How to Get a Fair Personal Injury Settlement From an Insurance Adjuster

Author

Mike Lewis

Attorney Mike Lewis is the founding partner of Lewis & Keller. He has been practicing law since the ’70s with a focus on personal injury law and eminent domain.

May 24, 2025

The Short Answer

Insurance companies use a variety of tactics to minimize settlements and pressure consumers into accepting low offers that don’t adequately value their injuries and out-of-pocket expenses. If you were injured, learn what you should do during the settlement process and how an attorney can help you get the best settlement.

Key Takeaways

• It’s best to let your attorney handle communications with insurance companies. Anything you say can be used against you.
• Negotiating a fair insurance settlement requires persistence, organization, and documentation.
• Keep records of all injuries, expenses, and medical treatment to ensure that you’re properly compensated.
• Have a personal injury attorney review any settlement offers you receive. Studies show that people who have legal representation recover significantly more compensation for their injuries.

How Your Attorney Can Build a Strong Case

Negotiating an insurance settlement is a multi-step process that starts immediately after an injury. It’s wise to consult a qualified personal injury attorney as soon as possible to protect your rights and avoid potential disputes. Your attorney can build a strong case for compensation by:

• Gathering Evidence: Your attorney can investigate the accident and collect evidence to support your claim. Make sure to keep all records related to your injury, including medical records, pay stubs, accident reports, photos, and witness contacts.
• Preparing the Demand Letter: Next, your attorney will prepare a demand letter detailing the facts of the case and the amount of compensation requested. The insurance company may respond with an initial offer or deny all or part of the claim.
• Negotiating With Insurance: It’s not uncommon for claims to go through several rounds of negotiations before an agreement is reached. Your attorney will review any settlement offers to determine if they’re worth accepting. If a settlement can’t be reached, the parties may agree to mediation before heading to court.
• Settling the Claim: Once you have a fair offer, the last step is to sign the settlement agreement and release of liability. Then, the company will send the settlement check to your attorney for distribution.
• Filing a Lawsuit: If the parties cannot agree on a settlement, a trial attorney can start a lawsuit by filing a complaint with the appropriate court. Both parties will investigate the claim and share evidence. Settlement negotiations can continue throughout this process.

Tips for Navigating the Settlement Process

Negotiating a personal injury settlement with an auto or home insurer requires planning and persistence. To recover a fair insurance settlement, you need to know the value of your claim. It also helps to work with an attorney so that you understand your rights. Here are a few tips to help consumers navigate the process more effectively.

Limit Communication

Give the insurance adjuster any information or documents that they need to resolve your claim, but you don’t have to share your life’s story. Your attorney may send important communications by certified mail to create a paper trail.

Keep Records

Keep copies of all notices and correspondence from the insurance company. Make note of all conversations with the adjuster, including the date, time, and topics discussed. Keep records of all injuries and expenses, such as medical bills, repair receipts, and photos.

Avoid Recorded Statements

Policyholders are not required to make a recorded statement. Insurance companies can use this information against you if inconsistencies or liability disputes arise. It’s recommended to avoid making recorded statements without an attorney present.

Review Offers Before Accepting

Insurance companies are notorious for making lowball initial settlements before you’re aware of how the accident has affected you. It’s equally common for them to claim that an offer is final when there’s still room to negotiate. Have your attorney review all offers before you sign.

Stay Calm

Insurance claims can take several weeks to several months to resolve. Try to be patient. Maintain your composure and avoid getting into arguments or emotional discussions with the insurance adjuster. Your attorney can step in to address excessive delays.

Talk to a Lawyer

There’s no need to deal with the insurance company on your own. Have an attorney review your claim and tell you what your case is worth. Lawyers have dealt with hundreds of disputed claims and know exactly what to expect from the other side. They can facilitate settlement negotiations and take your case to trial, if needed.

How Are Personal Injury Settlements Calculated?

Personal injury settlements are based on the total value of your injuries and out-of-pocket costs. You’re typically entitled to expenses from the date of the injury until you reach maximum medical improvement. Additional compensation may be available if you’re left with permanent injuries or disabilities, especially if they prevent you from working. Your attorney will ask for medical bills, pay stubs, and other records to determine how much your personal injury claim is worth.

Economic Damages

Economic damages reimburse you for quantifiable financial losses related to your injuries. Here are a few things that are covered.

• Past and future medical expenses
• Lost wages and decreased earning capacity
• Property damage, such as repairs to your vehicle
• Out-of-pocket costs for personal care and travel to appointments
• Household services, such as cleaning and child care

Non-Economic Damages

Whether you’re recovering from a car accident or slip and fall, you know that injuries can take a physical and emotional toll. Fortunately, non-economic damages are available to compensate you for pain and suffering and related losses. Your lawyer will consider the following factors when evaluating your case.

• Pain and suffering related to the injury and medical treatment
• Emotional distress, including anxiety, depression, insomnia, and PTSD
• Loss of enjoyment of life if you’re unable to partake in normal activities
• Loss of consortium for impacts to your spouse and family relationships
• Scars and disabling or disfiguring injuries can also be assigned a monetary value

Punitive Damages

Punitive damages are only awarded in a small number of cases where the defendant was grossly negligent, such as a person who caused an accident while driving under the influence. This type of compensation is intended to punish the wrongdoer and prevent similar conduct in the future. These damages are subject to a higher level of proof, so they’re more difficult to claim. Per North Carolina General Statutes Section 1D-25(b), punitive damages are capped at $250,000 or 3 times the amount of compensatory damages, whichever is greater.

What Factors Determine Settlement Amounts?

Simply putting a dollar value on your claim doesn’t mean that you will recover that amount in a settlement. Numerous factors apply that may increase or decrease the value of your case.

• Injury Severity: One of the most important factors is the severity of your injury. The more serious the injury, the larger the settlement.
• Treatment: Settlements also consider the duration and intensity of the treatment and recovery. If you had to have surgery, you may be entitled to more compensation for pain and suffering.
• Disability: Permanent injuries or impairments can greatly increase the value of your settlement, especially if you’re unable to work.
• Lifestyle: If the injury has affected your ability to spend time with your family and enjoy hobbies and other daily activities, you may be entitled to compensation for loss of enjoyment of life.
• Liability: North Carolina is a pure contributory negligence, so you cannot recover damages if you are even 1% responsible. An attorney can help to show that you were not at fault.
• Insurance Limits: Insurance policy limits can affect how much compensation you can recover without going to court.
• Evidence: Strong evidence and testimony for medical experts can help to strengthen your case and put pressure on the insurance company to make a better offer.

Do I Need a Lawyer for a Personal Injury Settlement?

You aren’t required to have an attorney, especially if your injuries are minor and there are no liability disputes. However, having an advocate by your side can be a big help if you’re going up against a large company with a strong legal team. Learn more about how a lawyer can help and when you need representation.

When You Need a Lawyer

There are a few situations when hiring a lawyer can be critical for protecting your rights. Legal representation is recommended in the following cases.

• Severe Injuries: Severe or disabling injuries are more difficult to value. A lawyer can help to ensure that you’re fairly compensated for past and future losses.
• Insurance Disputes: If the insurance company is delaying your claim or refusing to admit liability, a lawyer can step in to move the case forward.
• Liability Concerns: Legal representation is helpful if liability is disputed or multiple parties are at fault.
• Complex Cases: Different rules may apply if you’re filing a claim against the government or were injured at work. Our personal injury attorneys can help you navigate these procedures.

How Long Does It Take to Negotiate an Insurance Settlement?

Timelines for personal injury settlements vary widely depending on the factors of each case and the parties involved. The process can take anywhere from a few months to a few years.

• Quick Settlements: Simple cases with minor injuries and no liability disputes can be resolved in as little as 1-3 months. A lawyer can help you reach a speedy resolution.
• Average Settlements: The majority of personal injury claims that are settled out of court are resolved in 3-9 months. Keep in mind that negotiations typically don’t begin until you’ve completed treatment or reached maximum medical improvement.
• Complex Cases: Complex or contested cases can take anywhere from 6 months to 2+ years to settle. This is common if liability is disputed, your injuries are severe, or the case proceeds to trial.

How Are Personal Injury Settlements Distributed?

Once your attorney has negotiated a settlement offer that you’re comfortable accepting, you’ll sign the settlement agreement and release of liability. This document states that you cannot pursue any other legal action related to the claim. Once you sign the settlement package, it will be sent to the insurance company for processing, which usually takes 30-60 days. The settlement check will be mailed to your attorney, who can arrange to pay any outstanding medical bills. They’ll deduct their legal fees according to the billing agreement, and the final settlement will be distributed to you.

Hire a Personal Injury Lawyer in Winston-Salem, NC

Our attorneys have the experience and knowledge needed to stop strong-arm tactics used by insurance companies and claims adjusters. Our legal team can gather evidence, explain the law, and fight for your rights in or out of court. We’ll work tirelessly to negotiate a fair personal injury settlement that covers your lost wages, medical bills, pain and suffering, emotional trauma, and more.

If you were injured in North Carolina and need more information, don’t rely on your insurance adjuster to give you answers. Speak with a local personal injury lawyer who understands the law and will act in your best interests. Contact Lewis & Keller today for a free case consultation.

Personal Injury Settlement FAQs

What’s a Fair Personal Injury Settlement?

There’s no one-size-fits-all answer. The software that insurance adjusters use can only provide an estimate of how your injuries affect your life. Ideally, a fair settlement should fully compensate you for past and future medical bills and lost wages, including any treatment or followup care that you may need down the road.

Are Personal Injury Settlements Taxable in North Carolina?

Generally, settlements related to personal injuries or illnesses are not subject to state or federal income tax, including compensation for lost wages. Punitive damages and any interest earned on the settlement proceeds are taxable. You will receive a 1099 indicating what part of your settlement, if any, must be reported on your tax return. Your attorney can give you more details on which personal injury damages are taxable.

What If the Insurance Company Tries to Contact Me?

Notify your attorney of the insurance company’s attempts to contact you. They will be able to intervene and handle communications going forward. It’s best to avoid speaking to the insurance adjuster if possible. They may try to pressure you into accepting an unfair settlement or admitting fault for the accident.