How To Settle Your Personal Injury Case Without A Lawyer

Updated on: 11/22/2019

People who are involved in a car accident or suffer bodily injury due to someone else's fault or negligence often face a difficult road ahead. Medical bills pile up, and finances become an issue as accident victims often have to miss work due to their injuries.

One of the most important decisions accident victims have to make is whether or not to hire a personal injury lawyer to handle their case. The truth is, not every person needs or would benefit from hiring an attorney for every accident case, and this is particularly true in cases involving very minor injuries or property damage only.

If you feel comfortable gathering evidence and records to support your claim and negotiating with the insurance adjustor, then you may not need the assistance of an attorney.

Consider the following two legal issues when deciding whether to represent yourself:

How bad are the injuries? If you suffered minor injuries that aren’t life-altering, the insurance company may not put up much of a fight. But be aware that as the damages increase, the insurance adjuster will try and minimize the amount.
Who was at fault? If it’s obvious that the other party in your claim was at fault — and you have evidence, police reports or witness statements to prove it — you may find it easy to prove fault and collect a satisfactory injury claim. But if the case isn’t cut-and-dry, you may find it difficult to prove all the facts, especially if the other side hires a lawyer to contest.

First Step In Handling Your Car Accident Case On Your Own

Before you begin calculating your damages or draft a demand letter, it’s imperative that you take care of these things:

Take pictures/video of the property damage, accident scene, and injuries
Obtain a copy of the police report
Seek medical treatment ASAP
Use your personal injury protection (PIP) policy to pay initial bills, then use your health insurance
Get copies of all your medical records and bills
Be aware of the statute of limitations in your state

How To Deal With The Insurance Company

Did you know that the day you were injured, you essentially entered a war zone with the insurance industry? You need to be aware that the insurance claims adjustor will utilize any means necessary to pay out as little as possible, even on legitimate claims.

The claims adjustor accomplishes this in several ways:

Delaying the process
Requesting unnecessary information
Disputing the medical treatment
“Nickel and dime” the medical charges
Telling you not to hire an attorney
Misrepresenting insurance policy benefits
Acting as your friend
Making false promises

Common Mistakes People Make Without An Attorney

Over the years, attorney Chris Davis of the Seattle-based Davis Law Group, P.S., has compiled a list of common mistakes that damage a car accident case. These mistakes are based on his extensive experience handling accident claims, as well as his discussions with judges and jurors following trials. Some of the most common mistakes are as follows:

Waiting several weeks or months to receive medical treatment
Failing to obtain information about the other driver or failing to call police from the scene
Giving too much information to the insurance company after the accident
Hiding previous injuries from the insurance company
Making damaging statements about the case to medical provider
Failing to keep up with medical treatment or "gaps" in treatment
Misrepresenting activity level during the physical recovery process

Estimating Car Accident Damage

The total injuries and losses that you incur during a personal injury incident are defined as “damages.” In general, there are two types of damages: economic and non-economic.

Economic Damages

These are specific monetary costs associated with an injury that can be easily proved using documentation.

Medical bills: If you underwent treatment, had a hospital stay, or now have physical therapy, the defendant must pay the costs. The medical portion of damages includes everything that you received during treatment, as well as any future treatment.

Lost wages: This is the amount of money you lost in the past, present, and future as a result of your injuries. This includes the actual hospital stay, as well as missed work due to doctor’s visits and physical therapy.

For example, let’s say you make $60,000 a year and have been injured in a minor accident. Take your yearly salary and divide it by 2,080 (number of weekday work hours in a year), then multiply by the number of hours you missed due to your injuries. So if you missed four days of work, your calculation would be: ($60,000 / 2,080) x (8 hrs x 4 days) = $923.08 (your total lost wages).

If you are paid by the hour, take the amount of your hourly wage and multiply it by the number of hours you missed due to the accident.

Non-Economic Damages

These are costs associated with an injury that cannot be easily proven, and must be estimated using different, more subjective, variables.

Pain and suffering damages can be highly subjective. How much pain did you experience during and after the accident? Two people that sustain the exact same injury may go through drastically different amounts of pain.

Everyone is different. But the courts have determined many different factors related to pain and suffering:

Recovery time needed
Location and severity of the scarring
Severity of the injury
Consideration for ongoing consequences
Socio-economic or political factors
Your personality/believability in front of a jury

Sending A Settlement Demand Letter

This is when your claim becomes serious for the insurance company. While many people are eager to send out a demand letter soon after their injury, it’s best to send the demand letter only after you’ve taken a thorough look at the impact the injury and what it’s done to all aspects of your life.

In the demand letter, you’ll tell the insurance company:

Exactly how and why the insurance company or defendant is liable for your injuries
The full extent of your injuries and resulting medical treatment
What financial losses you incurred as a result of the accident/injuries
Any and all losses you’ve suffered, including medical bills, missed work, and pain and suffering

Tips for your demand letter:

Type your letter
Include all the facts
Be polite
Ask for exactly what you want
Keep copies
Use certified mail

Click here for an in-depth look at what goes into a demand letter + a sample demand.

Negotiating A Fair Settlement

If you’ve ever been in a negotiation, no matter how small, you probably realize the first offer from the other side won’t be that great. On the flip side, it’s OK to demand too much yourself at first. This gives you room to negotiate.

If the insurance company’s counter offer is satisfactory, you’re allowed to accept it, sign a release and close the claim. If you don’t accept, you can continue to negotiate with the adjuster until you arrive at a number you’ll accept. Remember, you’re looking for a fair settlement — not out to win the lottery. While you may receive more in front of a judge or jury, out-of-court settlements are quicker and easier, and you’ll avoid court fees and litigation costs.

For more on dealing with insurance adjusters, you may want to check out the following articles: