The aftermath of a car accident can be stressful and leave you uncertain about what to do or where you can turn for help. Fortunately, skilled guidance is available when you work with a car accident lawyer with experience leading clients through the car accident settlement process. If you have been involved in a car accident and are looking for assistance in the settlement process to seek compensation for your injuries and damages, contact a knowledgeable Bellingham car accident attorney today and schedule a consultation to discuss the specifics of your situation and learn more about your legal options.
Overview of Car Accident Settlements
At its most basic level, a car accident settlement is an agreement reached between the party that suffered an injury in the accident and the at-fault driver’s insurance provider that allows both sides to resolve the situation without going to court. Expenses, including medical bills, lost income, pain and suffering, and property damage, can all potentially be addressed through a successful car accident settlement agreement. The uncertainty and expense of a lengthy court battle can be a significant motivation for both sides to pursue an agreement through a settlement. Reaching such an agreement, however, requires focused negotiation, extensive documentation, and the guidance of skilled legal counsel.
The Basics of a Car Accident Settlement
A settlement reached by opposing parties following a car accident is a legal agreement in which the at-fault party’s insurance provider agrees to provide financial compensation to the injured party in exchange for both sides declaring the claim resolved. Such settlement agreements are designed to provide financial relief to the injured party without the need for lengthy and costly court proceedings. Each side will present its argument and examine the evidence provided to negotiate an acceptable settlement for all parties. Though each car accident settlement situation is unique, having a basic understanding of the process can be helpful so you can know what to expect.
Types of Damages Available in a Settlement
In car accident settlements, different types of damages are potentially available. While damages can be divided into two basic categories — economic and non-economic damages — these categories can be broken down even further into specific types of damages, including:
- Medical expenses
- Lost income
- Loss of future earning capacity
- Pain and suffering
- Property damage
Though your car accident settlement case can vary depending on the specifics of your situation, the damages you seek will fall into one of the categories listed above. Consult with your lawyer to find out more about how different types of damages can be used to meet your needs.
Why Most Car Accident Claims Are Settled Out of Court
At their root, legal proceedings are often expensive and time-consuming for all of the parties involved. Rather than going through a lengthy ordeal that will cost even more money and create more stress, many individuals opt for the quicker, less expensive, and more straightforward process of negotiating an out-of-court settlement. These settlements will allow the injured party to move forward with much-needed compensation and insurance companies to avoid the potential of being forced to give much higher payouts after a trial. These reasons contribute to the common result of parties seeking a fair resolution through an out-of-court settlement.
Steps in the Car Accident Settlement Process
The car accident settlement process follows specific phases that guide the parties through filing a claim to the agreement on a finalized settlement. Each step of the process plays a vital role in determining the outcome of the settlement agreement and ensuring a fair resolution for both sides. Gaining a basic level of knowledge about the process can help you know what to expect during each step and work with your attorney to put yourself in the most favorable position available to reach a satisfactory result in your settlement. Continue reading below to learn more and consult with your lawyer to determine how to be prepared.
Filing an Insurance Claim
The initial step in the car accident settlement process involves the injured party filing an insurance claim following the wreck. The injured party (often with the help of a lawyer) will notify the insurance providers about the accident and provide a detailed account of the incident — including the date, time, locations, and information about the parties involved. You will need to submit documentation to support your claim, such as a police report about the accident, medical records to substantiate your injuries, and repair estimates for your damaged vehicle. Filing this paperwork will allow the insurance company to begin investigating the accident.
Investigation by the Insurance Company
After you file your claim with the insurance company, an investigation will begin to assess liability for the accident and determine the extent of the damages claimed. This investigation by the insurance company will often involve reviewing all documentation for the accident, including accident reports from law enforcement, medical records, and vehicle inspections. After reviewing your claim, the insurance provider may request additional information and/or statements from the involved parties. This investigation aims to determine who was at fault for the crash and ascertain the severity of your injuries. Legal representation during this process is important to avoid potential mistakes that can derail your pursuit of compensation.
The Initial Settlement Offer
After the insurance company finishes its investigation, it will submit its initial settlement offer. The first offer will reflect the insurance provider’s assessment of the damages you have sustained but is typically far lower than the actual value of your accident claim. Insurers often attempt to settle claims quickly and for as little as possible. Accepting the insurance company’s first offer is never advisable without consulting with your attorney, as it will likely fall far short of the compensation you need. Your lawyer will help assess the insurance company’s initial settlement offer and respond accordingly.
Negotiations with the Insurer
Following the insurance company’s initial settlement offer, your experienced car accident lawyer will evaluate the situation and begin the process of negotiating to obtain a more favorable offer. Gathering all available evidence — medical records, accident reports, witness statements, and expert opinions — will provide you and your attorney with the necessary support to strengthen your claim for the negotiation process. Your lawyer can then put together a counteroffer that better reflects the level of compensation you need to cover the expenses you have incurred from the accident. The negotiation process may include multiple rounds of back-and-forth communication, making the necessity of strong legal representation even greater.
Reaching an Agreement
Once enough negotiating has taken place, you and the opposing party may finally reach an agreement on a mutually satisfactory settlement. Once this final settlement amount is agreed upon, both sides will finalize the terms, and you will complete the process by signing a release of liability. This legal document states that you are accepting the settlement amount in return for agreeing not to pursue any future legal action for the accident against the at-fault party. After the document has been signed, the insurance company will process the settlement payout, providing you with the agreed-upon compensation.
Factors That Affect a Car Accident Settlement
There are a variety of factors that have the potential to influence your car accident settlement. Awareness of these factors can help set realistic expectations as you go through the process. Factors that can affect your settlement include:
- Severity of Injuries: More severe, long-term, or permanent injuries require higher settlement amounts due to the medical costs involved.
- Insurance Policy Limits: The insurance coverage of the at-fault party may place a cap on the total compensation amount you can recover.
- Strength of Evidence: Well-documented evidence, such as police reports and medical records, can sometimes lead to higher settlement offers.
- Insurance Company Cooperation: Insurance providers’ attempts to delay or dispute your claim can affect the length of the process.
Your lawyer will have experience with these matters and be able to provide you with counsel to lead you through the process.
The Car Accident Claim Timeline
Each case is unique, but the general timeline for resolving a car accident claim follows a set of standard steps. The severity of your injuries or the overall complexity of the case (involving multiple parties, liability disputes, and other extenuating circumstances) can lead to the claim taking longer to reach completion. Insurance companies often utilize tactics designed to prolong the claim process and either convince injured claimants to accept early offers or become discouraged about the process and seek to do whatever it takes to get the situation behind them and move on. Even if your claim seems to be taking longer than you think it should, it is important to stick with it and follow your lawyer’s guidance as you navigate the process in pursuit of the outcome — and the financial compensation — you deserve.
Potential Pitfalls in the Settlement Process
As you prepare to start the car accident settlement process, you must be aware of the potential obstacles and pitfalls you may encounter along the way. Any factors listed below can decrease your compensation or derail your claim altogether. The most common pitfalls in the settlement process include:
- Lowball Offers: Insurance providers will attempt to resolve the claim by offering a low amount and pressuring you to take it.
- Signing a Release Prematurely: Agreeing to settle before you learn the full extent of your injuries can keep you from taking any further action to get more compensation.
- Delaying Medical Treatment: Failure to follow your doctor’s treatment plan or putting off medical attention can weaken your claim by making your injury appear minor.
- Miscommunication: Incomplete documentation, failure to respond to requests for additional information, and other missteps can lead to disputes or delays in the process.
- Lack of Legal Representation: Without an experienced attorney, you run the risk of not having your rights protected in the process and not getting the outcome you need.
Your attorney can help avoid these pitfalls and seek a fair outcome.
What If a Settlement Can’t Be Reached?
In the event that a settlement agreement cannot be reached between you and the at-fault party, your lawyer may advise you that taking further legal action to file a lawsuit may be your best option to pursue compensation. Mediation, arbitration, and litigation become your next steps if negotiations are not fruitful. A judge or jury will determine the outcome if your accident claim eventually goes to trial. A knowledgeable lawyer at this stage is vital to protect your rights and aggressively pursue your desired result.
Why You Need an Experienced Car Accident Lawyer
The presence of an experienced car accident attorney in your corner during this process cannot be overstated. Handling the legal difficulties and avoiding trouble along the way requires knowledge of the law and all applicable regulations for the insurance industry. A skilled attorney will guide you through every step of the process and work diligently to prevent you from having to settle for a lower amount of compensation than you deserve.
Contact a Knowledgeable Car Accident Attorney for Help Today
Christopher C. Walton, Bellingham Car Accident Lawyer
When you are trying to recover from the injuries and damages you have suffered in a car accident, you can benefit greatly from the help of a skilled lawyer. A successful car accident settlement can provide you with financial compensation that you can use to pay your medical bills and cover lost income if you were rendered unable to work, and repair, or replace your damaged vehicle. With the help of the right lawyer, you can have confidence throughout every phase of the car accident settlement process as you move toward the outcome you deserve. Contact an experienced car accident attorney today to learn more about the settlement process and discuss your options.
A knowledgeable Bellingham personal injury attorney will be your trusted advocate during this challenging time, providing you with the guidance and support you need for a positive outcome. They will investigate the accident, gather evidence, and work tirelessly to build a strong case on your behalf. Don’t delay, call today.