Car accident settlements work by gathering evidence of fault, documenting and valuing losses, presenting settlement demands, and negotiating if necessary. Most often, it's an insurance company (or multiple insurance companies) with whom the car accident lawyer negotiates on behalf of the victim.
If both sides can agree to financial terms, a settlement agreement can be the ideal way to resolve the case. However, car accident victims and insurance companies often have disputes about who is at fault, how much a claim is worth, and other details of the case. Such disputes—if they can't be resolved—can force the car accident victim to file a lawsuit.
The Steps Towards a Car Accident Settlement
There is a sequence that unfolds after a car accident. As the victim, you should seek medical attention and focus on recovery. Your lawyer will be responsible for:
Determining Fault for the Car Accident
Car accident lawyers often determine fault for car accidents by:
- Consulting experts who can analyze all accident-related evidence
- Obtaining and evaluating video footage of the accident
- Gathering and evaluating witness testimony
- Securing a copy of the police report, if one exists
- Photographing the accident scene, if circumstances allow
- Relying on their understanding of negligence to determine who caused the collision
Car accidents happen for many reasons, from motorists speeding to vehicle defects and unsafe road conditions. Attorneys conduct urgent investigations so they can pinpoint liable parties and move forward with their client's claim.
Evaluating Whose Insurance Company Should Pay
Before sides can reach a settlement, they need to:
- Evaluate the state's insurance laws, specifically whether the state uses a no-fault or fault-based system
- Determine, based on fault for the accident, whose insurance company should pay for whose damages
- Evaluate the specifics of all policies related to the accident, including coverage limits
Car accident lawyers are constantly handling insurance claims. This means they are well-versed in insurance laws, the language of insurance policies, and all other aspects of insurance claims.
Documenting and Valuing the Accident Victim's Losses
Before any car accident lawyer or insurance representative can agree to a settlement, they must know the value of the claimant's losses. Your lawyer will also document those losses, which may require:
- Your doctor's written descriptions of your injuries and symptoms
- Bills for all medical care you receive after the car accident
- Bills related to vehicle damage (whether it is the repair or replacement of your car)
- Bank statements that show income you've lost because of the car accident
A mental health expert can also diagnose you for post-traumatic stress disorder (PTSD), depression, personality issues, and certain other types of pain and suffering.
Presenting Settlement Demands
Liable insurance companies may offer settlements. Unless the offer is fair, your car accident lawyer will counter with their own settlement demands.
Your attorney may explain in their counter-demands why they're requesting more money than the insurance company offered. They may also include any documentation supporting their demands.
Negotiating (If Necessary)
Your lawyer may engage in settlement negotiations with liable insurance companies. These negotiations may involve:
- Both sides presenting their idea of a fair settlement value
- Your lawyer presenting all relevant documentation of your damages
- Both sides determining whether they can give ground in the name of securing a fair settlement
Your attorney will keep you informed throughout negotiations. Your lawyer should be firm in demanding fair compensation.
When a Car Accident Settlement Doesn't Happen, A Lawsuit May Come Next
Car accident lawyers can negotiate aggressively because, if insurance companies don't offer fair compensation, you may be eligible to sue. You should know that:
- Lawsuits are complex documents that lead to even more complex legal proceedings
- Attorneys are, most believe, the people most qualified to lead car accident lawsuits
- Filing a lawsuit does not necessarily mean your case will go to trial
Even if you have your lawyer file a lawsuit, the odds indicate they'll still negotiate a settlement. When you file a lawsuit after a car accident, it can:
- Indicate that you are serious about securing a fair financial recovery
- Prompt the insurance company (who generally still represents the defendant) to negotiate in good faith
- Be the step necessary to resolve your case
Some car accident lawsuits lead to a trial. Going to trial generally extends the timeframe for a car accident case, but the end results can be worth the added time.
What Damages Should a Car Accident Settlement Cover?
Anyone who has been in a serious car accident knows. The collision can cause physical injuries, but auto accidents can also cause trauma that nobody can see. Car accident lawyers understand the complicated nature of their clients' damages, which can include:
- Healthcare expenses
Car accident victims often need emergency services, imaging to diagnose injuries, hospital services, medications, and other resources for their recovery.
- Pain and suffering (and treatment)
Your pain and suffering may include post-traumatic stress disorder (PTSD), acute and chronic pain, lost quality of life, mood and personality changes, lost sleep quality, lost quality of life, depression, anxiety, and other challenges.
- Vehicle repairs, temporary transportation, and other property-related costs
If any of your property was damaged during the car accident, your lawyer will include the property expenses in your claim or lawsuit.
- Lost income and other types of professional harm
Car accidents often cause victims to miss work, which can cause lost income, diminished earning capacity, and several other professional damages.
A Lawyer Will Demand Justice for a Fatal Car Accident
If you lost a loved one because of a fatal auto accident, your grieving process requires your attention. Hiring a car accident lawyer will provide valuable legal services and help protect you from the uncomfortable details of a wrongful death case.
Damages in fatal car accident cases often include:
- Funeral expenses
- Burial expenses (or cremation costs)
- Loss of consortium (which may include the loss of a spouse's companionship)
- Loss of the decedent's financial support (including income and any contributions they made to their household)
- Pain and suffering, certainly including grief
If you need counseling or any other form of treatment for grief, your lawyer will include your treatment costs in your case.
Lawyers Are Uniquely Qualified to Negotiate Car Accident Settlements (For These Reasons)
When you need a car accident lawyer, it only makes sense to turn to a lawyer because:
They Have Relevant Training
Effective negotiating requires a strong knowledge of:
- Insurance rules
- Laws regarding fault and other aspects of car accidents
- How to calculate both economic and non-economic damages (and, specifically, pain and suffering)
- How to deal with insurance companies' bad-faith tactics
Lawyers learn this critical information during the course of their education and training. Their real-world experience only furthers their knowledge and skills, translating to car accident settlement negotiations.
They Have Relevant Case Experience (Including Negotiating Experience)
Education and training are a strong foundation for negotiating car accident settlements. However, real-world experience is priceless—lawyers have both.
Real-world experience leading car accident cases can:
- Help attorneys understand the difference between the letter of the law and the realities of the legal field
- Familiarize attorneys with various legal challenges
- Allow attorneys to test various legal strategies and negotiating tactics
- Enhance a lawyer's confidence as they secure more and more positive results for car accident victims
They say there is no substitute for experience, and they are correct.
They Have a Team Contributing to Car Accident Cases
Any job is more difficult when someone is working on their own. The job of securing a fair car accident settlement is no exception. This is why car accident attorneys work with:
- Investigators who document the car accident (and gather relevant evidence)
- Paralegals
- Experts (often including professionals in the automotive industry, engineers, medical professionals, mental health experts, and economists)
When you hire a car accident lawyer, you get all these team members at no additional cost.
They Have a Deep Well of Financial Resources
Contingency fees motivate law firms to make winning cases. These firms often invest resources knowing that, if they win the case, they will recoup their investment (and then some). A car accident attorney may:
- Hire multiple experts to contribute to the case
- Reconstruct the car accident, often through a digital rendering of the collision
- Pay for various other resources that improve the case's likelihood of success
Your law firm will also cover filing fees and other expenses that are standard in car accident claims and lawsuits.
What Is a Contingency Fee, and Why Does It Matter to Car Accident Victims?
Some people believe they can't afford a car accident lawyer, but this isn't true. Car accident lawyers make their services affordable to all by:
- Not asking their clients for any upfront fee
- Paying for all case-related costs, including filing fees and expert fees
- Offering an arrangement known as a contingency fee—the car accident lawyer only receives a fee if they obtain compensation for their client
Your lawyer will receive a percentage of the compensation they obtain for you. Your legal team will review their fee structure so that, when you hire them, you understand the agreement.
Get a Car Accident Lawyer Without the Financial Risk
Whenever a car accident lawyer leads an insurance claim or lawsuit, they take a risk. They give their time, effort, and resources to the client. Yet, there's no guarantee they will get paid for that time, effort, and resources.
Car accident lawyers are willing to offer their representation on contingency because:
- They recognize that many car accident survivors cannot afford to pay a lawyer an hourly rate
- They have the resources necessary to cover upfront costs
- They are confident that they will succeed for the client (in which case the lawyer will receive their fee)
By offering a results-based fee agreement, lawyers can represent those who need their help—regardless of how cash-strapped their clients may be.
What Should the Car Accident Victim Do While Their Car Accident Lawyer Fights for a Settlement?
Signing with a lawyer should reduce your stress and free up your schedule considerably. Rather than dealing with aggravating phone calls from insurance companies—and the many other tasks that come with car accident cases—you can:
- Recover from your injuries: If you hire a car accident lawyer, it's likely because you suffered an injury or because you have lost a loved one. If you suffered an injury, your doctor will likely advise you to rest and receive various treatments. With a lawyer on your side, your case won't take away from your recovery process.
- Get mental health treatment: Counseling and other types of mental health treatment may be essential parts of your recovery plan. This is yet another thing you'll have more time for when you hire a car accident lawyer.
- Wait for your lawyer's updates: You should find a lawyer with a reputation for stellar communication. If you do, your lawyer will contact you regularly to update you about the case. They will also notify you when settlement offers arrive and evaluate those offers with you.
- Let your attorney resolve your claim or lawsuit: The rest is up to your lawyer. Whether your attorney is resolving an insurance claim (or two) or leading a lawsuit, all case-related details are their domain.
A seasoned car accident attorney will handle all of the duties pertaining to your case—from gathering evidence of fault to negotiating a settlement.
Don't put your health in jeopardy, seek the experience of a truck accident lawyer so you can focus on physical recovery. They can present a high-caliber case, getting you the compensation you deserve.
When Should I Hire My Car Accident Lawyer to Fight for My Settlement?
If you have suffered an injury in a car accident, you should hire your personal injury lawyer as soon as possible. Even if you are undergoing medical care and dealing with other responsibilities, take the time to find an attorney.
Most car accident victims have to report their injuries and file their cases within legally established timeframes. Search online for car accident lawyers serving your area. Compare case results, client reviews, and other criteria and complete free consultations with the firms that make your shortlist.
Nicolette R. Nicoletti
Managing Partner
Nicolette R. Nicoletti is the founder and managing partner of the Nicoletti Accident Injury Lawyers. She was born and raised in New Port Richey, Florida. Nicolette attended Genesis Preparatory School and graduated salutatorian of her class. She then went onto Saint Leo University for her undergraduate education. She graduated magna cum laude from the Honors Program with a Bachelor’s degree in Political Science. While at Saint Leo University, Nicolette was President of Pi Sigma Alpha (Political Science Honor Society), Secretary of Alpha Phi Sigma (Criminal Justice Honor Society), and an active member of Delta Epsilon Sigma (National Scholastic Honor Society).
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