Essential Things to Know Before Accepting a Personal Injury Settlement

When dealing with the aftermath of an injury, it’s tempting to accept a settlement offer and move on with your life. However, before you agree to anything, it’s crucial to understand your rights under New Jersey law and the potential long-term impact of your decision. Settlements are often final, and accepting too soon could leave you without the compensation you need to cover future expenses.

This guide will walk you through essential considerations before accepting a personal injury settlement in New Jersey.

1. Have You Achieved Your Full Medical Recovery?

One of the biggest mistakes injury victims make is settling before they’ve fully recovered from their injuries. Why is this so important? Because once you accept a settlement, you forfeit your right to seek additional compensation for future medical expenses.

Why Full Recovery Matters

• Undiscovered Injuries: Some injuries, like traumatic brain injuries (TBIs) or soft tissue damage, may not fully reveal themselves until weeks or months after the accident.
• Ongoing Medical Costs: If you’re still undergoing treatment or require ongoing therapy, you must factor those costs into your settlement.

Actionable Tip: Wait until your doctor provides a “maximum medical improvement” (MMI) assessment. This term refers to the point at which your condition has stabilized, and no further improvement is expected. Without an MMI, you’re guessing your future medical costs—a costly mistake.

2. Don’t Accept the First Offer

It’s common for insurance companies to make a quick, lowball offer right after an accident. Their goal is to settle quickly and for as little money as possible. This tactic is widespread when the insurance company knows the victim is financially stressed.

Why You Shouldn’t Take the First Offer

• Lowball Tactics: Insurance adjusters know you may be vulnerable and eager to get funds to pay for medical bills, lost wages, household expenses, or any other economic damage.
• You May Be Entitled to More: Without a full evaluation of your medical records, lost wages, and non-economic damages (like pain and suffering), it’s impossible to know the fair value of your claim.

Example: In the New Jersey case of Estate of Kotsovska v. Liebman, the court reinforced that fair compensation requires a full assessment of all elements of the injury claim. This case serves as a reminder that an early offer from an insurance company may not reflect the true value of a claim.

Actionable Tip: Consult with an attorney before accepting any settlement offer. An attorney’s review can clarify whether the offer is fair or if further negotiation is needed.

3. An Attorney Can Seek Full Compensation for You

Handling a personal injury claim on your own may seem like a way to avoid legal fees, but statistics show that victims who work with attorneys typically receive larger settlements. Insurance companies have teams of lawyers and adjusters working against you—having your own legal advocate levels the playing field.

How an Attorney Can Help

• Valuing Your Case Properly: New Jersey’s comparative negligence rule (N.J.S.A. 2A:15-5.1) means your compensation can be reduced if you’re found partially at fault. An attorney ensures you’re not unfairly assigned blame.
• Handling Negotiations: Insurance companies’ main goal is to save money. A skilled attorney negotiates aggressively to get you the full amount you’re entitled to.
• Court Representation: If negotiations fail, you’ll need an attorney to file a lawsuit within New Jersey’s two-year statute of limitations (N.J.S.A. 2A:14-2) for personal injury cases.

Actionable Tip: Schedule a free consultation with a Personal Injury Attorney. Most New Jersey personal injury attorneys work on a contingency fee basis, meaning they only get paid if you win.

4. Understand the Statute of Limitations

In the statute of limitations, New Jersey law imposes a two-year deadline to file a personal injury lawsuit, starting from the date of the injury. If you miss this window, you’re barred from pursuing legal action, no matter how strong your case is.

Exceptions to the Statute of Limitations

• Minors: If the injury victim is a minor, the two-year clock doesn’t start until the child’s 18th birthday.
• Discovery Rule: If an injury isn’t discovered immediately (like asbestos-related diseases), the clock starts when the injury is discovered.

Actionable Tip: If unsure whether you’ll pursue a claim, speak to an attorney as soon as possible. Time is not on your side, and critical evidence (like surveillance footage) may be lost if not preserved promptly.

5. Calculate Your Full Damages

To maximize your settlement, you’ll need a comprehensive list of your “damages” (financial losses) beyond medical bills. Your damages could include:

• Medical Expenses: Past, current, and future medical costs, including hospital visits, surgeries, and physical therapy.
• Lost Wages: Compensation for work you missed while recovering.
• Pain and Suffering: Non-economic damages for the physical and emotional toll of your injuries.
• Loss of Enjoyment of Life: If your injuries prevent you from engaging in hobbies, sports, or activities you once enjoyed.

Actionable Tip: Keep meticulous records of every medical bill, pay stub, and out-of-pocket expense. This documentation strengthens your claim for full compensation.

6. Know When to Take a Settlement vs. When to Go to Trial

In New Jersey, most personal injury claims are settled out of court. However, there are times when taking a case to trial makes sense, especially if the settlement offer is far below the fair value of your claim.

Factors to Consider

• How Strong Is Your Case? If liability is clear, insurance companies are more likely to settle.
• Do You Have the Patience for a Trial? Trials can take years, while settlements are usually quicker.
• How Much Money Is on the Line? Large claims with significant damages are often worth fighting for in court.

Actionable Tip: Discuss with your attorney the pros and cons of settling vs. going to trial. They can advise you on your specific case’s best course of action.

New Jersey-Specific Laws That May Affect Your Settlement

• Comparative Negligence: Under New Jersey’s comparative negligence rule, if you are found to be partially at fault for an accident, your settlement will be reduced by the percentage of your fault. However, if your fault is found to be greater than 50%, you are barred from recovering any compensation. This is known as the “50% bar rule”.
• Statute of Limitations: You have two years from the date of the injury to file a lawsuit.

Example Case: In Pardo v. Dominguez, the court ruled that a plaintiff’s award should be reduced by their share of the fault, reaffirming New Jersey’s application of comparative negligence.

Consult with Personal Injury Lawyers in New Jersey

If you’ve been injured in New Jersey, working with a skilled personal injury lawyer at Rosengard Law Group can help you build a strong case and secure the compensation you deserve. 

Schedule a Free Consultation Today!
Don’t wait until it’s too late. Remember, New Jersey’s statute of limitations is two years. Call Rosengard Law Group or visit our website to get started.