How Does a Car Accident Settlement Work?

Being injured in a car accident can significantly change your life, both physically and financially. Often, the process of recovering the money you need to get back on track starts with filing an insurance claim. However, filing that claim and obtaining a car accident settlement in Reno can be difficult and confusing.

By hiring an experienced legal team, you’ll have people to answer your questions and help you understand how the car accident settlement process works in Reno. Although navigating the system can be frustrating and overwhelming, your attorney will handle the daily interactions with the insurance companies so you can focus on your medical treatment and getting better. Here is a brief overview of what to expect along the way.

Car Accident Settlements: The Basics

Nevada follows a fault-based car insurance system. Under this system, the at-fault driver or their insurance provider is responsible for covering the expenses related to a car accident. As a result, if you sustain injuries in a car accident, the first place to seek compensation for your losses is the at-fault driver’s insurance company. In most cases, this is where the car accident settlement process starts.

However, even this step is often challenging, especially without help from an experienced and knowledgeable Reno car accident attorney. Remember that the insurance company is not on your side and will be looking to limit what it pays throughout the negotiations.

File a Claim with the At-Fault Driver’s Insurance Company

When your attorney files a claim with the at-fault driver’s insurance company, they must provide proof of all relevant facts and information. Once your attorney has a clear picture of your injuries and damages, they will send a demand letter to the insurance company. This is usually what starts the negotiation process and typically happens once you finish your medical treatment. The insurance adjuster will investigate the claim, examine the evidence, determine whether their insured is liable, and calculate your financial losses if they believe they must pay.

Once you have an attorney, the other driver’s insurance company has to talk to them and should not contact you. If the insurance company contacts you before you have an attorney, it is wise to keep your interactions short and factual. The insurance company will be looking for ways to use anything you sayto minimize their payout. Your best course of action is to consult an experienced Reno personal injury attorney early in the process. Your attorney can manage communication between you and the insurer to protect your legal rights and avoid over-divulging information that the company may use against you later.

Insurance Settlement Negotiations

Once the insurance company reviews all vital information and completes its investigation into the cause of the accident, it may make an initial settlement offer in response to the demand letter. The initial offer is usually less than the value of your claim and may only cover a portion of your financial losses. It is not uncommon for insurance companies to make an offer that his equal to half of your medical bills. The insurance company is concerned with saving money and resolving claims quickly. Insurance companies know that you may be tempted to immediately accept this lowball offer so you can catch up on bills and pay your medical expenses.

With an attorney on your side, you have someone who can advocate for you and negotiate for a settlement that more accurately reflects your true losses. Your lawyer will be able to help you value your claim, refuse an unacceptable offer, and make counter-demands for a fair settlement. The time it takes to reach an insurance settlement depends on the complexity of the claim and the willingness of both parties to reach an agreement. In some circumstances, reaching a settlement might not even be an option because the insurer refuses to make a reasonable offer.

Reaching a Settlement Agreement

If you, your attorney, and the insurer can reach a reasonable understanding, the settlement terms will be put into writing. When you sign off on an insurance settlement agreement, you release the insurance company and the at-fault driver from further liability related to the crash. Your attorney will advise you on the settlement offer but it’s ultimately your decision whether to accept a settlement following a car accident. Once you sign a settlement agreement, you forfeit your ability to seek additional compensation for that accident.

If reaching a settlement is not possible, you and your attorney may choose to file a personal injury lawsuit against the at-fault driver. While the lawsuit names the other driver as the defendant, keep in mind that their insurance company will provide them a lawyer and pay for settlements later on. The other driver is rarely ever personally responsible for paying a settlement. Moving forward with litigation may allow you to recover higher compensation for your medical expenses and other financial losses, such as pain and suffering.

Filing a Personal Injury Lawsuit

Your attorney begins your lawsuit by filing a legal complaint in the appropriate jurisdiction. The initial complaint typically includes the legal basis of your claim and the compensation you seek for your financial losses. The opposing party must be notified of your lawsuit and allowed to respond.

The Discovery Process

One of the most lengthy and crucial pretrial procedures is the discovery process. Discovery is simply the exchange of information that the parties in a lawsuit can use if the case goes to trial. Discovery can include interrogatories, depositions, and requests for production. Interrogatories are questions that each side asks the other. Depositions are formal interviews that attorneys take of the parties and possibly witnesses. A request for production involves the sharing of relevant documents with the other side, including medical records that demonstrate your injuries and treatment. This process allows and requires both sides to gather and share evidence that they need to build their strategies for negotiations and a potential trial.

Settlement Negotiations & Trial

Once both sides acquire and review the evidence, they may decide to engage in settlement negotiations to avoid a trial—though settlement negotiations can and do occur throughout the litigation process and the parties don’t have to wait until the end of discovery. Most car accident claims will settle outside the courtroom without going to trial. If you and the other party can reach a fair settlement, you can agree to dismiss your pending lawsuit and accept their settlement offer. If reaching a reasonable settlement is still out of the question, your attorney can move forward with taking your case before a jury. At trial, the attorneys will present all evidence and arguments, and then the jury  determines liability. Depending on the outcome, you will either recover damages or the jury will clear the at-fault party or their insurer of responsibility for the crash.

What Happens When the Money Arrives?

Settlement money is intended to pay back any bills you may owe, like medical bills, pay your attorney, and pay you. Once a case settles, your attorney will negotiate with your medical providers and health insurance to reduce what is owed to them, may cover medical liens before you get a check. A medical lien gives healthcare providers the right to seek payment for their services from the proceeds of a personal injury settlement or award. Your attorney might have worked with your healthcare providers to file a lien against the proceeds of your settlement in exchange for not being paid at the time of service. Once liens are satisfied, a portion of your settlement will cover your attorney’s fees. Most personal injury attorneys work on a contingency fee basis, which means they recover compensation from your award, and only get paid for their work if your claim is successful. Finally, your attorney can distribute the remaining funds to you.

Contact a Reno Personal Injury Lawyer for More Information

Has a careless Reno driver injured you in an accident? You have options for recovering fair compensation for your injuries. At Claggett & Sykes, through our trial work, appellate work, and consulting services, we’ve secured or helped secure over $800 million in awards and settlements.

Contact our office today to arrange a free consultation. We dedicate ourselves to providing responsive and comprehensive legal advice to clients in Reno and throughout Nevada. Let us get to know you and discuss how we can help manage your car accident claim.