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Last Update: 4/4/19

Read our list of factors before settling your claim, which includes mental and psychological issues.



18 Issues to Consider When Deciding If The Insurance Company’s Personal Injury Settlement Offer Is Fair

Settlement of an injury claim means analyzing a large amount of information to determine what amount of money is needed to fairly compensate an injured person to make them whole again. After all, no peson wants to be re-victimized, especially by an insurance company.

However, this analysis involves more than just physical injuries. There may be mental and psychological issues to be addressed.

The components of any personal injury settlement should include:

1. — Age of the injured person and their life expectancy
2. — Sex of the injured person
3. — Physical condition before the accident happened (Was he/she an athlete? Was she pregnant?)
4. — Mental state before the injury (Any history of depression?)
5. — Work and employment history
6. — Past earning history
7. — Change in life circumstances as a result of the accident – physical needs (wheelchair, etc.) short term
8. — Change in life circumstances as a result of the accident – physical needs (wheelchair, etc.) long term
9. — Altered health status in the long term because of the injury
10.– Lost ability to earn a living because of the injury
11.– Does the Victim have PTSD?

There may be additional components to the injury victim’s harm to be considered that are not as easily documented, including:

12.– Lost ability to enjoy life because of the injury
13.– Physical pain and suffering
14.– Mental pain and suffering
15.– Impact upon spousal relationship
16.– Impact upon relationship with children

Financial Factors When Evaluating A Personal Injury Settlement

Once these economic and non-economic components are calculated, often with the input from experts in fields of physical therapy, psychological needs, etc., the analysis is not complete. Your personal injury lawyer, will also consider financial issues like:

17.– Economic value of the U.S. Dollar today and in the future (considering inflation, the time value of money, etc.)
18.– Manner in which claim is to be paid (lump sum, annuity, etc.).

Read: Settle Your Injury Case or File a Lawsuit: What’s Best for You?

Attitude of Insurance Companies to Some Types of Injury Claims

Finally, the personal injury lawyer will consider the injury itself. Insurance companies are notorious for disrespecting certain kinds of injuries — particularly injuries involving whiplash and soft tissue injuries which are common injuries in most car crashes and motor vehicle accidents. Injury claims involving these types of injuries are approached suspiciously by insurance carriers and often these settlement claim offers will be lower than they should be because the insurance company is low-balling things based upon their belief that whiplash and soft tissue injuries aren’t real or serious. See, The Case for and Against the MIST (Minor Impact Soft Tissue).

What Should You Do?

A good piece of advice if you are not sure that the insurance company is making you a fair offer for your personal injury claim, is to speak with an experienced personal injury lawyer before you settle the claim to learn about some of the issues that can arise with a claim, including the type and amount of damages you can recover. Most personal injury lawyers, like Alan Sackrin, will offer a free initial consultation (over the phone or in person) to answer your questions.

Now Watch

How does an insurance company decide how much they will pay to compensate someone for an injury?

Related: Are Florida Insurance Adjusters On Your Side?: Beware of the Denied Claim, the Low Ball Claim and the Recorded Statement.


Do you have questions or comments? Then please feel free to send Alan an email or call him now at (954) 458-8655.

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