Expert: Ron Cercone - 12/20/2010

Question
QUESTION: I was in a rear-end auto accident on the freeway in May 2010.  My car was
totaled and the other womans insurance company accepted full liability.  They
gave me a settlement on my car, which seemed fair.  Now we are debating
medical, work wages, pain & suffering.  I went to the ER after the accident,
had a follow-up with my regular doc, and had about 6 weeks of PT (once a
week visits).  I was diagnosed with whiplash and after PT, still feel my neck
and back ache.  My PT doc said this is too be expected and should decrease
over time.  The bills total about $3500.  I was out of work for a week and a
half and the wages lost were $1500.  The insurance company (State Farm)
offered $8000.  I felt that it was extremely low.  I countered with $17,500.  
They said it was too high and then offered $8500.  I still feel this is
exceptionally low, what do you think?

ANSWER: multiply medical and lost wages 2-4 times. 2 times if a jury would not like you much and 4 times if they would like you (Little old lady vs ex con).

---------- FOLLOW-UP ----------

QUESTION: Thank You for your advice.  One more question though.  When I call back and
tell them no and they say they can't offer any more, do I hire a lawyer or simply
ask to consult with their manager?  What would the most efficient next step be?

ANSWER: Well, a lawyer is going to get 1/3 of your settlement, so try the manager route first. And if you hire a lawyer, make him put in writing that you will not end up with less than 8,000 after his fee is applied. And talk to several lawyers.

---------- FOLLOW-UP ----------

QUESTION: Not sure if I'm allowed two follow-up questions, but I thought I'd give it a shot.  I did talk to the manager and she basically said that she checks all offers before they happen and that the offer of $8000 was what she signed off on.  Do you think hiring a lawyer is worth the trouble on a case like this?  Is there any other options with an insurance company?  Is there a particular reason, do you think, that they are adamant about the $8000 offer?  Sorry if I'm bothering you, but I want to make sure I'm making the right decisions before I take legal action.

Answer
First of all, make sure you have the 8k offer in writing. Then either file a small claims action, depending on the limits allowed in your state, or see if you can find a lawyer who thinks he can make money for the both of you over and above the 8k. Make sure he puts in writing that you will not get less than the original 8k offer, after his fees are applied. You have nothing to lose but your time. You may only find 1 in 10 attorneys who will do this, and they won't be the ones with the big phone book ads.