What are the Steps of a Car Accident Settlement?

An Overview of Car Accident Lawsuits

If you are involved in a car accident and injured through the negligence of another driver, you are entitled to make a personal injury claim for all damages sustained as a result.

The purpose of this compensation is to cover your medical bills, lost wages, and the pain and suffering experienced after the accident. Your goal as a claimant should be to recover financially from your car accident.

The more you learn about the different steps in the car accident settlement process, the more confidently you can navigate it.

While the settlement process is reasonably straightforward, it is also time-consuming. There is much more involved than submitting a claim to the negligent driver’s insurance company and receiving a settlement check.

There is typically a thorough investigation of the car accident, followed by a negotiation process between your attorney and the defendant’s insurance company. If you fail to reach an agreement with the insurance company after negotiations, you may need to file a lawsuit and appear in court to get the compensation you deserve for your injuries.

By retaining an experienced car accident attorney, you can strengthen your chances of receiving a favorable settlement, and they can guide you through the various steps of the process.

If you are having trouble making ends meet during your claim, Uplift Legal Funding may be able to help. Our auto accident settlement loans help plaintiffs nationwide pay for living expenses before their cases settle.

After the Auto Accident

Here are the steps you should follow promptly after being involved in a car accident.

Report the Accident

In most states, you are legally obligated to report a car accident to the local police department if anyone was injured. Alternatively, you may report the accident to the county sheriff or to the state highway patrol.

Some states also require a written police report in the event of serious injuries, death, or property damage.

Take Pictures

Document the scene of the accident. Take photos of your vehicle from multiple angles.

Make sure you document the damage to both vehicles.

Photograph the surrounding area, making sure to include any property damage.

Talk to Witnesses

If there were witnesses to your accident, write down their names and contact details.

Seek Medical Attention

If you or a passenger in your vehicle is injured, call 911 and get the medical attention you need.

For more information on steps to take promptly following your accident, click here.

What Process Does a Car Accident Settlement Follow?

While every personal injury claim is different, you will follow the same fundamental steps during the claims process.

Preparing the insurance claim

To prepare your insurance claim, it helps to gather information at the scene of the accident.

Remember not to apologize, and do not accept any fault for the accident at the scene.

Collect the following information to streamline your personal injury claim:

• Names and phone numbers of all those involved
• Insurance information of the other driver(s)
• Vehicle make, model, and license plate
• Police report reference number
• Badge numbers of attending police officers
• Names and phone numbers of all witnesses

Filing a letter of demand

With all the necessary information in place, you need to draft a demand letter. You send this letter to the insurance company to formally request payment or make another demand to address the other party’s fault.

Demand letters are professional documents typically drafted by lawyers. When applied to a personal injury claim, a demand letter is also known as an insurance claim letter. The demand letter presents the facts of the car accident to persuade the insurance carrier to pay compensation.

Demand letters need the following three core components:

1. All facts relevant to the accident
2. Comprehensive list of damages
3. Statement of fault

The demand letter should fully outline what happened in the accident.

If you or any passengers in your vehicle were injured, detail these injuries, any medical treatments, a list of medical bills, and all other related receipts.

Beyond this, the letter needs to discuss the fault of the insured to establish liability.

When requesting a settlement, you should explicitly state your payout expectations.

Always ensure that a demand letter is direct, concise, and polite. A demand letter is a formal document, so you should also strive to remain as objective as possible.

In addition to requesting a compensation amount, include a demand for any non-monetary compensation—such as repairs—and a firm deadline for the insurance company to meet your expectations before you take further action.

Negotiation and settlement

After you have sent the letter of demand to the at-fault driver’s insurance company, you can anticipate one of four responses:

The insurance company accepts your demand and pays. You receive your compensation, and the claim is resolved.

They make a counteroffer rather than a payment. Never settle for an unreasonable offer. You can then continue the negotiation process. If you are still not satisfied, you can file a personal injury lawsuit. Your attorney will prove invaluable if you need to negotiate in this way.

The insurance company denies your claim, refusing to pay. This normally only happens if there is insufficient evidence or a problem with the claims process.

They do not respond at all. In this rare event, speak with your attorney about taking further action.

Mediation process

If you find the negotiation process stalled, you can request mediation.

With mediation, you meet with the insurance provider’s representatives in the presence of a third-party mediator. This unbiased third party will hear both sides of the story and try to help you reach an agreement. Your lawyer may also attend this meeting.

If mediation is successful, you can finalize a settlement amount. You may also need to sign a form—a release of liability—to promise the insurance company you will not subsequently sue for damages.

Filing a lawsuit

Perhaps negotiations come to nothing, and you do not receive a reasonable offer reflecting the compensation you deserve.

Maybe the insurance carrier wrongfully denies your claim.

While most car accident cases end in settlements, you can still pursue the matter in court if you feel you are being denied a fair resolution.

If you file a personal injury lawsuit, the case can still end in settlement at any point before the trial date. If the case goes to trial, a jury will decide whether you are eligible for compensation.

Hiring an experienced personal injury lawyer is the best way to navigate the civil process, from the discovery phase through depositions and more.