Negotiation

If you’ve been injured due to someone else’s negligence in Texas, you may be entitled to compensation for your damages. Pursuing a personal injury claim can feel overwhelming. Fortunately, most claims are resolved through settlement negotiations. Settlements can be quicker, less expensive, and less risky than taking a case to trial. Here’s what you need to know about the negotiation process under Texas law.

Completing Medical Treatment Before Settling

Before accepting a settlement, it is essential to complete your medical treatment. Ideally, you should reach maximum medical improvement (MMI). MMI occurs when your doctor determines that further medical treatment will not improve your condition.

If you settle before completing treatment, you risk undervaluing your claim. The full extent of your injuries and future medical expenses may not yet be clear. Once you sign a settlement agreement, you release all parties from further liability. This means that you could be unable to recover more compensation if you later discover additional injuries or expenses.

Reservation of Rights Letters

After filing a personal injury claim, you might receive a reservation of rights letter from the at-fault party’s insurance company.

This letter indicates that the insurer is investigating your claim but does not guarantee payment unless specific conditions are met:

• The policy covers the type of accident at issue
• The insured party is determined to be at fault
• Damages do not exceed the policy limits

Insurance adjusters often use these letters to protect the company’s interests. They may request recorded statements or access to your medical records. It’s critical not to provide any information to the insurance company without first consulting with an experienced personal injury lawyer. Insurers often seek ways to deny or undervalue claims. You will need a legal advocate who understands these tactics so the insurance company won’t be able to take advantage of you.

What Is the Negotiation Process?

Settlement negotiations typically start with the insurance company making an initial offer. This initial offer is often lower than the actual value of your claim. Insurers aim to resolve the case quickly and inexpensively.

Negotiations often involve sending a demand letter that includes:

• A detailed account of your accident
• A discussion of applicable Texas laws that establish liability
• A description of your injuries and their impact on your life
• Evidence of your damages, such as medical bills, lost wages, and other financial losses

The demand letter may also include medical records, proof of expenses, and expert opinions to strengthen your case. After reviewing the demand letter, the insurance company may accept the demand, deny the claim, or issue a counteroffer. Settlement negotiations often involve multiple rounds of back-and-forth discussions until a mutually agreeable amount is reached.

Factors Influencing Personal Injury Settlements in Texas

Several factors can impact settlement negotiations:

• Severity of injuries. Severe or catastrophic injuries, such as permanent disabilities or disfigurement, usually result in higher settlement amounts. Medical experts and economic analysts may be consulted to estimate future medical costs and the long-term impact on your quality of life.
• Insurance coverage. Texas requires drivers to carry liability insurance. The minimum coverage limits are $30,000 per injured person, $60,000 per accident, and $25,000 for property damage. If damages exceed these limits, you may need to pursue compensation through your own uninsured or underinsured motorist coverage or directly from the at-fault party.
• Proving fault. In Texas, you must establish that the other party’s negligence caused your injuries. Strong evidence like eyewitness testimony, accident reports, or surveillance footage can significantly strengthen your case.
• Comparative fault rules. Texas follows a modified comparative fault rule. If you are found to be 51% or more at fault, you cannot recover any damages. If you are found 50% or less at fault, your compensation will be reduced by your percentage of fault.
• Statute of limitations. Under Texas law, you have two years from the date of the accident to file a personal injury lawsuit. Missing this deadline can bar you from pursuing compensation.

The Role of Your Attorney in Negotiations

Personal injury lawyers can manage all aspects of the negotiation process for our clients, including:

• Investigating your claim and gathering evidence
• Calculating the full value of your damages, including medical expenses, lost wages, and non-economic damages like pain and suffering
• Communicating with insurance adjusters to protect your rights
• Advocating for a fair settlement that reflects the true value of your claim

If a fair settlement cannot be reached, an experienced trial lawyer will be prepared to take your case to court. They will fight in the courtroom for the compensation you deserve.

Contact a Personal Injury Lawyer for Help With the Negotiation Process

If you’ve been injured in an accident in Texas, you don’t have to navigate the legal system by yourself. An experienced personal injury lawyer can assist you at every step of the way. Schedule a free consultation to discuss your case and learn how a legal team can advocate for your rights throughout the negotiation process.