The short answer is yes, if it's a small personal injury claim, and you're comfortable dealing with the insurance company (or the other side's lawyer), you can settle with the other side. But if it’s a larger case, you will almost certainly want a lawyer on your side. That's especially true if you're going to be filing a personal injury lawsuit.
First, the law is complex, and there are a lot of factors that go into determining when to settle a potential legal claim (and how to get a fair outcome). Second, one of the many valuable services a lawyer provides is the ability to be objective. A lawyer can dispassionately look at the pros and cons of your case and and tell you when to keep on going, when to settle it, or (much more rarely) when to dismiss the case altogether. An injured claimant is not generally able to look at their own cases with that kind of objectivity.
Having said all that, it may make sense to handle your personal injury claim yourself if you've considered the "Three Ifs," and you still think it's a good idea.
If It Is a "Smaller" Case
When it comes to personal injury claims, a "smaller" case means one that is worth less than $20,000, give or take. Any larger than that, and you’re probably going to leave too much money on the table when you settle. When personal injury case settlement values start getting over $20,000, the issues start getting complex, and that is when you need an experienced personal injury lawyer to step in and take care of things for you. Learn why it's a good idea to hire a personal injury lawyer.
If Liability and Damages Are Relatively Straightforward
This means there needs to be no question about liability; who was at fault for the accident giving rise to the claim, in other words. In the context of a car accident, that means the other driver rear-ended your vehicle or you've got multiple witnesses saying they ran a red light. If fault isn't clear, the insurance company may not take you seriously if you don’t have a lawyer, and if the insurer disputes liability, be prepared for lowball settlement offers. Another way to say this is that if liability is at all in dispute, you will most likely never get a reasonable settlement offer without a lawyer.
The same concept goes for damages (your car accident injuries and other losses stemming from the crash, including your "pain and suffering"). When you are trying to settle your own personal injury case, you need your damages to be very straightforward, or the insurer will lowball you. This means that your doctors can’t disagree as to your diagnosis and extent of disability, and there can’t be any confusing, strange, or unusual issues in your medical records or medical history. If the insurer thinks that there is anything odd about your case, it will lowball you. Learn more about damages in a car accident case.
If You Don’t Mind Doing All the Legwork Yourself
If you handle your own injury claim, you have to get all of the paperwork that the insurer needs and wants. You absolutely have to get the insurer all records and bills for all of your medical treatment related to the accident. And you have to get the insurer earnings records that document your lost earnings claim. That can mean contacting a lot of different billers and putting in records requests. No insurer will settle a personal injury claim until it has all of the records.
What Now?
If you've decided to represent yourself, the most important question usually becomes, "What should you settle the case for?" This is where it can be worth your while to settle a smaller claim yourself. Remember that under the terms of most contingency fee agreements, you’ll have to pay a personal injury lawyer around one-third of any settlement you receive. So if you can settle the case for two-thirds of what a lawyer would have gotten, you’re breaking even. You may only settle it for half of what a lawyer would have gotten, but in a small case the difference is pretty minimal.
But how much should you settle it for? Learn how to figure out how much your personal injury claim is worth.