If you’re in the process of trying to negotiate a settlement in an injury claim, the process can be exhausting. Even after going through all of the steps, there’s no guarantee the insurance company will agree to settle.
You may find yourself pursuing a lawsuit, and this can take several months—thankfully, the majority of personal injury claims are settled before turning into a lawsuit. But what happens if you have additional damages after settling? Can you file for compensation after signing a settlement agreement?
A Look at the Claim Process
When you’re injured in an accident caused by someone’s negligence, you can file a claim with the at-fault party’s insurance company for compensation for your damages. The process is a little more complicated than filling out a form because you must prove negligence.
Proving negligence means showing the defendant owes you a duty of care and they breached this duty. You must also show the defendant’s actions are the direct cause of the accident. The other element of negligence applies to your damages.
You must prove that your damages are caused by the accident. If you’re feeling a little confused, here’s an example.
A driver runs a red light and crashes into your vehicle in the intersection. Your vehicle suffers damage and you sustain injuries. All drivers owe others on the road a duty of care, which means behaving in a way that doesn’t place others at risk. The driver’s decision to run the red light is a breach of their duty of care. The other driver’s actions are also the cause of the accident that results in your damages.
Okay, so you can prove negligence, so what are the other steps in the claim process?
List and Calculate Your Damages
Your damages from an accident are typically divided into two main categories, economic and non-economic.
Your economic damages are things that have a price whether it’s a bill or receipt. Your medical expenses and property damage are common economic damages, along with lost income. Your list of economic damages may be more extensive, these are only a few common examples.
Since your economic damages have a price, calculating these expenses is fairly easy. Just add everything up and you get the total amount of your economic damages. Figuring out the value of your non-economic damages is a little more complex.
Non-economic damages can include pain, suffering, and mental anguish. Since your pain doesn’t exactly come with a price tag, calculating the value requires a little creativity. You have two options. You can calculate your total non-economic damages using either the multiplier or per diem method. Both are accepted by insurance companies but be prepared for some negotiations.
Both methods use the total of your economic damages, but this is where the similarities end. The multiplier method requires you to assign a number to your pain and suffering, usually between 1.5 and 5. The higher the number, the greater your pain and suffering. Multiply your economic damages by the number you pick to represent your level of pain.
If you assigned the number 2 to your pain and your economic damages are $200,000, your non-economic damages are $400,000.
Using the per diem method, count the number of days you’re experiencing pain and multiply this by your economic damages. So, if your pain lasts for 10 days and your economic damages are $200,000, your non-economic damages are $2,000,000.
A good tip is to use both methods to calculate your non-economic damages, so this way, if the insurance company turns down your first offer, you’re ready with a second one.
Contact the Insurance Company
Chances are, you’re already in contact with the at-fault party’s insurance provider. You’ve probably already received a settlement offer. Don’t accept the initial offer, you’re still figuring out the value of your claim.
Once you’ve calculated your claim’s value, contact the insurance adjuster and get ready to sit through negotiations. There’s a good chance you’re going to go through several rounds of negotiations before reaching a settlement.
This is also when you want to have a personal injury attorney by your side. Your attorney is a skilled negotiator and can work to help ensure you receive fair compensation. Hopefully, you can settle with the insurance company.
If an agreement can’t be reached, the next step is filing a lawsuit in civil court. Sometimes, this is enough to bring the insurance company back to the negotiating table.
Receiving Your Settlement
Finally, it’s time to celebrate. You’ve finally completed negotiations and the attorneys are drawing up a General Release, which sets the terms for your settlement.
The document generally includes the settlement amount with other terms worked out in negotiations. These terms typically include language describing how you’re responsible for your expenses stemming from the accident.
The General Release also prohibits you from filing an additional claim for the same accident. In other words, once you sign the General Release, you can’t file another claim even if you have additional damages.
Now, you’re on to a final step, signing the Closing Statement, which reiterates the terms of the General Release and covers the allocation of the settlement funds. For example, if you have a contingency fee agreement with your attorney, their percentage is included in the Closing Statement.
After signing the necessary documents, you’re almost finished pursuing your personal injury claim. There’s only one step left to complete, receiving your settlement check. Your check will most likely go to your attorney, especially if you have a contingency fee agreement. Your attorney deposits the check in an escrow account, deducts their contingency fee, and sends you the rest.
After signing a form stating you received the settlement check, your injury case is considered legally closed.
Don’t Settle For Less Than the Value of Your Claim
You can’t refile a claim for the same accident after accepting a settlement offer and signing a General Release form—there aren’t any exceptions, even if you learn your expenses are continuing to climb. To help ensure you receive the full value of your claim it’s best to work with an experienced personal injury attorney.
They can accurately evaluate your case, considering both immediate and future expenses, to negotiate a fair settlement. Having professional guidance ensures you are fully informed about your rights and the implications of the settlement agreement to protect you from potential financial difficulties down the road.
