How Does a Car Accident Settlement Work?

If you and the insurance company for a negligent driver agree to settle your case:

• The insurance company agrees to pay you a specific amount of money.
• You agree to withdraw your complaint and not request any more money after you’re paid the settlement amount.

Car accident victims should never negotiate with insurance companies on their own. The insurance carrier for the driver wants to pay you as little as possible. They’ll try to blame you for the accident. They know that once you settle your claim, you can’t come back for more – even when it becomes clear that your medical costs are much higher than you thought, you won’t be able to return to work for a long time – if at all.

Call our experienced York car accident lawyers as soon as possible. We speak for you and work to maximize your recovery. We’ve obtained substantial recoveries, some for more than $1 million for many of our clients.

How do you negotiate a car accident settlement?

There are two parts to your York car accident case:

Liability

At KBG Injury Law, we have the experience and resources to prove how your car accident happened and who is responsible. Many car accidents are caused by a driver who drove while distracted, tired, or intoxicated. Drivers may also be negligent because they were speeding, ran through a red light, or violated a traffic law. Our lawyers also file claims against the driver’s employer, the manufacturers of defective car parts, and other defendants.

Whether you agree to a settlement or go to trial depends, in part, on how strong your case is and how fair the settlement offer.

Damages

Before KBG Injury Law discusses a settlement of your car accident claim, we review every aspect of your injuries (treatments, the cost of your care, and every way your injuries prevent you from living your life) with your doctors. The value of your York car accident claim includes the following current and future damages:

• Medical bills, that can be quite expensive if you have a catastrophic or serious injury
• Lost wages, benefits, and other income
• Physical pain and emotional suffering
• Damage to your vehicle and any other property
• Inability to enjoy life’s pleasures
• Loss of bodily function
• Loss of consortium

In cases where the defendant’s conduct was completely inexcusable, such as when an accident is caused by a drunk driver, you may also be entitled to punitive damages. Our lawyers demand wrongful death damages if the defendants caused the death of a parent, child, spouse, or other close family member.

Once the investigation of your case is complete, we prepare a letter, called a demand letter, that we send to the insurance companies for the defendants in your case. This letter explains why we believe their policyholder is liable and itemizes all your financial and personal damages.  The demand letter starts the settlement negotiation process.

At KBG Injury Law, our lawyers are skilled at the art of negotiation and determining which insurance companies should pay your claim. In some cases, such as when liability is clear and your case is clearly worth more than the insurance policy coverage, the insurance company should agree to pay the insurance policy limits.

Other settlement issues involve the following:

• We review any offers by the insurance company with you. There may be some offers and counteroffers before your case finally settles.
• There may be multiple defendants. We’re skilled at negotiating settlements with multiple insurance companies who may blame each other.
• There may not be enough liability insurance. Some Pennsylvania drivers only purchase the state minimum ($15,000). Some drivers drive without having any liability insurance. If there isn’t any insurance or enough insurance to pay your claim, we’ll also file a claim with your uninsured/underinsured (UM/UIM) insurance carrier.

What are the pros and cons of settling your car accident case?

The reasons accident victims and families may agree to a settlement include:

• A fair offer. The insurance company has agreed to pay the full insurance proceeds or has agreed to pay what your case is worth.
• Jurors are human. They sometimes make mistakes. They sometimes don’t award all that they should. A settlement means you receive a specific amount of money. While we take pride in having obtained many strong awards for our clients (often higher than the settlement offers), there is some risk that a jury may not award you all that you deserve.
• With a settlement, you receive your funds within a short time. With a jury trial, you may need to wait months before a jury hears your case.

The advantage of a jury trial is that you may receive more money than if you settle your case.

When do I receive the settlement money?

Once our York car accident lawyers inform the insurance company/companies that you’ve agreed to accept their settlement offer, the following steps take place:

• A release. A release is the written agreement in which you agree to release your claim in return for receiving the agreed-upon settlement amount.
• The funds. After you sign the release, the insurance company/companies should send checks in the agreed-upon settlement amount within a short period – usually a few weeks.
• An accounting and distribution. We’ll prepare an accounting that explains how much you receive, the amount of our fee, the amount of outstanding costs, and any amount that may be due to your doctors.

Some settlements are called structured settlements. This type of settlement may be used for minors and for victims with catastrophic injuries. For minors, their bills are paid until they turn 18, at which time they receive their money. For adults, their bills are paid when they become due and they receive periodic distributions. Some exceptions may apply.

Generally, settlement proceeds are not taxable. Punitive damages are generally taxable as ordinary income.

At KBG Injury Law, we understand how anxious you are. We help you obtain the strongest settlement possible – but we’ll also recommend a jury trial if the settlement offers aren’t fair. Many insurance carriers settle with us because they know our record of impressive results. Please call us or complete our contact form to schedule a free consultation. We maintain offices in York, Lancaster, Harrisburg, Hanover, and Gettysburg for your convenience.