Did you get injured in an accident that was not your fault?
If so, you’re probably left with a pile of medical bills, a stack of unpaid time off work, and pain that just won’t go away.
You’re also probably wondering: “What the heck is my case worth?”
Well… Personal injury settlements can be complicated and the insurance companies involved aren’t necessarily in any hurry to give you what’s fair.
The good news? The more you understand how the personal injury settlement process works, the easier it will be to fight for the money you deserve.
Keep reading for a guide to…
- What a Personal Injury Settlement Is and How It’s Calculated
- How Much Money You Can (Potentially) Receive
- The Steps in the Settlement Process
- Why Most Cases Don’t Go to Trial
- Mistakes That Cost Accident Victims Thousands in Settlements
Table of Contents
What is a Personal Injury Settlement?
The definition is pretty simple: A personal injury settlement is a sum of money that a negligent party pays in compensation for damages incurred from an injury.
Think of it as an extension of the rule for property damage. If someone dings your car in a parking lot, they need to pay for it to be repaired.
Now just apply that to injuries, time, and quality of life instead of a vehicle.
There are several different categories of damages that Wisconsin personal injury lawyers take into consideration when looking at your case. These two categories of damages are what determine how much your settlement is worth.
Economic Damages
Economic damages are the easiest to calculate because they come with specific invoices, bills, and/or receipts. These include:
- Medical bills for hospital visits, surgery, medications
- Lost wages from missing work
- Cost of future medical treatment
- Repair of property damage (i.e., your car)
Non-Economic Damages
Non-economic damages are a little trickier…
As the name suggests, there’s not always a direct bill to show for them. They can include:
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
These “costs” might not be tangible in the same way, but they’re real. If you can no longer play with your kids in the same way you used to or you’re dealing with anxiety and stress related to your injury, it’s something that should be taken into account.
Attorneys calculate these non-economic damages by multiplying your economic damages by a factor. This factor is usually between 1.5 and 5 depending on the severity of your injuries. More severe cases mean a higher multiplier.
How Much Money Can You Get from a Personal Injury Settlement?
Curious about what this adds up to in real money?
There’s no easy answer and anyone who gives you a straight number is either lying or uninformed. The value of every case is different.
But there is one factor that nearly everyone agrees has a direct and statistically significant impact on your final payout: Legal representation.
When you work with experienced legal services, your chances of getting fair compensation increase dramatically. Research has found that people with a personal injury lawyer receive nearly three times more in payouts than those without a lawyer. We’re talking a difference of tens of thousands of dollars.
In Wisconsin, settlements usually range from $15,000 to $75,000 for minor to moderate injuries. But here’s a big secret… Serious injuries make cases worth six figures and sometimes even millions.
Here are some real-world examples:
- Car accidents with broken bones: $15,000 to $50,000
- Spinal cord injuries: $500,000+
- Medical malpractice cases: Often over $250,000
- Wrongful death cases: $500,000 to millions
But don’t get too hung up on these examples. Yours could be worth more or less depending on all sorts of factors unique to your case.
The Steps in the Settlement Process
Let’s look at how all this actually happens in the real world…
The truth is that most people have an image of how the personal injury settlement process works that’s way off the mark. They watch commercials about fast cash for pain and suffering and assume it’ll be a simple and painless process from start to finish.
Bam! They hit a major pothole instead.
The process for settlement usually goes something like this:
Step 1: Medical Treatment and Documentation
You must finish your medical treatment and/or get to a point doctors call “maximum medical improvement.” The reason for this is simple: You need a full accounting of your injuries and medical bills before you can demand fair compensation.
If you settle early and your injuries get worse, you’re out of luck and cannot get more money later.
Step 2: Demand Letter and Negotiations
Your attorney will send a demand letter to the at-fault party’s insurance company explaining your damages and how much they cost you, and they will demand a payout. The insurance company is almost certain to send back an offer much lower than what you deserve.
Did you know about 95% of personal injury cases settle before going to trial? That means the negotiation process is where the real legwork happens.
And here’s the bombshell: Studies show that 70% of people who held out for better settlements received payouts that were $30,700 higher on average than those who accepted the insurance companies’ first offer.
Step 3: Settlement or Trial
If the negotiations go well, you’ll sign a settlement agreement and get your money. If not, the case may go to trial, though this is uncommon.
The entire process could take a few months or several years, depending on your case’s complexity.
Why Most Personal Injury Cases Never Go to Court
Here’s the truth…
A trial is expensive, time-consuming, and very unpredictable for both sides. Insurance companies don’t like uncertainty and would rather pay a known amount than risk a jury awarding the plaintiff even more.
As the injured party, it also means:
- Higher legal fees
- Waiting months or even years for a resolution
- The risk of walking away with nothing if you lose
- Emotional stress, including testifying under oath
That’s why both sides almost always prefer to settle out of court. It’s quicker, cheaper, and far more predictable.
And here’s something insurance companies don’t want you to know… They take cases much more seriously if they know your attorney is actually willing and able to go to trial. Lawyers who never even step foot in the courtroom tend to get worse settlements. Period.
Mistakes to Avoid That Cost Accident Victims Thousands
Got it. But what can you do to make sure you don’t leave thousands of dollars on the table?
Avoid these major mistakes that could cost you:
Accepting the First Offer
Insurance adjusters know what they’re doing. It’s their job to pay as little as possible. Their first offer is almost guaranteed to be much too low.
Settling Too Soon
With some injuries, symptoms don’t always show up right away. If you settle before the full extent of your damages become known, you’re stuck if medical bills come later.
Not Documenting Everything
Keep all receipts, document your injuries with photos, keep a journal tracking your symptoms. The more documentation you have, the more “proof” your claim has.
Talking to Insurance Companies Without a Lawyer
They can and will use anything you say to lowball your settlement. Your lawyer should be the only one negotiating.
Missing the Deadline
Wisconsin has a statute of limitations for personal injury claims of three years from the date of injury. If you file your case after that deadline, you will lose.
The Bottom Line
Personal injury settlements aren’t a scratch-off lottery ticket, but they are a way to receive proper compensation for actual damages. The amount you can collect depends on the severity of your injuries, the quality of your supporting evidence, and whether you have an experienced attorney in your corner.
Most cases settle through negotiation, not in a courtroom. But insurance companies only offer fair settlements when they know you’re willing to stand up for what you deserve.
The worst thing you can do for yourself? Go it alone. The data is clear that hiring an experienced attorney increases both your chances of winning and how much you will be awarded.
If you’ve been hurt, don’t delay. Get your case evaluated to know what it’s worth and to make sure you’re not leaving money on the table that could help you get better and rebuild your life.
