How Do Car Accident Settlements Work?

If you have been injured in a car accident, you may have questions about how you can get a car accident settlement. Many of the specifics will vary by state, the type of injuries you sustained, and the events that caused them. This can make it challenging to understand how car accident settlements work. 

If you wish to get legal advice based on your individual situation, High Rise Legal Funding recommends contacting a personal injury lawyer in your area for a consultation. However, there are some standard questions that people often ask about how car accident settlements work.

Seeking Compensation After a Car Accident

The first step in getting a car accident settlement is to file a claim with the insurance company; this is basically a request for compensation. The insurance company will review your claim and approve it, deny it, or send a counteroffer to you. 

To apply for free, call (877) 735-0016

Types of Compensation You May Be Eligible to Receive

State laws can restrict the types of compensation allowed in a personal injury claim. Compensation limits vary by state. Some states restrict certain types of compensation, while others place a cap on the amount of compensation that can be granted. Types of compensation commonly recovered have included:

• Past and potential future medical costs 
• Property damage value
• Pain and suffering
• Lost wages
• Lost enjoyment of life

When a Personal Injury Lawsuit Needs to Be Filed

A personal injury claim is not the same as a personal injury lawsuit. A personal injury claim is a request for compensation sent to the insurance company. Many times, a settlement agreement can be reached without filing a lawsuit.

If the insurance company denies your claim, or a settlement cannot be reached on your claim it may be necessary to file a personal injury lawsuit to get compensation. Alternatively, if there is no insurance coverage, you may need to file a personal injury lawsuit to seek a compensation judgment against the at-fault party.

Hiring a personal injury lawyer to handle your claim is not a requirement, but it is highly advisable. They have a deeper and more thorough understanding of the law and how it applies to your situation.

A Personal Injury Lawyer Offers Advice and Assistance

A personal injury lawyer can conduct a full investigation of the claim, collecting police reports and witness statements while you heal. A personal injury lawyer is also a skilled negotiator who regularly handles insurance companies and settlement offers. Insurance companies are more likely to offer a favorable settlement amount when you have a personal injury lawyer because the threat of a lawsuit is more serious when a lawyer is involved.

If the insurance company sends you a settlement offer after investigating your claim, you are not obligated to accept it. If you choose to reject the settlement offer, your lawyer can assist you with writing a demand letter to the insurance company. The letter should give a counteroffer and discuss some of the reasons you are seeking that amount. 

Settlement Agreements Take Time

The negotiations can be a slow process, often taking months, and can continue until a settlement is reached. If no progress is being made, a settlement agreement may not be reachable, and a lawsuit may be necessary. In that case, you will need to file a personal injury lawsuit and wait for the court to be ready to hear your case.

What You May Receive in a Settlement Agreement

There is no way to value your claim without knowing the details of your accident and injuries. Two major factors that can affect the amount you receive are the severity of your damages and injuries and the amount of fault assigned to you. Many states only allow you to receive compensation if you were less than 50% at fault for the accident and may allow your compensation to be reduced by the amount of fault attributed to your actions.

Cost of Hiring a Personal Injury Lawyer

It is common practice for a personal injury lawyer to offer a free claim consultation that allows you to discuss your case and get the lawyer’s professional legal opinion. Most also offer a contingency payment plan. This payment agreement states that the lawyer will receive payment only once you have received compensation for your claim.

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Pay Your Bills with a Car Accident Loan until You Receive Payment on Your Settlement

Keeping medical and household bills paid when you are unable to work and still negotiating with the insurance company can be very stressful. High Rise Legal Funding can offer some relief. With the assistance of a personal injury lawyer, you may be able to apply for a car accident loan with us.

This loan is structured as an advance payment in anticipation of your settlement. Once you have received your settlement, you pay back the amount that High Rise Legal Funding advanced you in addition to our flat fee. But, if for some reason you do not receive the settlement, you will not have to pay the advance back at all.

High Rise Legal Funding Offers Financial Relief

Talk to a personal injury lawyer today about how you may be able to receive a car accident loan from High Rise Legal Funding and get your finances back on track. Do not lose everything waiting for an insurance company to get around to compensating you. Connect with us and get relief now.

Call or text (877) 735-0016 or fill out our form to apply today for free.