top of page
  • Writer's pictureLeitner Varughese Warywoda

How to Determine the Settlement Value of Your Personal Injury Case

Injuries from accidents can significantly affect one's life and can cause difficulties in one's daily routine. Injury victims should be able to recover their damages through legal action. However, determining settlement value for a personal injury case is a complicated process.

Defining Settlement Value and its Factors In legal terms, the settlement value of a personal injury case is the amount of money an injured victim can recover through a legal settlement or compensation. Many variables and factors come into play when computing the value of a personal injury case:

  1. Liability: An injured victim's lawyer must prove that the other party was responsible for the accident that caused the injury. Establishing liability can determine the range of settlements that an injured victim can expect.

  2. Damages: Damages refer to the injuries, losses, and expenses that were caused by the accident. An injured victim's lawyer must prove these losses to hold the other party accountable and to expect compensation for these damages. Damages can include medical expenses, lost wages, rehabilitation costs, future expenses, pain and suffering, and other losses incurred by the victim.

  3. Medical Expenses: Medical expense is one of the most significant factors in computing settlement value. Medical expenses may include imaging tests, lab tests, surgical and treatment procedures, medications, and rehabilitation. Medical expenses can provide a basis for determining the settlement value of a personal injury case.

  4. Future Expenses: Future expenses may include medical care, rehabilitation, and time away from work. It is essential to consider all the future expenses that may result from the injury that can directly impact the victim's future earnings, health, and life.

  5. Pain and Suffering: Pain and suffering refer to physical and emotional distress caused by the injury. Injured victim's lawyers can use pain and suffering as a basis for calculating settlement value.

  6. Insurance Coverage: Insurance coverage can play a vital role in computing settlement value. The insurance company of the other party in the accident can provide compensation for the victim's injuries. It can be beneficial for an injured victim to contact their own insurance company for possible coverage.

Negotiating with Insurance Companies The vast majority of personal injury cases are resolved through negotiations with insurance companies. Insurance companies evaluate cases based on their criteria, and they have procedures for measuring and assessing the alleged injuries' value. Adjusters can use a proprietary computer program that evaluates medical bills, the nature of the injuries, and other factors to determine a settlement value. That said, insurance companies are businesses and endeavor to pay the least possible amount for a claim.

When negotiating with an insurance company, it is essential to document everything thoroughly. This can include medical records, witness statements, photos, and documents of your expenses due to injury. An experienced personal injury lawyer can help you navigate the negotiation process, providing guidance on the best way to document your case and communicate with the insurance company. You may be able to negotiate a higher settlement value by presenting strong evidence of your losses.

Calculating Settlement Value in Court If the parties fail to agree on a settlement, a personal injury case may go to trial. A judge or jury may determine settlement value, based on the evidence presented on both sides. In court, it will be critical to have an experienced personal injury lawyer to represent your case. The lawyer should be able to put forward the necessary evidence to support your claim.


Determining settlement value in personal injury cases involves many factors and variables. It is best to consult an experienced personal injury lawyer to guide you throughout the process accurately. Taking the time to document all evidence properly can significantly increase your chances of recovering a fair settlement value. Through legal action, you can recover some of the expenses and losses caused by your injury. By working with a personal injury lawyer, you can protect your interests and maximize the value of your claim.

When is the best time to settle a personal injury case?

The best time to settle a case largely depends on the individual circumstances of the case. Some personal injury cases can be resolved through a settlement agreement early on in the legal process, while others may require more time, negotiation, and, in some cases, litigation. Here are some factors to consider when deciding the best time to settle your case:

  1. The Extent of Your Injuries: Ensure that your injuries have been fully assessed by healthcare providers. If you settle a case too soon, you may miss out on compensation for medical bills and issues that arise post-settlement.

  2. Legal Counsel: Seek the advice of a seasoned personal injury lawyer. They can inform you on what your case is worth by analyzing the facts, the injuries and expenses you have incurred, and other damages that may arise in the future.

  3. The Statute of Limitations: In New York, there are specific limitations on the time frame for filing a personal injury lawsuit. Failure to file within the statutory time frame can result in your case being dismissed.

  4. Liability Determination: Liability for the accident needs to be established, ensuring that your evidence is compelling and that the defendants hold majority culpability.

  5. Negotiation Tactics: Insurance companies often want to settle quickly. However, early settlements are generally not in the best interest of the victim. Having an attorney representing your interests helps ensure that the settlement offers are reasonable.

  6. The Financial Impact: In most cases, settling a case will typically provide faster compensation than proceeding with a lengthy litigation proceeding. Settling early can prove beneficial to pay off outstanding bills, debts, medical bills, and lost wages.

Ultimately, there is no fixed timeline to follow when settling a personal injury case. Some cases may be resolved through early settlement, while others may require further investigation, expert testimony, and litigation to achieve the maximum compensation. An experienced personal injury lawyer can help determine the best time to settle a case by exploring all options and negotiating with the opposing party. Having the right guidance from an experienced attorney can ensure you receive fair compensation for any damages incurred.

Some links that can be used for further reading:

  1. National Highway Traffic Safety Administration: "Injury Compensation for Motor Vehicle Crash Victims":


bottom of page