A first settlement offer is a starting number, not a take-home figure. Pennsylvania law already takes some sums out of the claim against the other driver, and a fee agreement takes others out of whatever is left. Reading an offer with those pieces in view saves a nasty surprise at the end.
Section 1722 of Title 75 precludes a person who is eligible for first-party benefits, or for certain other arranged benefits, from recovering the amount of benefits paid or payable in an action against a tortfeasor or in a UM or UIM proceeding. If your own medical benefit already paid $5,000 in bills, that $5,000 is generally not added again to the claim against the other driver. Our benefits guide explains the overlap.
If you have a lawyer, Rule 1.5 of the Pennsylvania Rules of Professional Conduct requires a written contingent-fee agreement that states the percentages and whether litigation and other expenses are deducted before or after the fee is calculated. The difference is real. Costs taken out first, then a percentage taken from what remains, is not the same math as a percentage taken first. Our fee guide covers the rule. At the end of the matter the lawyer must give you a written statement of the outcome and, if there is a recovery, the remittance and the method used to reach it. Ask for that statement and walk through it.
Limited tort can also change what an offer is even about. If you are bound by a limited-tort election and the injury is not a serious injury, pain and suffering may not be part of the claim at all, under section 1705. An offer that sounds low may be priced only for economic loss. Our limited tort guide explains the election.
If a government unit is the defendant, the caps in section 8528 or section 8553 may limit what can be paid no matter how strong the facts are. Put those caps next to the offer before you treat the number as too small or too large.
None of this tells you whether a particular offer is fair. It is a checklist so the pieces that the statutes and the fee agreement already require are not ignored. When the numbers are large, or a deadline is close, a Pennsylvania lawyer can run the math on your actual figures.