- What is a good personal injury settlement offer?
- How are economic, non-economic, and punitive damages calculated?
- Is the “pain and suffering multiplier” a valid way to value my case?
- How do insurance policy limits and a defendant’s assets cap a settlement?
- How does comparative negligence in TX, CA, and IL change a fair offer?
- What statutes of limitations apply in Texas, California, and Illinois?
- What documentation do you need to support a fair settlement offer?
- What insurance adjuster tactics should you expect in negotiations?
- How do medical bills, liens, and lost wages factor into your case value?
- How do you value pain, suffering, and life-impact damages?
- What makes a wrongful death settlement offer fair?
- Are there typical personal injury settlement ranges?
- Should you accept the first settlement offer?
- What should a strong demand letter include?
- What are health insurers, Medicare, and other liens, and how do they affect your net recovery?
- How do litigation costs and contingency fees affect “good” versus “net” outcomes?
- How often do cases settle, and when is filing suit the right move?
- What is different about federal versus state court personal injury cases?
- How can GoSuits help you evaluate and pursue a fair settlement offer in TX, CA, or IL?
- Resources
What is a good personal injury settlement offer?
A good personal injury settlement offer is one that fairly compensates you for all harms caused by another’s negligence under applicable state law and practical constraints like insurance limits. It should account for your past and future medical care, lost income and benefits, out-of-pocket costs, property damage, and the non-economic impact on your daily life. It also needs to reflect liability facts, comparative fault rules in your state, witness strength, available evidence, and the likelihood of winning at trial if a settlement cannot be reached.
Because most civil cases resolve by settlement rather than trial, negotiation is the normal path. In federal civil courts, trials are rare relative to filings, and the trend has declined over decades. Data from the federal judiciary shows very low trial rates in civil cases, underscoring why careful settlement evaluation matters for you and your family in Houston, Dallas, Austin, San Antonio, Fort Worth, El Paso, Los Angeles, San Diego, Orange County, San Francisco, Sacramento, San Jose, Chicago, and across Harris County, Travis County, Cook County, and DuPage County. See federal court trends summary by the United States Courts system for context on trial rarity and settlement prevalence [U.S. Courts].
There is no single formula that defines a “fair settlement offer personal injury.” Your case value depends on law plus proof. Below we break down the factors courts and insurers use in Texas, California, and Illinois, along with practical benchmarks and statutes you can rely on when weighing whether an offer is truly “good.”
How are economic, non-economic, and punitive damages calculated?
What are economic damages and how are they calculated?
Economic damages are your measurable financial losses caused by the incident. These typically include:
- Medical expenses already paid and reasonably expected in the future.
- Lost wages and benefits for missed time.
- Loss of earning capacity if injuries limit future work.
- Out-of-pocket costs like medications, travel to care, home modifications, and medical equipment.
- Property damage, often at repair or replacement value.
Economic losses are proven with medical bills, EOBs, employer letters, tax returns, vocational reports, and life care plans. There is no cap on economic damages in typical negligence cases in TX, CA, or IL. State law generally permits full recovery of reasonable, necessary medical and wage losses.
What are non-economic damages and how are they evaluated?
Non-economic damages compensate you for human losses such as pain, inconvenience, loss of enjoyment of life, physical impairment, disfigurement, and emotional distress. There is no precise legal formula. Jurors are told there is no fixed standard and that they must use their judgment based on the evidence. For example, California’s jury instruction confirms “no fixed standard exists for deciding the amount of these damages” and jurors should use their common sense to award a reasonable sum [Judicial Council of California, CACI 3905A]. Cornell Law School’s Wex entry likewise describes the non-economic damages conceptually without any mandated formula [LII Wex: Damages].
Can punitive damages be part of a settlement value?
Punitive damages are intended to punish and deter egregious misconduct, not to compensate. They are uncommon in ordinary negligence cases. States have specific rules:
- Texas: Punitive damages are capped by statute, generally the greater of two times economic damages plus up to $750,000 of non-economic damages, or $200,000 [Tex. Civ. Prac. & Rem. Code § 41.008].
- California: Punitive damages require clear and convincing proof of malice, oppression, or fraud [Cal. Civ. Code § 3294].
- Illinois: Punitive damages may be available in some intentional or willful misconduct cases, subject to Illinois law and case authority. They are not typical in motor vehicle negligence. Always evaluate the facts before assuming punitive exposure.
Because punitive exposure is uncertain, its presence may influence negotiations more by leverage than by a predictable number.
Is the “pain and suffering multiplier” a valid way to value my case?
Insurers sometimes discuss non-economic damages using a “multiplier” of medical bills or use a per diem method. Courts do not mandate either method. Jury instructions in California explicitly say there is no fixed standard for non-economic damages [CACI 3905A], and legal references explain that damages are determined based on the evidence, not a formula [LII Wex].
That means a multiplier can be a starting point for discussion, but not a legal rule. A fair offer should be tailored to your diagnosis, treatment intensity, recovery timeline, permanency, how injuries change your daily life, and testimony from treating providers. In serious injury settlement negotiations, itemized narratives and corroborating records carry more weight than a simplistic multiplier.
How do insurance policy limits and a defendant’s assets cap a settlement?
A settlement must be collectible. That makes insurance policy limits and the defendant’s assets crucial. Typical auto liability minimums include:
- Texas: $30,000 per person / $60,000 per accident bodily injury, and $25,000 property damage [Texas Department of Insurance].
- California: As of January 1, 2025, minimums increased to $30,000 / $60,000 / $15,000 [California DMV].
- Illinois: $25,000 / $50,000 / $20,000 [Illinois Secretary of State].
When losses exceed liability limits, claimants often look to underinsured motorist coverage, other applicable policies, or the defendant’s assets. Insurers in several states face a duty to settle within limits when liability is reasonably clear and damages likely exceed the policy limits, creating potential bad-faith exposure if they unreasonably refuse a policy-limits demand, such as under:
- Texas Stowers doctrine and related case law [American Physicians Ins. Exch. v. Garcia].
- California duty to settle in good faith [Comunale v. Traders & General Ins. Co.].
- Illinois recognition of duty to settle where liability is clear and damages exceed limits [Haddick v. Valor Insurance].
If an insurer reasonably tenders limits early, a “good” offer might be the limits plus any additional collectible sources. If limits are low and injuries are severe, your team may investigate additional defendants, commercial coverage, or non-insurance assets.
How does comparative negligence in TX, CA, and IL change a fair offer?
Comparative negligence rules reduce your recovery by your percentage of fault. These rules vary:
- Texas: 51 percent bar. You recover only if you are not more than 50 percent responsible, and your damages are reduced by your percentage [Tex. Civ. Prac. & Rem. Code Ch. 33].
- California: Pure comparative negligence. You can recover even if you are mostly at fault, but your damages are reduced proportionally [Li v. Yellow Cab Co.].
- Illinois: 51 percent bar. No recovery if you are more than 50 percent at fault. Otherwise, damages are reduced by your percentage [735 ILCS 5/2-1116].
Example: If your total damages are $200,000 and you are 25 percent at fault in Houston or Chicago, a fair settlement might target $150,000 before fees and costs. In Los Angeles, the same reduction applies, but recovery is still possible at higher fault percentages because California is “pure” comparative.
What statutes of limitations apply in Texas, California, and Illinois?
A fair offer depends on timing. Statutes of limitations set the deadline to file a lawsuit, and missing the deadline can end your claim. General negligence deadlines for bodily injury are:
- Texas: Two years from the date of injury [Tex. Civ. Prac. & Rem. Code § 16.003]. Wrongful death actions are also typically two years [Ch. 71].
- California: Two years for injury or wrongful death caused by negligence [Cal. Code Civ. Proc. § 335.1].
- Illinois: Two years for personal injury [735 ILCS 5/13-202] and wrongful death generally within two years [740 ILCS 180/2].
There are exceptions and shorter notice rules for public entities. Good offers often arrive before deadlines pressure your options. Filing suit before a deadline can also increase leverage.
What documentation do you need to support a fair settlement offer?
A strong case file tends to draw better offers in Dallas, Los Angeles, Chicago, and “near me” across TX, CA, and IL:
- Medical proof: ER records, physician notes, imaging, physical therapy logs, surgical reports, prognosis, and future care estimates. Consistent care helps show causation and necessity.
- Wage proof: Employer verification, pay stubs, tax returns, and a vocational or economic assessment for lost earning capacity.
- Liability proof: Crash report, photos, videos, EDR data, witness statements, code or statute violations, and incident scene measurements.
- Daily life impact: Pain journals, family statements, and documentation of missed events or activities.
- Bills and receipts: Every out-of-pocket expense related to the incident.
Organized proof streamlines the demand letter and signals to insurance carriers and defense counsel that a jury-ready case is developing, which tends to increase a personal injury settlement offer over time.
What insurance adjuster tactics should you expect in negotiations?
Insurance adjusters are trained to evaluate and contest claims. You may encounter:
- Quick low offers before full diagnosis or treatment concludes.
- Disputes over causation and “preexisting” conditions.
- Requests for broad authorizations to comb old records.
- Delays and limited communication to pressure acceptance.
- Liability challenges invoking comparative fault to reduce value.
States regulate unfair claims practices. For example, California lists unfair claims settlement practices in Insurance Code section 790.03(h) [Cal. Ins. Code § 790.03(h)]. Texas addresses unfair methods and prompt payment rules in Insurance Code chapters 541 and 542 [Tex. Ins. Code § 541] [Tex. Ins. Code § 542]. Illinois lists improper claims practices at 215 ILCS 5/154.6 [215 ILCS 5/154.6]. Knowing these frameworks helps your legal team counter unwarranted tactics.
How do medical bills, liens, and lost wages factor into your case value?
Economic losses are the backbone of your personal injury case value:
- Medical bills: Present value often starts with charges but may be adjusted to amounts paid or reasonable value depending on state law and collateral source rules. Future care is supported by provider statements and life care plans.
- Health insurance liens: Private plans, Medicare, Medicaid, and hospital liens may have reimbursement rights. Medicare’s recovery rights fall under the Medicare Secondary Payer statute and related guidance [CMS Medicare Secondary Payer]. Negotiating lien reductions can materially improve your net recovery.
- Lost wages: Calculate using actual missed time plus sick days or PTO you had to use. For longer-term impairment, an economist or vocational professional can quantify lost earning capacity.
The stronger your documentation, the more likely a fair settlement offer will reflect your full economic harm. In serious cases in Harris County, Travis County, Cook County, or DuPage County, thorough wage and medical projections are often decisive.
How do you value pain, suffering, and life-impact damages?
Non-economic damages describe how injuries affect sleep, mobility, family interactions, hobbies, intimacy, mood, and future plans. To value these:
- Be specific: Describe days missed from your child’s events, hobbies you cannot return to, or daily tasks that now require help.
- Track frequency and intensity: Pain logs, app trackers, and therapy notes show persistence and severity.
- Corroborate: Family, coworkers, and treating providers can attest to visible changes.
Jury instructions confirm there is no fixed dollar measure for these harms [CACI 3905A]. In negotiations, credible narratives and consistent records are key to moving an adjuster’s non-economic numbers into a fairer range.
What makes a wrongful death settlement offer fair?
Wrongful death settlement evaluation looks at both economic and non-economic harm to statutory beneficiaries. Key components include:
- Economic support losses: Lost income, benefits, and household services the decedent provided.
- Non-economic losses: Loss of companionship, love, counsel, and support recognized by state law.
- Medical and funeral costs: Covered as applicable under each state’s statutes.
State frameworks include Texas’s Wrongful Death Act [Tex. Civ. Prac. & Rem. Code Ch. 71], California Code of Civil Procedure wrongful death sections [CCP § 377.60], and the Illinois Wrongful Death Act [740 ILCS 180/2].
NHTSA reports that the economic cost of motor vehicle crashes in a single year was estimated at $340 billion in 2019, not including quality-of-life valuations [NHTSA]. While this is a broad national figure, it shows why comprehensive wrongful death settlements must account for both financial and human losses.
Are there typical personal injury settlement ranges?
There is no statewide “average” that predicts a good settlement. However, court data provides context for trial outcomes. In large-county state courts, the median award for motor vehicle tort trials has been relatively modest compared with catastrophic cases. The Bureau of Justice Statistics has reported median injury awards in tort trials, though outcomes vary widely based on case facts [BJS: Civil Bench and Jury Trials in State Courts, 2005]. Because only a small fraction of cases reach verdict, settlements are often informed more by the specific medical and liability proof in your file, local jury tendencies in places like Los Angeles County, Harris County, or Cook County, and the applicable insurance limits.
For a car accident settlement, a good offer generally makes you whole for measurable losses and fairly values pain and suffering, discounted for risk of trial and comparative fault. High-severity or permanent injuries typically push offers significantly higher than the median trial figures in the BJS study, subject to limits and collectability.
Should you accept the first settlement offer?
Rarely. First offers usually come before full medical recovery or complete documentation. A fair counter typically follows after you reach maximum medical improvement or have credible estimates for future care, wage impact, and life impact. In serious injury settlement discussions in Austin, San Diego, or Chicago, waiting for a more complete record often materially increases the personal injury settlement amount.
What should a strong demand letter include?
Your demand package is your case on paper. It should include:
- Liability summary: Statutes, crash report analysis, witness statements, and any code violations.
- Medical narrative: Diagnosis, treatment timeline, complications, prognosis, and future care.
- Economic losses: Itemized past bills, future medical estimates, wage loss, and property damage.
- Non-economic harms: Clear narrative with corroboration.
- Lien summary: Health insurer, Medicare, Medicaid, or hospital liens identified.
- Settlement figure: A well-supported number, with policy limits information if known.
In policy-limits cases, demands may cite duty-to-settle case law in TX, CA, or IL, with a reasonable deadline and full documentation so the insurer can evaluate exposure [Garcia] [Comunale] [Haddick].
What are health insurers, Medicare, and other liens, and how do they affect your net recovery?
Many payors have reimbursement rights:
- Medicare: Federal law generally requires repayment of conditional payments in liability recoveries, with potential reductions through the resolution process [CMS MSP].
- Medicaid and ERISA plans: May have statutory or contractual recovery rights subject to federal and state limitations.
- Hospital liens: Some states permit hospital liens against third-party recoveries, subject to strict rules.
A good personal injury settlement offer for you is one that accounts for these obligations and seeks negotiated reductions when possible so that your net recovery, after liens and fees, is fair.
How do litigation costs and contingency fees affect “good” versus “net” outcomes?
Contingency fees align your legal team’s compensation with your recovery and are regulated by state rules:
- Texas: Contingent fee agreements must be in writing and comply with professional conduct rules [Texas Rules: TDRPC 1.04].
- California: Written contingency fee agreements are required with defined disclosures [Bus. & Prof. Code § 6147].
- Illinois: Contingent fee agreements must be in writing and signed by the client [Illinois RPC 1.5(c)].
Litigation costs are separate from fees and can include filing fees, records, depositions, experts, mediators, and trial exhibits. A “good” personal injury settlement offer is one that makes sense after fees and costs, not just on paper. Make sure you understand how costs are handled and deducted.
How often do cases settle and when is filing suit the right move?
Most cases settle. Federal civil trial rates have declined and remain very low compared to filings [U.S. Courts]. State court trials are also a small slice of the docket, with many cases resolving through pre-trial motions, mediation, or settlement conferences. Filing suit becomes appropriate when liability is disputed, medical causation is challenged, injuries are serious, or the insurer will not reasonably evaluate the claim within limits.
In cases with catastrophic injuries in Los Angeles, San Jose, Orange County, Houston, or Chicago, filing suit can be the step that secures proper discovery, accelerates court oversight, and places real trial risk on the defense, often improving a car accident settlement or wrongful death settlement value.
What is different about federal versus state court personal injury cases?
Most injury cases arise under state tort law. Federal courts may hear them under diversity jurisdiction if the criteria are met. In diversity cases, federal courts apply state substantive law, including damages and comparative fault rules, under the Erie doctrine [LII: Erie doctrine]. The choice between state and federal court can affect schedules, motion practice, and jury pools. Your legal team will assess where filing best advances your goals in Travis County, Harris County, Cook County, DuPage County, and surrounding venues.
How can GoSuits help you evaluate and pursue a fair settlement offer in TX, CA, or IL?
We meet you where you are. If you are weighing a personal injury settlement offer or preparing to start a claim, a free consultation gives you immediate clarity about case strengths, documentation gaps, deadlines, and next steps in Texas, California, or Illinois. We cover what a fair settlement might look like for your injuries, how to organize proof, and how policy limits and comparative negligence could affect value in Houston, Dallas, Austin, San Antonio, Fort Worth, El Paso, Los Angeles, San Diego, Orange County, San Francisco, Sacramento, San Jose, Chicago, and nearby areas.
What availability and communication do we offer?
- Available 24/7: Speak with an attorney-staffed team any time, day or night, for an immediate free case review.
- Real-time updates: We keep you informed at every phase, from investigation to negotiations and litigation. You can reach us by phone, text, or email with fast response times.
- Multilingual support: We provide multilingual customer service, with 24/7 Spanish and Farsi speakers available so you can discuss your case in the language you are most comfortable with.
What are our fee policies and cost transparency?
- No win, No Attorney Fees: If there is no recovery, you do not pay attorney fees.
- No hidden administrative fees: We explain fees and case costs at the start in plain language and provide updates before significant expenses.
How do our tools and case workflow help your claim?
- Proprietary Personal Injury software: Built for our firm’s internal use, our system accelerates investigation, medical record analysis, demand preparation, negotiations, and, when needed, filing a lawsuit and managing discovery.
- Data-driven case building: Our tools help spot missing records, lien issues, policy limit questions, and comparative fault arguments early so we can address them before they impact your offer.
- Focused law practice: We are a law firm that adopts forward-looking processes to match insurers’ pace and anticipate their tactics.
What is our experience and track record?
- 30 years of combined experience advocating for the injured in TX, CA, and IL.
- 1,000+ litigated cases with settlement and verdict results published on our website: past cases.
- Serious and complex cases: In matters such as product liability, 18-wheeler collisions, brain and spinal injuries, and other high-stakes cases, we retain qualified professionals in the relevant state to provide testimony and establish liability and damages.
- Multi-state litigation: We litigate severe injury and complex cases throughout Texas, California, and Illinois.
- Professional recognitions:
- Recognized in TopVerdict listings for notable settlements and verdicts across multiple U.S. counties.
- Top 100 Settlement in Texas recognitions.
- Sean Chalaki selected to National Trial Lawyers Top 40 Under 40.
- Recognized by Best Lawyers in 2023, 2024, and 2025.
- Selected to Super Lawyers since 2021.
How do we add value to your personal injury settlement offer?
- Thorough case investigation: We secure crash reports, scene photos, video, black box data, and witness statements. In commercial or heavy-truck cases, early preservation letters and document requests are prioritized.
- Medical record depth: We collect comprehensive records, obtain treating provider narratives, and use timelines that tie your symptoms and care to the incident.
- Policy limit strategy: We identify all applicable coverages, analyze duty-to-settle exposure, and make time-limited demands where appropriate to move carriers toward fair offers.
- Comparative negligence response: We prepare fact and law arguments specific to Texas, California, or Illinois to minimize attempts to shift blame to you.
- Lien management: We address Medicare, Medicaid, ERISA, and hospital liens early and pursue reductions so more of the settlement stays with you.
- Trial-readiness: We build cases as if they will be tried to a jury, which often improves negotiations and settlement outcomes in venues like Harris County, Travis County, Cook County, and Los Angeles County.
- Personalized attention: We are not a volume firm. Every case receives direct attorney oversight and a tailored plan, from the first demand letter through potential litigation.
Where are we located and how can we help immediately?
- Nearest office locations: We serve clients throughout Texas, California, and Illinois, with attorneys and staff at our locations ready to help 24/7. When you contact us, we route you to the nearest team in your state for same-day intake and document collection.
- Immediate action steps: We can start your free consultation now, order records, contact insurers, and protect evidence the same day. For clients in Los Angeles, San Diego, Orange County, San Jose, San Francisco, Sacramento, Houston, Dallas, Austin, San Antonio, Fort Worth, El Paso, Chicago, Cook County, and DuPage County, we coordinate in-person or virtual meetings to fit your schedule.
What community involvement reflects our values?
- Community engagement: We are active with schools, chambers of commerce, and local non-profit foundations.
- Professional leadership: Service on boards within trial lawyer organizations such as the Texas Trial Lawyers Association and participation in consumer protection groups.
Resources
- U.S. Courts: Trends in Federal Civil Trials
- BJS: Civil Bench and Jury Trials in State Courts, 2005
- NHTSA: Economic and Societal Impact of Motor Vehicle Crashes
- Judicial Council of California CACI 3905A
- Cornell LII: Damages
- Texas Comparative Negligence: Tex. Civ. Prac. & Rem. Code Ch. 33
- California Comparative Negligence: Li v. Yellow Cab Co.
- Illinois Comparative Negligence: 735 ILCS 5/2-1116
- Texas Statute of Limitations: Tex. Civ. Prac. & Rem. Code § 16.003
- California Statute of Limitations: CCP § 335.1
- Illinois Statute of Limitations: 735 ILCS 5/13-202
- Texas Wrongful Death Act
- California Wrongful Death: CCP § 377.60
- Illinois Wrongful Death Act: 740 ILCS 180/2
- Texas Department of Insurance: Auto Insurance Basics
- California DMV: Financial Responsibility Requirements
- Illinois Secretary of State: Mandatory Insurance
- Texas Duty to Settle: American Physicians v. Garcia
- California Duty to Settle: Comunale v. Traders
- Illinois Duty to Settle: Haddick v. Valor
- Tex. Ins. Code § 541
- Tex. Ins. Code § 542
- Cal. Ins. Code § 790.03(h)
- 215 ILCS 5/154.6
- Tex. Civ. Prac. & Rem. Code § 41.008
- Cal. Civ. Code § 3294
- CMS: Medicare Secondary Payer
- Texas Disciplinary Rules of Professional Conduct
- California Bus. & Prof. Code § 6147
- Illinois Courts: Rules and Resources
- Cornell LII: Erie Doctrine
