Posted on Saturday, February 1st, 2025 at 9:00 am
If you have been hurt in an accident, you likely want to know how personal injury settlements work. Whether you were involved in a slip and fall accident, a car accident, or another type of accident in Birmingham, Alabama, that caused your physical injury, you have the right to seek compensation from the person or party responsible. Understanding personal injury settlements can help you know what to expect and how to move forward.
What Is a Settlement?
A settlement is a legal agreement between an injured person and the at-fault party (or their insurance company) to resolve a claim without going to court. Instead of waiting months or even years for a trial, both sides negotiate a fair payment for the resulting losses and expenses.
Once they agree on an amount for your settlement money, the injured person receives compensation, and the case is officially closed. Settlements help victims recover financially without the stress of a long legal battle. Settlements give both sides more control over the outcome, instead of leaving the decision up to a judge or jury.
What Is the Formula for Personal Injury Settlements?
There’s no exact formula for calculating a personal injury settlement, but several key factors play a role in determining how much a victim may receive. Medical expenses are a big part of the equation since they reflect the cost of treatment, hospital stays, and ongoing care. Lost income is another major factor, especially if the injury prevents someone from working for an extended period.
Besides financial losses, settlements also consider emotional distress, pain, and suffering, even though these can be harder to measure. Some insurance companies use a multiplier method, adding up medical expenses and multiplying the total based on how severe the injuries are. They total the victim’s medical expenses and multiply that number by a factor based on the severity of the injuries. For example, a minor injury might get a lower multiplier, while a life-changing injury could receive a much higher one. Every case is different, but these factors help shape the final settlement amount.
How Much to Ask for in a Personal Injury Settlement
The amount you ask for should cover all your losses. If injuries are severe, the settlement amount should reflect long-term effects. Our lawyers will fight for the best possible settlement for your claim.
How Settlement Claims Work
The settlement process may feel overwhelming. However, breaking it down into clear steps can make it far more manageable and less intimidating. The personal injury claims process generally follows these steps:
Filing a Personal Injury Claim
The first step involves submitting a claim to the responsible party’s insurance company. This claim outlines key details, including how the accident happened, the injuries sustained, and the financial impact, such as immediate and long-term medical costs. The goal is to formally notify the insurer that you are seeking compensation for your losses.
Gathering Medical Records and Evidence
Medical records are important because they show how serious your injuries are and what kind of treatment you need to recover. Other forms of evidence, like accident reports, photos, and witness statements, help establish what happened and who was at fault. The stronger your evidence, the better your chances of securing a fair settlement.
Evaluating Settlement Offers
Insurance companies usually make low offers at first because they want to pay as little as possible. While it may be tempting to accept a quick offer, working with an experienced personal injury lawyer from Farris, Riley & Pitt, LLP can help you understand your rights and fight for the full amount of compensation. A lawyer can stand up for you, using their negotiation skills to fight for a fair settlement that covers all your losses.
Reaching a Settlement Agreement
Once both sides agree on a fair amount, they sign a settlement agreement. This document finalizes the terms so the injured party can receive their compensation. After signing, the case is officially closed, and the victim can begin moving forward without the stress of ongoing legal battles.
What Is Included in a Personal Injury Settlement?
Personal injury settlements cover various expenses and losses, including:
- Economic Damages – Injuries can make it hard to work and provide for yourself or your family. This compensation helps replace lost income and any financial setbacks caused by the accident.
- Non-Economic Damages – An injury affects more than just the body. It can change a person’s daily life. Compensation that victims receive for pain and suffering and other non-economic losses takes into account both the emotional and physical toll an accident can have, helping victims move forward.
- Punitive Damages – Some accidents happen because someone was careless or reckless. These damages serve as a way to hold them accountable and discourage similar behavior in the future.
How Personal Injury Settlements Are Paid
Once the attorney and insurance company reach an agreement, the insurance company will issue a check. The settlement check is usually sent to your attorney’s office, which deducts legal fees and then sends the remaining amount to you.
Some personal injury settlements are paid in scheduled payments over time instead of one lump sum. This can provide a steady flow of money, helping the injured person manage long-term financial needs.
What If the Insurance Company Won’t Offer Enough?
If the insurance company refuses to make a fair offer, filing a lawsuit may be necessary. The majority of personal injury cases are settled out of court, avoiding the need for a trial. However, pursuing legal action may become necessary when a fair agreement cannot be reached.
Why You Need an Experienced Personal Injury Lawyer
Dealing with settlement claims and insurance companies can be challenging. Having an experienced personal injury lawyer at Farris, Riley & Pitt, LLP makes a difference. We handle negotiations for our clients and gather medical records. We work hard to take the steps necessary to fight for the compensation you deserve.
Call Farris, Riley & Pitt, LLP Today
If you’ve suffered an injury in an accident, don’t try to handle your personal injury claim alone. Contact Farris, Riley & Pitt, LLP at (205) 324-1212 today to discuss your case with a Birmingham personal injury lawyer. We’ll help you understand how personal injury settlements work and fight to get you the best possible outcome.
