100% compensation model – is it in your best interests?

Blue piggy bank with coins going in

When it comes to funding a personal injury claim, it can be very confusing knowing what is the best funding model – and some companies seem to be making false promises, or promises that seem too good to be true.

The truth is there are a variety of ways to fund the case and different claim companies and law firms will fund cases differently and it is important to understand the different funding models to make sure they are in your best interests and there is no hidden costs.

Some may offer no win no fee funding for personal injury claims, but again, how this is actually funding cases and how much a client will pay can vary.

Others seem to be offering to do the case for nothing as they claim clients will keep the full 100% of the compensation awarded – but is this even possible?

100% compensation model

There are companies out there offering 100% compensation, but there are a number important things that people must consider when looking at these types of companies:

1. If they don’t charge you anything, how do they make their money?

2. If they aren’t taking any money from you, is it in their interest to get you the highest level possible of compensation?

3. Fully preparing a case is expensive, how do they fund this?

4. If they aren’t fully preparing these cases will they just accept the first offer they are given on your behalf by the Insurance company?

5. Are they prepared to pay for your case to go to court if necessary?

Essentially, these firms will be paid expenses and fees from the other side’s insurers – but it is unlikely they will have the money or resources to fully investigate and prepare your case, which will lead to your case being under-settled.

No win no fee funding for personal injury claims

Through no win no fee funding, it ensures victims of a personal injury can access justice without any financial risk to themselves because if the case loses, they won’t need to pay a penny.

Where a firm charges a success fee it has the ability to spend the time required to fully explore your personal injury case, as well as employ the very best expert witnesses and advocates. Importantly they can also take cases to court if necessary.

Having the power to litigate - take the case to court - ensures your case is taken seriously by the insurers and strengthens your case against them. 

Others may try to do everything they can to not litigate and therefore you will be significantly short changed on your rightful compensation - even if you are able to keep all 100%.

Why is it important to investigate a personal injury claim?

In the majority of personal injury cases you will be dealing with an insurance company and their principal priority is to offer as little money as possible.

In many cases, the person at fault is not debated, the argument is all about the amount of compensation that a person is entitled to after their accident.

If there is not enough financial support to completely investigate the case and prepare the case for court, if needed, the insurance company can get away with under settling the claim.

In order to value a personal injury claim, it is critical that the personal injury solicitor fully understands the nature of your injuries and the long-term effects of those injuries. For example;

1. Will your injuries impact on your ability to work now and in the future?

2. Will your injuries prevent you from being able to do the same job?

3. Will your injury cause long term effects?

In order to correctly answer these types of questions, your personal injury solicitor must engage with experts in a number of fields to gather expert reports. This evidence helps establish the right level of compensation you need to put you back in the position you were in before your accident - as much as possible.

However, all these experts cost money and not all funding solutions will pay for these expert reports to fully prepare your case.

Facts speak for themselves…

Using no win no fee funding and charging a success fee, Digby Brown achieve on average three times the pre-litigation compensation offer.

Our experience and statistics show time and time again our personal injury solicitor’s will achieve the correct level of compensation which will be substantially more than the insurer is initially prepared to offer.

Our team represented a couple involved in a road traffic accident after they had already been offered £1,250 by the insurer’s at fault. Once they came to Digby Brown, through diligent investigations and robust no nonsense negotiations, the cases finally settled for £5,000 and £7,000. This is a fairly common experience with cases in Digby Brown. The success fee in this example meant our clients received £4,000 and £5,600 respectively, significantly more than the initial offer.

Don’t take our word for it, just read many of the court decisions and case studies on our website.