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What is a Car Accident Injury Settlement?

By Felicia Dye
Updated May 17, 2024
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A car accident injury settlement is financial compensation provided for harm caused in an automobile accident. A portion of this money may also be used to compensate attorneys who represent the injured individuals. In most cases, this compensation is provided by an auto insurance company, but there are instances in which individuals are required to pay from their personal finances. The amount may be determined by way of an agreement between the parties, or it may be determined by court order.

In most cases when a car accident occurs, at least one party is found to be responsible. If someone was hurt in that accident, the injured person is likely to receive a car accident injury settlement, which is financial compensation from the responsible party or her insurance company. This money is considered to be a settlement because it is generally awarded following a process that begins with a claim or a complaint. In many cases, there are disputes and negotiations involved before a final award is reached.

When a car accident results in only minor injuries, the settlement may be reached easily, quickly, and without the intervention of any third party. In many cases, however, getting a car accident injury settlement is an extended process. One factor that contributes to the length of time that it takes to reach a settlement is treatment. Before an award is made, it is usually necessary to get an accurate idea of how severe a person’s injury is and how much treatment will cost.

A civil court is often involved in these cases. Settling the matter can also involve personal injury lawyers for the parties who are hurt and lawyers defending the party allegedly responsible or the insurance company that does not want to pay. When this is the case, the lawyers for the injured parties are commonly compensated by taking a portion of the car accident injury settlement instead of charging fees to their clients directly.

If a person does not have insurance, a court may order him to pay the car accident injury settlement from his personal finances. There are also some instances when a person has insufficient insurance coverage. When this happens, the insurance company usually pays a portion, and the responsible party must pay the remainder of the awarded amount.

The car accident injury settlement can include compensation for a number of things. It can be used to pay for visits to a medical professional, rehabilitative therapy, and prescriptions. It can include compensation to a person who suffers the loss of a limb or a disability. Other problems that may warrant compensation include pain and suffering and miscarriage.

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Discussion Comments
By Animandel — On Feb 27, 2014

I have a friend who is a personal injury lawyer. She has won some large award amounts in several car accident settlement cases, and she is a partner in the firm where she works. She enjoys the challenges of her job and is happy with her work on most days.

By Sporkasia — On Feb 26, 2014

Drentel - Whenever a police officer appears on the scene of an accident and fills out a report your personal information becomes part of a public record. This record can be accessed by anyone.

Auto accident personal injury lawyers make a practice of getting copies of all the accident reports filed in their area. This practice gives more ammunition to those among us who like to refer to personal injury lawyers as ambulance chasers.

By Drentel — On Feb 25, 2014

A lady ran a stop light and I hit her. My car was damaged enough that I could not drive it away from the scene. Fortunately, neither of us had to go to the hospital and there were no passengers in either car.

In a matter of a couple days, I received several letters from car accident lawyers offering their services. How do the lawyers get that information so quickly? How did they know my address and that I was in an accident?

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