A car accident can leave an injured victim with mounting medical bills, lost earnings, and significant pain and discomfort. State law allows injury victims to obtain compensation for their injuries and damages if another party causes the accident. Usually, a car accident claim is settled out of court with a settlement. How does a car accident settlement work? Keep reading to find out more. Then, talk to an auto accident attorney to learn if you have a viable case.
What Is A Car Accident Settlement?
A car accident settlement is a negotiated legal agreement between the injury victim, the liable party, or their insurance company. The parties agree on a certain sum being paid for the plaintiff’s injuries and damages, signed by both. Unfortunately, settling a car accident claim with the insurance company without an attorney is usually unwise. Several things can happen with a car accident settlement if you don’t hire a car accident attorney to represent you:You Say Something That Damages Your Claim
The other driver’s insurance adjuster calls you after an accident. They ask if you are ok. You say, sure, I’m fine. Just an innocent phrase can be used to deny your claim later. The insurance company will call you only to use what you say against you. It’s always better to decline to talk to the other driver’s insurance company. Provide the insurance adjuster with your attorney’s contact information.The Offer Is Too Low
The insurance company works for the other party, aiming to pay as little as possible for your losses. Without an attorney representing you, there’s a good chance the insurance adjuster will offer less than you deserve. Most injury victims don’t understand the full value of their claim. Hiring a skilled car accident lawyer to represent you means they’ll negotiate a fair settlement. The settlement demand your attorney makes will be based on documented losses you have, including medical bills, lost earnings, pain and suffering, and mental anguish.You Sign Too Soon
Suppose you negotiate a car accident settlement with the other driver’s insurance company without hiring a lawyer. You thought you had $5,000 in medical bills, but a month later, you discovered that you needed a $10,000 surgery for a back problem related to a car accident. But you signed the release form, and it’s too late to get more money. A car accident lawyer will not settle a claim before knowing you are at maximum medical recovery. This means that your injuries have fully healed or have healed as much as possible.You Are Permanently Disabled
Unfortunately, some auto accident victims sign a settlement without a lawyer, only to discover later that their injury leaves them permanently disabled. You cannot return to get more money for lost earning capacity and medical bills. You should always have a car accident attorney represent you if there is a significant injury.You Get Blamed For The Accident
The other party’s insurance company can try to blame you partially for the accident and lower their settlement offer. Unacceptable. Always hire an auto accident attorney if there is any question about accident liability. Fortunately, these problems can be avoided easily after a serious auto accident caused by another party. Contact a car accident attorney to handle your car accident claim.What Happens In A Car Accident Claim?
You may be entitled to compensation if another party’s negligence caused the car accident and injuries. If you live in a no-fault state, like New York for example, the first step is to always file a claim with your insurance company. Every driver in no-fault states must purchase Personal Injury Protection (PIP) insurance that covers your initial damages for medical expenses and lost earnings, regardless of fault. You may be eligible to file a personal injury lawsuit if your damages exceed your no-fault coverage. Still, it is essential to determine who is at fault in the car accident to ensure there is a fair settlement. The next steps in the car accident claim process are:Hire A Car Accident Attorney
You should always retain a car accident attorney if another party’s negligence caused the car accident. Your attorney will review your case in a free consultation to understand your legal options.Investigate The Case
The car accident lawyer will investigate the accident to determine who caused it. They will review all major evidence, including police reports, witness statements, medical records, photos and videos from the crash scene, surveillance video footage, etc. Your car accident attorney will analyze the crash evidence to build the strongest case for compensation. This is important in a no-fault state because your claim must exceed certain thresholds to file a personal injury lawsuit to obtain your full damages.Calculate Damages
You may be entitled to compensation for your losses beyond what your PIP insurance covers. This can include compensation for medical bills, lost earnings, pain and suffering, and mental anguish.Negotiate With The Insurance Company
Once you have filed your accident claim with your insurance company, it should pay for your initial damages with your PIP insurance. Your attorney can deal with your insurance company to ensure you receive the best loss settlement.File A Personal Injury Lawsuit
If your auto insurance claim doesn’t cover all your damages, you can sue the liable party for additional damages. An experienced auto accident attorney can provide representation in court and prepare your case for trial.Who May Be At Fault In A Car Accident?
Recovering compensation beyond your PIP insurance in a no-fault state means knowing who is at fault for the auto accident. There are several potential liable parties for car accidents, depending on the circumstances:Negligent Driver
Other drivers cause most auto accidents. Drivers may be texting, fatigued, distracted by other means, or under the influence. Talk to your car accident attorney if you think the other driver was under the influence of drugs or alcohol.Dram Shops
These are restaurants, bars, and nightclubs that serve alcohol. Dram shops in many states can be held responsible for a drunk driving accident if they served someone who was already intoxicated. Suing a bar or restaurant may ensure you receive fair compensation for your injuries.Auto Parts Company
If a car or car part is defective and causes a car accident, the company can be held accountable for a product liability claim. A personal injury attorney can assist you with filing a product liability lawsuit.Government Agency
Government agencies may be liable for an accident if a road defect or construction zone hazard contributed to a car accident. Retaining a car accident attorney is even more critical if a company or government agency may be liable. These are complex auto accident claims that require the knowledge of an experienced personal injury attorney.How Do You Calculate The Value Of Your Car Accident Claim?
Your attorney must value your case accurately. When another person’s negligence caused your injuries, you are entitled to compensation for your losses. You must be paid for every way the accident negatively affected your life. Some of the damages you can receive in your claim include:Medical Expenses
You can receive compensation for your current and future medical expenses, such as ER and ambulatory costs, surgeries, hospitalization, home modifications, physical therapy, medical devices, etc. One of your attorney’s roles is to accurately estimate your future medical bills. They will interview your medical team and document your prognosis and future medical requirements. That way, it is ensured that you receive enough money for your medical needs. Your medical bill compensation will be higher for a severe injury, such as brain trauma, spinal cord damage, severe burns, amputations, disfigurement, etc.Lost Earnings
You may receive compensation for your past, current, and future lost earnings related to the accident and medical treatments. For example, you should receive compensation for your doctor’s appointments, surgeries, and hospitalizations if you missed work. Furthermore, a severe injury may entitle you to lost earning capacity if you cannot return to work. Someone with a paralysis injury, for example, may be unable to work in the future. You should receive compensation for the years of lost income you will have based on your previous salary or earnings.Pain And Suffering
Some compensation is more complicated to calculate, and pain and suffering are examples. You can have severe pain from shattered bones from a car accident. This pain has a monetary value, but the insurance company may try to pay less than you deserve. Your attorney will advocate for the most compensation based on medical information from your doctors about your injuries and pain.Mental And Emotional Trauma
Imagine losing an arm or leg in a severe truck accident. You will never be the same. Not only is the injury physically painful, it’s mentally and emotionally traumatic. You should receive compensation for your emotional suffering. A car accident attorney may obtain information from your mental health providers to document how the loss affects you mentally. A severe physical loss, such as paralysis or an amputation, will be worth more in a car accident settlement than a less severe injury.Scarring And Disfigurement
A severe injury, such as burns in a tractor-trailer accident, can cause scarring and disfigurement to visible parts of the body. Your attorney will fight for just compensation for this injury.What Is A ‘Serious Injury’ In A No-Fault State?
We explained earlier that your PIP insurance will pay your initial damages in a no-fault state. There are limited cases in which you can file a personal injury lawsuit in a no-fault state, such as New York. This is if you have a "serious injury" that is defined as:- A disability that lasts for more than 90 days
- A bone fracture
- Loss of fetus
- Major disfigurement, such as facial burns
- Permanent disability, such as organ damage or limited use of a body part