Car Accident Settlement Negotiation in Georgia

Negotiating a settlement means going back and forth with the other side. It ends when both sides agree on a payment that closes an injury claim without a trial. After a car accident in Georgia, the other side is usually the at-fault driver’s insurance company. If someone you care about was hurt, you may be the one reading these letters. Here is a plain walk-through.

What does it mean to negotiate a settlement?

Negotiating a settlement means trading proposals and counterproposals until both sides agree on a payment or stop talking. A settlement is the final agreement. Negotiation is the process that gets you there.

In Georgia, many car accident claims are resolved this way, through talks with the at-fault driver’s liability insurer, rather than in a courtroom. Each side makes an offer, explains why it chose that number, and answers the other side’s reasons. Those reasons matter as much as the figures.

Negotiation is rarely one phone call. It can take weeks or months. It can stall, pause while medical care continues, and then pick up again. A quiet stretch doesn’t mean the claim is over. Much of the delay comes from waiting for records, bills, and replies.

Negotiation is a normal step in an injury claim, and it doesn’t mean a lawsuit has been filed. A claim with complete records is also easier to evaluate than one with missing pieces. Keep that in mind from the start.

Who is at the table in a car accident settlement?

The main parties are the injured person, called the claimant, and the at-fault driver’s liability insurer. Several other people and companies may also be involved.

• The claimant. This is the injured person. A family member who handles the claim acts on that person’s behalf.
• The claimant’s lawyer, if one is hired. A lawyer presents the claim, answers the insurer, and handles the talks.
• The liability insurer and its adjuster. The adjuster is the person the insurer assigns to the claim.
• Your own insurer. It may be involved for medical payments or uninsured or underinsured motorist coverage.

Georgia law requires many auto liability policies to include uninsured motorist protection. Under O.C.G.A. § 33-7-11, an automobile or motor vehicle liability policy issued in this state must include uninsured motorist coverage for bodily injury, loss of consortium, or death of an insured, and for injury to or destruction of an insured’s property. At the insured’s option, those limits are either at least $25,000 per person, $50,000 for two or more persons in one accident, and $25,000 for property, or, if the policy’s liability limits exceed those amounts, equal to the policy’s liability limits. The insured may also choose uninsured motorist limits below the liability limits.

The insurer employs the adjuster. Their goals and yours can differ, so read every letter with that in mind. Georgia law requires uninsured motorist coverage within limits exclusive of interests and costs which at the option of the insured shall be either not less than $25,000.00 because of bodily injury to or death of one person in any one accident, and, subject to that per-person limit, $50,000.00 because of bodily injury to or death of two or more persons in any one accident, and $25,000.00 because of injury to or destruction of property, or, if the insured’s liability limits exceed those amounts, equal to those liability limits; the insured may also choose uninsured motorist limits below the liability limits, as stated in Georgia’s insurance code. Minimum limits can matter when a claim is worth more than the policy pays.

What are the steps of a typical settlement negotiation?

A typical negotiation moves through six steps: opening the claim, gathering proof, sending a demand, receiving a response, trading counteroffers, and signing a release.

1. Opening the claim. The injured person or their representative tells the insurer about the crash and the claim.
2. Gathering documents. Useful items include the police report, medical records and bills, wage loss records, photos, and repair estimates.
3. Sending a demand letter. This letter describes the crash, the injuries, the treatment, and the amount requested.
4. Receiving the response. The insurer may make an offer, ask for more information, or deny fault or some injuries.
5. Counteroffers. Each side answers with a new figure and its reasons.
6. The release. If both sides agree, a release closes the claim.

Medical treatment status affects timing. Future care costs are hard to value until the treating doctor’s plan is clear. A demand sent too early can leave out costs that haven’t shown up yet.

How do you evaluate a settlement offer before responding?

Check any offer against your documented medical costs, lost income, future care, and how the injury affects daily life.

Georgia limits medical expense damages to the reasonable value of medically necessary care. The trier of fact, the decision-maker, sets that amount. Under O.C.G.A. § 51-12-1.1, special damages for medical and healthcare expenses are recoverable only as that Code section provides, and they are limited to the reasonable value of medically necessary care, treatment, or services, as determined by the trier of fact. If you have any form of public or private health insurance, including benefits under a governmental workers’ compensation program, the evidence shall include both the amounts charged for your medical and healthcare expenses and the amounts actually necessary to satisfy those charges, regardless of whether the health insurance has been used, is used, or will be used to satisfy such charges. A billed amount is not the whole story.

In a civil action for injury or death, special damages for medical and healthcare expenses are recoverable only as provided in O.C.G.A. § 51-12-1.1. General damages are those the law presumes to flow from the injury. Under O.C.G.A. § 51-12-2, general damages are those the law presumes to flow from any tortious act and may be recovered without proof of any amount, while special damages are those that actually flow from a tortious act and must be proved in order to be recovered. Future economic losses can be reduced to present value, using a 5 percent discount rate or another rate the trier of fact finds appropriate. Under O.C.G.A. § 51-12-13, the trier of fact may reduce future medical expenses, living expenses, lost wages, or other economic damages to present value using a discount rate of 5 percent or another rate the trier of fact deems appropriate. The statute does not provide for introducing evidence of the cost of any specific private investment product, including an annuity. Ask how any offer treats future amounts.

Georgia uses modified comparative fault. Damages are reduced by the injured person’s percentage of fault. A person who is 50 percent or more responsible receives no damages. Under O.C.G.A. § 51-12-33, when the plaintiff is to some degree responsible for the injury or damages claimed, the judge reduces the damages otherwise awarded in proportion to the plaintiff’s percentage of fault. The trier of fact apportions damages among the liable persons by their percentages of fault, and those damages are not joint liability or subject to any right of contribution. The plaintiff is not entitled to receive any damages if the plaintiff is 50 percent or more responsible for the injury or damages claimed. The strength of an offer depends on the facts, including fault, injuries, and coverage.

Read any release before you sign it.

What happens if the two sides cannot agree?

Talks can end in a settlement, a stalled negotiation, or a lawsuit.

Georgia’s general deadline for filing a personal injury lawsuit is two years after the right of action accrues. Under O.C.G.A. § 9-3-33, except as otherwise provided in this article, actions for injuries to the person must be brought within two years after the right of action accrues, actions for injuries to the reputation within one year after the right of action accrues, and actions for injuries to the person involving loss of consortium within four years after the right of action accrues. Keep that date in view while talks continue.

A lawsuit does not always lead to a trial. Some cases still settle after a filing. Court costs and case expenses are separate from attorney fees, so ask about both before you decide anything. A stalled negotiation is not always a dead end. Either side can restart talks, and a new demand can change the discussion.

How should you handle the insurance company during talks?

Keep replies short, write everything down, and review every request before you answer it.

Adjusters may ask for a recorded statement, signed medical authorizations, or a quick answer to an offer. Reviewing those requests first helps protect the claim. Keep a written log of calls, letters, and dates. The guide on adjuster questions covers these requests in more detail. For the broader picture, read car accident claims in Georgia.

Peter F. Jaraysi and Brian D. Wright are lawyers at Slam Dunk Attorney in Duluth, Georgia. Our team can handle communications with the insurer for clients who retain the firm.

Quick answers

If you’re sorting out an offer for someone hurt in a crash, you don’t have to do it alone. Slam Dunk Attorney offers a free, confidential initial consultation, with no obligation to continue. Contact the firm here.