You’ve been offered a settlement from the insurance company due to your car accident. The money may cover medical bills and other injury-related losses.
However, are those funds enough?
Once you sign a final settlement you could close your case without knowing if you need more treatment down the road. Learning more about settlement negotiation can allow you to catch these things before signing a release.
What This Covers:
- How insurance works in Minnesota
- Evidence that can help support your settlement demand
- What to do if the settlement offer is too low
- Should you accept a settlement?
Is the Insurance Company Offer Enough?
Injuries vary. Some heal quickly. Others cause months of missed work or pain long after your accident. Some can leave you unable to work for months and may cause you pain long after your vehicle has been repaired.
According to Minneapolis Vision Zero data, about 160 people per year were killed or seriously injured in city traffic crashes from 2017 through 2025. This includes pedestrians and bicyclists.
The insurance company could try to settle your claim before you know the extent of your injuries. This is something you should take time to look over.
Ask yourself, what will this money be used for? Will it cover your future medical bills, lost wages and inability to perform certain tasks? Or will it only cover what you’ve been billed so far?
Determine Your Insurance Coverage
In the state of Minnesota, no-fault auto insurance applies. Personal Injury Protection (PIP) can cover eligible medical bills and other losses following a qualifying accident. It may be their own policy or, in some situations, a policy covering the vehicle they occupied.
PIP benefits include separate amounts for medical expenses and other eligible losses, such as lost wages. Keep in mind that your PIP insurance does not cover vehicle repairs.
A separate negligence claim may cover certain economic losses not paid or payable through PIP. Compensation for pain and suffering also depends on what type of injury you sustained or how much your medical bills are.
Not sure which insurance policy will pay for your losses? Talk to a Minneapolis car accident lawyer who can review your insurance, evidence and laws that apply to your case. For an overview of that kind of representation, see https://www.meshbesher.com/practice-areas/minneapolis-car-accident-lawyer/.
By doing this, you can identify any missing information after you’ve exhausted your benefits.
Create a Demand Letter that Can Be Reviewed
Settlement demands should contain more than just how much you feel your case is worth. It should explain the facts of your case, who you believe was at fault and how your injuries have impacted you.
Here is some information that you should collect before determining your demand:
- Evidence of your accident: Police report, photos, witnesses, video, etc.
- Medical information: Injuries, dates that you were seen, bills, lost time from work, etc.
- Lost wages: Pay stubs, hours not worked, etc.
- Future medical bills: Doctor’s notes that support your need for more treatment or if you may have permanent impairments.
- Insurance information: Policy, benefits that were paid, letters, etc.
It’s also helpful to create a timeline of events. When did your injuries start, when did you see a doctor, when did you return to work, etc.
Why collect all of this information?
Clear records help the insurer assess each loss. If it disputes future treatment, a medical opinion can help support the demand.
What Happens During Settlement Negotiations?
Settlement negotiations usually begin with a demand letter and supporting documentation. The insurance company will look over your claim, ask you questions and may come back with a lower settlement offer.
Just because they offer you a lower amount doesn’t mean the conversation is over. Now it’s time to find out why your numbers don’t match up.
If treatment is disputed, review medical records and dates. For lost wages, provide employer records. If fault is disputed, look at photographs, witnesses and the police report.
After finding out what the issue is, send another demand explaining why you feel your number is accurate.
Here’s how you can go about negotiating with the insurance company:
- Read the settlement offer and see what they are willing to pay for and what they are not.
- Ask them to explain why certain items are not included and ask for documentation if needed.
- Send additional evidence to support your claim.
- Make another settlement offer that explains how you came up with your number and any potential risk they may face if your case went to trial.
- Read over the release that they want you to sign.
Make sure to keep everything in writing or take notes during phone conversations. This can help you if anything falls through the cracks.
Remember that the insurance company is trying to negotiate with you, not giving you their final word on what your case is worth.
Who Was At Fault Can Affect Your Settlement
Even if you have great medical evidence, the insurance company may believe that their insured was not 100% at fault for your accident. They may also try to deny some of your treatment as not being related to your accident.
In the state of Minnesota, if you were found to be partially at fault, your damages can be decreased by the percentage that you are at fault. You may not be able to recover any money if you are more at fault than the person you are trying to collect from. So it’s important to have evidence that can support your claim that someone else was at fault for your accident.
For example, you and another driver were both traveling through an intersection and collided. One driver may say the light was green, but the other driver states otherwise. If you have a witness that can back up your story, or traffic-camera recording, it can help show who was at fault for the accident. If you don’t have that, you may want to consider the risk you may face by pursuing your case.
Another thing to keep in mind is insurance limits. You may have a valid claim, but if the other driver’s insurance policy is low, you may not receive as much money as you feel you deserve.
Should You Settle Your Case?
You may want to settle your case if your medical bills are piling up. However, there are some things to keep in mind before signing a release.
If you are still receiving treatment, have not been released by your doctor, are unable to work or if you aren’t sure how the insurance company came up with their number, you may want to hold off on settling. You also want to see if there are any outstanding medical bills, liens, etc. that will need to be paid from your settlement.
Always read the release that you are being asked to sign. Are they trying to settle your property damage or are they also trying to settle your injury claims? By signing a release, you could be giving up your right to receive more money for your injuries.
Just because you are waiting to settle doesn’t mean you should ignore deadlines. Each case can have different deadlines that need to be met. Make sure you know what deadlines you have while you are negotiating with the insurance company.
Final Thoughts
Understanding what your claim may be worth makes settlement decisions easier to assess. Gather as much evidence as you can, determine what insurance covers and ask the insurance company to explain their numbers. If you have any questions about fault, injuries or the release terms remain unclear, seek legal advice before you agree to settle.
