Another driver caused the collision that resulted in your injuries and financial losses. Now, all you want is to receive a car accident settlement that compensates you for your losses, pain, and suffering. You might be wondering, however, how a car accident settlement works.
This resource discusses the things victims need to know about car accident settlements to protect their rights.
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What Is a Car Accident Settlement?
Texas is a fault state for personal injury claims, meaning the injured party must prove the other driver caused the crash. Once liability is established, the injured party can seek compensation for their injuries and losses. Most claims are resolved through negotiations with the at-fault driver’s insurance company, with only a small percentage going to trial.
Settlements compensate the victim in exchange for waiving the right to future legal action, including filing a lawsuit or bringing additional claims. Once signed, the final settlement agreement is binding, even if the injured party later believes they deserved more or had additional claims.
Insurance companies often protect their own interests, not the victims’. Their adjusters are trained to minimize payouts, so accepting a settlement without legal advice can result in far less compensation than you deserve.
Steps in the Car Accident Settlement Process in Texas
A car accident settlement timeline varies by case. Car accident settlements go through several steps. While each claim is unique, most claims involve the following steps:
Medical Treatment for Injuries
After a car accident, it’s crucial for victims to seek prompt medical care. The type and length of treatment will vary depending on the severity of the injuries. Delaying medical attention can seriously hurt your case. Insurance companies may use gaps in treatment to argue that your injuries aren’t as serious as you claim.
Here’s what you should know:
- Seek immediate care: Prompt treatment not only supports your recovery but also helps document your injuries for the claim.
- Delays can reduce your compensation: The insurer may argue that you failed to mitigate your damages or that your injuries were caused by something other than the crash.
- Avoid settling too early: Insurance adjusters may offer a settlement before you finish treatment. But until you reach maximum medical improvement, you can’t fully know the value of your claim.
- Catastrophic injuries take time: Severe injuries often require extended care, making it even more important not to rush a settlement.
- Watch the statute of limitations: You have a limited time to file a lawsuit. If you wait too long, you could lose your right to seek compensation entirely.
To protect your rights, consult with an attorney early to understand your legal deadlines and ensure you’re pursuing the full value of your claim.
Documenting Damages
A car accident settlement can include economic and non-economic damages. You must prove you incurred the damages and how much the damages are worth. Examples of damages in a car accident settlement include:
- Medical expenses and bills, including rehabilitative therapies
- Loss of income, including employment benefits, wages, and earning capacity
- Pain and suffering
- Diminished quality of life and loss of enjoyment of life
- Out-of-pocket expenses
- Scarring, disfigurement, impairments, and disability
- Emotional distress and mental anguish
The value of economic damages is the total of the bills and expenses you incurred. However, it is more challenging to place a price on pain and suffering damages.
Insurance companies undervalue non-economic damages. If you are unsure how to value your damages, talk with an attorney before accepting a car accident settlement.
Proving Liability for a Car Accident
The insurance company investigates the car accident to determine causation and fault. If it finds that its insured driver caused the crash, it should accept liability. If not, it will deny the claim, and you’ll need legal advice about filing a lawsuit against the other driver.
Keep in mind the concept of contributory fault. Under Texas’s modified comparative fault rule, victims can’t recover damages if they’re more than 50% at fault. If they’re less than 51% to blame, the court reduces damages by that percentage. For example, if you’re 20% at fault, your compensation is reduced by 20%.
Insurance adjusters often “fish” for information to shift blame. Giving a recorded statement without legal advice can hurt your case. Your words may be twisted to imply fault and lower your settlement.
Negotiating a Car Accident Settlement
The insurance company may make a settlement offer or wait for you to submit a settlement demand letter. Most initial settlement offers are for amounts lower than the value of the claims. You do not have to accept the first offer. You can negotiate for a higher settlement amount, but you need evidence proving your damages are worth more than the settlement offer.
Settlement negotiations could take several weeks or months as the parties discuss a settlement. Keep in mind that the insurance company is only liable for an amount up to the policy limits. If your claim exceeds the policy limits, you may want to consider a lawsuit against the driver or seek additional compensation from your underinsured motorist policy.
Speak to a Houston Personal Injury Lawyer About Your Case
Insurance companies often use tactics to undervalue car accident claims. Speaking with a personal injury lawyer can help you understand your rights and pursue a fair settlement. An experienced attorney can evaluate your case, protect your interests, and guide you through the claims process.
To learn more, contact Attorney Brian White Personal Injury Lawyers or call us at (713) 500-5000 to schedule a free consultation with a Houston personal injury attorney.
How Do Car Accident Settlements Work? Infographic
