Accident Claim Settlement: Knowing When to Accept

If you have been offered an accident claim settlement, then you need to know whether to accept that settlement or not. There are a lot of different things you need to consider when deciding whether a settlement offer should be accepted or not. The most important thing, however, is that you do not accept any settlement without having an attorney look it over.

Understand Settlements

Despite the fancy trials you may see on TV and your possible perception that lawyers spend their lives in the court room, you may be surprised to find out that the vast majority of cases- especially civil lawsuits and tort cases- settle outside of court. Most people who are sued for a tort or accident (from a car accident to a dog bite accident to a doctor's negligence) are covered for that accident by some type of insurance. They may have medical malpractice insurance, homeowners insurance, car insurance, or just a blanket policy called a "liability policy" (which many corporations have).

This means in the vast majority of lawsuits, when someone is sued, it is his insurance company who will actually be handling the case, providing the legal fees and making the settlement offers. For insurance companies- and indeed for corporations and people who are the defendant's in lawsuits- going to court can be dangerous. It is impossible to predict or control costs, and a jury who is sympathetic to the plaintiff may award a high award for pain and suffering, or even award punitive damages in some cases. These verdicts can make an insurance company or corporation fearful of a million dollar (or more) verdict. To avoid the risk of an out-of-control judgment, the insurance company or corporation being sued will, more often than not, offer a settlement for all but the absolute most frivolous of claims.

Should You Settle?

When you settle, the insurance company or defendant pays you a large lump sum of cash- but there is a cost. You must give up your future right to sue for the incident in question by signing a blanket "release of liability" form when you accept the settlement. Once you sign, that's it- if you later find out your injuries are worse than you thought or that you should have asked for more, it is too late to go back and do anything about it.

As such, before you settle, make sure the settlement is fair. Think about:

How good your case would be- do you have a reasonable chance of winning in front of a jury
How much your damages might be from a jury- would you get punitive damages? Does the settlement award being offered account for all your medical bills, lost wages, pain and suffering, emotional distress and other losses from the injury
Would there be more money available even if you got a larger judgment? Once the insurance policy reaches its limits, you can collect from the defendant's personal assets- but only if he has them. Otherwise, your larger judgment may be uncollectible.

Getting Help

The best thing to do when offered an accident claim settlement is to speak to an experienced personal injury attorney. Your attorney can review the settlement in light of the damages you might get in court and in light of the strength of your case. He can help you decide if the settlement is fair and can make sure your interests are protected and that you don't give up any of your rights.

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