How Does A Car Accident Settlement Work?

If you’ve been in a car accident, you’re probably wondering how long it will take to get compensated for your injuries, lost wages, and other damages. The good news? Most car accident claims are settled without ever going to court. That means that the chances are good that you won’t have to wait years for your case to be resolved.

However, you need a specialist lawyer to guide you through the process and get you the most you can get. Otherwise, the insurance company will offer you only the minimal amount they can.

What is a car accident settlement?

A settlement is an agreement between you (the victim) and the at-fault driver’s insurance company to resolve your claim without going to trial. Instead of taking your case to court, you negotiate a payment that covers your medical expenses, property damage, lost income, and pain and suffering.

How many car accidents are settled?

Florida’s government doesn’t publish accident settlement statistics, but we can infer a few things from information published by the Florida Department of Highway Safety and Motor Vehicles:

• Most settlements fall between $10,000 and $50,000.
• However, larger settlements are possible ($100,000+) if the accident caused serious injuries or damage.
• Most accident claims end in a settlement because trials are risky and expensive.

Insurance companies offer the most money to the people who hire specialized lawyers in this area who they know are ready, willing, and able to go to trial. (That is why you should hire only lawyers who are Board Certified Civil Trial Lawyers, certified by the Florida Bar and the National Board of Trial Advocates (NBTA). So, what happens if you find yourself involved in an accident? It’s important to know the steps to follow.

Steps in the car accident settlement process

Filing an insurance claim

Florida has a no-fault insurance system. That means every driver is required to carry personal injury protection (PIP) coverage on their insurance. That coverage is there for you, not other drivers. So, if you’re involved in an accident, you’ll need to claim benefits for your own medical expenses with your own insurer. You can also have a claim for medical expenses, lost wages, and pain and suffering against the at-fault driver. If the at-fault driver is uninsured or underinsured – and if you have UM coverage- you can make a claim on your own UM insurance carrier.

Investigation and evidence gathering

The insurance company will investigate your claim, reviewing the police report, medical records, witness statements, and any available photos or video evidence. Their goal is to deny and minimize. Deny that they are responsible and minimize your injuries and losses. In Florida, it’s possible for you to be the victim and share some degree of fault for an accident. Insurers will dig deep to find ways to shift the blame onto you so they can limit their payout amounts.

Medical treatment and evaluation

It’s crucial to complete your medical treatment (or reach maximum medical improvement) before accepting a settlement. If you settle too soon, you might end up paying for future medical costs out of pocket. The goal is to make sure the settlement covers as much of your medical costs as possible. Serious injuries that require long-term treatment can be tricky, and some estimation of future expenses may be necessary to settle before your treatment is finished.

Demand letter and negotiations

Your attorney can send a demand letter outlining your injuries, damages, and the amount of compensation you’re seeking. The insurance company will likely counter with a lower offer, and negotiations begin. There will be a good deal of back and forth, but your attorney will keep you in the loop regarding all offers. Ultimately, it’s up to you whether you accept a settlement offer or not, but your attorney can advise you on the right course of action.

Settlement agreement

If both sides agree on an amount, you’ll sign a settlement agreement that releases the at-fault party from further liability. Once signed, you’ll receive your compensation, usually within a few weeks. Depending on the amount, you may get a lump sum, or you may have what’s called a “structured” settlement, where you receive a specific amount of money over a predetermined period.

That’s the settlement process in a nutshell, but how much is your claim really worth in the end? How much might you see at the end of the negotiations?

How much is your claim worth?

The value of your claim depends on several different factors, including:

• The severity of your injuries– More serious injuries result in higher settlements due to medical costs and long-term effects. Was this a new injury to that part of the body, or had you suffered an injury there before? Did you require surgery, or will it heal on its own? Did you require extensive medical care and hospitalization, or did you receive no medical attention? Are you 100% normal now with regard to pain, range of movement, and abilities, or are you different?
• Lost wages and earning capacity– If you’ve missed work or can’t return to the same job, your settlement should cover these losses.
• Pain and suffering – Pain, suffering, mental anguish, loss of enjoyment of life, physical disability and impairment, inconvenience, and scarring and disfigurement.
• Policy limits– Insurance companies are required to pay the policy limits when it becomes apparent that the loss is in excess of that amount and when you or your attorney makes a demand for these policy limits. If the insurance company does not pay the policy limits 90 days after this demand and you, through your attorney, have provided them with all of the information they need, like medical records and bills, the insurance company can be responsible for paying the full value of the claim even if that exceeds policy limits.

When should you reject a settlement offer?

Insurance companies are in the business of paying as little as possible. Their goal is always to protect their bottom line, not you. If their offer doesn’t fully cover your damages, don’t accept the offer. An experienced car accident attorney can negotiate for a fair settlement or take your case to court if necessary. And, yes, there is a chance that you will need to follow through and take the insurer to court to get fair compensation.

Why you need a car accident lawyer

An experienced car accident lawyer can:

• Calculate the true value of your claim
• Handle negotiations so you don’t settle for less
• Fight back if the insurance company delays or denies your claim
• Take your case to trial if needed

In fact, hiring a Board Certified Civil Trial Lawyer can improve your chances of reaching a fair settlement. If the insurer knows your lawyer is ready and willing to take your case to trial, they are going to be more likely to approach negotiations with a more reasonable offer. If they think your lawyer just wants to settle quickly, they won’t feel the same pressure.

If you’ve been in a car accident, don’t go through the settlement process alone. Contact Hickey Law Firm today for a free consultation, and let us fight to get you the compensation you deserve.