If you were recently in a car accident someone else caused, you’ll probably get a call from the at-fault driver’s insurance company any day now. Maybe you already have.
The adjuster might tell you they have good news. They say that the company is offering you a settlement, and if you sign it, you’ll get paid and can get back to your life.
But even if you think the settlement is generous, be aware that whatever the insurer is offering now is likely less than what they’d be willing to agree to with some legal pressure of your own. Plus, no matter how big that number looks now, there’s a good chance that it won’t even begin to cover the full scope of your losses.
So, with that in mind, let’s take a closer look at how to know if a car accident settlement is fair and what you can do if it’s not.
What Makes a Car Accident Settlement Fair?
Any settlement you accept from the at-fault party’s insurance company should account for:
- The losses you’ve suffered, both financially and personally
- How much insurance coverage and other assets may be available
- Any expected future impacts of the accident on your life
However, there’s really only one way to know whether you’re being offered a fair car accident settlement: talk to a lawyer.
How to Evaluate a Car Accident Settlement
Here are some steps you and your personal injury attorney may take to determine a full and fair car accident settlement value for your case:
Calculate Your Total Economic Damages
Your economic damages serve as the foundation of your car accident claim. This form of compensation covers the various financial losses you’ve suffered because of the crash, including your:
- Medical expenses, such as ambulance transport, surgeries, hospitalization, doctor appointments, specialist visits, medications, and physical therapy
- Lost income when you can’t work or you earn less because of your accident injuries
- Property damage, including the cost to repair or replace your vehicle
- Out-of-pocket costs, such as help with household services ordered by your doctors
Financial documentation, such as your medical bills, pay stubs, repair estimates, invoices, and receipts, can help provide clear figures for your economic losses from the accident until now.
Consider Pain and Suffering
Not every consequence of a car accident has an obvious dollar value attached to it. Instead, some are purely personal in nature, such as:
- Physical pain
- Emotional distress
- Loss of quality of life
A fair settlement for a car accident should also take these non-economic damages into account. To put a number on pain and suffering, car accident settlements tend to track jury verdicts for similar cases in that area of the state. Judges instruct juries that “There is no fixed formula for placing a value on physical pain and mental suffering” (N.C. Pattern Jury Instruction 106.08). However, the law allows the victim’s lawyer to argue the per diem method to the jury (N.C. Pattern Jury Instruction 106.22).
The per diem method assigns a dollar amount to your pain and suffering for a specific time unit, such as a day, month, or year. That number is then multiplied by the number of units you have endured or are expected to endure the effects of your injuries.
Anticipate Your Future Needs
Crucially, your settlement shouldn’t just cover what you’ve already lost because of the accident, but what you will lose in the future, too.
When you suffer prolonged or permanent disability because of your car accident injuries, you may be owed compensation for:
- Anticipated medical costs
- Ongoing rehabilitation and in-home care
- Loss of future earning capacity and job benefits
Our lawyers often work with medical, vocational, and financial experts to project these costs.
Check the Available Insurance Coverage
The at-fault driver’s insurance policy limits can dictate how much compensation may be available in your car accident case. According to the NC Division of Motor Vehicles (DMV), N.C.G.S. § 20-279.21 requires that every driver be insured for at least:
- $50,000 per person in bodily injury liability
- $100,000 per accident in bodily injury liability
- $50,000 in property damage liability
Unfortunately, these basic liability policies aren’t always enough to cover the full extent of losses resulting from severe injuries. That’s when car accident victims may turn to their underinsured motorist (UIM) coverage to make up the difference.
Signs That a Settlement Offer May Be Too Low
Here are some common signs that the offer you’ve received is too low:
- The insurance company offered you the settlement soon after the crash without time to investigate properly.
- The offer only covers what you’ve already suffered and leaves out your future needs.
- The offer pays for your economic costs but excludes pain and suffering.
- The insurance company claims it’s a one-time-only, take-it-or-leave-it offer.
- The insurance adjuster says that you’re partially to blame and should be happy you’re getting anything at all.
- The insurance company doesn’t want to wait until you’re fully recovered to settle.
Contact a personal injury lawyer immediately if any of these situations apply to your case.
When to Speak with an Experienced Personal Injury Attorney
All that said, the single best way to determine if you’re being offered a fair car accident settlement amount is to speak with a skilled attorney.
This is especially true if you’ve never dealt with a personal injury claim before. You simply have no way of knowing how the offer stacks up against other settlements made under similar circumstances or what you could expect to get if you filed a lawsuit and took your case to trial.
On the other hand, an experienced attorney has dealt with dozens, if not hundreds or even thousands, of claims in their career. They know everything that goes into calculating a settlement and can review your case to help you seek maximum compensation.
Most offer free consultations so that you can weigh your options at no cost or obligation.
Get in Touch with Our Car Accident Lawyers in Raleigh, NC to Get Legal Help
Have you recently been in a car accident in North Carolina? Are you wondering how much you could be entitled to in compensation or whether the insurer’s settlement offer is a fair one? Then contact Younce, Vtipil, Baznik & Banks in Raleigh today for a free consultation about your case.
Our knowledgeable attorneys have more than a century of combined legal experience with over $150 million secured in personal injury cases, which gives us considerable insight into how much you may be entitled to and whether the insurance company is trying to take advantage of you.* If they are, we can fight back and negotiate for a better offer and take them to court when it’s in your best interest.
Here’s what one of our clients said about working with us through the settlement process:
“I am so pleased with the service I received from Ross Weatherspoon and those that work with him! Ross worked through some tricky situations to secure me a fair settlement. He was always compassionate and communicated updates regularly. If you are in the unfortunate place of needing a personal injury attorney, I highly recommend him!” – Rebecca Johnson
Call or reach out online now to discuss your settlement offer with our experienced car accident lawyers.
*Each case is unique, and past results do not guarantee future outcomes.
