Understanding how the settlement of a claim works is crucial for car accident victims seeking fair compensation. This article outlines the steps involved in settling a personal injury claim and highlights key factors that can influence the car accident settlement amount.
At The Weinstein Firm, we help car accident victims in Atlanta and throughout Georgia fight for the maximum compensation.
What is a Settlement of a Claim?
The settlement of a claim is where both parties agree to resolve an insurance claim or lawsuit outside of court. The lawyer for the plaintiff (injured party) and the insurance company of the at-fault party decide on the amount of money to be paid.
A settlement agreement is a legally binding document outlining the terms of this resolution. Once the accident victim signs the final settlement agreement, he or she gives up the right to pursue a personal injury lawsuit.
Steps in the Personal Injury Claim Settlement Process
Filing an Insurance Claim
The first step in the settlement process is filing an insurance claim with the at-fault driver’s insurance company. This involves notifying the insurer about the accident and providing preliminary information, such as the accident’s date, location, and the damages. After this, the insurance company will begin investigating the claim.
Investigation of the Claim
Once a claim is filed, the insurance company assigns an adjuster to investigate the accident. The adjuster’s role is to determine liability and assess the value of the injury claim. This process often involves reviewing police reports, medical records, and repair estimates for property damage.
During this stage, you may need to provide evidence such as photos of the accident scene, medical bills, and proof of lost income. A personal injury lawyer can help organize and present this information.
Negotiation With the Insurance Company
After the investigation, negotiation begins. Your personal injury lawyer will submit a demand letter to the insurance company. This letter outlines the damages and compensation sought, including costs for medical treatment, lost wages, and pain and suffering.
The insurer typically responds with a settlement offer. This initial offer is often lower than what the victim deserves, as insurers aim to minimize payouts. The negotiation process may go back and forth until the parties agree on a fair settlement amount.
Reaching a Settlement Agreement
If the parties agree on a settlement, they formalize the terms in a settlement agreement. This document outlines the agreed-upon amount and specifies that the injured party waives their right to pursue further legal action related to the accident. It’s crucial to have an attorney review this agreement to ensure it protects your rights.
Key Factors in Georgia Car Accident Settlements
The average car accident settlement in Georgia is around $23,900, but this figure can vary significantly. Various factors can influence settlement amounts.
Liability
Liability plays a pivotal role in any Georgia car accident claim. The at-fault party’s insurance policy determines the compensation limits. Georgia follows a modified comparative negligence rule, meaning that an injured person can recover damages as long as they are less than 50% at fault for the accident.
Policy Limits
Insurance policies have coverage limits that cap the amount an insurer will pay. The policy limits for bodily injury and property damage coverage set the maximum amount an insurance company will pay if the policyholder causes a car crash.
For example, imagine your car’s actual cash value was $40,000 before the accident. However, the other driver only has $25,000 in property damage coverage. The insurance company would only pay $25,000 for your car even though the replacement value is much higher.
The minimum auto insurance required in Georgia covers:
- $25,000 for bodily injury or death per person
- $50,000 for the injury or death in a single accident
- $25,000 for property damage
Drivers may decide to purchase higher coverage limits.
If damages exceed the policy limits, the accident victim may need to pursue additional compensation directly from the at-fault party. Alternatively, drivers with uninsured/underinsured motorist coverage can file a claim with their own insurance company. If the other driver’s insurance doesn’t fully cover all your costs, underinsured motorist coverage helps bridge the gap.
Damages
Damages in a car accident settlement fall into two categories.
- Economic Damages: These include medical expenses, lost wages, property damage, and future medical treatment costs.
- Non-Economic Damages: These cover intangible losses such as pain and suffering, emotional distress, and reduced quality of life.
The greater your medical costs and other losses, the higher the potential settlement. Car accident settlement amounts are typically higher for severe injuries or permanent disabilities.
In some cases, the Georgia courts award punitive damages in a personal injury lawsuit to punish the at-fault party for particularly reckless behavior. Punitive damages are not offered in settlements.
Evidence
Strong evidence can significantly impact the outcome of a settlement. Key evidence includes accident reports, witness statements, photos, medical records, and repair estimates. An experienced attorney can help gather and present this evidence effectively.
Challenges in Settling a Personal Injury Claim
Low Settlement Offers
Insurers may initially offer a settlement that doesn’t fully cover the injured person’s costs. This is a common tactic to save money. A personal injury lawyer can help negotiate for a fair settlement that reflects the full cost of medical bills, lost income, and other damages.
Disputes Over Liability
If the at-fault party denies responsibility or accuses you of being partially at fault, the claims process can become more complex. If the insurance company denies your claim, a lawsuit may be necessary to secure fair compensation.
Delayed Payments
Delays in payment can occur when insurers challenge claims or require additional documentation. An attorney can expedite the process by addressing the insurer’s concerns promptly.
Most cases settle outside of court. However, filing a lawsuit may be necessary if the insurance company refuses to offer a fair settlement. During litigation, both parties present evidence in court, and a judge or jury decides the outcome. A skilled attorney can guide you through this process and advocate for your best interests.
Why You Need a Personal Injury Lawyer
Navigating the settlement process alone can be overwhelming, especially when dealing with medical bills, lost income, and the emotional toll of an accident. A car accident lawyer provides invaluable support by:
- Assessing the value of your car accident claim.
- Negotiating with insurers to secure a fair settlement.
- Filing a lawsuit and representing you in court if necessary.
- Advising you on whether to accept a settlement offer or proceed to trial.
At The Weinstein Firm, our Atlanta personal injury attorneys have extensive experience handling Georgia car accident cases. We work tirelessly to ensure our clients receive the compensation they deserve.
Contact The Weinstein Firm Today
If you’ve been involved in a car accident in Georgia, don’t navigate the settlement process alone. The Weinstein Firm is here to help you resolve your claim, secure fair compensation, and move forward with your life.
Contact us today to schedule a free consultation. This gives you the opportunity to discuss your case and learn about your legal options without any obligation.
