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How Do Car Accident Settlements Work?

How Do Car Accident Settlements Work

Being injured in a car crash is stressful and painful. You may have a head injury, broken back, cuts and scrapes, broken bones, etc. Even as injuries heal, you are confronted with questions about insurance coverage and who will pay for your damages. This is a critical question because many car accident cases involve tens or hundreds of thousands in damages.

Retaining a car accident attorney when another driver causes the accident will ensure your case is handled correctly. A Henderson car accident lawyer will handle every part of the settlement or lawsuit so you receive the most money. You also have the peace of mind of knowing that a personal injury attorney is handling your case so that you can focus on healing.

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What Is A Car Accident Settlement? 

A car accident settlement is an agreement where the at-fault driver, usually through their auto insurance company, agrees to pay you for your losses. The settlement usually means no trial, saving everyone time, money, and stress.

Why Should You Settle? 

The vast majority of auto accident claims end in a settlement. Settlement is usually better than filing a lawsuit and going to trial. The main advantages of settling are the speed of resolution and reducing legal expenses.

Trials take time. Simply getting the trial on the court calendar can cause months of delays. Do you want to wait that long to receive compensation for your injuries? On the other hand, an insurance settlement can often be resolved in a few weeks or months. A settlement gives you faster closure and money when you need it most. Getting money in your hands a few weeks or months after the accident means you can get the medical treatment you need and replenish your savings.

Another reason to settle is jury trials are unpredictable. Even if there is conclusive evidence that the other driver injured you, there’s a chance the jury may rule against you. This means you get nothing. A settlement, however, means knowing what you will receive after your auto accident attorney deducts their contingency fee.

Lastly, filing a lawsuit and going to court is sometimes necessary, but it’s a stressful process. You can avoid the mental and emotional strain of a lawsuit by settling. However, your auto accident attorney will advise whether you should take the best settlement offer or go to trial.

Car Accident Settlement Overview

Let’s say that another driver hit you from behind at a red light. Your car is damaged, and you have pain in your neck and back. You should file a car accident claim to receive compensation. Here are the basic steps:

File A Personal Injury Claim 

If the other driver was at fault for rear-ending you, they are liable for your damages in most states. You will probably file a claim with the other driver’s insurance company to receive compensation for your losses. Potential compensation may include:

  • Medical expenses for current and future care needs
  • Vehicle repair or replacement costs
  • Lost earnings for current and future lost work time
  • Lost earning capacity if you have a severe or permanent injury 
  • Pain and suffering compensation for the injuries and treatments
  • Mental and emotional anguish from serious injuries
  • Loss of enjoyment of life

The liable driver is responsible for the crash, but their insurance company usually pays for your losses. You can file the claim with their insurance company, but it may be better to have a car accident attorney do it. Insurance companies are known to lowball injury victims without an attorney. You may have much less money than an attorney can get you.

Investigate The Car Accident

When you file a car accident claim, the liable driver’s auto insurance will investigate the crash. The insurance company for the other driver may try to blame you for the accident or pay less than you deserve. That’s why you should usually have an auto accident attorney handle the claim and investigate the accident, too. Some evidence that your attorney will collect during the investigation may include:

  • Photos and videos you collected from the car accident. Try to take pictures and videos before first responders move the cars. 
  • The police report, which may note who was responsible for the crash. 
  • Tire marks on the pavement and other physical crash scene evidence. 
  • Surveillance video of the crash, if available. 
  • Your medical records and prognosis also are important to establish that you have injuries from the accident. 

The evidence above will be used to show that the other driver violated their duty of care, caused the accident that injured you, and left you with financial damages. Proving your case by a preponderance of the evidence is necessary to be compensated for your losses.

Claim Is Approved Or Denied

The insurance company will complete its crash investigation after a few weeks or months. The claim will be either approved or denied. If the insurance company denies the crash claim, it often is because they argue that they don’t cover the crash or you made errors during the claim process. You should have them explain why the claim was denied. Then, retain a car accident attorney as soon as possible if you have not already.

If the car accident claim is approved, the insurance adjuster agrees they are liable for your losses. However, receiving the most compensation for your injuries and damages isn’t guaranteed.

Obtaining A Fair Settlement

You can expect a low settlement offer once the auto insurance company accepts the claim. Most initial settlement offers are below what the insurance company can pay. You aren’t required to accept the first offer and probably shouldn’t.

You should have a seasoned car accident lawyer negotiate the best settlement for your losses. Insurance adjusters know the law and what the insurance company can pay. They have a range for your settlement they will pay, and your attorney will negotiate for the top end of that range. The insurance adjuster’s job is to get you to take less, but your auto accident attorney won’t allow that.

If The Settlement Offer Is Unfair

Most auto accident claims are resolved with a settlement. It’s usually to the benefit of both sides to settle the matter without a lawsuit. Going to court is expensive and time-consuming, and the result is unpredictable (you can receive nothing if the jury rules against you). However, some auto accident claims may be difficult to resolve with a settlement, so there are two options:

  • Mediation: This involves meeting with insurance company representatives and a third-party mediator. The mediator will listen to the plaintiff and defendant and attempt to reach a compromise. Your auto accident attorney can attend. A settlement will be finalized if successful, and both parties can avoid a trial. 
  • Filing a personal injury lawsuit: If settlement talks and mediation fail, the next step is to file a lawsuit in court. This is a big step because lawsuits take time and cost many legal expenses. However, it may be the best option if you have a severe injury and the insurance company denies liability or offers a small settlement. 

Collecting Your Auto Accident Settlement

How you receive your compensation for the car accident depends on the case. Usually, the liable insurance company writes a check once you sign the legal papers. The check goes to your auto accident attorney. They take their contingency fee from the settlement; you receive the rest.

If the case goes to court and the jury rules in your favor, the outcome depends on whether the at-fault party has auto insurance. It also matters if they have the money and assets to pay anything else they owe you beyond what the insurance covers. You should hire an auto accident attorney to ensure you receive the funds you deserve.

What Is Your Car Accident Settlement Worth? 

It depends. Based on the case, a car accident settlement can be a few thousand or millions of dollars. The value of your case varies based on the following factors:

  • The severity of your injuries is the most important factor for your auto accident settlement. Serious injuries, such as brain trauma, spine injuries, and internal injuries, have a higher case value than soft tissue injuries, such as whiplash. 
  • Medical expenses: More severe injuries mean higher medical expenses. A spine injury can require millions in care expenses over the years. On the other hand, a broken leg, while a severe injury, will probably heal within six months or a year. 
  • Crash circumstances: The case value is higher if the other driver caused the crash. It also is higher if the crash involved a drunk, high, or extremely reckless driver. 
  • Insurance coverage: The liable driver’s insurance may only cover some of your losses. If the other driver has no assets to seize, you may not obtain full compensation for your losses. 
  • Lost earnings: A severe injury may cause significant lost work time and income. A long-term or permanent injury may mean you receive compensation for lost earning capacity, so the value is higher. 
  • Age and income: A younger, higher-earning injury victim will have a higher case value than a retired, older person. 

Your case value boils down to the individual crash and injury circumstances. A car accident attorney can provide a rough estimate of what your case may be worth. Their estimate is based on their knowledge of similar accident claims in your area.

When Should You Hire An Auto Accident Attorney? 

When Should You Hire An Auto Accident Attorney 

No state or federal law requires you to hire a car accident attorney. However, it is usually in your personal and financial best interests to retain an attorney in these situations:

  • You have a major injury: The biggest issues after a severe auto accident injury are medical bills and lost earnings. You suddenly face huge medical costs, in addition to your regular bills, and cannot work. A car accident lawyer is essential for getting the most compensation for hospital bills, surgeries, rehabilitation, medications, etc. They also will get you what you deserve for lost past and future earnings. 
  • The insurance company won’t pay: Auto insurance companies exist to make money for their shareholders, not benefit you. The adjuster will look for any reason to minimize or deny your claim. Car accident attorneys deal with insurance companies daily and will deal with any insurance disputes, so you get what you deserve. 
  • You have a long-term disability: Suppose you have a severe back injury that prevents you from walking easily. You may be unable to work and can be permanently disabled. You need an auto accident attorney to maximize your compensation. This will ensure you have the income necessary to live and recover to the greatest extent possible. 
  • A defective vehicle or part was involved: Did a defective brake or tire cause the crash? This product liability claim is more complicated than a typical crash claim. An attorney must prove that the company or party designed or produced a dangerous part that injured you. 
  • Someone died: If anyone died in the accident because of another party’s negligence, you should call a wrongful death attorney immediately. You may deserve compensation for lost income, burial and funeral expenses, pain and suffering for the deceased, mental anguish, and more. 

A car accident attorney can review your case today to tell you if they can help. Most personal injury lawyers offer free consultations to determine if accident victims have viable claims. If your case qualifies, the attorney’s legal fees are paid from your settlement. The attorney also will tell you at no cost if you don’t have a case, so there is no risk.

Speak To A Car Accident Attorney Now

Did another driver seriously injure you in a car accident? Call a car accident attorney near you now! You can receive compensation to pay your medical bills and lost earnings. An attorney with strong negotiation skills will pursue fair compensation for your losses to help you recover and get back on your feet. Call a Henderson personal injury attorney today for a free consultation.

MOTOR VEHICLE ACCIDENT

AUTO ACCIDENT
INJURY

Resulting in neck injury

$9M

SETTLEMENT

Result

MOTOR VEHICLE ACCIDENT

TIRE
EXPLOSION

Resulting in loss of limb

$5.1M

SETTLEMENT

Result

MOTOR VEHICLE ACCIDENT

TRUCK
ACCIDENT INJURY

Resulting in neck injury

$3M

SETTLEMENT

Result

REVIEWS AND TESTIMONIALS

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woman holding her head in front of a crashed car

I WAS INJURED IN AN ACCIDENT What Do I Do Now?

BY SCOTT L. POISSON

  • Do I Have A Case?
  • Dealing With The Insurance Company
  • When a Lawsuit Is Filed
  • Overcoming Common Defense Themes
  • Special Considerations in Specific Types of Cases
book