If you’ve suffered serious injuries because someone else was negligent, you’re going to wonder about the size of your personal injury settlement. Some injuries from car accidents, slip and fall incidents, and product liability situations are especially debilitating, leaving you with high medical bills, extended time away from work, and, in extreme cases, permanent disability.
While a fair personal injury settlement can cover your financial damages, many Georgia injury victims have questions about the process itself. What does it involve? How much compensation can you receive? How does legal representation make a difference? In this guide, we’ll answer these and other questions related to personal injury settlements in Georgia.
Who Are the Participants in a Personal Injury Claim?
A personal injury claim has two primary participants: the injured person and the party alleged to be at fault.
- The Plaintiff is the injured party who initiates the claim. As the plaintiff, you’re seeking compensation for the harm caused by the other party’s negligence or wrongful conduct.
- The Defendant is the individual, business, or entity accused of causing the injury. In most cases, the defendant’s insurance company assumes responsibility for managing the claim and paying any settlement or judgment. In the case of a motor vehicle accident, this would be the auto insurance company. For those injured by medical malpractice, it would be the medical professional liability insurer.
Depending on the circumstances, other potential participants may include additional defendants, third-party insurers, or healthcare providers with claims on a portion of your settlement. However, every personal injury case begins with these two central roles: the plaintiff seeking recovery and the defendant, along with their insurer, responding to the claim.
Personal Injury Settlement Process
The personal injury settlement process can take months or a few years, depending on how complicated your case is and whether the insurer is willing to cooperate. Below is a general overview of the steps involved.
Step 1: Determine How Much Your Case is Worth
One of the first steps in a personal injury settlement is evaluating the value of your claim. This calculation serves as the foundation for any negotiations with the insurance company or defendant. Your personal injury attorney will gather evidence and documentation to assess both the financial impact of the injury and how it has affected your daily life.
The total value typically includes two categories of damages: economic and non-economic.
Economic Damages
Economic damages refer to the financial losses you’ve incurred as a direct result of the injury. They’re both measurable and supported by documentation such as receipts, billing statements, and employment records. Common examples include hospital and physician bills, ambulance charges, prescription costs, physical therapy expenses, lost wages due to missed work, and property damage. In cases involving long-term damage like brain trauma, neck injuries, or a spinal injury, future medical treatment and lost earning capacity may also be included.
Non-Economic Damages
Non-economic damages account for the personal and emotional impact of the injury. This includes pain and suffering, emotional distress, and loss of enjoyment of life. If the injury has harmed your relationship with a spouse, you may also be entitled to damages for loss of consortium. Because these damages are subjective, personal injury lawyers rely on expert testimony, medical evaluations, and standardized methods to support the amount being claimed.
Step 2: Send a Demand Letter
Once your personal injury lawyer has calculated the full value of your claim, the next step is to formally present that amount to the opposing party. This is done through a written demand letter, which outlines the case itself, describes your injuries and losses, and states the amount being sought in compensation. A well-prepared demand letter includes supporting documentation such as medical records, billing statements, employment records, and any relevant photographs or incident reports.
The purpose of the demand letter is to initiate settlement discussions by clearly stating your position and expectations. It provides the insurance company with a detailed explanation of why they are liable and how the requested amount reflects what you’ve experienced. This document also signals that you and your legal counsel are prepared to pursue litigation if necessary.
It’s important to understand that insurers rarely agree to the initial demand. In most cases, they will issue a counteroffer that is substantially lower, citing issues like disputed liability or questioning the extent of your damages. Your personal injury lawyer will then enter into negotiations with the goal of reaching a fair settlement amount. This stage can involve several rounds of offers and counteroffers, but a carefully constructed demand letter sets the foundation for productive discussions.
Step 3: Proving Fault
If the insurance company disputes liability or denies your claim, you’ll need to demonstrate that the defendant is legally responsible for your injury. Proving fault involves showing that the defendant acted negligently and that their actions directly caused your injuries.
Discovery is the stage where both sides are required to share evidence. Your personal injury attorney will use this opportunity to gather detailed information that supports your claim and challenges the defense’s position. The goal is to build a clear case that shows the defendant failed to meet a reasonable standard of care and that this failure caused catastrophic injuries.
Several types of evidence are commonly used to establish fault in a personal injury case:
- Police reports, which often include initial assessments of fault and citations issued at the scene.
- Photographs and videos of the accident scene, damaged property, injuries, and surrounding conditions.
- Eyewitness statements that provide independent accounts of what occurred.
- Depositions, which are recorded interviews under oath with parties and witnesses, taken during discovery.
- Expert opinions from professionals such as accident reconstructionists, medical providers, or engineers who can explain how the incident occurred and who is likely responsible.
Proving fault is a critical part of any personal injury claim. Without strong evidence, the insurance company has little incentive to settle or may offer a reduced amount. A well-prepared case backed by reliable documentation and skilled legal representation puts you in a stronger position to reach a fair outcome.
Step 4: Negotiate with the Insurance Company
As your case develops, settlement negotiations continue between your attorney and the insurance company. These discussions usually evolve in response to newly obtained evidence, medical updates, expert reports, or information shared during discovery. Each piece of new information can influence the perceived settlement value, prompting either side to adjust their position.
Your attorney will use the available evidence to justify a higher settlement amount. This may include updated medical records showing long-term impairment, proof of lost income, or testimony from experts supporting your claim. At the same time, the insurance company will assess the risks of taking the case to trial and weigh those against the cost of settling.
Negotiations can span several weeks or months, depending on the case and the willingness of both parties to reach an agreement. Your attorney’s role is to advocate for maximum compensation by showing that the case is trial-ready if necessary. A strong negotiation strategy, backed by evidence, increases the likelihood of securing a settlement amount that fairly reflects your injury-related losses.
Step 5: File a Personal Injury Lawsuit
Although many personal injury claims are resolved through direct negotiation, filing a lawsuit may be necessary if the insurance company refuses to make a fair offer. Taking legal action shows that you're prepared to pursue the claim in court, which often results in better offers from the insurance provider.
Personal injury claims are more likely to escalate to litigation under certain conditions. They include:
- Disputes over who was at fault
- Disagreements about the severity of your injuries
- Cases involving permanent impairments that need ongoing medical care (e.g., a traumatic brain injury or spinal cord injury)
If the insurance company questions the validity of your claim or downplays the impact of the injury, your attorney may recommend filing suit. Even if the case doesn’t reach trial, initiating legal proceedings can be what it takes to inspire a better settlement offer.
Step 6: Get Your Settlement Payout
Once both parties reach an agreement on the settlement amount, the insurance company will issue a check, typically made payable to both you and your attorney. This settlement payout is sent directly to your attorney’s office, where it’s deposited into a client trust account.
Before any funds are released to you, certain obligations must be resolved. Your attorney will deduct their contingency fee from the settlement, based on the percentage outlined in your agreement. In addition to attorney fees, they may also subtract case costs advanced on your behalf, such as filing fees, expert consultations, and costs related to medical records or depositions. If there are outstanding medical liens or medical bills, they will also be paid from the settlement before any remaining funds are disbursed to you.
After all deductions are made, your attorney will issue your portion of the settlement amount. This final payment represents the compensation you receive for your injuries, and it concludes the claims process. Your attorney should provide you with a written breakdown of all deductions and payments so you can see exactly how the settlement was distributed.
Personal Injury Settlement FAQ
Are Personal Injury Settlement Calculators Accurate?
Online settlement calculators can offer a rough estimate, but they’re not reliable tools for determining the true settlement value of your personal injury claim. These calculators usually ask for basic inputs, such as medical expenses, lost wages, and pain and suffering, and then apply a generic formula. What they don’t account for are the details that can shape the outcome of a real case.
For example, a calculator won’t factor in the following:
- Disputed liability
- Long-term medical treatment needs for conditions like a traumatic brain injury or a herniated disc
- Pre-existing conditions
- How a particular insurer handles claims
It also can’t reflect how your injury affects your daily life, your ability to work, or your long-term health. These elements need careful review by attorneys, medical professionals, or vocational experts.
If you're relying on a calculator to determine your settlement amount, you may be underestimating or overestimating what you’re owed. An experienced attorney can offer a far more accurate evaluation by reviewing your records, gathering evidence, and determining what you’ll need to cover past and future damages.
Can You Rescind a Settlement Agreement?
In most cases, once a personal injury settlement agreement is signed and finalized, it can’t be rescinded. Settlement agreements are legally binding contracts. By signing, you agree to release the defendant and their insurance company from further liability in exchange for a negotiated payment. Courts generally uphold these agreements unless there is strong evidence of fraud, misrepresentation, coercion, or mistake.
If you signed the agreement without fully understanding the terms, or if new information comes to light that materially changes the nature of your claim, you may have limited grounds to challenge it under Georgia law. However, courts set a high bar for overturning settlements. Regret, second thoughts, or dissatisfaction with the amount are not valid reasons to rescind the agreement.
If the agreement has not yet been signed or the settlement funds have not been disbursed, there may still be time to reconsider. In that case, you should speak with your attorney immediately before taking any further steps. Once the agreement is executed and payment is issued, reversing it becomes extremely difficult. Always review settlement terms carefully and ask questions before signing, especially if you feel pressured or unsure.
Can You Get More Money After a Personal Injury Settlement?
In most cases, you can’t recover additional compensation once a personal injury settlement has been finalized. Settlement agreements include release language that prevents you from reopening the claim or filing a new one related to the same incident. That’s why it’s critical to make sure the amount you agree to reflects both your current losses and any future medical expenses or complications related to the injury.
There is a narrow exception in situations involving fraud or intentional misconduct. If the insurance adjuster or defendant knowingly withheld key information or misrepresented facts to influence your decision, you may have legal grounds to challenge the agreement. However, proving this can be difficult, and courts rarely set aside signed settlements without compelling evidence.
Before accepting any offer, you should work with your attorney to ensure that the amount accounts for long-term medical care, reduced earning capacity, and any other future needs you may face.
Will Your Personal Injury Settlement Money Be Taxed?
One of the most common questions after settling a personal injury claim is whether the settlement amount will be taxed. In most cases, the answer is no. Under 26 U.S.C. sec. 104, compensation received for injuries, illness, or wrongful death is generally excluded from gross income. As long as the settlement is tied to a bodily injury or illness, the amount you receive is usually not subject to federal or state income tax.
However, there are some exceptions:
- If you previously claimed a tax deduction for medical expenses related to the injury and later recovered those costs through a settlement, that portion may be taxable.
- Compensation awarded for pain and suffering and emotional distress is typically not taxed if it stems from a physical injury, but if the emotional distress exists without any physical harm, it may be treated as taxable income.
- Punitive damages, which are awarded to punish the defendant rather than compensate you for your losses, are almost always taxable because the IRS requires that punitive damages be included in gross income, regardless of the state where the case is filed. This applies to personal injury cases, wrongful death claims, and other civil actions.
Because tax consequences can vary based on how the settlement is structured, it’s important to review each category of compensation carefully. Your attorney can help clarify how the settlement will be reported and may recommend speaking with a tax professional before the funds are disbursed.
Proper planning can help you avoid surprises and ensure that your portion of the settlement is protected. If you have any questions about whether you will have to pay taxes on money you will be receiving in a personal injury case, make sure you speak with an experienced accountant.
Call The Champion Firm, Personal Injury Attorneys, P.C.
No two cases are exactly alike. The time it takes to resolve a personal injury claim depends on the facts, the severity of the injuries, and how the insurance company responds. This is why it’s so important to work with a Georgia personal injury attorney.
At The Champion Firm, we have extensive experience handling personal injury claims across Georgia. We know how to present strong evidence, negotiate with insurance companies, and pursue the compensation you’re entitled to. We also take cases on a contingency fee basis, so there’s no financial risk involved in reaching out. For more information or to schedule a free consultation, call our law firm at 404-948-3734 or contact us online today.