Following a car accident, you might encounter mounting medical bills while the other driver's insurance company urges you to accept their initial settlement offer. At Richardson Richardson Boudreaux, our Tulsa car accident lawyers help victims get fair compensation. When you face a financial strain, a quick settlement might seem good, but accepting too early often means getting less money than your case is worth.
Before signing any settlement agreement, talk to a personal injury attorney who can check if the offer is fair.
Understanding the Settlement Process After a Car Accident
The weeks after a car accident can be confusing when dealing with insurance adjusters. Learning the steps of the settlement process helps you avoid costly mistakes that could result in losing thousands of dollars in compensation.
How Does the Settlement Process Work?
The car accident claims process starts when you file a claim with the insurance company of the at-fault driver. The insurance company then assigns an adjuster to look at the accident, check your medical records, and assess vehicle repairs. Next, you or your personal injury lawyer will send a demand letter listing all your damages, including medical expenses, lost wages, and pain from your injuries.
The insurance company responds with an initial settlement offer, which is usually lower than what you deserve. This begins negotiations between you (or your car accident attorney) and the insurance adjuster. While most car accident claims are settled without court, talks can take weeks or months to complete.
If you can't obtain a fair settlement offer, your lawyer may suggest filing a personal injury lawsuit to pursue compensation. Even after filing, settlement talks usually continue, and many cases are settled before trial.
Why Insurance Companies Make Initial Settlement Offers
Insurance companies want to make profits by paying as little as possible for claims. They often rush to make an initial offer soon after your accident—before you know how bad your injuries are or what your future medical costs might be.
By offering quick cash when you face mounting medical bills, insurance providers hope you'll take less money than your claim is worth. These early offers rarely cover ongoing medical treatment or how your injuries affect your life and work.
Insurance adjusters often create fake urgency, saying things like "this offer expires soon" to push you into a quick decision. Without good legal advice, many accident victims accept these low offers because they need money now.
The Role of Insurance Adjusters in Settlement Negotiations
Insurance adjusters work for the insurance company, not for you. Their job is to settle claims for as little money as possible. They use many tactics to cut your payout, like questioning your injuries or saying your medical treatment wasn't needed.
Adjusters may ask for recorded statements, hoping you'll say something that hurts your claim. They might also ask for your medical records to find pre-existing conditions they can use to deny covering your current injuries.
These professionals handle claims every day, putting you at a disadvantage if you try to negotiate without a car accident lawyer. They know that people without lawyers typically settle for much less money.
Assessing a Settlement Offer from the Insurance Company
When you receive a settlement offer from an insurance company after your car accident, it's important to assess if it sufficiently compensates you for all your damages. Several factors are crucial in determining whether an offer is fair.
Key Factors to Consider Before Accepting a Settlement
Before accepting any settlement offer, make sure it covers all, including non-economic damages:
- Current and anticipated medical expenses resulting from your injuries
- Lost wages from missed work time
- Reduced future earning ability
- Car repair bills or replacement costs
- Pain and suffering
- Emotional distress from the accident
It's important to remember that once you sign a settlement agreement, you cannot request additional compensation later, even if your injuries worsen. This is why it's important to reach maximum medical improvement before settling your claim.
How to Evaluate Whether a Settlement Offer Is Fair
To know if a settlement offer is fair, compare it to all your damages. Add up all your costs: medical bills, lost income, and property damage. Then, ask your doctor about future costs based on your treatment plan.
A fair settlement should provide you with high compensation for all pain and suffering. A personal injury lawyer is very useful in this, referencing other cases relevant to your own. Your medical records will be really important documentation, proving how bad your injuries really are.
Common Mistakes to Avoid When Reviewing an Offer
One big mistake is taking the insurance company's first offer, which is almost always low. Another error is signing a release too quickly without understanding what it means for future claims.
Many people don't realize how much their future medical costs might be, especially with serious injuries. Without proper medical records, you might settle for too little to cover your ongoing care.
One of the most significant mistakes is failing to get advice from an experienced car accident attorney before agreeing to any offer. Personal injury lawyers know what claims are worth and can tell when an insurance company's offer is too low.
The Importance of Future Medical Costs in Your Settlement
Future medical expenses often make up a large part of a fair car accident settlement. Many victims overlook these costs when looking at an insurance company's offer.
How Maximum Medical Improvement Affects Your Claim
Maximum Medical Improvement (MMI) is when your condition has stabilized, and major improvement is unlikely even with more treatment. Reaching MMI doesn't mean you're fully healed—you might have permanent injuries needing ongoing care—but it means doctors can now predict your future medical needs.
Settling before reaching MMI is risky. Without understanding your injuries fully, you can't calculate future medical costs correctly. Your doctor will document when you've reached MMI and provide a treatment plan for future care.
Insurance companies push for early settlements because they know claims often increase in actual value once the full extent of injuries becomes clear. For serious injuries, waiting for MMI is especially important before you accept a settlement offer.
Remember that once you accept an insurance settlement, you cannot ask for more money later, even if your condition gets worse. This makes it crucial to understand your future medical expenses before agreeing to any offer.
Lost Income and Other Financial Damages in a Car Accident Claim
Beyond medical expenses, car accidents often cause financial hardship through lost income. When you're injured, you may miss work, creating money problems just as medical bills pile up.
Calculating Lost Wages and Earning Capacity
Lost wages are the income you've missed due to your injuries. This includes time in the hospital, at medical appointments, or when you couldn't work. You'll need evidence like pay stubs, employment records, and statements from your employer confirming your absence.
For most workers, figuring lost wages means multiplying your daily pay by days missed. For self-employed people, you may need to use past earnings to show your typical income.
Beyond immediate lost wages, many accident victims face reduced earning capacity if injuries prevent returning to their previous jobs. The difference between what you could have earned in your original job and what you can earn now is your lost earning potential.
Your personal injury attorney will help identify all these financial losses to ensure your settlement covers the true financial harm of your injuries.
The Role of Legal Representation in Securing a Fair Settlement
Hiring an experienced car accident attorney changes how the settlement process works. Insurance companies treat claims differently when they know a lawyer is protecting your interests.
Advantages of Having a Lawyer Manage Negotiations
When you hire a personal injury attorney for your car accident claim, you gain several big advantages:
- Attorneys know the true value of your claim based on your specific injuries
- Attorneys manage all communications with the insurance company
- Your attorney signals to the insurance company that you're serious about fair compensation
- Studies show accident victims with lawyers receive higher settlements—often 3-4 times more
- Lawyers can identify all possible sources of compensation
While most cases settle without trial, having an attorney ready to take your case to court gives you leverage in negotiations. Insurance companies consider the risk of litigation when deciding how much to offer.
When Should You Accept a Settlement Offer?
Understanding when to accept a settlement offer is crucial to safeguarding your interests following a car accident. While every case is different, certain signs should guide your decision.
Signs That a Settlement Offer Is Fair
A fair settlement offer should:
- Cover all your current medical bills from treatment
- Account for future medical expenses based on your doctor's plan
- Pay for all lost income, including wages already missed
- Cover all property damage, including vehicle repairs
- Include compensation for pain and suffering
- Match what similar cases have received
You should accept a settlement only after reaching maximum medical improvement or when your doctors can predict your future medical needs. Settling before this point risks leaving future expenses uncovered.
Your attorney's advice carries great weight in deciding if an offer is fair. Experienced car accident lawyers understand what makes reasonable compensation for your specific injuries.
Time Pressure and the Statute of Limitations in Oklahoma
In Oklahoma, personal injury claims include those from car accidents, and statute limits that life of two years once the incident takes place; if you hurry, the timing may be at risk. This means you must either settle your claim or initiate a lawsuit within this two-year timeframe, or you forfeit your right to seek compensation.
As this deadline approaches, insurance adjusters may become less willing to negotiate. They might delay responses or use tactics to run out the clock, hoping you'll accept a lower offer out of desperation.
Filing a lawsuit actually keeps the statute of limitations time from running, even if you keep negotiating to settle after that. Special notice requirements apply to cases involving government entities, such as accidents with city buses. In Oklahoma, claims against government entities typically require formal notice within one year.
Finalizing a Settlement Offer: What to Expect
After deciding to accept a settlement offer, you must complete several steps to finalize the agreement and receive your compensation.
The settlement process begins with a formal written offer from the insurance company. Your attorney will review this document carefully to ensure it matches what was agreed to during negotiations.
After accepting the offer, you'll sign a release form. This legal document states that you release the at-fault party and their insurance company from any further liability for the accident. Once signed, you cannot seek more compensation even if your condition worsens.
Upon completion of all paperwork, the insurance company typically issues payment within 2-6 weeks. This payment usually comes as a check to your attorney, who deposits it in a client trust account.
From this settlement amount, your attorney will deduct their legal fees and case expenses. They may also help resolve outstanding medical liens, which might include health insurance reimbursements or payments to medical providers.
After these deductions, you receive the remaining balance. Most personal injury settlements are not taxable at the federal level, but portions for lost wages may have tax implications.
FAQs
Can I reopen my case if my injuries get worse after I settle?
No. Once you sign a settlement release, your case is closed even if your condition worsens. This is why reaching maximum medical improvement before settling is crucial. A good settlement should account for possible future complications based on your doctor's assessment.
How long does it take to settle a car accident claim?
Simple claims might settle in 3-6 months, while complex cases with serious injuries often take 1-2 years. Rushing typically results in lower compensation. Each case timeline depends on injury severity, insurance company cooperation, and evidence complexity.
Will I have to go to court to get a fair settlement?
Most car accident claims are settled without trial. However, filing a lawsuit often becomes necessary to show the insurance company you're serious. The negotiation process typically continues during litigation, with many cases settling before reaching the courtroom.
Should I accept the insurance company's first offer?
Rarely. Initial offers are almost always lower than what your claim is worth. These offers typically represent starting points for negotiation, not fair assessments of your damages. Having a personal injury attorney review any offer protects your interests.
How do medical liens affect my settlement?
Medical liens give healthcare providers legal rights to a portion of your settlement. These must be resolved before you receive your money. Your attorney can often negotiate these liens down, maximizing your compensation while ensuring medical providers get paid.
What if the at-fault driver has no insurance?
If the at-fault driver lacks insurance, you may still have options. Your uninsured motorist coverage can provide compensation. Other potential sources include your health insurance, medical payments coverage, or a personal injury lawsuit against the driver.
How much does hiring a car accident attorney cost?
Most personal injury lawyers work on contingency fees, meaning they only get paid if you win. The standard fee is 33-40% of your settlement amount. There's no upfront cost, and the initial consultation is typically free.
Contact a Tulsa Car Accident Lawyer for a Free Consultation
At Richardson Richardson Boudreaux, we're focused on ensuring that our clients who get into accidents are reimbursed for the full amount they should get. Our experienced attorneys specialize in how insurance companies tend to minimize settlement amounts.
Don't risk accepting less than your case is worth. If you've been injured in a car accident, call our Tulsa law firm today for a free consultation. We operate on contingency fees. Nothing lands in your lap unless we succeed in your case. Let us manage the legal work while you focus on getting healed. Contact us today to speak with an experienced car accident lawyer who will fight for the maximum compensation you deserve.
