When you suffer injuries in an accident caused by another party’s negligence in Florida, you may be entitled to compensation through an insurance settlement. Determining the settlement amount can be complex and confusing. However, this leaves many victims wondering how insurance companies arrive at their figures. This opacity often leads to frustration and anxiety, exacerbating the already challenging aftermath of an accident. But, how do insurance companies determine settlement amounts in personal injury lawsuits?
Understanding how insurance companies calculate settlements in Florida is crucial in demystifying this process. It empowers you to advocate effectively for your rights and interests, ensuring you receive a fair amount for your losses.
What is a Settlement Amount?
A settlement amount is the sum an insurance company agrees to pay to resolve a claim or lawsuit arising from an accident or injury. This compensates the victim for their losses, including medical expenses, lost wages, property damage, pain and suffering, and other harms. In exchange for the settlement payment, the victim typically agrees to release the at-fault party and their insurance company from further liability. But, how do insurance companies determine settlement amounts?
How Do Insurance Settlements Work?
How do insurance companies determine settlement amounts and how does the process work? The insurance claim settlement process in Florida typically involves several key steps:
- The victim files a claim with the at-fault party’s insurance company. They also provide information about the accident, their injuries, and any damages incurred.
- The insurance company assigns a claims adjuster to investigate the claim, gather evidence, and determine the extent of the victim’s losses.
- The claims adjuster calculates an initial settlement offer based on their assessment of the victim’s damages and the available insurance coverage.
- The victim, often with the assistance of a personal injury attorney, reviews the settlement offer. They then decide whether to accept it, negotiate for a higher amount, or file a lawsuit.
- If a settlement agreement is reached, the victim signs a release waiving their right to pursue further legal action. This waiver releases the at-fault party and their insurance company. After, the settlement funds are disbursed.
Factors Insurance Companies Consider When Calculating Settlements
How do insurance companies determine settlement amounts? Insurance companies consider several factors when calculating settlement amounts in Florida:
- Medical expenses — The cost of all medical treatment related to the accident. This includes emergency care, hospitalization, surgery, medication, and ongoing therapy.
- Lost wages: The income the victim has lost due to missed work while recovering from their injuries. This also includes any future lost earning capacity if the injuries result in a permanent disability.
- Property damages — The cost of repairing or replacing any personal property, such as a vehicle, damaged in the accident.
- Pain and suffering — The physical pain, emotional distress, and mental anguish the victim has experienced as a result of the accident and their injuries.
- Fault: The degree to which each party is determined to be at fault for the accident. Florida follows a comparative negligence rule that reduces a victim’s compensation by their percentage of fault.
- Insurance coverage — The available policy limits of the at-fault party’s insurance coverage and any applicable coverage the victim may have. This includes insurance such as uninsured/underinsured motorist protection.
- Likelihood of litigation — The probability that the victim will file a lawsuit if a settlement cannot be reached. This includes the potential costs and risks associated with defending the case in court.
Insurance Company Tactics for Minimizing Settlements
How do insurance companies determine settlement amounts that are included in their settlement offers? Remember that insurance companies seek to maximize their profits, which often means minimizing the amount they pay out in settlements. Insurance adjusters may employ several tactics to reduce the value of your personal injury claim:
- Requesting a recorded statement — The adjuster may ask you to provide a medical record or other recorded statements about the accident and your injuries. This is in the hope of obtaining information that can be used to minimize your damages or assign you a higher degree of fault.
- Offering a quick, low settlement — The adjuster may offer you a low initial settlement soon after the accident, hoping you will accept it before fully understanding the extent of your injuries and losses.
- Disputing medical treatment — The adjuster may question the necessity or reasonableness of specific medical treatments. They may argue that they are unrelated to your accident or more extensive than needed.
- Surveillance — In some cases, insurance companies may surveillance you to gather evidence that your injuries are not as severe as claimed. They may also obtain information that you are engaging in activities inconsistent with your alleged limitations.
Protecting Your Rights in Insurance Settlement Negotiations
How do insurance companies determine settlement amounts and how can your lawyer ensure a fair settlement? To ensure that you receive a fair settlement for your injuries and losses, working with an experienced Florida personal injury attorney who can protect your rights and advocate for your interests in negotiations with the insurance company is crucial. During your personal injury case, your attorney will:
- Thoroughly investigate your case — Your attorney will gather evidence, interview witnesses, and consult experts to build a strong case. This demonstrates the extent of your damages and the at-fault party’s liability.
- Communicate with the insurance company — Your attorney will handle all communication with the insurance company. This protects you from making statements that could be used against you and ensures your rights are protected.
- Calculate your damages — Your attorney will communicate with the insurance company, protecting you from making statements they can use against you and ensuring your rights are protected.
- Negotiate aggressively — Your attorney will negotiate with the insurance company on your behalf, presenting evidence to support your claim and fighting for a settlement that fully compensates you for your losses.
- Advise you on settlement offers — Your attorney will guide whether to accept a settlement offer or continue negotiating for a better outcome. They would consider the strength of your case and the potential risks and benefits of litigation.
How Jurewitz Law Group Injury & Accident Lawyers Can Help with Your Florida Insurance Settlement
Still unsure how do insurance companies determine settlement amounts? At Jurewitz Law Group Injury & Accident Lawyers, our team of skilled Tampa personal injury attorneys has the knowledge, experience, and resources to take on the insurance settlement process on your behalf effectively. Our law firm understands the challenges you face after an accident and is committed to fighting for the full compensation you deserve.
If you sustained injuries in an accident in Florida, do not handle the insurance settlement process alone. Contact Jurewitz Law Group Injury & Accident Lawyers at (619) 233-5020 to schedule your free case review and free consultation. Learn how our dedicated team of attorneys can help you pursue the compensation you deserve after your personal injury settlement.
