Factors Which Affect the Value of a Personal Injury Settlement

There are around 35 million cases of injury each year where a victim seeks medical help. Some of those people may be entitled to seek compensation by filing a personal injury claim. If the claim cannot be resolved through negotiation and settlement, it may go to trial. However, over 95% of personal injury claims settle out of court. A skilled personal injury lawyer can help maximize the value of a settlement by carefully evaluating the case and negotiating aggressively on your behalf. 

Learn about the key factors that impact the potential value of a personal injury settlement.

Severity of Injuries

The severity of the plaintiff’s injuries is often the most significant factor affecting a personal injury settlement amount. More severe injuries that result in high medical bills lost wages from missed work, and lasting disabilities warrant higher settlement values. Minor soft tissue injuries like strains and sprains have lower settlement values. Severe injuries like broken bones, traumatic brain injuries, spinal cord injuries, or fatalities can result in settlements in the millions of dollars. The highest-ever personal injury settlement is Tobacco Master, which forces tobacco manufacturers to pay out a minimum of $206 billion over 25 years. 

The defense will thoroughly investigate the extent of the plaintiff’s injuries.

Type of Evidence

Strong evidence supports higher settlement values. Police reports, medical records, witness statements, expert testimony, and other documentation help establish liability and quantify damages. Photographic and video evidence can also be persuasive. Weak evidence makes it harder for the plaintiff to prove their case and get a favorable settlement.

Insurance Coverage Limits

The maximum payout the defendant’s insurance policy covers heavily influences settlement amounts. Even for severe injuries, settlements rarely exceed the policy limits. This is because individuals seldom have sufficient personal assets to pay large settlements. Going beyond policy limits requires proving the defendant’s actions were so egregious that additional punitive damages are warranted.

Contributory Negligence

In some states, plaintiffs share responsibility for causing the accident that resulted in their injuries. Their financial recovery decreases by their percentage of fault. For example, in a state that recognizes 50% contributory negligence, a plaintiff who is found 25% at fault for the accident will have their settlement reduced by 25%.

Reputations of Personal Injury Lawyers 

More experienced personal injury attorneys typically obtain higher settlements for their clients. Their reputation provides leverage in negotiations. Defense counsel may offer higher settlements to avoid facing well-known attorneys in court. Less experienced lawyers may struggle to negotiate fair settlements, leaving money on the table.

Location

Verdicts and settlement values for similar cases can vary dramatically depending on the jurisdiction. Urban areas like Chicago and Los Angeles are known for awarding higher settlements than rural parts of the country. Within a state, liberal communities tend to award higher settlements than conservative ones.

How Long Does a Personal Injury Case Take to Settle?

Cases that settle quickly usually have lower values than those that involve protracted litigation. As a lawsuit drags on, both sides face accumulating legal fees and uncertainty over the outcome. With trial approaching, the defense may become more amenable to the plaintiff’s settlement terms to avoid courtroom risk.

These major factors all impact the potential value of a personal injury settlement. An experienced attorney can leverage these factors to negotiate a favorable settlement for their injured client.