How Do Car Accident Settlements Work?

The process of a car accident settlement is complex and can be intimidating to deal with. Many factors come into play when determining the value of your case, and there are also legal regulations on how long you have to file a claim after an accident occurs. This article goes into detail about what steps are involved in the process.

How Much Are Most Car Accident Settlements?

In a survey of readers across the United States, Martindale-Nolo found that the average settlement award for a car accident claim was $23,900. However, most people received less than $10,000. You may learn more here about how auto accident victims who have suffered injuries can file a lawsuit.

While the survey gives an average number, the actual amount will depend on several factors, including:

  • The severity of your injuries
  • The extent of damage done to your vehicle and any other property involved in the accident
  • Whether or not anyone else was injured in the accident
  • Whether you have insurance coverage at all and whether or not you have enough coverage to cover all damages caused by accident

Hence, typical car accident settlement amounts can vary vastly, so it is best to consult with a professional lawyer. However, many online resources and free legal consultation services can help you find car accident settlement amounts.

How Car Accident Settlements Work

Car accident settlement can be a long and complicated process. Here are the steps involved in car accident settlements.

Reporting the Collision

The National Highway Traffic Safety Administration (NHTSA) reported more than 5 million car accidents in the U.S. in 2020. The first thing to do after a car accident is to report it to the police. If you are injured, go to the hospital for treatment and get your medical records.

If you have a witness, get their contact information to have them testify in court if necessary. You should also take photos or videos of any damage done by the accident so that there is an objective record of what occurred.

Once those steps are taken, find out whether or not anyone was injured during the collision. If someone sustained an injury during the crash, they might be able to file a claim against whoever caused it. This could include yourself if there’s evidence that shows you were at fault.

Medical Bills

Medical bills are a significant part of an insurance claim. Unfortunately, medical bills can be costly and only get more expensive. In fact, healthcare costs have been rising faster than inflation for decades—and no one knows where that’s going to end. The Kaiser Family Foundation reports that 47% of U.S. adults have difficulty affording health care costs.

If your injuries are severe enough that you need medical attention, the insurance company will probably have to pay for your treatment. If you don’t have health insurance, this could be one of the most significant expenses in your settlement agreement or lawsuit against another party who was at fault in causing an accident with you.

Investigation and Insurance

Insurance laws vary depending on the state. In a no-fault state, drivers involved in an auto accident, regardless of who is at fault, must submit their claims to their own insurance companies first. In states where the fault is assigned, people injured in an accident can file a claim directly with the at-fault driver’s insurance carrier.

If a driver is at fault, the insurance company will investigate the accident and pay for medical bills, vehicle damage, and tow fees. If you were found to be at fault in an accident involving another driver, your own insurance company would pay their medical bills and property damage costs.

Settlement Negotiation

If you’re involved in an accident, it’s essential to understand how car accident settlements work. You may be liable for damages if you are at fault and cause an accident that causes injury or death. These damages can include medical bills, property damage, and lost wages incurred by the victim.

You’ll also need to consider whether or not there was any negligence on your part that caused the accident. These costs can be very high. According to the National Safety Council, car accidents cost the United States $474 billion in 2020.

Your insurance company will want to settle with the injured party as soon as possible without going through a lawsuit. Their goal is usually just to pay enough money so the victim doesn’t bother filing a personal injury lawsuit against them.

However, suppose gross negligence is involved in causing another person harm. In that case, victims’ lawyers may pursue further legal action against their clients instead of accepting any settlement offer made by insurance companies.

Filing a Lawsuit

Most personal injury claims settle out of court. That means that you and your insurance company will agree with your claim without ever needing to go to trial. This is because most insurance companies want to avoid paying out lots of money in personal injury settlements, so they will try to offer a fair car accident settlement as quickly as possible.

But sometimes, insurance companies don’t offer a fair settlement. And sometimes people don’t have insurance. In 2019, one in every eight drivers was uninsured, according to a 2021 study by the Insurance Research Council (IRC).

In these situations, you can file a lawsuit against the driver who caused the accident and/or their insurance company. You may also be able to sue other parties involved if they were responsible for contributing to or causing your injuries.

Filing a lawsuit is not only for compensation but also for accountability. You can use it as leverage against defendants who have been negligent or acted irresponsibly towards you or others involved in what happened.

Conclusion

Car accidents are one of the most common types of personal injury cases in the United States. If you’ve been injured in one, it’s crucial to understand how settlements work and what factors determine how much compensation you will receive for your injuries. Settlements in car accident cases are not easy.

The process involves many parties, including you and your attorney, the insurance company for the person who caused your accident, and any other parties involved. Hopefully, now you better understand how car accident settlements work.