident so their insurance co. is not disputing they are at fault or the injuries I've claimed.
My issue is trying to determine what all this is worth in dollars. With your expansive knowledge any insight you could provide me would be much appreciated!
If it helps med bills were in the $20,000 range alone.
If I make a counter offer and no progress is made, could I then hire an attorney? If so would my counter offer be the highest value possible as a settlement, or could the attorney go for more?
Thank you
Kristin
AnswerDear Kristin,
First, as to your question regarding keeping the medical payments out of the total settlement and thus making an offset for your own companies to get their subrogation, I WOULD NEVER EVER AGREE TO THAT. What if the tortfeasor has policy limits of $50,000 or less? You stand a pretty good chance of fighting your own companies to reduce of eliminate their subrogation rights (unless you live in a seriously "red state", where the legislature is in bed with the insurance industry).
Our members' side just put up a new Subrogation Module so people can fight their own defenses against the subrogation claims. There will sooon be limited free information on the site in about one week.
But the point is: those are NOT JUST FREE DOLLARS to be taken off the table. Those are part of your claim and you need to have those dollars in your pocket as part of your pain and suffering claim BEFORE ONE DIME GOES TO YOUR OWN INSURANCE COMPANY. This is serious business, and I would write back and include 100% of those medical treatment dollars in your settlement demand.
Our members have letters that will demand that they get paid FIRST ahead of any so-called liens. This is the “made-whole” defense to subrogation liens. You are talking big money here. What if the tortfeasor has only $25,000 in limits? You should get the entire $20K medical expenses added on to your settlement award with not one dime going back to your company inasmuch as you will not have been made whole for your lifelong injury.
What are the policy limits for the tortfeasor and what did you ask for in your demand letter? In response to your inquiry regarding your own demand versus that of an attorney later on, your attorney is not legally bound by what you asked for earlier, but of course it is kind of hard to unring a bell. So the adjuster will keep in mind what you were once willing to settle for.
The point is: IN WRITING ONLY, counter-offer to settle for policy limits if they are $50,000 and below. But make sure you have good information on how to preserve your own Underinsured Motorist (UIM) claim http://www.settlementcentral.com/page0451.htm
If the tortfeasor has minimal limits, you might be able to do this on your own. Just write to me again, and I will give you a bunch of free pages on my website that will give some flavor of how to go forward. BUT, if the limits are higher or if they will not respond to you, then you probably will need an attorney, but DO NOT contract at one-third straight across: make her give you lower fees in the event either the tortfeasor’s limits your UIM limits are low.
Get to a good personal injury attorney ASAP. Yes, my website does teach people how to settle their own personal injury insurance claims, BUT that means starting earlier in the process, NOT when you have an offer in hand. So since yours is a serious long term injury, and since you have not done your own preparation in accordance with self-help instructions, this is the time to get an attorney involved.
Here is what makes me want to get you to an attorney. First, I see your injury as a life-long problem, not something that will just go away in a few months. Numbness due to a pinched nerve is a permanent disabling condition, NO MATTER WHAT B.S. THE ADJUSTER SPEWS FORTH.
Plus, the loss of your livelihood is worth a lot of money IF IT IS PRESENTED PROPERLY. By that I mean with a rehabilitation expert testing and report and an economist’s report on lost lifetime earnings. THOSE ARE BIG DOLLARS.
NOW, since these are big numbers, make sure that when you contract with the attorney she gives you a reduced rate of by the hour or 15% should the tortfeasor have only $50,000 in policy limits. MUCH LESS IF ONLY $25,000 LIMITS SINCE ANYONE COULD GET THOSE.
Same on your Underinsured Motorist coverage: If your UIM is only $50,000 then you can get that yourself. So do not go one-third for an attorney if you have low UIM limits and the tortfeasor has low policy limits.
I would INSIST that the attorney give you fees of hourly for a $25K limit on the tortfeasor (not to exceed $1,000) and not to exceed 15% if the tortfeasor has limits of only $50K. WHY? BECAUSE IN YOUR CASE A BLIND DOG WITH A NOTE IN ITS MOUTH COULD GET $25,000 POLICY LIMITS. You can do that yourself with a membership at my website. So do not pay anyone the outrageous fees that most attorneys will charge to get that easy money.
Low policy limits are like low hanging fruit: they are easy to pick. You could do it if properly instructed.
I have just two more things. First, if you are going to try for low limits yourself, TAKE THE INITIATIVE in the claim by writing your demand letter now, and second, DO IT IN WRITING.
FINAL TOPIC: Effective communication with insurance claims adjusters. Establish Firm, Professional, and Positive Relationships With the Insurance Injury Claims Adjuster http://www.settlementcentral.com/page0059.htm
Always communicate with the adjuster in writing, showing your own analysis of value. It is OK I guess to have one call or so, but no more. Always have your information and ammunition in writing to give to the adjuster.
Let him know that you are FIRM IN YOUR RESOLVE to get what you are demanding (NOT "asking", since that invites a counter-offer, but instead "demanding" as fair and reasonable compensation) by asking him what the options are to resolve the matter fairly should he not agree to a reasonable claim value. In other words, let him know that you will go through with a court filing if need be.
Remember these tips, do your homework, print out your evidence, show resolve to get your fair settlement, and you will DO JUST FINE.
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
