Do You Always Get a Settlement From a Car Accident?
Published in Car Accidents on September 30, 2024
Reading Time: 4 minutes
Car accidents are traumatic events, especially when they result in injuries and vehicle damage. If all goes well, your insurance company will get you back on the road quickly, no worse for wear.
Unfortunately, sometimes that doesn’t happen. Medical bills, repairs and hardships can add up fast, exceeding what your insurance will pay. When you aren’t at fault, it doesn’t seem fair to bear the full brunt of the expenses.
Seeking a Settlement After an Accident
You may decide to involve the other driver’s insurance company to make things right. And, you might expect to see a settlement offer on the table.
Insurance carriers often offer settlements to avoid litigation for medical costs, property damages, lost wages and other expenses that result from the accident. It is better for them in the long run, and, if the numbers are right, it can be better for you as well. A settlement may come as structured payments, or one lump sum.
However, insurance companies don’t always offer a settlement after a car accident. Whether they will or not depends on a range of factors.
Liability and Insurance
Liability is a major issue in settlement negotiations. When it is clear that one driver is at fault for the accident, it increases the chances of reaching a settlement. If the driver who was responsible for the incident is unclear or in dispute, obtaining a settlement agreement is more complicated.
In most states, the at-fault party’s insurance carrier handles costs resulting from a car accident. These states are commonly referred to as tort states.
Some states, like Massachusetts, classify themselves as no-fault insurance states. This means each driver’s insurance is responsible for their costs, regardless of who is at fault. There is typically a cap, and, in Massachusetts, payments are limited to $8,000.
As you can imagine, drivers in states with full-tort insurance have more straight-forward claims against at-fault drivers, and arguably a better chance at securing a settlement.
But that doesn’t mean no-fault drivers are restricted to the $8,000 limit imposed by their insurance. If certain conditions are fulfilled, drivers in no-fault states can seek compensation from the at-fault driver’s insurance to resolve the situation.
It is important to understand your insurance policy so you can get a clear idea of what kind of settlement you should expect, or if you will see a settlement offer at all. Besides factors that outline liability, details such as deductibles, policy limits and types of coverage all play a role in what kind of settlement you can expect after a car accident.
Severity of the Accident
In addition to liability, the severity of the accident plays a part in determining your chances of obtaining a settlement. Typically, accidents that result in serious injuries and major property damage are more likely to result in settlements.
This is especially important to consider in no-fault states like Massachusetts, where there is a cap on the amount paid out to drivers by their own insurance. In order to meet the threshold to make a claim with the at-fault driver’s insurance, you must be able to prove:
- At least $2,000 in reasonable medical expenses, and/or
- Permanent injuries or injuries result in serious disfigurement, fractured bone, or substantial loss of hearing or sight.
Failure to meet those thresholds likely means the inability to seek a settlement through the at-fault party, either by filing with their insurance carrier or by legal action.
Clearing those thresholds opens the door to a settlement that considers not only those two factors, but a range of additional expenses such as medical costs, vehicle repairs, lost wages and possibly even pain and suffering. If you are unsure if you meet those criteria, it is smart to talk with a professional personal injury lawyer, who can help you better understand your situation.
Evidence and Documentation
Effective documentation of the accident and the aftermath can help your chances of reaching a settlement. In the absence of such documentation, you may find it hard to prove your case. Some of the evidence that may tilt the process in your favor includes:
- Photos of the accident scene: Detailed images can help establish the severity and context of the accident.
- Police reports: A copy of the police report will include statements from the parties involved and the responding officers’ assessment of the accident.
- Medical records: Documentation for hospital and doctor’s visits, therapy sessions, prescriptions and any other medical expenses show the severity of injuries resulting from an accident.
- Expenses: Receipts and documents showing expenses resulting from an accident, including medical bills, vehicle repairs and lost wages, can help obtain a more favorable settlement.
- Documentation of Pain and Suffering: Pain and suffering are hard to prove. A journal that documents how the accident has impacted your life may help show the effects of the incident and result in a better settlement.
Failing to document the hardships that follow a car accident is a common mistake. Without supporting evidence, insurance companies may offer lower settlements, or deny the claim outright. Well-documented cases that clearly establish the extent of damages usually result in more favorable outcomes.
Legal Considerations and Representation
Even if the crash wasn’t your fault, it is complicated to get a settlement after a car accident. The specifics of your insurance, the laws in the state where you live and the circumstances of the incident might make the process confusing. It is easy to make a costly mistake, especially if you are feeling overwhelmed.
A legal representative who understands car accident cases in your area can help you understand your rights, negotiate with insurance companies on your behalf and help you receive a fair settlement.
In cases that involve major property damage and/or serious injuries, reaching out to an attorney as soon as possible can help you avoid some of the common pitfalls that can prevent you from receiving a settlement after a car crash.
If you are in the Boston area, contact us at Sweeney Merrigan Personal Injury Lawyers so we can help you navigate your specific situation.