{"id":353029,"date":"2017-01-11T17:08:04","date_gmt":"2017-01-11T22:08:04","guid":{"rendered":"https:\/\/content.findlaw-admin.com\/ability-law\/injury\/car-accidents\/car-accident-claims-and-settlements.html"},"modified":"2025-09-29T08:34:09","modified_gmt":"2025-09-29T13:34:09","slug":"car-accident-claims-and-settlements","status":"publish","type":"page","link":"https:\/\/www.findlaw.com\/injury\/car-accidents\/car-accident-claims-and-settlements.html","title":{"rendered":"Should You Accept a Car Accident Settlement Offer?"},"content":{"rendered":"\n
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Should You Accept a Car Accident Settlement Offer?<\/h1>\n\n
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\n By Susan Buckner, J.D.<\/a> | Legally reviewed by Catherine Hodder, Esq.<\/a>\n | Last updated\n
\n \n <\/i>\n Legally Reviewed\n <\/summary>\n\n
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This article has been written and reviewed for legal accuracy, clarity, and style by FindLaw\u2019s team of legal writers and attorneys<\/a> and in accordance with our editorial standards<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n\n

\n \n <\/i>\n Fact-Checked\n <\/summary>\n\n
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The last updated date refers to the last time this article was reviewed by FindLaw or one of our contributing authors<\/a>. We make every effort to keep our articles updated. For information regarding a specific legal issue affecting you, please contact an attorney in your area<\/a>.<\/em><\/p>\n\n <\/div>\n <\/details>\n<\/section>\n\n\n

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A car accident settlement<\/span> is a negotiated agreement between an injured person and an insurance company<\/span> for financial compensation. It allows a claim to be resolved without going to trial. A fair offer should cover economic damages like medical bills<\/span> and lost wages<\/span>. For serious injuries, the settlement may also include non-economic damages<\/span> for pain and suffering<\/span>, though initial offers are often less than what a personal injury<\/span> claim<\/span> is truly worth.<\/p>\n\n <\/div>\n\n\n\n

After a car accident, victims file claims with either their insurance companies<\/span> or with the other driver\u2019s <\/span>insurance company<\/span>. The hope is to get an acceptable settlement offer<\/span>. The need to file a legal action won\u2019t occur unless the insurer makes an initial <\/span>settlement offer<\/span> that\u2019s too low or denies your claim.<\/p>\n

If the initial offer is good enough, you should accept it. There\u2019s no reason to delay your recovery in a personal injury<\/span> claim<\/span> if the offer is fair. It\u2019s normal to wonder how to tell if the first offer<\/span> is a good one and what you should expect from a reasonable settlement offer<\/span>. If you\u2019re not sure, this is a good time to ask a personal injury<\/span> lawyer<\/span><\/a> to review your claim and determine if you received a fair settlement<\/span>.<\/p>\n

Car Accident Settlements<\/span><\/strong><\/h2>\n

Most auto accident<\/span> cases never see the inside of a courtroom. They get resolved through negotiations between the insurance companies<\/span>, the victims, and their attorneys, if any. A fair <\/span>settlement<\/span> offer<\/span><\/a> should cover the victim\u2019s medical bills<\/span> and costs, lost wages<\/span>, and sometimes additional property damage<\/span>. For minor accidents, a basic settlement offer<\/span> may be sufficient.<\/p>\n

In more serious cases, accident victims<\/span> can receive a higher settlement<\/span>. If the victim doesn\u2019t have an attorney, the insurance company<\/span> may try to \u201clowball<\/span>\u201d the settlement amount<\/span>, keeping the payout<\/span> low in the hope that an inexperienced victim doesn\u2019t realize they could ask for more compensation.<\/p>\n

Whether you consult a car accident attorney<\/span><\/a> or not, understanding the insurance settlement process can help you determine if you\u2019ve received the full value of your insurance claim<\/span>. Let\u2019s make sure you have a good grasp of what you should be receiving and how to get it.<\/p>\n

What Do Car Accident Settlements<\/span> Include?<\/strong><\/h2>\n

After a car accident, the insurance company<\/span> needs proof of your total damages<\/a>. The insurer uses whatever information you provide to calculate the value of your claim<\/span>. The more information you provide, the better your settlement will be. We\u2019ve listed the different types of damages below.<\/p>\n

Economic Damages<\/strong><\/h3>\n

Medical costs<\/span>, lost wages<\/span>, and out-of-pocket<\/span> repair costs are examples of economic damages. The insurer calculates these from your medical records<\/span>, tax returns, and other documents.<\/p>\n

If you suffer severe injuries<\/span> that may limit your ability to work, you can claim a loss of earning capacity<\/span>. Claiming loss of future income may require legal representation.<\/p>\n

Non-Economic Damages<\/span><\/strong><\/h3>\n

In settlement negotiations<\/span>, non-economic damages<\/span> refer to the intangible losses suffered by accident victims<\/span> as a result of the accident. Insurers have methods of calculating chronic physical pain<\/span> and emotional distress<\/span>.<\/p>\n

Calculating Fair Compensation<\/strong><\/h3>\n

The insurance adjuster<\/span> takes your gross pay and typical weekly hours and calculates your standard weekly or monthly pay. They multiply that by the time you were out of work due to your injuries. Insurance companies<\/span> calculate medical expenses<\/span> by adding your medical bills<\/span>, minus anything covered by your personal health insurance. Fair economic damages should at least equal this figure.<\/p>\n

In situations where your injuries require long-term care or physical therapy<\/span>, you must provide proof that you need additional compensation<\/span> to cover the necessary care. If this becomes tricky, consider getting some legal assistance<\/a>.<\/p>\n

Here are some of the factors that a settlement may cover:<\/p>\n