Auto Insurance Claims: reasonable settlement, personal injury claim, low back pain

Question
QUESTION: I am trying to figure out what would be reasonable to settle with. See I was
rear ended at a red light, the person that hit me did not even try to slow
down. Anyways there was a little over $10,000 in work done on my vehicle.
My husband was driving, he has settled his claim allready. Was having
migranes and settled for $1,000. Which now I already know we should have
waited. I have had low back pain ever since the accident. It was pretty fluent
but now is off an on. But can be pretty severe. I have been going to Physical
Therapy for it. I just finished my last appointment recently. My doc told me
she was going to keep my records on file in case I had any more episodes,
and she told me to continue the at home exercizes, for my back. I am in the
military so all my medical is covered 100 percent. Since the accident was not
my fault, Tricare (military ins.) can come back on me and make me pay for it.
Well after review State Farm is trying to settle $1,000 for pain and suffering. I
know that number is way off. What would be reasonable. I am trying to avoid
a lawyer but if they keep trying to stiff me I will do what needs to be done
and get a lawyer.

ANSWER: Hi Michael,
Since your doctor feels that there is a strong possibility that you will need more treatment, there is no reason to rush into a settlement.
Every state has a Statue of Limitations within which a personal injury claim must be settled or you must file a lawsuit to gain extra time.
If the accident happened in Tennessee or Kentucky, the statue limit is one year.  Most other states have a two year limit and a few have a limit of three years or more.
You should start to immediately build a file of your expenses.
First, you need to have Tricare prepare you an itemized list of each Doctor visit, each Physical Therapy visit and each prescription drug that you might have been given.
They need to place a dollar value for each and every visit and treatment (after all, this is the amount that they will force you to pay them back from your settlement).
Also list the round trip mileage for each trip that you made to receive treatment at $0.43 per mile.
When you are absolutely positive that you are recovered and will not need any more treatment, then total up all these
'specials' (bills) and multiply by 3.2.  This is the amount that you should demand from State Farm as settlement.
You will need to put this demand in written form and provide them copies of the Tricare bills and your travel expenses.  Now the negotiating process begins, which can take from weeks to months.  Their first offer is going to be a lot less than your demand.  You will have to slowly
lower your demand while they slowly increase their offer.
You should be able to negotiate a settlement between 2.5-2.7 times your specials.
If you will send me a follow up with the date of the accident and the state where it happened, I can give you the statue date for that state.
I trust this information has been of help, please write again if I can provide more assistance.
Your feedback by rating my answer will be greatly appreciated.
Sincerely,
Bennie
San Francisco Bay Area 12-07-07 10:07 PM PST

---------- FOLLOW-UP ----------

QUESTION: it happened on March 28th 2007, in Maryland.

Answer
Hi Michael,
The statue of limitations in Maryland is three years.  This means that you must have this case fully settled, releases signed and check in hand at least 1 day before the statue ends or you lose all rights to recovery.
Of course, if you can't get this settled in 2 1/2 years, you need to hire an attorney to file a lawsuit and this will extend the statue time.
Please take a moment to rate my answer.
Thanks,
Bennie
12-08-07 1:44 PM PST