08 May Car Accident Insurance Claim Settlements
If you have been in a wreck in California, chances are that your case will get resolved with a car accident insurance claim settlement. Settlements are a common feature of many car accidents, especially ones where you and the other involved drivers all have car accident insurance.
But after a crash, you may have reservations and questions about a car accident insurance claim settlement. You may wonder, for instance, if a settlement is in your best interests or if the compensation offered through the settlement is fair.
And when you or the other driver is uninsured, you may wonder if a car accident, no insurance involved, can be settled at all.
Settlements can be an appropriate way to resolve your car accident claim, but they may not be right in every circumstance. Knowing the ins and outs of insurance settlements can help you and your attorney determine how best to resolve your car accident case.
Car Insurance Basics in California
Motorists in California are required to have a car accident insurance policy for any vehicle they operate on the roads. But what is accident insurance?
Accident insurance is a contractual agreement with an insurance company where the insurer agrees to pay you or others financial compensation, up to a certain limit, in the event that you are involved in a car crash.
California is considered an “at-fault” auto insurance state. This term means that the driver who is determined to be responsible for causing the wreck will be liable for paying compensation to others who are hurt in the accident.
In this case, the driver’s insurance company will receive and pay the valid claims of you and other injured parties, up to the limits of the responsible driver’s insurance policy. If those limits do not fully compensate you for your injuries, you may have the right to file a lawsuit against the at-fault driver personally.
If the driver who causes the crash is uninsured or does not have adequate insurance coverage, your own insurance company may step in and provide you with compensation. This compensation, too, would be provided in accordance with and up to the limits of your insurance policy.
The Necessity of Accident Insurance
Is accident insurance worth it? The purpose of requiring drivers to have insurance coverage is to ensure that, in the event of a crash, those hurt in the crash will be able to receive financial compensation.
While the compensation received from an insurance claim may not cover all of the injured party’s losses, it would at least begin to help with the medical bills and lost wages the injured party might have incurred.
Having auto insurance is not only legally required, but it can also protect you from financial ruin after a crash.
Insurance Claim Settlements and Why Insurers Prefer Them
When you submit a claim to another person’s insurance company, that insurance company has three options.
First, the insurance company can pay the claim as presented and up to the limits of the responsible party’s policy. Second, the insurer could deny the claim in full and risk a lawsuit being filed against them. Even if they prevail at trial, the insurer is likely to expend significant amounts of resources defending themselves in court.
The third option for the insurer is to reach a car accident insurance claim settlement with you. A settlement is an agreement between you and the insurer where the insurer agrees to pay a set amount of compensation. In return, you agree not to pursue any additional compensation from the insurer or their insured driver.
Benefits and Drawbacks of a Settlement
There are several benefits a car accident insurance settlement claim offers to you. Settlements offer certainty and finality to your claim and do not require contested court proceedings. You also avoid the uncertainty that accompanies taking a case to trial before a judge or jury.
Additionally, because a settlement represents an agreement between you and the insurer, the insurer will usually compensate you more quickly. And because most insurers would rather settle a legitimate claim quickly and move forward, insurers may approach you about a settlement even before you formally file a claim against them.
But there are some drawbacks to a settlement agreement. Once a settlement is completed, it is extremely difficult to undo the settlement. Absent some evidence of fraud or coercion by the insurer, you will be bound by the terms of the settlement agreement even if you later come to regret it.
For example, if you accept a settlement for a certain amount but later decide you need more compensation, it will be very challenging to secure that additional compensation.
Settlements Benefit the Insurer, Too
Insurers are often eager to enter into settlement agreements, especially when there is evidence that their insured driver is at fault. This is because settlements can offer significant financial benefits to the insurance company.
If the insurance company can settle a claim for less than it would pay to take a case to trial, then the insurance company comes out of the matter in a better financial position. For example, suppose that you incur $30,000 in medical bills after a wreck, and you file a claim for that amount against the at-fault driver’s insurer.
The insurer receives the claim and estimates it could take $20,000 to defend the claim in court. The insurer, therefore, offers to settle your claim for $15,000. If you accept their offer, then the insurance company has successfully mitigated its losses by avoiding litigation fees and paying your claim as presented.
Average Car Accident Settlement Amounts
How much settlement for car accidents can you expect? Unfortunately, there is no easy answer to this question. Every car accident case that settles will do so for an amount that is based on certain factors. Some of these factors include:
- The strength of your evidence in proving your claimed losses
- The insurer’s anticipated litigation costs, if the case goes to trial
- The extent of the insurance company’s and their insured’s financial exposure
- The willingness of you and the insurer to settle your claim
Either you or the insurer can initiate settlement talks, and both sides may exchange specific offers to settle as many times as desired. When deciding whether to accept a settlement offer, you and your car accident lawyer will need to consider the financial compensation offered carefully.
If the amount offered to settle your claim does not adequately compensate you for your immediate and long-term expenses, for instance, you may consider countering with a higher offer.
Additionally, the more extensive your losses, the higher the settlement amount you may be entitled to. For example, a minor fender bender with no injuries to you or any of your passengers may settle for a few thousand dollars or less, depending on the amount of property damage done to your car.
On the other hand, if you or a passenger have sustained catastrophic injuries, a settlement could reach several hundreds of thousands of dollars or more.
How Long Do Car Accident Insurance Claim Settlements Take to Complete?
Many accident victims wonder, “How long does a car insurance claim take to settle?” If you have decided to accept a settlement offer, you might have done so in part because you needed the compensation quickly to cover the costs of the accident.
As with determining an average settlement amount, predicting how long your case will take depends on several factors. Where the evidence of liability is clear, your injuries are well-documented, and there are no material issues to dispute, a settlement may be wrapped up in as little as a few weeks to a month.
In this scenario, the insurance company has a significant financial incentive to settle your case and move forward. The only way it can do that is to provide you with the agreed-upon compensation value as quickly as possible.
At the other end of the spectrum, if there are one or more issues that the insurer is disputing, your case may not settle for an appropriate amount right away. The insurer may want to receive and review evidence, such as your medical records or an accident reconstruction expert’s report, before settling your claim.
The Statute of Limitations
It is crucial to remember that the statute of limitations continues to apply even while you are attempting to negotiate a settlement. California law gives you two years from the date of your car accident to initiate a lawsuit. Your case does not have to be fully resolved within that time period, but it must be on file with the court.
If you do not abide by the statute of limitations, you can lose your right to pursue compensation through the court. While you could still file your lawsuit, the insurer and the at-fault driver could both move to dismiss your case for violating the statute of limitations.
This motion could cause your case to be dismissed without any compensation being awarded, no matter how egregious the conduct.
If you exceed the statute of limitations, the insurer is not likely to pay you a settlement, either. This reluctance is due to the fact that, by exceeding the statute of limitations, you lost any legal ability to obtain a court judgment against the insurer to pay you anything.
The better practice in your case is to proceed with preparations to file a lawsuit within the statute of limitations period while simultaneously seeking a settlement. This way, if you are not able to reach a settlement, you still retain the right to pursue your claim in court.
How a Car Accident Attorney Can Help You Settle Your Case
Having a legal professional who is experienced in dealing with auto insurance companies on your side is a huge advantage in settlement talks.
Your attorney can help you examine the total impact of your crash and determine what an appropriate settlement amount might be. Armed with this information, you are less likely to agree to a settlement offer that is too low to adequately compensate you.
Additionally, lawyers for the insurance company will likely try to make you doubt the strength of your evidence in an attempt to encourage you to take a low settlement. Your lawyer, however, can give you an honest estimation of the strength of your case so that you don’t accept an offer below what you are entitled to.
Turn to a Trusted Yuba City Car Accident Attorney for Your Case
If you or a loved one was hurt in a car accident in Yuba City, the experienced car accident attorneys at the Law Offices of Steve Gimblin may be able to help. As Northern California’s best injury law team, we’ve recovered millions in compensation for injury victims and provide knowledgeable, aggressive representation at all stages of personal injury claims — from settlement to trial.
We can do the hard work of investigating your crash, building a strong case, and filing a lawsuit so that you can focus on recovering. And where a settlement cannot be reached, the Law Offices of Steve Gimblin is prepared to represent you in court and fight to protect your rights.
Call the Law Offices of Steve Gimblin to discuss your car accident insurance claim settlement today.
No Comments