What Does A Car Accident Settlement Look Like

What Parts Make Up a Typical Car Accident Settlement?

Understanding a car accident settlement involves many layers, and each case has unique features. However, some typical elements are present in almost all car accident settlements. Let’s break it down and make it easier to grasp.

Primarily, your settlement contains compensation for your injuries and related costs. This sum is calculated based on the severity of your injuries, the cost of medical treatments, and whether you experienced any long-term disability or trauma.

A portion of the settlement often covers damage to your car or personal property. Remember, this includes not only vehicle repair or replacement expenses but can also involve other valuables damaged in the accident.

Finally, part of your compensation may also cover intangible damages. These could range from emotional distress and pain to losses related to changes in quality of life or missed work opportunities as a result of the accident.

But the plaintiff doesn’t walk away with the entire settlement amount. This article helps shed light on the fees and expenses that come out of your settlement.

Car Accident Lawsuit Legal Fees

Typically, car accident attorneys charge clients a contingency fee, as opposed to an hourly fee. A contingency fee means the attorney will not get paid any legal fees unless you win the case. If you win the case and receive a settlement, the lawyer or law firm will receive a percentage of the money from that settlement.

This fee can vary from state to state. However, you can expect it to be about 20 to 40 percent of the settlement amount. Let’s assume it is 33 percent for this example. Sometimes, several firms split this fee. The more severe your injuries are, the more important it is for you to hire an attorney.

For our example, let’s assume your attorney gets paid about $33,000 from your settlement for his or her work.

Accident Injury Liens and Medical Expenses

When you are the victim of a car accident and have filed a personal injury lawsuit to recover the cost of medical bills, those who paid for these medical costs can file a medical lien against your settlement proceeds. A lien is a demand for repayment that is placed against your personal injury case. In addition, your health insurance provider may issue a lien to recover any amount it spends on your accident treatment.

In exchange for treatment provided before your case settles, medical and health insurance providers often seek repayment from your settlement.

A general rule of thumb is to assume the recovery amount may be up to three times the cost of the medical expenses. However, it is possible to get these providers to accept less than the amount they paid. Your attorney can typically reduce the medical expenses to two-thirds of the total cost. For our example, the plaintiff’s medical expenses were about $35,000. Let’s assume your lawyer can negotiate them down to about $23,000.

Car Accident Lawsuit Legal Funding

If you are out of work as a result of your injury, car accident loans can be a great option to help you financially withstand a lengthy process. Pre-settlement funding is typically meant for plaintiffs who are seriously injured, unable to return to work, and have no other resources available for living expenses while waiting for their personal injury claim to settle. In most cases, legal funding companies offer a no-win, no-pay policy. This means that if you don’t win the case, you don’t need to pay them back.

The amount the client qualifies for depends on many factors, including liability, insurance coverage, damages, and previous advances. Pre-settlement payment typically comes out of the client’s portion of the settlement. At Uplift, our direct funding predominantly involves simple, non-compound interest. For example, let’s assume there is $5,000 in advances and $8,000 in payback due.

The Plaintiff’s Portion of a Car Accident Settlement

In the end, our hypothetical client receives about $36,000 from the settlement. This covers lost wages, pain and suffering, and any other assessed damages.

Uplift Legal Funding

Many plaintiffs file a suit not to get rich, but to take steps to prevent others from going through what they had to go through. It is important to create a safe community where people can protect their rights and hold guilty parties accountable for their actions.

Uplift Legal Funding serves plaintiffs nationwide, helping to ease your financial strain and get you the settlement amount you deserve. It is time to take control of your legal journey! Apply online or give us a call at (800) 385-3660.