After completing her therapy with a local chiropractor, we gathered all of the medical bills and records from the hospital and the chiropractor. The total amount of the medical bills was just over $3,800. I put all of the bills and records in chronological order and put a soft demand letter together and faxed it all over to the adjuster.

One week after faxing the demand package to the adjuster I called him up to confirm that he had received everything. He confirmed that he had in fact received my fax and that he would need some time to evaluate the information. I asked when I could expect to hear from him and he said a couple of weeks.

A few weeks passed and I had not heard from the adjuster so I decided that I would follow up with him again. He informed me that he still had not evaluated my wife’s claim. (Note: This is typical from adjusters as they have lots of claims and the reason why you must be diligent on your part to keep your claim on top of their list of claims to work on.) He did mention that he would try and get me an offer in the next couple of days. Sure enough, a few days pasted and he called with the first offer.

“Let me tell you, I think this is a fair offer”, he said. “I can offer your wife $2,000 plus all of her medical bills. If you want to settle, I can have the check ready today.”

I said, “Thanks for taking the time to evaluate our claim. Let me discuss it with my wife and I will get back to you.”

Of course the adjuster thinks $2,000 is fair. Most adjusters would think $10 was a fair offer if they could get someone to sign a release. What they fail to realize is the person that went through the pain and suffering of the injury probably does not think any amount is fair. I mentioned the offer to my wife and sure enough, she was insulted. I informed her that this is typical for adjusters to offer a low amount and to not worry about it too much. Knowing what I know about the value of claims, I knew he had more money.

After helping my wife understand how claims are evaluated, we decided that we would not accept an amount less than $4,000 plus all of the medical bills. I called the adjuster and left him a voice mail indicating that we would be declining his offer and that we would be making a counteroffer of $7,000 plus the medical bills.

He called later that night in shock. “You don’t really think her claim is worth $7,000 do you?”

I said, “Well, all I know is that we are not going to accept your offer of $2,000. Why don’t you try and increase your offer and we will re-evaluate our position.”

He proceed to increase to $2,800. I decreased to $6,000. He increased to $3,500 and I decreased to $5,200. He then increased to $3,800 and I decreased to $4,500.

“$3,800 is the best I can do,” he said.

“It’s too bad we are so close yet you won’t be getting a signed release from us. I really wish we could have gotten this file off your desk, but we are looking for a specific amount and really aren’t willing to settle for anything under that amount. If you can talk to your supervisor and let her know how close we are, maybe we can reach some middle ground.”

“Let me talk to my supervisor and get back with you,” he said.

A few minutes later he called back and informed me that his supervisor would be willing to offer $4,000 plus the medical bills if we would sign the release in the morning. I talked it over with my wife and we agreed to the settlement offer. The total money offer was $7,800 ($4,000 in general damages plus $3,800 in medical bills) which is 2.05 times the medical bills.

You will note that a lot happened from start to finish on my wife’s injury claim. You can find every tactic used in my negotiations with the adjuster and information on how to evaluate your personal injury claim using our Settlement Booklet™.

Case Study

Gender: Female

Age: 20’s

Type of accident: Female was hit from behind at a stop light and pushed into the car in front of her

At-fault insurance company: Nationwide

Type of medical care: Ambulanced to the hospital with a few follow up visits

Length of treatment: 2 weeks of medical care with a few months of pain

Settlement amount: Her total money offer (medical bills and pain and suffering) was 2.04 times the total medical bills.

Example: $8,000 in medical bills times 2.04 equals a $16,320 total money settlement from Nationwide.

Things to note: Even though the actual medical treatment was relatively short, the severity of the injury helped bolster the value of this claim. Any time you have a broken bone, scar, surgery or other major injury, your claim is worth more money. A fractured sternum is painful and there is not a lot of treatment that can be performed and that is why the claim still had good value.

1. Waiting to seek medical attention. The longer you wait to see a doctor after an accident—even if it’s to see if you can get better on your own—the harder time you’ll have convincing the at-fault insurance company you were injured.
2. Failing to properly report the accident. This means you either didn’t file a report with the police at the scene of the accident or didn’t take pictures of the damage to your vehicle and injuries sustained.
3. Divulging too much information to the insurance company. Recovery from an injury takes time. Nevertheless, insurance adjusters will try and get you to commit to an injury, often the same day of the crash, even before a doctor has properly diagnosed and treated you. This is an attempt by them to reduce a payout to you. Don’t do it unless you want to minimize your claim (Simply say “I’ll know more once I finish treatment with my doctor.”)
4. Waiting to file a claim. As soon as you are able (the day of, if possible), file a claim with the insurance company. This can be done by you or an attorney, the latter of which can be added to your original claim at anytime, so long as a settlement hasn’t been reached.
5. Exaggerating or lying about your injuries. Don’t do it unless you want to kiss your legitimate recovery money goodbye.
6. Failing to complete medical treatment. If you skip visits or fail to complete your treatment, the insurance company will argue you weren’t really hurt in an accident. Stick to the program unless your doctor says otherwise, even if you feel you are getting better.
7. Exaggerating or lying about personal mobility. Some people do this in an effort to inflate their general damages award (aka “pain and suffering”). This is an auto accident, not the lottery. So for the second time, don’t fudge the truth. Be honest so you can get compensated for your injuries and loss of life (if any).

For a more comprehensive explanation of personal injury recovery, please see our Settlement Booklet.

Special damages are really simple to calculate. You have a fixed expense in medical bills and other expenses and you know exactly how much that cost you when you add them all together. If your medical bills were $2,000 and you had $50 out of pocket for prescriptions, you have $2,050 in special damages. General damages are not so easy to calculate.

When trying to figure out how much your general damages (pain and suffering) are worth, you are trying to put a price on something that does not have a price. How much is it worth to you to miss your sons t-ball game because you had a doctor appointment? $100, $200, or maybe there isn’t enough money in the world to keep you from your sons t-ball game. This is why you value your pain and suffering different than the insurance company will value your pain and suffering. You may think there is no price for missing your sons t-ball game, but the insurance company does think there is a price. Because the insurance company can not turn back the hands of time and get you to your sons t-ball game, they will offer you money instead.

So even if you really can’t put a price on your pain and suffering, when negotiating your personal injury claim with the insurance company, you will have to try. If the adjuster offers you $1,000 for pain and suffering, come back at $3,000 and see if he increases his offer. If you want to settle your claim, you and the adjuster will have to reach some common ground on the general damages portion of your personal injury claim.

1. Failing to see a medical professional immediately after the accident. This is a no brainer for serious injury, but what about minor injuries? Soreness in your neck or back will go away, right? Headaches too, no? They might. They might not. Whatever the case, you lose if you don’t see a medical professional right away. This isn’t a cold you can treat on your own. It’s an injury that could worsen into something more serious over time. So see a doctor within 24 hours if you feel pain.

2. Exaggerating your pain to a medical provider. Remember, this is an auto accident not the lottery. If you’re in this hoping for a free ride, you’ll be disappointed with the results. If you’re hoping to get compensated for your treatment and the inconvenience associated with an injury, you’ll have a better chance in doing so by being up front and honest with your medical provider about your injury.

3. Talking with your doctor about filing an insurance claim or lawsuit. The doctor’s job is to treat your injury. Your job (or your lawyer’s job) is to ensure you get fair settlement from a stingy insurance company. Talking with your medical provider about your altercation with your insurance company only complicates the issue. And as soon as you file a personal injury claim, doctor confidentiality is out the window.

4. Missing your medical appointments. Defaulting on scheduled visits with your medical provider(s) suggests you may not as injured as you say you are. Don’t do it unless you want to jeopardize your claim.

5. Failing to update your medical records. Everyone knows you’re suppose to share physical ailments with your doctor. What you may not know is to share your emotional ailments with your doctor as well in the event of an auto injury. Losing sleep due to headaches and pain? Tell your doctor. Feeling depressed due to the injury? Tell your doctor. And don’t forget to maintain a personal journal as well to keep track of your medical care.

6. Failing to inform your doctor and employer when an injury is affecting your work. If you want to get compensated for wage loss or additional pain and suffering, notify the authorities. You paid for the insurance. As claimant, you’re entitled to the legitimate benefits.

7. Failing to follow or complete your treatment plan. As with reason No. 4, insurance companies will argue you aren’t as injured as you say you are if you fail to follow the treatment plan as directed by a medical professional. Hopefully you recover from an injury faster than expected. If you feel this is the case, tell your doctor and let him update the treatment plan if he chooses. But always do as prescribed. Otherwise you’ll suffer the physical and financial strains.

8. Negotiating or accepting settlement before finishing treatment. In the case of an claim, which you should open within 24 hours of your accident, the at-fault insurance company will offer fast cash to get you to sign a preemptive agreement, releasing them from further liability. This is an attempt by them to, again, maximize profits. When this happens, simply tell the adjuster your working with, “No, thank you. I’m not going to negotiate a settlement until I’ve finished my treatment, so I can be fully compensated for any unforeseen injury.”

Click here to download a free sample from our Personal Injury Settlement Booklet™ discussing medical treatment and how it affects your claim.

1. What adjuster do you have working on your claim? Every adjuster evaluates claims slightly different. You may get an adjuster that is extremely tight with their evaluation or you might get an adjuster that is a little loose with their evaluation. Every person will see your claim slightly differently.

2. What kind of treatment did you receive for your injuries? Different forms of therapy are worth different amounts to insurance companies. Picking the right type of therapy will increase your chances of getting a little bit more in your settlement.

3. How severe was the impact to your car? The larger the impact, the more believable your injuries to an adjuster.

4. How well have you documented the impact the car accident has had on your life? Pain and suffering is all about documentation. If you inform your doctors how the auto accident has impacted your life, they will put it in their records. If you keep a journal of your troubles since the accident and activities that have been negatively affected by the accident, you can present this to the adjuster to help them understand exactly the impact on your life. The better the evidence you have, the more likely you will get a little more for your settlement.

5. How well do you negotiate? Even if you have all your ducks in a row, if you lack good negotiating skills, you will never get what you deserve out of your auto accident injury settlement. Adjusters are highly trained to make you frustrated and very good at putting pressure on you to settle for less than your injury claim might be worth.

Currently, we are seeing average settlements of 2.10 the amount of the total medical bills. Depending on what type of car accident you have and what variables are in play with your injury claim, you may end up with more or less money than the “average”. To try and build the strongest claim possible in an attempt to get more than the average settlement, consider buying our Personal Injury Settlement Booklet™.

That statement is probably true. The problem with the logic behind the statement is you made the choice to take on the new car payment all on your own. You see, when you have your car totaled out in the accident, the insurance company has a responsibility to replace your car with the exact same car. They should pay you an amount that will get you into the exact same car. Nothing newer. Nothing nicer.

If you then go out and buy a newer or nicer car and you choose to take on that new added payment, that stress was brought on by you, not the insurance company and their driver. Because you have already settled on the property damage, you can’t bring things related to the property damage into your personal injury claim. They are two separate claims. That includes the added stress of buying a new car and taking on a new payment. So remember this, the insurance company has an obligation to right the wrong that their driver caused to your life. They do not have an obligation to make your life better than it was. Before the accident you were driving an older paid for Honda Civic so why would they have an obligation to put you into a new Porsche and make your payments for you?

This is the one area that really messes people up after an accident. They don’t think it through clearly when the accident happens and they end up added stress to their life that is brought on by themselves by taking on a new car payment. This stress cannot be added to their personal injury claim for pain and suffering. So be smart and don’t jump into a new car payment that you really can’t afford hoping that the insurance company will pay for it.