QuestionMy 14 year old was in an accident with her best friend who was driving the car. The insurance wants to settle with 14000.00 but that includes the medical bills out of the 14000.00 They are saying it would have to go through a judge do to her age. Since I was wondering if I could get lost wages and suffering for myself. I don't want alot but I had to be the one to care for her and miss work. I am a single mother with little income. Should I get a lawyer or settle with them? My daughter was in a serious accident she has permanent scares on her body.
AnswerDear Anna,
I am sorry to hear that your daughter was hurt in a serious accident that left scarring. It is impossible to answer your questions regarding valuation and getting an attorney without a lot more information. But from your description of it being a serious accident and the fact she has scarring, one would think that the damages would be a lot more than just $14,000, including medicals.
I will address all of those financial and settlement topics later, but let’s first dispose of the questions you asked regarding your own claim for expenses and lost wages.
Since some adult had to participate in the medical care portion of the claim, you are entitled to both your transportation expenses and the lost wages you lost in taking her to and from the medical appointments, including the time she was with the doctor or treating specialist.
Compute the transportation expenses as mileage, at the rate the IRS set for travel expenses in 2006, which is 38.5 cents per mile.
Compute your total lost wages, including any sick leave or vacation time you had to take in order to care for and transport your daughter. Get your leave and earnings statement or some other written document that shows both the time you missed and the GROSS wages (before they deduct for Social Security and taxes).
Submit those in writing with a cover letter explaining that these were transportation expenses and wages lost in caring for and in transporting your daughter. OK?
Now, on to her claim. Maybe if you were to let me know a little about her injury and treatment and prognosis I could be more of a help with your question regarding the offer they made.
But I will just say that it seems light in view of the fact that there can be no issue at all regarding liability. Your daughter will not be found to be partially at fault, so the only issue is how much is such an injury worth.
As you will see, we are not authorized to make legal opinions inasmuch as the various state bar associations consider that to be the unauthorized practice of law. So we just provide information and let you decide in accordance with the information we presented. But even without a lot of information, I think any time a minor has a serious accident and has residual scarring, the value has to exceed $14,000.
TWO IMPORTANT QUESTIONS TO ASK AT THE OUTSET:
Do you have a doctor’s prognosis that your daughter is fixed and stable? Do you have a plastic surgeon’s opinion that the scar is just minor or does not need revision work?
If your answer to the above is yes, maybe the value is only $14,000. But I am going to bet that you have no idea what the prognosis of your daughter is, nor any idea what plastic surgery revision work must be done.
So, Anna, the answer to your question is to get more information from the doctors. I would NOT ENGAGE the adjuster on the phone, just write her a letter telling her you are disappointed in the settlement offer and that you will develop more information for her and make a demand for a proper settlement.
By the way, it is NOT UP TO YOU to figure out what is a proper settlement. Let’s take a tour of the minor settlement process and you will see that a judge will make the decision on behalf of your daughter.
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Here are my eight topics for you:
1. Personal injury insurance claims for minors; GAL and court approval process
2. Can parents settle children's insurance claims? What about the process for court approval for minor's insurance injury claims?
3. Do NOT settle your daughter’s soft tissue personal injury claims too soon; MORE TIME to live with injuries; better doctor workup of medical aspects of claims.
4. Consider a policy limits situation for tortfeasor, resulting in an Underinsured Motorist Claim (UIM) against your policy.
5. Arm yourself to deal with the insurance claims adjuster: learn about personal injury insurance claims and insurance settlements.
6. Why not take a shot at making your own personal injury insurance settlement instead of hiring a personal injury attorney?
7. Consider asking for NARRATIVE LETTERS to assist in settling the insurance claims.
8. Valuation computation and factors that influence valuation of personal injury insurance claims
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1. Personal injury insurance claims for minors; GAL and court approval process
A parent may NOT SETTLE her child's personal injury claim UNLESS it is small, or until a court approves the settlement AND the investment protection for the funds. The reasons for that are sound, and if you want you can read an exposition on the entire process to settle minor insurance claims http://www.settlementcentral.com/page8017.htm Guardian ad Litem (GAL) will interview you and your daughter, investigate the accident facts, review the medical records and talk to doctors, write what is called a "GAL report", and present it to the court. If the judge agrees that the settlement is satisfactory for your daughter, then she will issue an order approving the proposed settlement and directing how the funds will be paid. The order will be entered and filed with the clerk of the court. Thereafter, the GAL may become involved in setting up a "blocked account" in your daughter’s name, or verifying that the funds were disbursed as ordered by the court.
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2. Can parents settle children's insurance claims? What about the process for court approval for minor's insurance injury claims?
We believe that in many cases, parents CAN AND DO make good settlements of their child's insurance injury claim. There is no reason that a parent cannot negotiate a fine settlement for her minor child. The only catch is that the insurance settlement and the investment of the insurance proceeds MUST BE APPROVED by a court of general jurisdiction in your state.
It is possible for the parent, with guidance and proper forms, to present the case yourself for approval. However, in most jurisdictions, an independent Guardian ad Litem (guardian for the litigation—most often an attorney) will be appointed to review the settlement and the medical records, and to interview the minor and the parent and report to the court whether the terms and conditions of the settlement are satisfactory.
THE GAL REPORT will NOT RECOMMEND approval of a settlement if it does not include consideration of long term consequences to the child. The court will then give approve the settlement, issuing a formal order approving the settlement and requiring investment of the proceeds in a safe and prudent manner.
A common question from parents is whether or not the money can be used to buy something that the child really wants, but which the parent cannot afford. All the cases I have seen the parent's request to use the child's money is refused, excepting in two instances: first, where the child wants a car and has a job that is so far that she requires a car to get to and from the job; and second, where the child is in poor physical and mental condition and the expenditure would, according to the child's doctors, go a long way in cheering her up and thus promoting his healing.
Other than those two kinds of examples, the court is not going to allow any parent to use the child's money for any other purpose.
Read about Guardian ad Litem for the minor, his attorney's fees, procedures for court approval of minor insurance settlements, paying fees and court costs, and asking for insurance company payment of all fees and costs http://www.settlementcentral.com/page8017.htm
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3. Do NOT settle your daughter’s soft tissue personal injury claims too soon; MORE TIME to live with injuries; better doctor workup of medical aspects of claims.
What is the rush to settle the claim? You said that this was a serious accident, which to me means it likely was a VERY HARD HITTING TRAUMA that your daughter suffered.
I am worried that if your daughter were to resume even half of her normal physical activities, she might SUFFER A LOT OF PAIN AND WORSEN her condition. Let's see how she fares after a full year of physical activity under her belt.
And, of course, once you settle, that is it: no one will be there to pay for your daughter’s future medical care; nor will she ever see another dime in pain and suffering money. 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
Managing Medical Care After Auto Accident: http://www.settlementcentral.com/page0203.htm
In this particular case, I am betting that you have no idea of how long your daughter will suffer the consequences of the accident trauma. What is the prognosis? What long term consequences are there from her injury? If the doctor just has her notes only on this, you may want to ask her to be sure. Or, better yet, make her write a narrative report.
Make darn sure their doctors have updated full information in their records, or the adjuster may not give your daughter credit for all that she has been through. For example, if you just ask for a narrative letter now, then consider going in for another appointment first and document for the doctor all of those nagging signs of soft tissue injuries your daughter may be noticing following a full day of physical activities. Personal Injury Medical Records http://www.settlementcentral.com/page0114.htm
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4. Consider a policy limits situation for tortfeasor, resulting in an Underinsured Motorist Claim (UIM) against your policy.
This could EASILY BE A POLICY LIMITS INSURANCE CLAIM just as it sits today if there are serious consequences to the injuries suffered by your daughter. Let me explain.
What if the tortfeasor has coverage of only your state minimum liability policy limits http://www.settlementcentral.com/page8008.htm? If that were all the insurance that is available, then your daughter could possibly be in a policy limits situation. Take a moment and become familiar with some of the issues in policy limits insurance claims http://www.settlementcentral.com/page0451.htm
Serious trauma and scarring could create a VERY SIGNIFICANT VALUATION of your daughter’s personal injury claims. I am not hoping for serious consequences, but I have handled enough serious accident injury cases that I can tell you that often those injuries can be long term problems if they are not treated properly.
If this were to be a policy limits claim, then the tortfeasor’s policy would be consumed and balance of the claim would be paid out of your (UIM) policy, up to the limits of your policy or the value of the claim, whichever is higher.
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5. Anna, from the way you approached this situation, I am worried that you could be an easy target for the insurance adjuster. You have to forget those advertisements you have seen. They ARE NOT YOUR GOOD NEIGHBOR, nor are you IN GOOD HANDS, since they have ONE HAND IN YOUR DAUGHTER’S WALLET. So arm yourself to deal with the insurance claims adjuster: learn about personal injury insurance claims and insurance settlements.
Here is some easy reading for free to brush up on the tort system and to help you deal with the insurance adjuster.
Overview Tort Law Personal Injury Legal Claims http://www.settlementcentral.com/page3000.htm
Establish Firm, Professional, and Positive Relationships With the Insurance Injury Claims Adjuster http://www.settlementcentral.com/page0059.htm
"No medicine: no money"; medical costs increase worth of personal injury insurance claims http://www.settlementcentral.com/page0045.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
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6. Why not take a shot at making your daughter’s personal injury insurance settlement instead of hiring a personal injury attorney?
Write Effective Personal Injury Insurance Demand Letter http://www.settlementcentral.com/page0170.htm
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
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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7. Consider asking for NARRATIVE LETTERS to assist in settling the insurance claims.
Have you seen any of the doctors' records that went to the insurance adjuster? If not, it is easy enough to get a copy so you can make sure that everything of importance you discussed is included therein IN READABLE FASHION.
Cryptic notes may be medically significant, but why make the insurance adjuster struggle to figure out the significance of the injuries?
Plus, narrative letters can tie together the trauma and its after-effects in the lives of you and your daughter 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.
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. NOTE: as for the minor claim, any money you pay out of pocket for a narrative report is going to be reimbursed to you at time of settlement; it will be a deduction from your daughter's insurance settlement.
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8. Valuation computation and factors that influence valuation of personal injury insurance claims
OK, Anna, I know this is all you really asked for, but I hope you can see from what I have prepared for you that there is a lot to be done before you try to settle this claim. I am going to give you just a bit on valuation of an injury claim, and then ask you to get in touch with me later AFTER you have done some of the things I have suggested above and ask me again.
Valuation is not like going to a drive-in for a fast food meal. It takes time and study of many factors, including liability, all medical records, and an evaluation of the qualities of the claimant—how well will she and you sell to the jury?. The "rule of thumb" is just that: a gross estimate.
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 TWO 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.
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.
Next, the seriousness of the injury, and of course, whether or not the injury can be proven by objective evidence (your daughter, for example, may have a radiographic image), or whether the only proof is subjective (her statements that she feels pain).
What if the injuries suffered by your daughter turned out to be CHRONIC and also VERY PAINFUL and resistant to treatment?
But in this case, scarring takes the value way out of the formula approach IF IT IS A VISABLE SCAR ON A YOUNG WOMAN THAT IS NOT EASILY REVISED BY THE PLASTIC SURGEON. If that is the case, write back to me with a full description of the situation and we will go from there because the value will be much higher.
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FINAL TOPIC:
Always communicate with the adjuster in writing, showing your own analysis of value. It is fine to call him or her, but have your ammunition in writing to give to the adjuster.
Let her 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 her what the options are to resolve the matter fairly should she not agree to a reasonable claim value. In other words, let her 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 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
