QuestionQUESTION: Soft tissue car accident injuries can be handled by people themselves as you suggested many times. Although there is no formula to calculate the car accident injuries such as pain and suffering, do you agree the demand can start from 3-5 times of the medical bills, wage loss and travel expenses for doctor visits, for example, medical bills are $3000? Could you give light on the starting demand in the soft tissue car accident injuries and what demand range may be workable? Thank you for your answer.
ANSWER: Hi Ryan,
Sorry to see that your request sat for so long unanswered until I returned this morning from vacation. Dr. Settlement likes to help personal injury claims to settlement, but there was a mistake in my vacation days, hence the delay.
On to your answer. I agree with what you propose for a starting point, EXCEPT that the wage loss and travel expenses are usually not included within the multiplier.
So, in the case you present, one might start around $15,000 and let them fight you down. I presume from your statement that you have read my previous answers regarding the factors to use in valuation, but for those who are reading this answer let's list them again.
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.
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 if a person with your injuries is left to rely upon the records of a general practitioner to support his claim, it will never have the same value as if one’s records were from an orthopedic surgeon or a neurosurgeon, as you have. Oh, yes, I am aware that general practitioners and chiropractors seem to be better for most soft tissue injuries than taking drugs prescribed by a surgeon, but the insurance industry does not know that.
Insurance companies give great weight to opinions of orthopedic surgeons and neurosurgeons. http://www.settlementcentral.com/page0052.htm
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.
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
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).
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?
Your claim value gets a boost if your doctor specifies that you will need some future medical treatment.
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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DO IT YOURSELF INSURANCE CLAIM SETTLEMENTS
OK, Ryan, since I cannot tell whether or not you have read Dr. Settlement's tips for insurance injury claim settlements, let’s look at self-help methods of resolving your claim. Learn how to settle your own personal injury insurance claim AND DO IT!
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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FINAL TOPIC—COMMUNICATE IN WRITING AND "DEMAND" NOT "ASK"
FINAL TOPIC, Ryan: 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
---------- FOLLOW-UP ----------
QUESTION: I read “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.” I have a follow up question. Who should start the negotiation amount first, demand or offer? If the claimant demand X dollars, then the insurance must make a counter offer Y dollars. Since the insurance has already known the claimant’s demand, can an attorney demand more than X dollars? If the claimant does not demand but only provide the insurance with the bills, employer letter etc, the insurance must start a lowball offer. Then the claimant must demand more than the lowball offer. Who should start the negotiation amount first, the claimant or insurance? Would you explain it?
AnswerDear Ryan,
I am Morgan Jacobsen, a personal injury attorney at www.SettlementCentral.Com Since Dr. Settlement is down and out for this week, I have been asked to take over his service here so that will not have to wait any longer. Thank you for your well-wishes, which I will pass along to him. Meanwhile, Dr. Settlement thanks you for your patience and understanding and he hopes to be back to work next week (at which time he will face a full week’s worth of backlog <grin> ).
You are basically asking two questions: #1—can the attorney demand more than the claimant had last demanded? And #2—who should start the negotiations by tossing out the first proposal?
As for #1, YES, the attorney can and often will exceed the last demand made by his client.
I read your previous questions and answers and I think I can shed some light on this situation for you. In brief summary, the negotiation process will not be compromised if the attorney should make a demand higher than that last made by the claimant acting pro se (i.e. on your own). A good way to introduce that shift in demand posture is to put it in writing that this demand is made without the advice of counsel, and hence it is subject to revision should it be necessary to retain counsel. And the second part of that process is to state at the end something like this: this demand will be rescinded should it become necessary to employ an attorney to prosecute my case to a successful conclusion.
As for #2, we think it is ALWAYS best to initiate the process of making a demand since you then get to define the size of the ballpark you are playing in. Let’s say that you just submit the medical reports and bills, etc. and wait for the adjuster to make the first move. She responds that they will pay two-thirds of your medical bills plus $500 in general damages (i.e. pain and suffering). Do you now see how hard it is to move the discussion to $10,000?
Hence, take the initiative and DO NOT LET THE ADJUSTER DICTATE THE SIZE OF THE BALLPARK you are going to play in: Get your demand letter out there.
You should be commended for having the initiative to seek out a website such as this and to ask for help, but the most important part of achieving a successful personal injury claim HAS TO START WITH YOU, NOT THE ADJUSTER. Do NOT let the adjuster set the parameters of the negotiation: get your demand letter out there RIGHT NOW. It is not all that hard or mysterious to put together an Effective Personal Injury Insurance Demand Letter http://www.settlementcentral.com/page0170.htm Demand letters do not have to be "fancy" or complex; just hit the main points and get it out to the adjuster soon.
It is not too late for you to take the initiative, and I will explain how below. But just for a second, put yourself in the shoes of the adjuster and see what you would do if a claimant were to let the adjuster have all the control of the claim. As an adjuster, he is trained by his company to reassure the injured party that he is acting in THEIR behalf, as opposed to the interests of his company—sort of like a car salesman who convinces a customer that he will fight for them versus the auto store manager. Sure.
But both of those are relationships are to the disadvantage of the consumer, aren't they? We would like to trust people who are in the position of the adjuster to act at least nominally in our behalf. But it is just as much as a mistake to take a passive role here as in buying a car: you have to get up and make something happen yourself.
If I were you, what I would do right now is to become as fully informed about the insurance injury claims process as I can, with the objective of seizing the initiative in prosecuting my claim, instead of taking a passive, reactive role. Can you see the difference in postures and how one works to your advantage and the other to your disadvantage?
Don’t worry, Ryan, about what figure the attorney might pick. Just use the guidance given and start the process.
Finally, you should know that the chances of getting an attorney to take over a claim of modest potential are not the same as with a claim of larger potential. In other words, if you had a $50,000 claim and the offer was only $20K, the attorney can see that he stands a good chance to make his hourly rate even if he exempts the full amount of your offer.
But if your claim has only a $9,500 total value and the offer is only $4,500, then the attorney cannot make his overhead if he has to give up the entire existing offer. Hence, this is the time to offer him a higher percentage to take the case to completion. So if you are only able to get $1,500 in your pocket (assuming an offer of $4,500 with $3,000 in medicals), then what do you have to lose if you offer the attorney 40% or even 45% of what he can get above that offer?
So if he went to arbitration and got $12,000, you would pay him 45% of the difference between your $4,500 existing offer and $12,000. His fees would be $7,500 times 45%, or $3,375. You would pay the medicals of $3,000, leaving $5,625 in your pocket. THAT would be a good outcome for all concerned, EXCEPT the attorney. One cannot take a claim through discovery (i.e. interrogatories and depositions) and an arbitration hearing (getting a doctor to testify and putting together an arbitration package) for only $3,375 in fees. That will not pay overhead. Hence, you can see how the economics of things work at that lower level of case value. You might have to offer the attorney 55% of what he gets above your offer. Or maybe he can get a compromise without going all the way through an arbitration.
But at least you get the picture regarding a claim such as yours, where there is not a lot of meat left to attract an attorney to take on the fight.
I trust that my time here has been of value to you, and if so, I am asking you to take a moment to leave some feedback for Dr. Settlement
Good luck on your claim, Ryan,
Morgan Jacobsen, J.D. (Juris Doctor)
Http://www.SettlementCentral.Com
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Dear Ryan,
I am sorry to say that our own Dr. Settlement is out sick still. He went down last week with the flu, and he thought that he would be back on Monday. Things did not improve today, so rather than wait for him to return in order to answer your question, I am going to pass your inquiry along to another experienced personal injury attorney at www.settlementcentral.com Her name is Morgan Jacobsen, J.D. She will set aside all of her work tomorrow in order to get to the backlog of work on the desk of Dr. Settlement. Hence, while we apologize for the delay owing to sickness, we are tuned in to the needs of those Dr. Settlement is serving---so expect your answer from attorney Jacobsen tomorrow morning.
Very Truly Yours,
Douglas H. Green, President
Www.SettlementCentral.Com
