How Do Attorneys Negotiate Settlements in a Personal Injury Claim?

Settlement negotiations play a key role in determining how much compensation you may be able to recover for medical costs and other losses after being injured due to another party’s negligence.

At Pfeifer, Morgan & Stesiak, our experienced South Bend personal injury attorneys are ready to fully manage your claim, which includes your settlement negotiations. We have your back, protecting your best interests and legal rights, allowing you to focus on your recovery. Bring your questions, because we have answers. Your initial consultation is completely free, and if we represent you, there are no upfront costs or fees to pay.

Deadlines apply! Call our firm at (574) 444-0741 today to request your free case review.

What Happens Before Settlement Negotiations Begin?

Before settlement negotiations can be initiated, your personal injury attorney will thoroughly investigate events leading up to the accident. Gathering evidence and more details about what happened helps to build a solid foundation for your claim. In a personal injury case, injured victims have the burden of proof. As your attorney, we take on that task and will work to establish the other party’s liability and document the full extent of your injuries.

Key evidence that may help to support your claim includes:

• Accident or police reports
• Medical records for your initial visit and all follow-up treatments
• Credible witness statements
• Expert opinions from medical professionals, accident reconstruction specialists, and financial experts, as needed

After gathering the evidence, your attorney will prepare a demand letter that provides details about your injuries, treatments, and financial losses. This demand letter is the starting point for negotiations. It demonstrates to the insurance company that you are serious about getting fairly compensated. It also shows that your attorney has built a strong case and is prepared to proceed to trial if necessary.

When Is the Right Time to Start Settlement Negotiations?

The timing is unique for each injured victim, as negotiations should not begin until you have reached your maximum medical improvement (MMI). Reaching this phase means you have recovered to the point where doctors believe no further significant improvement will occur. Victims with life-altering injuries may still need ongoing care for secondary complications and other treatments. But reaching your MMI allows your lawyer to calculate both your current and future medical expenses accurately. Your attorney will also need to calculate the value of your lost wages, property damage, pain and suffering (non-economic damages), and the overall impact to your quality of life.

Insurance companies may try to push you to accept an early, lowball settlement, however agreeing to these offers is unwise. Most attorneys advise against rushing the negotiation process. Going forward with negotiations before your medical situation is fully clear makes it more likely that any settlement agreement reached will fail to cover your future expenses.

How Do Attorneys Calculate the Value of Your Claim?

At Pfeifer, Morgan & Stesiak, we thoroughly assess all damages you have incurred as a result of the other party’s negligence, which includes assessing the following:

• All  related medical expenses, including hospital stays, surgeries, medications, rehabilitation therapy, and projected future treatment costs
• Lost wages, missed benefits, and diminished future earning capacity resulting from the accident and your injuries
• Property damage repair or replacement costs
• The value of your non-economic damages, like pain and suffering
• Evaluating permanent disability, disfigurement or loss of enjoyment of life
• If you share fault for the incident, factoring in the impact to your potential recovery under Indiana comparative negligence laws
• Analyzing similar case outcomes in South Bend to establish reasonable settlement expectations

What Strategies Do Personal Injury Attorneys Use in Negotiations?

Personal injury lawyers utilize various strategies to overcome insurance company pushback and maximize client compensation. Our legal team at Pfeifer, Morgan & Stesiak knows the tactics insurance companies use to devalue claims, and we are skilled at disputing them to your benefit.

Some of the strategies we may employ to protect your interests include:

• Leading with compelling evidence, which may include testimonies from accident reconstruction specialists and medical experts, as needed.
• Demonstrating we are prepared to proceed to trial if a fair settlement cannot be reached
• Leveraging Indiana precedent cases with similar circumstances and favorable outcomes
• Responding promptly to counteroffers while maintaining patience throughout extended negotiations
• Highlighting the emotional impact and lifestyle changes caused by your injuries
• Addressing insurance adjuster concerns proactively with additional documentation
• Timing settlement discussions strategically around case milestones and court dates
• Maintaining clear communication with you about settlement options and recommendations

What Happens During Settlement Negotiation Rounds?

Settlement negotiations typically unfold through multiple rounds of offers and counteroffers between your attorney and the insurance company representatives. The process begins when your lawyer presents your comprehensive demand package. Once the insurance company reviews this package, they will respond with their initial offer. Often, this first offer is substantially lower than the value of your claim.

Throughout these negotiation rounds, your lawyer maintains detailed documentation of all communications. They will monitor and analyze the strengths and weaknesses of your case and provide you with clear explanations of each offer.

While most personal injury claims resolve without a trial, we always prepare for the possibility of a court case. Complex cases involving severe injuries and higher values take longer, requiring additional exchanges before reaching a fair settlement agreement.

How Much of My Settlement Goes to Fees and Costs?

Knowing how your settlement will be distributed ensures you have realistic expectations about your final compensation amount. Your settlement proceeds will typically be allocated to several categories including:

• Attorney Contingency Fees: Usually ranges from 25-40 percent of your total settlement amount based on case complexity
• Outstanding Medical Liens: These are legal claims filed by healthcare providers for unpaid treatment costs.
• Health Insurance Subrogation Claims: If your health insurance covered medical costs up front, they will need to be reimbursed.
• Case Costs: Including expert witness fees, medical record retrieval, filing fees, and investigation expenses
• Litigation Expenses: Deposition costs, trial exhibits, and court reporter fees are some of the litigation fees you can expect if your case proceeded beyond negotiation. These fees will be itemized and explained to you.
• Medicare or Medicaid Reimbursement: If either of these programs paid for your medical care up front, they will be reimbursed out of your compensation.
• Final Net Compensation Amount: The final compensation amount is the remaining balance you will be paid after all deductions have been taken.

Need Legal Help? Contact Our Trusted Law Firm Today

Effective settlement negotiations are key to the outcome of a successful personal injury claim. We keep you informed about every stage of this process. The difference between accepting a low offer from the insurance company and recovering maximum compensation often comes down to understanding your legal rights and having legal representation.

At Pfeifer, Morgan & Stesiak in South Bend, we bring decades of experience to the negotiation table, fighting tirelessly against insurance companies trying to devalue your claim. Our proven track record speaks for itself—we do not settle for less than you deserve. Contact us today to schedule your free consultation or complete our simple case evaluation form online.

Experienced Lawyers. Proven Results. Call: (574) 444-0741 today.