Overview of Personal Injury Settlement Negotiations

Thursday, January 20, 2022

Overview of Personal Injury Settlement Negotiations

Written by Malman Law, reviewed by Steve J. Malman.

When a person files a personal injury claim against those who caused accidental injuries, what typically follows are negotiations between the accident victim and the insurance company for the at-fault person or company. 

The legal team of Malman Law routinely handles these types of negotiations and will do the same for any injured client. Insurance companies would rather not deal with skilled personal injury lawyers who know the law and understand what reasonable compensation is in a specific case. That is why the first call an accident victim might get following an accident is likely from an insurance company adjuster with a quick offer to settle the case before the victim might get representation.

It is never a good idea for someone who is injured to talk to these insurance adjusters, as these communications and negotiations are better handled by an experienced personal injury attorney.

The Negotiation Process

Negotiating a settlement is similar to any other type of business negotiation. The insurance company has a good idea of what the claim should be worth, but the adjuster will offer much less to start. Then, the claimant and their attorney will need to start negotiating to get the higher amount the claimant deserves. 

The injured person knows or should know (with help from their attorney) how much they are willing to accept as compensation for their injuries, and the adjuster knows how much the insurance company is prepared and willing to pay. Each side presents different challenges, arguments, and evidence to get a favorable outcome for itself. 

This is often accomplished through the following process: 

  • A car accident victim asks for a high amount of compensation for their crash-related injuries in their written demand letter to the other driver’s insurer.
  • The insurance adjuster responds with what they believe is wrong with the claim and why, therefore, the claimant cannot get the amount demanded. Instead, the adjuster makes a counteroffer that is typically very low and designed to test whether the injured person is in this for the long haul, or he or she is prepared to take a quick settlement no matter how low it is.
  • The injured person responds by either accepting the very low offer or having their attorney negotiate for a better counteroffer.
  • If they concede a little regarding the weaknesses of the case the adjuster raises, the injured person can make another demand, but one that is slightly lower than the one in the initial demand letter.
  • The insurance adjuster increases the company’s offer.
  • You either accept that amount or make another counter-demand.

This goes on for a couple or so more times until the parties reach an agreement. If none is reached, then the case might head to civil court, where a judge or jury will decide.

Have a Chicago Personal Injury Lawyer On Your Side

Anyone who has been injured and needs a personal injury lawyer should not wait to contact Malman Law today for a free consultation. The legal team is skilled at negotiating and fighting for the maximum compensation possible in each injury case. 

Steve Malman

Malman Law’s founder Attorney Steven Malman has over 30 years of experience handling personal injury, nursing home, medical malpractice, truck accidents, car accidents, premises liability, construction, and workers’ compensation cases in Chicago, IL.

Years of experience: +30 years
Justia Profile: Steve Malman
Illinois Registration Status: Active and authorized to practice law—Last Registered Year: 2024

What’s your case worth? Submit for a free case review


This page has been written, edited, and reviewed by a team of legal writers following our comprehensive editorial guidelines. This page was approved by President and Founder, Steven J. Malman who has more than 20 years of legal experience as a personal injury attorney.

Related Blog Posts

view all news