In 2022, approximately 1,664,598 car accidents resulted in at least one injury [1], leaving over a million victims with medical bills and physical pain. In these cases, a car accident settlement can provide the necessary funds to assist with healing.
Car accident claims can be complicated, so an experienced personal injury attorney must ensure you receive a fair settlement amount. This article will discuss how car accident settlements work, what to expect when filing a personal injury claim, and how to ensure you have the best possible chance of receiving fair compensation.
Benefits of Car Accident Settlements
In most cases, an experienced attorney will attempt to settle a car accident claim out of court, negotiating with the insurance company to reach an agreement. A car accident settlement provides many advantages over a personal injury lawsuit, which is why it is the first option.
A car accident lawsuit requires significant time and money, as it involves all the elements of a court trial. That includes pre-trial hearings, discovery, filing additional paperwork, and arbitration before the case is heard in court. In contrast, a settlement agreement will generally pay compensation faster and incur fewer legal fees.
When pursuing an insurance settlement, an experienced car accident lawyer will handle most of the negotiation on your behalf, reducing stress. You control the process and can accept an offer from the insurance company you believe is fair.
Additionally, your personal injury lawyer can ask for additional compensation, such as future medical care, to be included in the settlement.
Types of Car Accident Settlements
When you receive a car accident claim, you may receive your settlement in one of two ways. A lump sum payment provides everything upfront, while a structured settlement will pay regular installments over time. Car accident lawyers can help you decide the best option for your needs.
The Car Accident Settlement Process
Most car accident claims that don’t involve significant injuries will be settled with the insurance company without incident. However, in personal injury cases or when the insurance company refuses to pay, you may hire an experienced car accident attorney to guide you through the process and ensure that insurance companies pay their fair share. The car accident settlement process typically follows these steps.
Filing a Claim
Whether or not you were the at-fault driver, you should stay at the vehicle accident scene until police arrive to file a police report. You should go to the hospital to check for any injuries.
Once you have been medically cleared and any injuries suffered have been attended to, you will file a car accident claim with the other driver’s insurance company. This should be done immediately after the accident to avoid delays.
At this time, contact a car accident lawyer, who will begin gathering evidence about the crash and assess how much your injuries may be worth.
Investigation and Evidence Gathering
Once you have undergone a free case evaluation with our team, we will begin investigating the accident, using information like the accident report, witness statements, medical records, surveillance footage, and photographs from the scene. We will leverage our network of professionals, including accident reconstruction experts and medical professionals, who can provide their expert opinions.
Determining Liability
Identifying who is liable is a critical component of a car accident settlement. This determines which insurance coverage is responsible for covering damages.
Calculating Damages
In order to request fair settlements, we must identify how much to request in our demand letter. This can include both economic and non-economic damages.
Economic damages are concrete financial losses, which can include vehicle repairs, medical treatment, lost income, and property damage. If you require any medical equipment, such as a prosthetic, this will be considered.
Our team will consider your future medical costs and fold this into the settlement agreement so you will not run out of settlement funds while still paying for rehabilitation.
Sometimes, you may receive non-economic damages that consider how the car crash impacted your life, like pain and suffering or loss of enjoyment of life.
Negotiation and Settlement Offer
To begin with, we send a letter to the insurance provider demonstrating how much compensation we will request and why. We’ll provide evidence to support our claims, such as invoices for car repairs and medical bills.
The insurance company will then review the demand and return with their own settlement offer, which is typically lower than the original request.
Acceptance or Rejection of the Offer
The injured party can choose to accept the insurance company’s offer or continue negotiating. An experienced lawyer familiar with how much car accidents like yours typically receive can advise you on whether the company has provided a fair offer.
If you’re not happy with what the insurance company provided, your car accident lawyer submits a counteroffer, which will usually be somewhere between the original demand and the insurance company’s offer. This process goes back and forth until the injured person is satisfied with the agreement.
Most car accident cases are settled out of court because insurance companies want to avoid the expenses of a trial. However, sometimes, the claims process is unsuccessful. For example, the insurance company may refuse to compensate the injured party. In this case, our lawyers will seek compensation through a lawsuit.
Factors Affecting Car Accident Settlement Amounts
While average settlements for car accidents were between $20,000 and $25,000 in 2020 [2], this does not necessarily mean that everyone will receive the same amount.
It is important to note that an auto accident settlement may be smaller than what could be achieved in a personal injury lawsuit. However, an experienced lawyer will always push for maximum compensation and ensure you receive all possible damages from your insurance claim.
Severity of Injuries
Insurance adjusters and attorneys tabulate how much different car accident injuries are worth according to a multiplier. This multiplies your financial losses by how much disability is associated with the given injury. Very severe injuries, such as amputation or paralysis, have a higher multiplier and will therefore receive more.
Medical Expenses
If you received significant injuries and required extensive surgery or physical rehabilitation, you will typically receive more to cover these expenses. Additionally, those who need ongoing care, such as a live-in nurse, will receive more funds.
Lost Wages and Earning Capacity
Lost wages due to being in the hospital or being unable to work will impact your settlement. Additionally, those who can no longer work or who can only work part-time may receive funds to make up the difference between their current work capacity and their previous earnings.
Property Damage
The cost of repairing or replacing your vehicle is included in the settlement amount. You may receive the amount necessary to make your current vehicle road-worthy again. If the car is totaled and cannot be salvaged, you will receive part or all pre-accident assessed worth. A brand new car with only 10,000 miles on it will receive more than a 10-year-old car with 80,000 miles.
Pain and Suffering
A fair settlement should consider how the accident has impacted your life. Pain and suffering focuses on your physical pain and discomfort, while emotional distress acknowledges that car accidents can be traumatic. If you developed post-traumatic stress disorder as a result of the accident, this can be included in your settlement amount.
Other elements that may be included in damages are loss of enjoyment of life, inconvenience, or loss of companionship if a loved one dies.
Comparative Negligence
Comparative negligence is what percentage you were to blame for the accident. Everyone in an accident will be assigned a percentage of the blame.
Due to comparative negligence, you will receive less compensation if you are more responsible for the crash.
In most states, you can pursue compensation if you were no more than 50% responsible, though your car accident damages will be reduced proportionally. This legal concept is called modified comparative negligence and is standard in most states. Our team will know how different jurisdictions determine liability and adjust our approach accordingly.
The Role of a Lawyer in Car Accident Settlements
A car accident lawyer is a critical ally in ensuring you receive a fair settlement, and they can handle many of the logistical aspects of a settlement so you can focus on healing.
Evaluating the Case
A lawyer will identify whether you have a potential case and determine the best course of action, like submitting a demand to the insurer.
Gathering Evidence and Building a Strong Case
Lawyers have access to resources that are not available to the general public, such as expert testimony. We can gather your medical results and have them interpreted to identify what future medical needs you may have, and our firm can consult with experts to identify who was liable. This helps you get the best possible settlement based on clear evidence.
Negotiating with the Insurance Company
Lawyers are experienced in negotiation and can submit compelling arguments for the compensation you deserve. Additionally, we will be familiar with what a good offer is for a given accident and will not be swayed by insurance companies’ tactics like lowballing.
Additionally, insurers may attempt to pressure a victim into settling for less than what their accident is worth. By allowing an attorney to handle all communication on your behalf, you can focus on healing rather than trying to withstand these manipulative tactics.
Representing the Client in Court
In most cases, we can settle out of court by providing compelling evidence and demonstrating that our requests are justified. However, the company may refuse to provide a fair offer. If necessary, we have the legal expertise to represent you in court, filing the necessary paperwork and presenting your case to a judge and jury.
Talk to a Car Accident Lawyer Today!
Car crashes impose a significant financial and emotional burden on victims, but a settlement can help provide compensation for numerous aspects of your recovery. Rosenfeld Injury Lawyers can handle all aspects of a car accident settlement on your behalf, allowing you to focus on recovery.
Contact us today at (888) 424-5757 or through our online contact form for a free consultation. We work on a contingency fee basis, meaning you owe us nothing unless we win your case.