Is Your Settlement Offer Fair?

The settlement should account for every medical bill you incurred because of the accident, including ER, imaging, specialists, physical therapy, prescriptions, and medical equipment. Use the billed amount, not the insurance-adjusted amount — the difference matters for damages calculations.

If your doctor has recommended future care — additional PT sessions, follow-up imaging, pain management, or possible procedures — those costs should be part of the settlement. Once you settle, you cannot come back for more.

Chronic pain management, long-term physical therapy, prescription medications, and mental health treatment (including PTSD and anxiety from the accident) are legitimate ongoing costs that should be factored in.

Some injuries carry a statistical likelihood of future surgery (e.g., disc herniations, torn ligaments, joint damage). Your doctor can provide an opinion on probability and estimated cost. A strong settlement accounts for this contingency.

This includes salary, hourly wages, bonuses, commissions, overtime, and PTO/sick days used for treatment or recovery. Self-employed individuals should include documented lost revenue.

If your injuries prevent you from returning to your prior job, force a career change, or reduce your hours or productivity, the difference in lifetime earnings is a compensable damage. This often requires a vocational expert opinion for larger claims.

Transportation to medical appointments, home modifications, childcare during recovery, household help, medical equipment (braces, crutches), parking at hospitals, and prescription co-pays are all compensable out-of-pocket costs.

Colorado law allows recovery for physical pain, emotional distress, inconvenience, and loss of enjoyment of life. There is no fixed formula, but these damages are real and should be a meaningful part of any settlement involving more than minor injuries.

A broken bone that healed in 6 weeks warrants different compensation than a herniated disc requiring a year of treatment. The non-economic component should scale with how badly you were hurt and how long your recovery took.

If the accident prevented you from exercising, playing with your children, sleeping properly, maintaining relationships, or participating in hobbies, those losses have value. Document specific activities you can no longer do or that cause pain.

You should receive a document showing how the settlement number was calculated: how much for medical bills, how much for lost wages, how much for pain and suffering. This lets you evaluate each component and identify what might be undervalued.

While offers may have reasonable expiration dates, high-pressure tactics like "this offer expires in 48 hours" or "take it or we withdraw" are negotiation strategies, not genuine deadlines. You are entitled to time to review with an attorney.

The release you sign determines what claims you give up. A standard release covers the specific accident. Watch for overly broad language that releases unrelated claims, future claims against additional parties, or medical liens you did not know about.

You cannot accurately value a claim while you are still treating because the final cost is unknown. An offer made before you reach Maximum Medical Improvement (MMI) is inherently speculative and usually favors the insurer.

A reasonable settlement process gives you time to review documents, consult with an attorney if desired, and make an informed decision. Being asked to sign on the spot — whether at the scene, in a hospital, or at the adjuster's office — is a red flag.