Experiencing a car accident is a shocking and sudden event. It can be difficult to come to terms with the way an accident disrupts your life, especially when you consider the legal complexities that come with filing a personal injury claim. It is important to understand how car accident settlements work so you can secure the full amount of financial compensation you deserve.
What Is a Car Accident Settlement?
A car accident settlement is a legally binding agreement between a person who suffered damages in an accident and the at-fault party. The agreement represents the at-fault party’s commitment to pay the agreed-upon compensation amount, and the injured party agrees to not pursue further legal action regarding that accident.
Arriving at a settlement can be an arduous process, though. When you file a personal injury claim, the burden is on you and your legal team to prove that the other party was guilty of negligence. You must provide evidence that their negligence directly caused your damages. That is why it is almost always necessary to involve an experienced personal injury attorney in your car accident settlement.
Who Pays for a Car Accident Settlement?
If another driver causes an accident and inflicts damage or injury to you, then their auto insurance provider will likely be responsible for compensating you. In Arizona, motorists must cover their vehicles with minimum liability insurance of at least $25,000 bodily injury liability and $15,000 property damage liability. You can file a claim against this coverage when seeking a monetary settlement.
If you get hit by a driver who does not have adequate insurance, your own insurance provider might pay for your car accident settlement instead. Uninsured and underinsured motorist coverage is not required in Arizona, but adding these terms to your policy can ensure you have protection if someone else fails to carry the legally required amount of liability coverage.
When the other driver does not have sufficient insurance to pay for your settlement, you do have the option of filing a lawsuit and pursuing compensation from them out of pocket. However, it is worth keeping in mind that a person who does not have the legally required insurance might also not have enough financial assets to pay for your damages either.
What Happens During a Car Accident Settlement?
Before you even think about pursuing a car accident settlement, your top priority after a crash is to report the incident to the police and see to your own well-being. When it is safe to do so, notify your insurance company of the accident and consult with an attorney. This will start the claims process off on the right foot as you take the next steps toward a settlement.
Filing a Claim
Your attorney can handle the filing process for you while you focus on recovering from your accident. Your legal team will notify the insurance company and facilitate the next steps in the process. The attorney representing you will likely conduct a thorough investigation into your claim and collect evidence that will strengthen the case.
When you file a claim, the insurance company might try to take advantage of the fact that you are not an insurance expert yourself. This is another reason why it is a good idea to have a lawyer by your side to help you carefully review the insurance policies at play.
Negotiations
It is typically preferable for both parties to resolve the settlement through negotiations outside of court. This might start with your attorney making a settlement demand. The insurance company may extend an offer, but it is important to carefully consider whether the offer adequately covers your damages.
Negotiations will entail presenting evidence, making arguments, extending counteroffers and possibly undergoing mediation until you arrive at a mutually agreeable resolution. It is also common to involve a neutral third party as a mediator who can guide the process with an unbiased hand.
Settlement
If negotiations are successful, either party can draft a settlement agreement that specifies the monetary value of the settlement. When the at-fault party signs this agreement, they commit to paying you that amount. You must be absolutely certain that the amount is satisfactory before you sign, as it will not be possible to pursue further compensation afterward.
In cases where negotiations are not successful, however, it may be necessary to take the case to trial. This can happen if the insurance company refuses to extend an offer that sufficiently pays for your damages or if a dispute arises during negotiations that necessitates a court order to effectively resolve.
How Long Do Most Car Accident Settlements Take?
A car accident settlement can take anywhere from six months to two years or more to settle. This is because many factors affect the way the process unfolds, such as the complexity of the accident or the severity of the injuries caused.
Understanding the Statute of Limitations
It is worth considering the statute of limitations when contemplating the length of a car accident settlement. In Arizona, for example, the statute of limitations for a car accident claim is two years from the date of the crash.
This means that you have the option to wait for up to two years before initiating legal action for an accident that happens in Arizona. The longer you wait, though, the more it can complicate the process and lengthen the timeline. This is because there is a possibility for critical evidence and testimony to become lost over time.
Factors That Can Extend a Settlement Case
Most car accident settlements only take six months if the parties can negotiate an agreement without going to trial or experiencing significant points of contention. However, certain factors can extend the case, including:
- Extensive injuries that require ongoing treatment
- Multiple parties involved who might share liability
- Disputes over the severity of damages
- Court scheduling complications
Keep in mind that these factors and others are quite common. Being patient and relying on your legal representation to handle any emerging obstacles will help keep things running smoothly.
How Are Settlement Amounts Determined?
There are several factors that affect the amount a settlement is worth, including the degree of the other party’s liability, their insurance policy limits and the severity of the damage you suffered. To get the full amount you deserve, it is necessary to account for every type of damage you sustained in the accident.
Common types of damages you might seek to recover in a settlement include:
- Medical costs
- Property damage
- Loss of income or earning ability
- Pain and suffering
During an initial consultation with your attorney, you can gain insight into how much your claim is worth so you can approach the process with an informed idea of what you might be able to expect from a settlement.
Knowing How Much To Expect From a Settlement
Your settlement should, at the very least, cover the costs you incur as a result of the accident. However, your lawyer can help you explore every possible avenue for compensation and may help you realize that your claim is worth much more than you initially realized.
For example, the average settlement for whiplash injuries in California can range from $2,500 to $100,000. This illustrates the possibility for even relatively minor injuries to result in significant settlements. The key factor that helps you know how much to expect is the impact the injury has on your life and finances.
Determining Settlements in a Minor Car Accident
In the case of a minor car accident, many affected drivers believe that it might not be worth pursuing a settlement whatsoever. This is an erroneous misconception because the average settlement for minor car accidents ranges from $5,000 to $12,000.
It is worth your while to follow the same process of determining the value of your settlement claim after a minor car accident as with any other type of personal injury case. Seek a professional medical evaluation, document the damage to your vehicle and account for the emotional pain or trauma you experience. These damages are just as valid and compensable after a minor car accident.
Is the Settlement Process Different State by State?
Different states have their own laws and regulations which affect the settlement process. At Sargon Law Group, we serve injured individuals in Arizona, California, Colorado and New Mexico and take different approaches in each of those states.
One of the most noticeable settlement differences between states is the statute of limitations. Arizona and California only have a two-year statute of limitations for car accidents while Colorado and New Mexico have a statute of limitations of three years. There can sometimes be a demand for a much more urgent negotiation strategy in stricter jurisdictions, especially if the injured person did not file a claim soon after the accident.
Insurance regulations can also differ between states. Different coverage requirements, term restrictions and court procedures can present different legal obstacles that a lawyer must overcome when striving to secure the best possible outcome for a personal injury client.
Will My Settlement Go to Trial?
Settling your case outside of court is preferable, but going to trial may be necessary in some circumstances. Your settlement will likely to go trial if you cannot come to a mutually agreeable resolution with the other party during negotiations. This should be a last resort because a courtroom trial can demand much more time and effort as well as additional fees.
However, going to trial is often preferable to continuing non-productive discussions and disputes with the other party. If they are unwilling to engage in discussions in good faith, it may simply be impossible to secure your rightful compensation without a court order. If you have compelling evidence and strong legal representation on your side, litigation can be an effective course of action.
During the trial, your legal team will have the opportunity to present evidence and witness testimony before a judge and jury. This can be a contentious process, so it is important to have an experienced trial lawyer on your side. If the judge rules in favor of your case, they will hand down a court order demanding that the other party pay a specified amount of compensatory damages to you.
Do I Need an Attorney for My Car Accident Settlement?
It is highly advisable to involve an attorney who understands how car accident settlements work. This will put you on an even playing field with insurance representatives who know the applicable laws and regulations inside and out.
A car accident attorney at Sargon Law Group can help your case by:
- Investigating the circumstances around your accident
- Collecting evidence to establish the other party’s liability
- Completing and filing paperwork on your behalf
- Negotiating with insurers and other lawyers
- Representing you in court if necessary
At Sargon Law Group, we are trial lawyers who can support you at every step of the settlement process, from the moments immediately after your accident all the way until you receive your rightful outcome. We do not want you to have to face the process alone.
How Do Car Accident Settlements Work Without an Attorney?
Choosing to pursue a settlement without an attorney means that you will have to negotiate a settlement with the insurance company without immediate access to legal guidance. It can be easy to overlook critical evidence and documentation when you are not exceptionally familiar with the process. It is also entirely possible to become a target for malicious insurance representatives who will take advantage of your lack of expertise.
Sargon Law Group Can Help With Your Car Accident Settlement
The damage caused by a car accident can be a monumental financial setback. That is why you need an attorney who knows how car accident settlements work, including both the negotiation and litigation aspects of the process. Our team at Sargon Law Group is ready to help drivers in Arizona, California, Colorado and New Mexico after car accidents of all types. Contact us today for a free consultation.