John W. Redmann | December 6, 2024 | Personal Injury
State Farm is both the largest insurance company in the US and its largest auto insurer. It resolves millions of auto insurance claims in the US every year, most of them at the settlement table. The more you understand about the State Farm settlement process, the more likely you are to settle your claim for a fair amount.
There is no inflexible list of “steps to settlement.” These steps can vary according to the facts of each particular case. Nevertheless, a general outline can still be useful. A Metairie personal injury lawyer recommends the following:
Reporting the Claim
Reporting your claim to State Farm soon after your injury occurs is your job. Unfortunately, Louisiana applies one of the shortest statutes of limitations–two years. That means, in most cases, you’ll have two years after your injury to file a lawsuit. After the deadline expires, you won’t be able to settle your claim.
Accordingly, contact State Farm as soon as possible after your accident and provide them with details of the accident.
Investigation and Evidence Collection
State Farm will assign an adjuster to investigate your case by gathering evidence. If your claim is sizable, you should hire a lawyer yourself to collect evidence such as:
- Police reports,
- Medical records,
- Witness statements,
- Photos of the accident scene,
- Information about the accident, your injuries, and the identities of any witnesses.
- Interviews with witnesses,
- CCTV or dashcam footage of the accident, if available,
- Your medical records,
- Cell phone records if you suspect that texting while driving caused the accident.
The foregoing list only scratches the surface of possible evidence that you might use to win your case. You will need evidence of economic damages, such as medical bills, proof of lost earnings, and receipts for out-of-pocket expenses (medication, child care, etc.). You will also need evidence of non-economic damages such as pain and suffering and emotional distress. Some of the claims you seek to prove might require the testimony of an expert witness.
Analyzing Comparative Fault
Comparative fault is a legal concept that applies when two or more parties share blame for an accident. Each state has its own rules. In Louisiana, a court will apportion blame on a percentage basis under its pure comparative fault approach. However, your percentage of fault will reduce your recovery proportionately. For example, if you are 20% at fault, your compensation will be reduced to 80% of your total recovery, and if you are 80% at fault, you can recover 20% of your total reward.
Of course, it doesn’t work exactly this way in negotiations. To reach a settlement, the parties, not the court, would have to agree on their relative percentages of fault. This is where you might really need a lawyer–to negotiate your percentage of fault with the insurance adjuster.
Negotiating the Settlement With the Appropriate Insurance Company
Negotiation is an art, and insurance adjusters love claimants who don’t retain lawyers to represent them. If you hire a lawyer, your lawyer will probably use the following steps to reach a settlement.
- Demand letter: Your attorney will send State Farm a demand letter describing your damages and (probably) proposing a specific settlement amount. The demand letter will include supporting documentation.
- Negotiation: Negotiation might amount to a back-and-forth game of offer and counteroffer. State Farm will probably issue an initial ‘lowball’ offer that is ridiculously low. Your lawyer should be able to push the settlement amount upwards bit by bit.
Both parties will need to sign a settlement agreement, and you must sign an acceptance and release. Be careful–signing the acceptance and release waives any further claims related to the accident. Nevertheless, if the defendant or the insurance company refuses to pay after signing a settlement agreement, you can sue them in court on a contract claim.
Contact the Metairie Personal Injury Lawyers of The Law Office of John W. Redmann, LLC for Help Today
When your case settles, State Farm will send your settlement check to your lawyer. Your lawyer will deduct their own fees and expenses, as well as any other deductibles, such as a medical lien. They will then send the balance to you.
Contact the Law Office of John W. Redmann, L.L.C., as soon as you can to schedule a free consultation with a Metairie personal injury lawyer. We can answer your questions about the State Farm settlement process and help you navigate your claim.
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Metairie, LA, 70002
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