How Do Car Accident Settlements Work?
If you’ve been hurt in a car accident caused by another driver, the good news is that most cases are resolved without ever stepping foot in a courtroom. This process is known as a car accident settlement and aims to help injured people recover their damages. Instead of going to trial, the at-fault driver’s insurance company typically agrees to pay the injured party a lump sum.
However, you should never think that settlement will be timely or equitable. In reality, settlement offers are often made with the insurer’s bottom line in mind, not the injured person’s future. That’s where having a car accident lawyer on your side can make a big difference. Hiring an attorney sends a clear message to the insurer: you’re serious about your claim and won’t settle for less than you deserve. More importantly, your lawyer will ensure that any settlement offer covers your injuries and losses.
Let’s walk through the car accident settlement process so you know what to expect and how to protect your rights.
The Car Accident Settlement Process
The settlement process may come with several steps that can put accident victims at a disadvantage. This is particularly true when dealing with a high-stakes claim that requires thorough evaluation. A car accident lawyer can intervene to ensure the process works smoothly. Here is mainly how car accident settlements work:
Hiring an Attorney
The first step is finding a personal injury attorney who focuses on car accident cases. Many lawyers don’t charge for initial consultations, so you can speak with a few before deciding who to hire. Your attorney will look into the facts of your case, explore your options, and outline the next steps.
Hiring a lawyer early is important, especially if you’ve suffered serious car accident injuries. They’ll take over communications with the insurance company, gather necessary evidence, and start building a strong claim on your behalf.
Filing a Claim
Once you’ve hired an attorney, the next step is to notify the at-fault driver’s insurance company of your claim. This is often called a third-party claim, meaning you’re seeking compensation from another person’s insurance provider.
Your attorney will handle the paperwork and make sure your claim includes all relevant details, such as the summary of your injuries and the damages you’ve suffered, among others.
Investigating the Case
Next comes the investigation phase. A thorough investigation helps establish liability and document the scope of damages. Your car accident attorney will gather all available evidence to support your claim. This may include:
- Police reports
- Photos or videos from the accident scene
- Witness statements
- Medical records and bills
- Proof of lost income
- Vehicle repair estimates
In some cases, your attorney might work with accident reconstruction experts or medical professionals to strengthen your case. They will work to create a comprehensive picture of how the accident happened and how it has affected your life.
Insurance Policy Review
It’s advisable to recognize that insurance policies may vary in their coverage and features. Some drivers carry only the minimum required coverage, while others have more extensive policies. Your attorney will review the at-fault driver’s insurance policy to determine how much coverage is available.
In some situations, there may be additional insurance policies that can help cover your damages. For instance, additional coverage may apply if the negligent driver was acting within the scope of employment at the time of the crash or if you carry underinsured motorist coverage through your own policy.
Settlement Demands
Once your medical treatment is complete or your condition has reached maximum medical improvement, your legal advocate can calculate the right value of your damages. This includes both economic damages and non-monetary damages resulting from the car accident injuries.
Then, your attorney will prepare and send a formal demand letter to the insurance company. This letter will detail your injuries, present the evidence backing your claim, and specify the compensation amount you are seeking. This step is key, as it sets the stage for negotiations between you and the insurance provider.
Settlement Negotiations
Upon receiving the demand letter, the insurer may respond with a counteroffer. This is where negotiations begin. Insurers almost always try to resolve at a lesser value than what a claim is truly worth, so having a professional negotiator on your side is highly advisable.
Your attorney will handle these back-and-forth discussions, pushing for a fair and adequate settlement. They’ll keep you informed and help you decide whether to accept an offer or hold out for more.
Settlement or Trial
In over 95% of personal injury cases, negotiations lead to a settlement that is agreeable to both sides. When that happens, you’ll sign a release agreement, and you will receive a settlement check. Once you accept a settlement, you can’t reopen the claim, so it’s important to be sure the amount covers all your current and future expenses.
However, if the insurer refuses to offer an adequate settlement, your legal counsel may recommend filing a lawsuit and taking the case to court. While claims settled before trial can offer a quick resolution of the case, sometimes litigation becomes necessary if securing fair compensation is the goal.
How Can a Lawyer Help With the Settlement Process?
Hiring a car accident attorney doesn’t just improve your chances of getting a larger settlement, but it also takes the pressure off your shoulders. Here are some of the ways an attorney can help:
- Your lawyer will account for medical bills, future treatment, lost income, and emotional suffering to determine a realistic value for your claim.
- Your attorney will push back and negotiate aggressively on your behalf.
- If the insurer attempts to blame you for the accident or deny your claim, your legal advocate will stand up for your legal rights.
- If necessary, your attorney can escalate the matter by initiating a lawsuit and representing you in court.
Engaging the services of a lawyer helps balance the disparity of power that exists between individuals and insurance companies. These corporations usually possess extensive resources, sophisticated legal teams, and a wealth of experience in negotiating settlements. By working with a lawyer, you have access to professional legal knowledge and support tailored to your unique situation. So, having legal representation puts you in a stronger position to advocate for your rights and ensures that you are not taken advantage of in the settlement process.
Work With a Car Accident Lawyer for Legal Support
Dealing with a car accident settlement is stressful enough without having to battle insurers for fair compensation. A car accident attorney will take up the legal process and make sure you don’t overlook any compensable losses. However, the sooner you contact a lawyer, the stronger your case can be, especially given the limited time permitted under the law to file a claim, which might affect the outcome of your case. To protect your interests and maximize your recovery, enlist the help of a lawyer today.
