Only your facts can answer that. A settlement is good if it fairly covers your medical expenses, lost income, and pain after fees, expenses, and reimbursement claims are paid, given the fault evidence and the insurance that can actually pay. The same number can be excellent for one case and far too low for another.
Start with what the claim is made of. Texas law allows recovery of past and future medical expenses (limited to amounts actually paid or incurred under Civil Practice and Remedies Code section 41.0105), past and future lost earnings, physical pain, mental anguish, physical impairment, and disfigurement. A settlement should be measured against a documented estimate of each, including future care your doctors expect.
Then adjust for fault. Under Chapter 33 of the Civil Practice and Remedies Code, any percentage of fault assigned to you reduces the recovery by that percentage, and 51 percent bars it. An offer on a disputed-fault case is reasonably lower than one where the other driver plainly caused the crash.
Then look at the coverage ceiling. If the at-fault driver carries the Texas minimum of $30,000 per person under Transportation Code section 601.072 and has no other assets, an offer above that policy is not possible from that source alone. Your own underinsured motorist coverage, an employer's commercial policy, or a vehicle owner's policy may add more. A strong case against a small policy is a coverage problem, not a negotiating one.
Finally, compute the net. Subtract the attorney's fee under the written fee agreement, case expenses, and any hospital liens, health plan reimbursement, or Medicare claims. The number you take home is the one to compare against your losses and your future needs.
Never accept an offer before you know your medical future, because a release ends the claim even if you later need surgery. Owsley Law Firm reviews offers for free and charges no fee unless it wins.
What to do, step by step
- Total your medical bills, including amounts actually paid or owed.
- Ask your doctor about future care and put it in writing.
- Add lost income and any lost earning capacity.
- Identify every policy and its limits before responding to an offer.
An early offer reflects what the insurer has seen so far. A detailed demand with records, future care opinions, and wage proof is what moves the number.
When the injury is serious and the coverage is thin, a properly built offer to settle within the policy limits can shift the risk of an excess verdict to the insurer under the Stowers doctrine.
Mistakes that cost people money
- Evaluating the offer before treatment ends.
- Comparing the offer to someone else's case instead of your own losses.
- Forgetting liens and reimbursement claims when calculating the net.
Related questions
Can I negotiate an insurer's first offer?
Yes. First offers are a starting point, and a counteroffer supported by records is normal.
What if my damages exceed the policy limits?
Look to your own underinsured motorist coverage and any other liable party or policy.
Is the settlement taxable?
Compensation for physical injuries is generally not federal taxable income; interest and punitive damages usually are.
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