How do I know if the settlement offer I got is reasonable? 23 Answers as of September 01, 2011

Your attorney should be able to tell you. Don't forget, attorneys get paid a percentage so their incentive for the highest offer available is the same as yours.

First, your lawyer should have some idea. Second, your lawyer can consult with other attorneys and get a consensus. Third, your lawyer can research past verdicts and settlements. And fourth your lawyer can research what verdicts have been upheld or struck down on appeal for extreme upper and lower limits. Another simple way is to estimate the full value of your claim assuming 100% liability and then discount that by the chance in percentage terms that you will lose at trial or that your verdict might be reduced for you own fault. Then discount it some more because in trial work a bird in the hand is worth three in the bush.

Every case is different. Review the pro's and con's of your case with your lawyer.

Determining the adequacy of settlements is highly subjective and highly personal. Only you know if it's enough to compensate you for your loss. If you have an attorney, the attorney can give you an idea of what a jury might award, or what his experience is with your type of claim. But each claim is different, and there are too many variables to say whether an offer is enough or not.

If "reasonable" means what you might recover if you win a trial, you should consult with an attorney who has experience with cases like yours. The attorney will consider the facts underlying your claim, the strength of defenses, the damages you have suffered, what has happened in similar cases, the likelihood of success at trial, and a great deal of related information to evaluate the reasonableness of the offer.

Get a second opinion before you accept the settlement offer.

Perhaps you should retain an attorney to discuss the particular details of your situation. There isn't any fixed formula for determining the reasonableness of a settlement offer. Insurance companies sometimes use computer programs to help them determine a settlement range, but sometimes they are wrong. Experience is the best teacher, so retaining an attorney who has that experience can be well worthwhile.

That is a very subjective question. Does it cover your actual out of pocket expenses. Does it cover you medical expenses? Will it pay for future medical expenses, if any? Remember the litigation costs such as expert witness fees and court reporters gets taken out first, then your attorney's fees, assuming the case was done on contingency. Another thing to consider is that settlements cannot be appealed. You may win at trial and think it is over. The defendant will likely appeal and even if you won the appeal the final result would be delayed at least 6 months to a year. Don't think about maximizing the amount of money you would get. Think about what it would take to allow you to move on with your life and put this behind you.

Speak either with an attorney or possibly a claims adjuster if you know one. If you speak with an attorney who says he thinks he can get you a better offer, make sure you have an agreement that protects you. In other words, if you have a $5,000 offer and the attorney thinks he can do better try to negotiate a deal where you will recover at least what you had been offered. If the attorney gets a $6,000 offer it obviously wouldn't benefit you if you then netted only $4,000.

You have to sit down with a lawyer and go over the particulars of your case.

Pretty vague question. If you have an attorney, he or she can make the proper assessment based on the severity of injury, the degree the other side is liable, your age, your recovery time, your missed time from work, if any, damage to your earning capacity, the medical expenses incurred, etc. These are all significant factors, without which no one can answer your question with any detail.

Ask your attorney. If you don't have one, it's not reasonable. Insurers always rip off the unrepresented.