Trying to Value a Car Accident Claim

[rob10873]

I am sure this forum gets a million questions regarding the value of one's personal injury claim from an automobile accident, and I understand its not an exact science. With that being said, I am curious about something, and I will make my story as brief as possible:

I was rear-ended while at a complete stop on 10/29/05. The driver was a teenager who admitted she wasnt paying attention. The property damage was minimal ($500) but the impact was certainly a jolt. I didnt seek immediate medical attention, but began to experience progressive pain and saw my physician 2 weeks later. That began a series of neurological appointments, Physical Therapy, Chiropractic Care, and diagnostic tests that lasted several months. The combined medical reports indicate that, in addition to various soft tissue injuries, I suffered a mild spinal disc protrusion attributable to the accident. I stopped treatment as of 5/5/06, and my special damages totaled $9,800.

I refused to hire an attorney at first and felt confident I could handle the settlement myself. I kept meticulous records of all reports, bills, and medical narratives. I used the internet to learn about the "specials" formula often used by insurance adjusters, and felt confident that my case would at least be worth 2 times the specials (i.e. 20,000). I sent the insurance adjuster (from GEICO) an honest and direct settlement letter and package (one that I was confident would be effective), and made a demand of $58,000 - not an amount I truly expected to receive, but I allowed myself negotiation room, of course. After waiting 2 weeks, I get the call from the insurance adjuster, who cites the fact that I waited 2 weeks to seek medical attention (a weak argument) and the fact that the property damage was minimal so the injuries should be minimal (an even weaker argument). Then, she drops her bombshell - rather than "deny" my claim (as though that was really an option for her), she is willing to settle it for $5,000. Folks, I realize that the first offer is usually a lowball offer, but how in the world can an insurance adjuster keep a straight face while offering an amount that doesnt even cover the most basic of liabilities - the medical bills? She has medical narratives right in front of her face that mention the protruded disc (which, unlike soft tissue problems, is a "hard" or tangible injury), and she has a pile of bills that total almost $10,000! She went on to say that I can "do what I want" with the offer.

I did just that, sending her an aggresive yet respectful letter that declines the offer and reiterates the true facts of the case. For anyone who has had a similar case (or any lawyers out there), my question is:

Do I stand a snowball's chance in hell of getting this settlement up to the $20,000 area within the next two months or so? Or should I just cut my losses and forward it over to an attorney? I've already had one attorney agree that the case is worth "15K-50K" and is willing to take it, but with that comes the 33% price tag, of course.

Suggestions? Advice? I really appreciate it.

[Mr. Knowitall]

How do they keep a straight face? It's their job. They get a lot of practice. I doubt that the adjuster is going to come up into the 20's. It's more likely that she will come up to $10-15K, although if she senses weakness or equivocation on your part she will probably remain firm with her present offer.

[rob10873]

How do they keep a straight face? It's their job. They get a lot of practice. I doubt that the adjuster is going to come up into the 20's. It's more likely that she will come up to $10-15K, although if she senses weakness or equivocation on your part she will probably remain firm with her present offer.

Thanks, Knowitall. Well, I'll see to it that she won't sense any weakness on my part. The only thing I refuse to do is negotiate and/or state my position regarding any offer over the telephone with her. When she offered $5,000, I said "okay, thanks for the call" and abruptly ended the conversation, then faxed her my letter of response the same day. You simply dont reserve your rights with someone over the phone, and she has the benefit of recording the conversation (which she warns of when she answers the call.)

Thanks again. If anyone else has a story of a lowball offer that they were able to turn into a decent offer (without legal involvement), please share it. I just dont want to spend my wheels, only to have her increase her offer by only $1000 after a month goes by.

[rob10873]

To knowitall (or anyone else willing to answer):

In response to the above case that I outlined, should I lower intial demand at this point? The demand wasnt a true reflection of what I wanted or expected to get from this settlement, but GEICO's original offer of $5000 is so ridiculous that my original plan was to say heck with it and refer it to an attorney. I havent heard from them in the week since i rejected their initial offer.

Should I counter offer with a lower offer? Or should i stick to my guns and wait for them to come back with a "reasonable offer" as I stated in my response letter to them. I am torn, because part of me wants to give it to an attorney and be done with it, and part of me doesnt want to pay an attorney 33% to do what I should be able to do myself. I guess my question is, if I lower my offer, am I shooting myself in the foot, or inducing a better counter offer?

THANKS!

[discogram723]

If the adjuster senses that you are willing to cave, you are basically doing their job for them. Remember that insurance companies have been going through the same routine for years.
For instance, I have a case that is a "no brainer" and still the insurance company denies liability. Honesty is one word that is not in their manual.