An auto insurance settlement may offer you exactly what you seek without having to step inside a courtroom. However, a settlement is typically missing something or prevents future recovery for an injured party. Deciding whether or not to accept an auto insurance settlement is a decision that can be made only by you and your attorney. However, discussed below are some basic considerations to include in your conversation with your lawyer.
Is It Enough?
Automobile insurance companies offer settlements as a way to stay out of court, thereby saving court and attorney’s fees. Sometimes, a company will pass these savings along to the injured party in the form of increasing its settlement offer. Other times, though, an insurance company will offer a settlement much lower than usual just to be done with the situation.
The first thing to analyze about an insurance settlement is whether it offers enough funds to make you whole once again. If the amount of settlement will not cover your medical expenses, lost wages and permit you to repair your automobile, it does not fit your needs and you might not want to accept the offer. Consider, too, the possibility of long-term medical care and coverage and whether the settlement will pay for those costs. Remember, too, that you will need to pay your attorney out of settlement funds.
Can You Proceed After Acceptance?
Many settlements contain a clause whereby after its acceptance the injured party can no longer proceed against the company or the individual they represent. This means that the settlement effectively ends a party’s ability to sue further for future medical costs or damages not yet identified. It is therefore necessary for every settlement to be viewed for what it permits the accepting party to do subsequent to their acceptance.
Does It Provide Assurances?
A settlement offer might include assurances of future automobile or medical insurance coverage to an injured party either by making them available from the company at a reduced cost or by stating that a portion of coverage will be offered for free. The most common example of this is an auto insurance company offering to cover the medical portion of automobile insurance for the injured party’s lifetime. These offerings are important because the injured party might have a difficult time finding these types of insurance coverage after an accident.
Seeking Legal Assistance
If you are not currently represented by an attorney but have experienced physical injury from an automobile or other accident, and you have received a settlement offer from an insurance company, do not accept the offer without first consulting an attorney. A lawyer will be able to review the document and suggest whether you should accept it or not for a small fee.
