What is a good settlement offer?

A good settlement offer depends on the unique facts of each case, but in general, it should fairly compensate you for your losses and reflect the strength of your claim. Settlement offers are commonly made in personal injury, accident, and insurance claims as a way to resolve disputes without going to trial. Understanding whether an offer is reasonable requires looking beyond the headline dollar amount.

Key factors that influence a good settlement include medical expenses (both current and future), lost wages, reduced earning capacity, property damage, and non-economic damages such as pain, suffering, and emotional distress. A strong settlement should cover all documented costs and account for how the injury has impacted your daily life. If long-term treatment, disability, or ongoing care is required, those future expenses must also be considered.

Liability plays a major role as well. When fault is clear and well-supported by evidence, settlement offers tend to be higher. Insurance policy limits can also affect what is considered “good,” since insurers typically will not offer more than the available coverage. In some cases, an initial offer may be low and intended as a starting point for negotiation rather than a final resolution.

It is important to remember that accepting a settlement usually means giving up the right to pursue further legal action related to the claim. For that reason, an offer should never be accepted without carefully reviewing the full scope of damages and potential future consequences. What seems reasonable at first may fall short once long-term costs are considered.

An experienced attorney can evaluate a settlement offer, calculate the true value of your claim, and negotiate on your behalf. With proper legal guidance, you can determine whether an offer truly serves your best interests or whether continued negotiation—or litigation—may lead to a better outcome.