AUTO ACCIDENT SETTLEMENT: 8 THINGS TO KNOW
If you have been the victim of a car accident and have suffered serious injuries that affect your quality of life and prevent you from working and paying your bills, medical bills, and other out-of-pocket expenses, obtain an agreement from the insurance company or insurance adjuster They can be your saving grace. That said, the process is not as straightforward as it sounds.
Here are eight key things you should know about car accident settlements that can help you navigate the road.
1. ALWAYS GET VERIFICATION FROM A DOCTOR.
Sure, you may feel good after a car accident, but it should always be checked by a doctor, just in case. Don’t even think about reaching a settlement until you know the full extent of your injuries, as some problems could develop months later and end with ever-increasing medical bills. With the right tests and scans, doctors can detect these problems early and treat them before they start to get worse and end with continued pain and suffering. Make sure everything is carefully documented and use this information when negotiating a settlement offer.
If you refuse medical attention and develop problems weeks or months after a car accident, it can be difficult to argue that your new medical problems are related to the accident. Getting a full checkup after the accident is essential, and would be the advice of any worthy personal injury attorney.
2. EACH AGREEMENT IS DIFFERENT.
Each insurance company or injury attorney considers many factors during the settlement process before deciding how much to offer for a settlement. If two people are injured in the same accident, the person with minor injuries will receive a much smaller one than the one who was seriously injured.
To give you a better idea, here are some of the things that insurance companies consider when deciding an amount for a settlement or if they should reach a settlement: where the accident occurred, if medical treatments were reasonable and necessary, if you will recover of your injuries, whether or not you continue to need medical treatment, how much work you have lost or will lose in the future, the limits of your insurance policy, and your level of comparative failure.
3. INSURANCE COMPANIES DO NOT LIKE TO PAY.
Even if you are not at fault and have suffered a serious injury, most insurance companies will offer you the lowest amount possible, even though you may be experiencing a lot of pain and suffering. This is one reason why you should consider hiring a personal injury attorney. They know the law and have experience with insurance companies, so they can get more than they deserve.
4. YOU DO NOT HAVE TO ACCEPT YOUR FIRST OFFER.
You already know that the insurance company will offer you a low amount initially, so be prepared to counter something closer to what you think you deserve. Chances are, the insurance company is waiting for a counter offer and will be open to some negotiations, although this is much easier to do if you hire an attorney.
5. GET A COPY OF THE ACCIDENT REPORT.
The insurance company must provide you with a copy or you can contact the police to request it. Review everything very carefully and make sure there are no obvious mistakes or errors. Any inaccuracy may affect the outcome of your agreement. File a new accident report if necessary, but note that the insurance company will have to verify it before offering a settlement.
6. BE REALISTIC ABOUT HOW MUCH OF YOUR SETTLEMENT MONEY YOU WILL REALLY RECEIVE.
If you do receive a major deal, it is certainly worth celebrating, but it is also important to note that all of that money will not go directly to your bank account.
While you may not have a lawyer’s fee upfront, you may be surprised once your case is resolved. Most personal injury attorneys will work on a contingency basis, which means they will not accept any payment or charge fees until after you win your case or get a settlement. Usually about 30-40% of your settlement funds will go to your attorney and additional fees and other charges are usually added.
Also, don’t assume that the money in a settlement is completely tax-free. While money awarded for medical expenses and physical injuries is generally not taxable, anything awarded for lost wages and emotional distress is.
Finally, for very large agreements, the insurance company may not pay the full amount at once. Sometimes they can make payments annually or even every few years until the settlement is paid in full. If you are unable to work as a result of the accident, plan accordingly. Make a good budget and make sure you can move from one settlement payment to another.
7. WAIT FOR IT TO TAKE A LITTLE TIME.
Don’t expect a quick resolution. It can take a long time to resolve your claim. Remember, the insurance company handles your claim in addition to all the other claims they have, so it can be a lengthy process. Smaller claims are generally paid faster because they are generally less complicated. If you have a serious injury and request a significant amount of money, you may be waiting more than a few months to reach a settlement.
8. WHEN YOU ACCEPT AN AGREEMENT, IT IS FINAL.
You will have many opportunities to negotiate throughout the process, but once you reach an agreement, you will be asked to sign a disclosure form indicating that you agree to the amount of the agreement. After signing this form, it is legally binding and you cannot come back later and ask for more money. This is another reason why it is good to have an attorney involved. Due to their years of experience, they will have a good idea of whether or not you are receiving as much as you deserve for your injuries.
BE SMART
The main thing to keep in mind is that the insurance company that is deciding your claim is not really on your side. If you are not at fault and have suffered an injury, a doctor will review you and contact a personal injury attorney for help navigating the system.
