3 Things To Consider Before Accepting An Accident Settlement

23 November 2015 by Jonathan Phillips

In the event of a motor vehicle accident, compensation is likely one of your primary concerns. One of the more popular methods of retrieving this compensation is a claim settlement, which prevents you from going to trial. However, this method does come with its cons. Before you make the decision to accept a settlement in haste, there are a few things to consider in order to ensure you're making the right decision.

Finality

Settlements represent the end of your money-retrieving options. When you take your case to trial, even after a decision has been handed down by a jury or judge, you have the legal right to appeal the decision. Appealing the decision can sometimes result in an increase of your award, especially if new information is presented.

When you decide not to go to trial and take a claim settlement, while you can negotiate the terms of the settlement, once you sign and accept the offer, you can't go back and appeal the settlement at a later date and ask for more money. Whatever amount you accept is all you will be awarded for the claim.

Presumption Of Guilt

Accidents involving serious injuries or fatalities often allow the victim to sue the insured's insurance company and the actual driver. Say a victim planned to sue the insurance company first and the driver second. A court awarded judgment would come along with a legally recorded presumption of guilt, which could be presented during the trial against the driver, somewhat making the case easier to argue.

A settlement award doesn't come with a legal presumption of guilt, and many settlements often include confidentiality clauses that prevent you from acknowledging and discussing the terms of the settlement publicly. Since this information can't be presented in the case against the driver, it could actually make it harder to argue your claim.

Punitive Damages

Punitive damages are typically an option when the negligent party responsible for the accident is considered to be acting in gross negligence, or serious carelessness. For example, accidents caused by drunk drivers or someone texting while driving may be awarded this form of compensation in a trial.

When you accept a settlement, you often don't have the legal right to go after this type of compensation. You are typically awarded money for your medical treatment, missed time from work and property damage only; any other factors go without award.

A part of determining whether or not a settlement is the right choice for you has to do with having an attorney on your side. An attorney like Herbert E. Maxey Jr., PC can use their expert experience to analyze the facts of your claim to determine which option is going to yield the greatest results on your behalf. Make sure you aren't making this decision alone.

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