Potential clients that ask a personal injury lawyer about the size of an average settlement are usually curious about the typical opening bid from the insurance adjuster. Some of them want to know what to expect at the conclusion to the pre-settlement negotiations.
Factors that determine the initial bid at the start of negotiations
The victim-lawyer team determine the value of the victim’s case, and then write a demand letter. The defendant’s insurance company must respond to the demand letter. The adjuster at the same insurance company studies the terms in the policyholder’s policy, and comes forward with an opening bid.
What affects the size of a settlement?
The value of the defendant’s assets: If a defendant has few assets, the insurance adjuster is apt to come forward with a low opening bid. The extent of the plaintiff’s damages: An adjuster normally has a generous opening bid for any plaintiff that must deal with serious damage to his/her vehicle
Liability issues: If there is strong evidence for the liability of the defendant, the plaintiff should have a strong case. That would push the adjuster to go along with a generous settlement, as per personal injury lawyer in Ottawa.
Personal injury lawyers know about all the events that could influence the outcome for settlement negotiations
The claimant that is eager to get some money might accept a low-ball offer. In that case, the opening bid would be small, and the settlement terms would saddle the claimant with an unfair deal.
The claimant displays persistence, during the negotiations. In that case, the insurance adjuster would realize that the counter-demand must be increased, in order for achievement of reasonable settlement terms.
The claimant makes rude remarks during the negotiations. That would anger the adjuster. An angry adjuster is not apt to come forward with a reasonable or fair bid. Hence, the disputing parties would struggle to agree on settlement terms.
The claimant has chosen against hiring a personal injury lawyer. Hence, the adjuster feels free to hand that same claimant a low-ball offer, at the start of negotiations.
The claimant is eager to seek revenge on the responsible party. As a result, the same claimant refuses any offer, with plans to file a complaint and initiate a lawsuit. If the claimant’s case is strong, then that strategy might allow the 2 disputing sides to settle their differences, and award the plaintiff a generous compensation.
At a personal injury trial, the jury identifies with the plaintiff. So, that same plaintiff wins a large court-ordered-judgment. This is not the size of an average settlement. Still, it is one that gets displayed before the eyes of the public.
Public perception has shaped clients’ typical concept of an average settlement.