Car Accidents

How is settlement value calculated?

Get answers to common questions about how settlement values are calculated after a car accident.
Letha Maier

TGL Attorney

Letha Maier

how is settlement value calculated

How is settlement value calculated?

In Indiana, the financial value of damages stemming from a car accident—whether for bodily injury or property damage—is ultimately based on what a jury of six individuals determines the value to be. Attorneys and insurance adjusters rely on experience, industry knowledge, and statistical data to predict what a jury may award as a car accident settlement payout. Contact a car accident lawyer at Team Green Law to learn more.

In an attempt to predict what a jury may determine the value of damages to be, personal injury lawyers may look at factors such as:

  • Serious injuries such as broken or fractured bones, required surgeries, scarring (especially on women where it is noticeable), loss of limb/s, soft tissue injury
  • Age of the individual
  • Total sum of medical bills
  • Total payment on medical bills (after insurance write-downs), along with any outstanding balances
  • Damage to the vehicle or other personal property
  • Out-of-pocket expenses, including transportation to medical appointments, mobility aids, and household assistance
  • Lost wages
  • Past, current, and future pain and suffering, including emotional distress

Every case is unique, and additional factors may come into play when calculating the settlement value of a case. The question of fault is also a crucial element in settlement amount calculation. Consult a lawyer to understand what a good settlement offer is for your car accident case.

How do settlements work in a lawsuit?

Settlements are commonly used to resolve civil disputes, including personal injury cases. When a car accident attorney files a lawsuit, the involved parties will often aim to resolve the dispute without going to trial. This process is known as settling or negotiating a settlement, which occurs when both sides agree to compromise and seek a mutually acceptable agreement.

During negotiations, both parties make and exchange offers in effort to reach a resolution that both sides can agree on. To make the settlement legally binding, both parties may sign an official document that outlines the terms of the agreement. These documents are typically referred to as a Settlement Agreement or a Release of Claims.

How do lawyers negotiate settlements?

Car accident lawyers approach settlement negotiations by evaluating a wide range of important factors. To learn more about the considerations pertaining to your case, give us a call at Team Green Law.

Before negotiating, a lawyer may:

  • Evaluate potential liability arguments that could be made by the insurance company
  • Internally estimate the case’s range of value
  • Research the insurance company and how they typically determine valuations
  • Identify insurance adjuster and/or attorney involved on the opposing side
  • Determine whether the insurer is using in-house counsel or an outside defense law firm
  • Develop a strategy to assess whether a lawsuit may be necessary to secure a fair offer
  • Consider whether formal mediation may be more effective than informal negotiations and select the most appropriate mediator for the case

Once both parties reach a settlement, the terms are typically formalized in a legally binding agreement signed by both sides. If negotiations become challenging or if one side is unwilling to compromise, lawyers may suggest using an arbitrator or mediator to help resolve the dispute. This neutral third party will listen to both perspectives and work to find a mutually agreeable resolution.

What happens after a settlement is reached?

After a settlement is reached, the parties will typically enter into a written agreement outlining the terms of the settlement. This document is commonly known as a Release Agreement, and is usually prepared by the insurance company representing the at-fault party.

It is essential that the injured party carefully review the Release Agreement and propose any necessary changes to the verbiage before signing. The agreement often includes details such as confidentiality clauses, payment schedules, and other obligations related to the dispute. No payments are made and no obligations are enforceable until the injured party has signed the final document. Therefore, the injured person who is to sign the agreement must ensure that all terms are fair, reasonable, and clearly understood. Having a car accident lawyer review the agreement is strongly recommended to protect your rights and interests.

Once signed, the Release Agreement becomes legally binding and both parties must abide by its terms. After this process is complete, payments can be made according to the terms of the settlement. This may include payment of your lawyer’s contingency fee, which is typically determined by a previously agreed-upon lawsuit settlement percentage. In some cases, the parties may also be required to take certain additional steps in order to formally close the case, such as filing documentation with the court or other government agencies. After all conditions are met, both sides will be released from any further legal responsibility related to the dispute.

Can a lawsuit be reopened after settlement?

In rare situations, a lawsuit may be reopened after a settlement has been reached. This typically occurs when both parties agree that the existing terms of the settlement should be amended or revisited for a specific reason.

Although the process for reopening a lawsuit varies on a case-by-case basis, it usually involves filing a motion with the court requesting that it reopen the case. The court will then review the motion and decide whether to approve or deny it, depending on the circumstances of the case and applicable law. Because this process can be complex, it is crucial that both parties carefully consider whether reopening a settled lawsuit is an appropriate course of action. Legal advice is recommended in these cases so that all options are understood and the best decision is made.

Team Green is a different kind of law firm. We’re not going to make you promises we can’t deliver on. This is our promise to you: ​​we will guide you through the legal process, working with you through straight talk and personal attention, and we’ll work for you with smart, aggressive representation to get the settlement or judgment you deserve. Other lawyers show their case results on their websites, but not only does that imply results they can’t guarantee — it’s against the Indiana Rules of Professional Conduct (Rule 7.1 [2] (2)).  But you should know that the results of one successful case does not tell us what will happen with you. We will work with you to set realistic expectations of the timeline and money that could be recovered for your unique case.