Most personal injury claims in Tennessee end with settlement agreements. Only a small percentage of cases go to trial even if the injured party files a lawsuit, as negotiations can still continue after the case initially makes it to court.
Settlement negotiations generally begin when you send a settlement demand letter to the at-fault party’s insurance company. The insurance company may agree to pay you the amount you demand. However, the most likely result will be a denial or a counteroffer.
Below are tips for how to write a settlement demand letter. However, note that it would be in your best interest to speak with a personal injury lawyer before sending a demand letter to the insurance company.
Determining How Much Your Personal Injury Claim Is Worth in Nashville, TN
Before you can prepare a settlement demand letter, you must know how much your damages are worth. Damages represent the financial losses and harm you sustained because of the other party’s conduct.
Tennessee’s personal injury laws allow injured parties to seek compensation for their economic damages. These damages include:
- The cost of your medical treatment, including ongoing medical care for permanent disabilities
- The loss of income, including future lost wages, earning capacity, and benefits
- Your out-of-pocket expenses, including personal care, household services, etc.
Economic damages are more straightforward to calculate than non-economic damages unless you have a permanent impairment. Generally, you need expert witnesses to prove the value of future damages.
Non-economic damages are more subjective. Insurance companies commonly downplay pain and suffering damages to protect their profits.
Examples of non-economic damages include:
- Mental anguish and emotional distress
- Physical discomfort and pain
- Scarring and disfigurement
- Loss of enjoyment of life
- Impairments and disabilities
- Diminished quality of life
The value of non-economic damages is often a multiple of your economic damages. Many victims underestimate or overestimate the value when they try to put a price on pain and suffering.
Special Note: Understanding Maximum Medical Improvement and the Statute of Limitations
Settling your injury claim before reaching maximum medical improvement (MMI) could result in a much lower settlement amount. Your doctor determines when you reach MMI based on your condition. MMI is the point at which you recover fully, or your condition is not expected to improve with time or additional treatment.
Until you reach MMI, you cannot be sure whether you are entitled to future damages. You also cannot know the full extent of your damages.
However, keep in mind as well that Tennessee’s statute of limitations sets deadlines for filing personal injury lawsuits. If you miss the deadline, the court can dismiss your lawsuit, and you lose the right to pursue a legal claim.
If you sustain severe injuries, you should talk with an attorney about your case. Allowing an attorney to monitor the filing deadline and handle all other aspects of your case may be in your best interest.
What Is Included in a Settlement Demand Letter of a Nashville Personal Injury Case?
Attorneys draft settlement demand letters based on the specific facts of a case. The letters are customized to provide a compelling argument for accepting the settlement demand. At the very least, your demand letter should include:
- Identification of all parties involved in the case
- A discussion of the facts of the case, including how you were injured
- An analysis of the evidence and the legal arguments holding the other party liable for damages
- A description of your injuries, financial losses, and other damages
- An analysis of the value of your damages and a demand for a specific amount to settle the claim
- A deadline for replying to the settlement demand, usually at least 30 days
You should include copies of supporting documentation, such as accident reports, medical records, income statements, and more. Do not include medical records unrelated to the accident. If you have photographs of your injuries, include the photographs to show the extent of your injuries.
Final Tips for Writing a Settlement Demand Letter for Your Personal Injury Case
Things to keep in mind as you write a demand letter include:
- Keep your demand letter concise, but include all relevant information. You need to convince the insurance company you sustained the damages you claim.
- Highlight the facts that support your claim, including specific comments from doctors about your injuries.
- Send the demand letter by return receipt requested so you have proof the insurance company received the letter.
- Do not say anything in the letter that could be construed as admitting fault. Stick with the facts. Keep statements short and to the point.
- State a deadline in the letter for a response so you can follow up if you do not receive a response.
Keep copies of your letter and all documentation included with the settlement demand letter. You may want to ask for more than you are willing to accept for settlement. If the insurance company makes a counteroffer, you have room to negotiate for the settlement you deserve.
Factors That Indicate You Need an Attorney To Draft the Settlement Demand Letter
Some situations may create challenging issues to deal with in a personal injury case. In these situations, you may want to consult with an attorney instead of writing a demand letter. Factors that indicate you may need an attorney’s advice include:
- You are unsure what damages you can receive or the value of the damages
- A commercial trucking company or government entity is involved in your case
- You sustained catastrophic injuries and/or lifelong impairments
- The insurance company refuses to acknowledge your claim or is dragging the investigation out
- An insurance adjuster suggests that you could be partially to blame for your injuries (i.e., contributory fault)
- Multiple parties are involved in your case
- Your children were injured
- The at-fault party does not have insurance coverage
If you feel uncomfortable or unsure about any aspect of your personal injury case, it is best to seek legal advice before proceeding with a settlement agreement. The insurance company and at-fault party require you to sign a waiver as part of the settlement agreement.
You waive your right to file a lawsuit or seek additional money for your claim once you sign a settlement. Therefore, you need to ensure the settlement you accept compensates you fully for your damages.
Get Help With an Injury Claim During a Free Consultation With a Nashville Personal Injury Lawyer
Insurance companies do not always treat accident victims fairly. At Labrum Law Firm Personal Injury Lawyers, we even the playing field. We use our considerable experience and resources to fight for your rights. Contact our law offices today at (615) 338-9500 to schedule a free consultation with an experienced Nashville personal injury lawyer.
