An automobile accident can leave you with physical pain, emotional distress and financial uncertainty. In the midst of this turmoil, accepting a quick settlement from an insurance company may seem tempting. However, choosing to do so without consulting an experienced personal injury attorney can have significant and lasting negative consequences. Overwhelming evidence shows that individuals who retain legal counsel consistently receive substantially higher settlements than those who do not.

Numerous studies have quantified the financial benefits of hiring an attorney for an automobile injury claim. A widely cited report from the Insurance Research Council (IRC) revealed that, on average, accident victims who were represented by a lawyer received settlements that were 3.5 times larger than those who handled their claims independently. 

Another study, conducted by Lawyers.com, found that 91 percent of people who hired a personal injury lawyer received a settlement, compared to only 51 percent of those who did not. The same study found the average settlement for those with legal representation was $77,600, while unrepresented individuals received an average of just $17,600. Even after accounting for attorneys’ fees as a percentage, the net settlement received by represented claimants were dramatically higher.

This research underscores that insurance companies are businesses, and their primary goal is to minimize payouts. Without the advocacy of a legal professional, claimants are at a significant disadvantage. Beyond the compelling statistics, there are several fundamental reasons why claimants without legal representation are at a serious disadvantage.

One of the most significant hurdles is inaccurate claim valuation. An unrepresented individual is unlikely to have a comprehensive understanding of all the damages they are entitled to recover. These can include not only immediate medical bills and lost wages but also future medical expenses, diminished earning capacity, pain and suffering and emotional distress. Without legal expertise, it is easy to accept a lowball offer that fails to account for the long-term impact of the injuries. An experienced lawyer, however, will conduct a thorough investigation, consult with medical and financial experts if necessary and ensure that every potential area of compensation is identified and pursued.

Another major challenge is the adversarial nature of dealing with insurance companies. An insurance adjuster’s objective is to settle claims for the lowest possible amount. They may employ such tactics as requesting a recorded statement that could be used against the claimant, delaying the process to create financial pressure or misrepresenting the extent of coverage. An attorney handles all communications with the insurance company, protecting you from potentially damaging missteps. A strong negotiation strategy levels the playing field and signals to the insurer that the claim must be taken seriously.

Finally, claimants without attorneys are perceived as having very little leverage. The very presence of an automobile injury attorney in the case demonstrates that the claimant is prepared to go to trial. While the majority of personal injury claims are settled out of court, the claimant’s willingness and ability to file a lawsuit is often what compels an insurance company to offer a fair settlement. 

The law firm of Brown, Novick & McKinley Attorneys at Law, located in Woodbury, represents auto accident victims across Gloucester County and throughout New Jersey. To schedule a free consultation, call 866-942-4909 or contact us online.