Settlement Offers
The last phase in a traffic accident is the settlement phase. This is the step where the settlement offer is given to the person who has suffered damage to his car or self in a traffic accident.
It is important that you collect as much information as possible about the accident in order to be able to get maximum settlement award. For this purpose, it is recommended that you keep a note of everything pertaining to the accident. Here are some frequently asked questions about this phase.
What exactly do you mean by Settlement Phase?
The settlement phase is the last phase in any traffic accident. However, you must remember that you will be offered a settlement only in case you have been injured in the accident. And for all the pain, anxiety, anguish and physical injury as well as property damage to your car, you can only look at money as compensation. In other words, all your claims will be settled only in monetary terms by the insurance company.
If the insurance company wants me to sign off on my medical claims, should I do it?
The answer to this is a definite NO. You should not sign anything till your vehicle is completely repaired and you are completely healthy or recovered from the accident. It is recommended that you sign any paper relating to medical claims only after complete recovery because some insurance companies are notorious for taking away what is rightfully yours even as you are recuperating from the trauma of your accident.
What is the duration of the settlement phase?
There is no particular time limit to the settlement phase. It starts from the time you met with the accident and it lasts until you have been given your settlement award. Each accident case is different and it may require varied amounts of time for the whole thing to be settled in your favor. It is also recommended that you do not hurry up anything in this phase so that you do not end up losing your money.
It is possible to handle the settlement without the help of a lawyer?
There is no law to stop you from handling the settlement by yourself. However, a good personal injury lawyer will be able to help you to gather all the necessary information and help you understand the insurance policy and also fight your lawsuit in this case. You can find a personal injury lawyer in your city to handle your case better.
What information do I need to gather if I want to settle the case without a lawyer?
You can check out the Accident Zone Book, where you will find the handbook that contains almost all the information that you would need to know to handle the case by yourself. It will tell you how to collect your medical evidence and also what information you need to ask your insurance adjuster. You will also be guided about the other paperwork you might need in the settlement phase.
What is meant by a fair settlement?
There is no definite answer to this question either. A fair settlement for one person may not seem fair enough to someone else. However, we can still arrive at some calculations for the sake of completing legal procedures and call it a fair settlement after considering some of the following points:
- the cost incurred to repair you vehicle as well as any other property damaged in the accident
- the medical expenses that you incur for yourself
- the duration of time it takes to heal yourself completely
- your health care expense in the past
- the health care expense you might incur in the future
- any past pain and suffering
- future pain and suffering that might come up
- the mental pain and anxiety you had
- the future mental pain and anxiety you might have
- any physical disability in the past and the future
Here are 3 examples that will help you understand this well:
Example 1:
$500 vehicle repair bill
$700 in medical bills
$1200 total cost
If there is not much damage to your vehicle and not much damage to the person in the vehicle, you can expect a settlement amount which is 1.4 to 1.8 times your medical expenses and in this case, a settlement offer ranging from $700 to $2160.
Example 2:
$2000 vehicle repair bill
$2500 medical bill
$4500 total cost
If you have been involved in a serious accident that has lead to severe injuries, you can expect a settlement amount that is 1.9 to 2.4 times your medical expenses and in this case, a settlement offer ranging from $2500 to $10,800.
Example 3
$5000 vehicle repair bill
$8000 medical expenses
$13,000 total cost
If the accident was life threatening and you faced extremely severe injuries and eventually, a longer recovery period, you can expect a settlement amount that is 2.3 to 3 times your medical expenses and in this case, a settlement offer ranging from $8,000 to $39,000.
Thus, when the accident causes more severe injuries, the compensation amount gets higher. However, you cannot expect an amount that is more than 3 times your medical expenses. Yet, it is up to the insurance company to decide upon the exact amount of settlement to be awarded in your favor. You either need a very good personal injury lawyer or you the time and patience to get a higher settlement for the accident.
What does an out of court settlement mean?
The insurance company may try to give you a monetary offer through their attorney to settle the claim you have for the accident without going to court. This is not uncommon in most civil lawsuits. Moreover, if you are not really interested in pursuing a lawsuit, you can consider an out of court settlement. Rather than getting offended by an out of court settlement offer, it makes sense to consider the amount of money that you could receive from it along with saving you time and effort.