Understanding Car Accident Settlement Expectations
The life after getting into car accident is not easy — especially when it comes to mastering the options for settlement. Settlements from a car accident are also essential to pay for the medical bills involved in a car accident, wages that were lost while you were probably trying to heal from the accident as well as damages caused by the accident, etc. The purpose of this article is to demystify the process, helping you understand what you may encounter when seeking a settlement after a car crash.
Getting the Basics of Settling a Car Accident
An auto accident settlement is an agreement reached by two or more individuals involved in an accident, usually between the injured individual and the insurance company of the driver who caused the accident. The settlement for those I injured or damaged will cover things like medical expenses, property damage, lost wages, etc… Most of the time, parties want to settle rather than taking the case to court seeing as settlements are less time consuming and expensive in comparison.
The settlement process starts when the injured party files a claim with the insurance provider for the other driver. The insurance adjuster will further investigate and assess the property damage, including determining if there are any parties that are at fault. The insurance company uses this evaluation to make an initial settlement offer, which the injured party — often with the help of an attorney — may negotiate.
What affects how much you are offered as part of a settlement
The number of variables playing a role in how much a car accident settlement can vary from case to case. These include:
Nature of the Injuries: The more serious the injuries, the more the potential settlement will be. The more severe your injury, the more potential for long-term care or permanent disability means bigger settlements.
Medical Costs: A settlement will take into consideration all medical expenses, including emergency room bills to continued therapy.
Property Damage: Just as with injuries, the cost to repair or replace the damaged vehicle will be a significant part of the settlement.
Lost Income: The victim may be compensated for lost wages if he or she is unable to work due to their injury.
Pain and Suffering — This is a form of non-economic damage that compensates you for the physical and emotional suffering caused by the accident.
Common Settlement Process
The settlement process usually consists of seven essential steps:
Filing of a Claim: The victim of the accident will file a claim with the insurance provider of the guilty party.
Investigation: The insurance adjuster investigates the accident to determine liability as well as how much in damages are owed.
First Settlement Offer: The insurance company makes an initial offer to settle the claim.
Negotiation: If the injured party has an attorney, that individual will work to secure an appropriate amount for compensation.
Settlement Agreement: The two sides sign a settlement agreement, and the payment is made.
Real-World Data and Examples
The national average car accident settlement for 2020 is roughly $20,0001. But this amount can be different depending on the factors we discussed above. A rear end with no injuries might result in a few million in the settlement, whereas a pedistran with a permanent disability could settle for a few thousand dollars.
Lawyer Representation and its Effect
Legal representation will often play an important role in favor of a settlement. Personal injury lawyers know all the ins and outs of dealing with insurance companies, and will ensure the victim gets a fair amount. Research indicates that those who have legal assistance obtain better settlements than those who negotiate on their own2.
Final Thoughts
However, having a reasonable expectation regarding car accident settlements can help you make the right decisions in a difficult time. If you know what goes into determining how much you are entitled to as a settlement and what the traditional route looks like, then you would be able to go about your claims so much better. Although settlements can help mitigate the financial consequences of an accident, obtaining actual professional legal services can definitely assist in obtaining perhaps the best possible settlement in order to cover all damages.