How to Handle a Car Accident Settlement
Accidents are part of the driving experience. Knowing how to settle claims arising from accidents is as important as your driving ability. Whether you are at fault for causing damages or on the receiving end, the steps to settle a claim are the same. What you should do in any particular case will be determined by the severity and type of damages. An accident causing significant bodily injury as opposed to only minor property damage will differ in how long each step takes and the complexity of the activity involved.
Other People Are Reading
Instructions
-
-
1
Determine the type and amount of damages the accident caused. Typically, there are two types of damages: economic and noneconomic. Economic damages include repair costs for your vehicle, medical bills and loss of income. Noneconomic damages include such things as pain and suffering. Economic damages are relatively easy to determine from the bills you received from the repair shop and doctor's office. Determining pain and suffering is less simple, although there is often a correlation between the type and severity of your injuries and the amount for pain and you can expect to receive.
-
2
Hiring an attorney is almost always a good step, but it that will come with a cost. Although attorneys will almost always handle car accident cases on a contingency basis, you can expect the attorney to deduct one-third of your settlement as payment for his services.
Your decision to hire an attorney should probably be determined by the type and severity of your damages. For example, if you suffered bodily injury that required an extended hospital stay, broken bones or the possibility of a permanent adverse medical condition, you should hire an experienced attorney to handle your case. Property damage only or soft-tissue injury claims (e.g., bruises, aches and pains that will heal with minor medical treatment or on their own) can usually be resolved without hiring an attorney.
-
-
3
After determining the type and amount of your damages, you are in a position to settle your claim. You will either be dealing with an insurance adjuster or with the person who caused the car accident. Making a written demand for payment of your damages is advisable. Also, be prepared to provide copies of all documents that support your damage claims, such as repair bills and medical bills. If you claim loss of income, be prepared to provide documents regarding your employment and earnings. You should include in your demand the total amount you are claiming to settle your claim. Make sure you have accounted for all items of damages as this document will be produced in court if the person who caused your damages will not pay the amount you are demanding voluntarily.
-
4
Determining the amount you demand for economic damages is pretty clearcut: you want to recover the amount you owe to have your car repaired, to pay your medical bills and to recover the income you lost. The amount you should demand for noneconomic damages is less clear, since there are no hard-and-fast rules for determining the appropriate compensation for pain and suffering. A common approach is to calculate it as a multiple of your medical bills, anywhere from 1.5 times your medical bills to 5 times or more in cases involving serious injury.
-
5
Following your demand for payment, you will most likely begin a period of negotiations that usually centers around the amount of payment to resolve your claim for the car accident and the manner of payment, either a lump sum or a series of payments. Do not let negotiations drag on for a substantial period of time because your claim will be subject to a statute of limitations that can vary by state. If the statute expires before your claim is resolved, you will not be able to pursue your claim any further. Hire an attorney as soon as you find you cannot get the case resolved or take the matter to small claims court.
-
1
