State Farm is a huge insurance company. They have 57,000 employees, serve over 91 million policies and accounts, and generated $87.6 billion in revenue in 2021.
Since such a huge company has a lot of money to spend on settlement payouts, you may be wondering what the average State Farm settlement payout is.
This article will go into depth about State Farm claims and payouts.
State Farm Settlement Claims
State Farm is not the most friendly insurance company to injury victims. They are more likely to force personal injury claims to go to trial than other insurance companies. The main problem with State Farm is they do not offer fair amounts for settlements in order to resolve injury claims unless lawsuits are filed seeking compensation for medical expenses, lost wages, pain and suffering damages, etc. However, we’ve had countless cases where the initial offer was quite low but State Farm eventually settled for a fair amount.
In general, like most insurance companies, State Farm will try to low-ball you with the initial offer. However, your State Farm claim may depend upon the adjuster you’re given. Some adjusters are quite eager to attempt to settle injury claims for fair amounts. Other adjusters can be difficult, and if you want to make State Farm pay you what you deserve, you need to file a lawsuit.
Once you hire a personal injury lawyer and your litigation proceeds, State Farm’s settlement offers will almost always increase – often by more than two to three times.
When an insurance adjuster calculates your pain and suffering, the number that comes up will often be smaller. However, the company’s lawyers are often more reasonable in their calculations than their adjusters. This is often due to needing to try cases in front of juries instead of sitting in offices, and because the company eventually realizes an accident victim won’t accept an offer in order to avoid going to court.
Payouts for things like medical bills and pain and suffering also tend to increase as trial dates approach. State Farm insurance adjusters and lawyers will more critically examine their arguments and a claim’s quality as trial approaches. Once punches get thrown in discovery, the State Farm settlement calculator will often get ignored. The advice given to the adjuster by State Farm’s lawyer will get more direct regarding trial risks. State Farm will often get pragmatic at this point – it’s very common for State Farm to admit their driver was at fault after initially denying fault.
State Farm Accident Payouts: Examples
Example 1
A woman was rear-ended while on a freeway, and this caused her vehicle to collide with the rear end of a truck. The woman’s car was totaled.
Full liability was accepted by State Farm, who offered the woman a settlement.
$2,500 was offered for pain and suffering and as much as $15,000 was offered for medical bills which would be paid out within six months. $300 was offered for wages lost on the day of the accident.
The woman went to a hospital four minutes away via ambulance, saw a doctor in the ER, got scans of her wrist, stoma, chest and head, had no fractures or broken bones, and was prescribed muscle relaxers for stiff muscles.
Source: Reddit
Example 2
A driver was turning on a green arrow light when they were struck by a pest control van which went through a red light. The driver’s vehicle was totaled and the driver ended up with two herniated discs.
The driver was able to walk after the accident but suffered from lower back pain. The driver went through chiropractic treatment and pain management, had cortisone injected into their lower back and neck, and, had a radio frequency ablation done to the lower back.
State Farm started out with a low ball offer but eventually agreed to offer $97,500. The settlement included a $32,500 attorney fee, $1,000 for chiropractic treatment, $16,000 for pain management and radio frequency ablation, $375 for investigation, and $170.80 for courier, copies and postage.
Source: Reddit
How State Farm Calculates Settlement Amounts
Like the majority of insurers, State Farm uses TEACH, a computer system, in order to determine how much to pay out in a bodily injury claim. It is a badly calibrated calculator of pain and suffering damages which commonly produces a settlement value which is far below the true value of a personal injury claim.
This software will evaluate the medical records of a car accident victim then decide the amount of treatment it feels was needed for the accident and that treatment’s fair value. The calculator will also add any future or past wage loss, as well as how much it thinks the victim’s pain and suffering is worth. All of these damages are typically undervalued.
You will almost always need to hire State Farm accident attorneys to file a lawsuit for you in order to recover, past medical expenses, future medical expenses, lost wages, and pain and suffering damages from this company. This is partially because of State Farm’s unwillingness to pay fair amounts for claims. However, the company also wants to look at evidence clearly, and this occurs during discovery after lawsuits are filed.
Insurance companies will also evaluate lawyers’ trial records when determining how much to offer. For this reason, it’s important to hire experienced personal injury lawyers with a track record of success like Nadrich Accident Injury Lawyers, who have been successfully representing injury victims since 1990 and have recovered hundreds of millions of dollars on behalf of clients.
Factors That Impact Your State Farm Settlement Amount
The size of your settlement will be determined by the damages you’ve suffered. Damages you can receive compensation for include:
Medical Bills
You can receive compensation for all past and future medical expenses related to your accident.
Lost Wages
If you miss time from work because you’re hurt too badly to work or need to take time off to get your injuries treated, you can receive compensation for your lost wages.
Loss of Earning Capacity
If your injuries leave you disabled, you can recover compensation for the loss or reduction of your earning capacity that your disability represents.
Pain and Suffering
Pain and suffering damages can’t be objectively quantified so they can be difficult to calculate. However, an experienced personal injury attorney at our firm can help you calculate these damages based on how your injuries have affected your life.
How to Negotiate With State Farm For a Claim
First off, never accept the first offer. It will virtually always be a low ball offer.
Next, you will need to gather evidence. This includes photos of the accident scene, police reports, witnesses’ contact information, medical bills, medical records, etc.
Next, you will need to be patient. State Farm isn’t going to quickly offer you the money you deserve.
Finally, the most important thing you can do is hire a lawyer. State Farm won’t offer you what you deserve unless they know you can sue them and win over a low ball offer, and they know you can’t win a lawsuit if you don’t have a lawyer. It’s very common for State Farm to suddenly offer accident victims fair settlements once they receive letters of representation from injury law firms like Nadrich Accident Injury Lawyers who have established a reputation for success in court.
FAQs
How Much Does State Farm Payout for Pain and Suffering?
There is no single answer to this question. The amount paid out depends on how the injuries affect the injury victim’s life.
Two methods are commonly used to determine pain and suffering values:
Multiplier Method
This involves economic damages such as medical expenses and lost wages being multiplied by a specific number, usually from one to five. The multiplier’s value will depend upon your pain and suffering’s degree.
For example, if you suffered $20,000 in economic damages and were assigned a multiplier of 3, you’d receive $60,000 in non-economic damages.
Per Diem Method
This involves your pain and suffering’s daily value being multiplied by how many days that you underwent suffering. For example, if you required 180 days to recover and a value of $200 per day was applied, you’d receive $36,000 in non-economic damages, regardless of the value of your economic damages.
Does State Farm Have a Good Reputation for Paying Claims?
No. State Farm has a bad reputation for initial offers, and is more willing than the average insurance company to take a case to trial.
How Long Does It Take State Farm to Settle a Claim?
State Farm usually presents settlement offers 30 to 45 days after complete demand packages are sent, and settlement checks are issued quickly after cases are resolved.
Does Filing a Lawsuit Increase State Farm’s Settlement Offer?
Yes. State Farm will often be willing to increase their settlement offer once a lawsuit is filed in order to avoid having to incur expensive legal fees in court. This is especially true when a lawsuit is filed by lawyers with a reputation for success like the lawyers at Nadrich Accident Injury Lawyers.
Hiring a Lawyer for Your State Farm Settlement Claim
If you or a loved one has been injured or killed in an accident and wish to recover the most money possible from State Farm, call us today for a free consultation.
Not only will State Farm not be willing to pay you what you deserve unless you are represented by lawyers who can sue them and win over a low ball offer, but it’s also dangerous for you to talk to insurance adjusters, who will try to trick you into saying things, while you’re being recorded, they can use to pay you less or nothing at all. It’s very wise for you to hire lawyers to handle all talks with insurance adjusters for you so you don’t need to worry about incriminating yourself.
Call us today for a free consultation.
Jeffrey Nadrich
Jeffrey Nadrich is a nationally-recognized California plaintiff’s personal injury attorney. He is a graduate of UC Berkeley and UC Hastings College of the Law. He has successfully represented thousands of injury clients over the last 40 years.
