On Behalf of Rosenthal, Levy, Simon & Sosa | April 22, 2025 | Personal Injury
If you were in an accident, you may be unsure of what compensation is considered fair, given your circumstances. The insurance company’s first offer is typically only worth 40% of what your claim is actually worth, so an attorney will generally discourage you from accepting their first offer. In determining if a settlement is fair, you will want to review various factors in your case. In this blog, our West Palm Beach car accident attorneys discuss how to determine if the insurance company is offering you a fair settlement and when you may need to consider litigation.
Factors Affecting a Settlement Offer
A reasonable settlement offer will depend on the following factors:
The Extent and Severity of Your Injuries
If you sustained serious injuries, your recovery time will most likely take longer. A longer recovery period will entail more follow-up visits, surgeries, and physical therapy appointments. Within no time, you may find a pile of medical bills looming on your desk.
Keep in mind that not all injuries result in financial loss. In a personal injury case, intangible losses (known as noneconomic damages) may include pain and suffering, loss of society and companionship, and infliction of emotional distress. If the settlement offer does not add up to the cost of your medical expenses, then you may want to consider negotiating until you can agree upon a more reasonable amount.
If You Suffered Permanent Disability
If the accident resulted in permanent disability, there is an increased chance that you will need ongoing medical intervention. Before accepting an insurance company’s settlement offer, consider whether the amount will compensate you for future medical treatment. Determining the cost of future medical care can be challenging, forcing you to rely on your treating physician’s assessment regarding your condition and their medical opinion on when they expect you may need future surgeries and therapies.
Your Ability to Work
Severe injuries can prevent you from working, making you unable to provide for your family. If you sustain long-term or permanent disability, you may be able to claim lost earning capacity (also known as diminished earning capacity), which is the reduced ability to earn the same level of income as before your injury. To calculate lost earning capacity, the reduction in your pay must be directly due to your injuries.
Insurance Policy Limits
Florida motor vehicle law requires that all persons who operate a motor vehicle within the state carry at least $10,000 in personal injury protection (PIP) and $10,000 in property damage liability. While you can file a PIP claim with your own insurance company to cover your medical expenses and lost earnings, you can file a bodily injury claim with the other party’s insurance to recoup if your losses exceed your PIP coverage. If their policy limits are low or if the other party does not carry bodily injury liability coverage, you may be unable to recover the entirety of your damages.
Your Degree of Fault
The state of Florida recognizes modified comparative negligence, which allows an injured party to recoup damages if he or she is 50% or less at fault. Damages will be reduced based on the degree to which you caused the crash. So, if you file a property damage claim for $6,000 but are determined to be 30% at fault, then your claim will be reduced by $1,800. In the end, you will only receive a check for $4,200 on your claim.
A West Palm Beach car accident lawyer will examine all pertinent evidence to verify your level of liability. If the insurance company is insisting that your liability is greater than we conclude, then we may recommend that you take your case to court.
Aggressive Representation From Our West Palm Beach Car Accident Lawyers
A car wreck can leave you startled and confused. After submitting your claim to insurance, you may feel grateful for any form of compensation, even if it does not meet the full extent of your financial needs. At Rosenthal, Levy, Simon & Sosa, we are adamant about fighting until we secure the compensation that our clients deserve. If you have recently been injured in a crash, do not hesitate to contact our West Palm Beach car accident attorneys. To arrange your free case review, contact us online or give us a call today.
Gerald A. Rosenthal
Retired
Since opening the firm now known as Rosenthal, Levy, Simon & Sosa more than 40 years ago, Gerald A. Rosenthal has been a dedicated champion of the everyday hero – police officers, firefighters, teachers, nurses, construction workers, farm workers, and more. Passionate about preserving the civil rights of laborers, he has fought tirelessly against giant insurance companies who deny the injured workers their benefits. It’s not just the lawsuit Rosenthal fights to win – he is driven by the opportunity to restore his client’s quality of life.
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