QuestionHi. I was in a wreck May 2006. (other parties fault). They had state farm as their insurance. After having several treatments at the chiropractor and orthopedic surgery on my right hand (my hand I use most), I have accumulated nearly $8,000 in medical bills and have a 5% permanent impairment in my neck written up by my doctor. I still have a little trouble out of my hand, but the dr said that it could take up to 1 year for complete recovery and to notice the numb feelings to subside completely. I am now ready to settle my claim, but have no idea what to expect as a fair settlement. I've delt with state farm a few years back and they only wanted to give me about $800 over my medical bills which were all under $1200 plus repair of my car. I would like to know how do I figure what my claim is worth with the amount of medical bills I have to pay back, pain & suffering, and my 5% permanent impairment that I now have due to this accident. Can you help give me a ball park figure of what is fair when they contact me to settle? I'm not sure if Arkansas law on insurance settlements is any different that other states, but any help is greatly appreciated. Thanks.
AnswerDear Lacy,
I am sorry to hear you had to have a surgery on your hand. Can you please tell me how that was caused by the auto accident? The reason I ask is that such a surgery can greatly impact the value of a claim, but of course the defense will always try to come up with some excuse to fight it on the grounds that it was made necessary by pre-existing conditions.
I will go through those defenses below. But at the outset, let me say that we are not allowed to present case values inasmuch as the various state bar associations have complained that such would constitute the practice of law.
That is just fine with me since so much depends upon the plaintiff herself, and of course even the state and locality insofar as concerns jury verdict history. Plus, this forum has nowhere near the capacity to provide sufficient relevant information to even guess at a value. In this case, one would not even venture to guess on figuring anywhere near even a ball park figure with so little information as has been presented.
For example, one small item, but important for value would be to know whether the surgery was done with local or general anesthetic,
So let’s say instead that we take a little tour on the topic of personal injury insurance claim procedures. FIRST is to discuss how your last settlement turned out, with some suggestions to pep up this claim. SECOND will be an exploration of the ways of presenting your own claim. THIRD we will include some suggestions for this claim, and that is about it. Ready? Here we go!
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Topic #1. Discussion of previous State Farm claim; pre-existing injury?
This is a necessary place to start since State Farm will have a record of this accident, your treatment, and your settlement. First, don’t beat yourself up too much on the amount of the settlement. You got $2,000 on $1,200 of treatment costs, which is about 1.67 in terms of a multiple. Not very good, but no terrible either.
But what can be taken from this episode are three things. First, did you use witness statements with your demand letter? Second, did you use a doctor narrative letter to support your claim? And, finally, did you send a second salvo letter with new information to support your higher counter-offer?
LOOK AT THESE THREE AS IMPORTANT TASKS FOR THIS NEW CASE.
Here are links to pages that discuss these three topics.
a) WITNESS STATEMENTS. You should use a witness statement to document what you need to in support of your claims of pain and inability to perform chores at work or around the home. If we cannot find anyone at home to testify, we use both family and friends to make up witness statements. Witness Statements Settle Personal Injury Insurance Claims http://www.settlementcentral.com/page0196.htm
b) CONSIDER USING A DOCTOR'S NARRATIVE REPORT to assist in settling the insurance claims. Narrative letters can tie together the trauma and its after-effects in a way that is authoritative.
We recommend that claimants almost always include some type of typewritten medical information to accompany to computer coded medical records and/or handwritten records. That is the first clue as to when to use the narrative report: if you are asking the adjuster to evaluate your claim on the basis of handwritten records and/or computer coded records that indicate diagnosis and treatment codes, then you need to supplement the record with a narrative report.
We have a lot of free legal tips on insurance claims settlements using doctor narrative reports http://www.settlementcentral.com/page8003.htm You can get information there as to how to ask for a narrative letter and what it might cost. Talk to the doctor's office manager about it.
c) SEND A SECOND SALVO LETTER to respond to the adjuster’s offer instead of just picking up the phone: anyone can do that. If you have something important to say, great. If not: make up something from the set of facts known to you as true. Tell him about additional pains that will require treatment If you do not have additional pains, then part of your strategy at this point might be to get back to the adjuster with some additional information or anything you can think of that they did not already have. That is part of what we call the Second Salvo that is sent over to the other side in response to their offer.
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Topic #2. Exploration of HOW TO PRESENT your own personal injury claim.
Learn how to submit and settle your own personal injury insurance claims—DO IT YOURSELF SETTLEMENTS. Here is a series of pages that you can review. Take what makes sense to you and don't worry about the rest. Just get a flavor of how the system works without spending a ton of time right now.
Overview Tort Law Personal Injury Legal Claims http://www.settlementcentral.com/page3000.htm
Managing Medical Care After Auto Accident: http://www.settlementcentral.com/page0203.htm
Medical Care Documentation-the Key to Successful Personal Injury Insurance Claim Settlements http://www.settlementcentral.com/page0217.htm
Keys to a MAXIMUM INSURANCE INJURY CLAIM SETTLEMENT http://www.settlementcentral.com/page0089.htm
Use a Confidential Personal Injury Diary for TOP DOLLAR Insurance Claim Settlements http://www.settlementcentral.com/page0208.htm
Outline of questions to be expected from insurance claims adjuster http://www.settlementcentral.com/page0190.htm
Detailed listing of questions to be expected from insurance claims adjuster http://www.settlementcentral.com/page0207.htm
By the way, did you know that getting an early settlement is a favorite trick of the insurance adjusters? Please see my website wherein we show Insurance Claim Adjuster Secret Tactics http://www.settlementcentral.com/page0092.htm
Responding to Settlement Offer From Insurance Claims Adjuster http://www.settlementcentral.com/page0244.htm
Do It Yourself Advantages, or do these claims need an attorney? As for an ATTORNEY, this does not seem to be a case that involves any legal issues in dispute nor any large or complex damages. Why should you pay someone one-third to do what you can do yourself? Do-It-Yourself Personal Injury Claims; Eliminate Personal Injury Attorneys' Fees; Save Thousands of Dollars Settling Your Own Insurance Claim http://www.settlementcentral.com/page3011.htm
Without having to join my website, I have given a lot of free information on handling insurance claims without having to join as a member. Read the module at "5 Easy Steps to Do-it-Yourself Insurance Claim Settlement" http://www.settlementcentral.com/page0102.htm
This stuff is not rocket science, but it will take some effort on your part to read and cut and paste letter examples and to communicate. But hundreds of people are doing it each day, and they are getting good results.
What if you get only two-thirds the way to your settlement goal? Well, you can get as big a settlement as you can and then turn it over to an attorney and save a lot of fees. Thus, you could go it alone just to get an insurance settlement offer, and then take that insurance settlement offer to a personal injury attorney, thus exempting the amount of the offer from her fees. Do It Yourself Personal Injury Settlement Offer Reduces Personal Injury Attorney Fees http://www.settlementcentral.com/page0109.htm
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Topic #3.
Here are just two additional topics: valuation tips; and communications with adjusters.
VALUATION COMPUTATION AND FACTORS THAT INFLUENCE VALUATION
Here is something that will not be appreciated by those attorneys who advertise “free initial consultation”. Maybe you will be a client: maybe not. But by interviewing as a potential client, you can pick up some ideas for presentation of valuation.
Pick one who seems competent (how does one tell?—try for membership in your state’s trail lawyers’ association and at least a “bv” rating in http://www.martindale.com
Present your claim to her as if to become a client and see if you can get some ideas of the strengths and weaknesses of your claim, and a range of value. This is the route you will have to take inasmuch as you will not be able to hire a competent personal injury attorney by the hour to give such advice and tips on valuation.
Valuation is not like going to a drive-in for a fast food meal. It takes time and study of many factors, including of course liability and medical records, but also an evaluation of the plaintiff—what kind of person will she present to the jury is a most important consideration (i.e. is she credible, does she elicit empathy, etc.).
So, I have a short answer and a longer more detailed answer for you.
SHORT ANSWER: A common theme among those who still think a 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 listed in the members' side of my website, 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.
LONGER ANSWER:
Here are some of those factors (as set forth in MORE DETAIL IN the members' section of http://www.SettlementCentral.Com Dr. Settlement's website):
There are changes in the formula approach, DEPENDING UPON SERIOUSNESS OF INJURIES.
The typical formula approach you mentioned to determine the value of general damages, i.e. pain and suffering, permanent disability and emotional damages, is to multiply the amount of the MEDICAL specials by a factor between 0.5 and 3 if the injuries are relatively minor or continue less than one year, or by a factor of 4, 5, or more when the injuries are very painful, serious, long-lasting or permanent. You have mentioned the last component in terms of the permanent disability.
What types of problems you will have with your daily life and work because of the hand is a topic of substantial potential. So give many examples of how this residual problem with interfere with your life.
Once the computations called for above are completed, add another 50% of the total to determine the starting amount for beginning negotiations on the total value of the compensation due you on your claim.
Here is a listing of factors that will affect both the multiplier you will use, as well as the value of the claim inasmuch as they will increase or decrease the product of your multiplication.
1. LIABILITY DISPUTE & comparative negligence
This is a big one because it most dramatically affects value: minus if you have any fault.
2. Trauma suffered
The value of your claim increases with a bigger crash, and decreases with a low damage fender bender. Why? Just human nature.
Therefore, the total value of the property damage (e.g. cost to repair or replace a motor vehicle) becomes significant.
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).
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—or were you done treating 4 months ago?
Your claim value gets a boost if your doctor specifies that you will need some future medical care. Has anyone suggested that for your case?
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.
9. Quality and persistence of pain suffered.
10. Quality and thoroughness of your medical records.
11. Lost wages.
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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
