The number of annual automobile collisions in the US is vast. Calculating the number of people wounded and dead in these collisions helps us understand the amount of time and resources required to deal with these events. Learning about the arbitration and compensation process increases the chances that drivers will walk away from a collision with favorable outcomes.
The auto insurance industry is a multi-billion dollar machine. By becoming more educated through research and consultation with experts such as Hipskind & McAninch attorneys provides, drivers who have been in collisions can be assured that they will receive the compensation they deserve.
It might seem that knowing the average compensatory value in car accidents helps to develop knowledge of the subject. The problem with this goal is that the range of car accident settlements is almost as large as the number of accidents themselves. To add to this, the individual factors that influence pay amounts are based on many factors.
Completing someone after calculating losses is a simple concept, but there are too many factors involved for things to remain simple. Some of these factors include:
- lost wages
- medical expenses
- Pain and suffering
- damaged property
- Determining the missing part
- emotional distress
Successful Arbitration: How Most Personal Injury Claims Are Resolved
Having a comprehensive understanding of how settlements work is important for drivers.
Once a collision occurs, most states require the driver who caused the accident to cover the cost of damages that others will suffer. Medical expenses, damaged property, lost wages and additional losses are compensated by insurance companies covering the liability.
Arbitration is the process by which the insurer seeks to reach a quick settlement and resolve the claim. The offers come from the insurer of the person who caused the accident. Settlement usually takes the form of a lump sum payment. Quick deals are far more common than less, but the occasional disgruntled party will push to file a lawsuit.
How common are settlements?
Lawsuits are by far the overwhelming minority of automobile crash outcomes. Staying out of court is an important agenda for insurers. Almost 100% of the time, insurance companies successfully arbitrate settlements. It is also important to remember that court proceedings can be expensive to the point of not being worth it.
How long until compensation arrives?
Arbitration for car accidents is usually a quick process. This is a much more favorable outcome than claiming damages in court. When compensation arrives depends on the state you are in, how the insurer does business, and the details of the agreement. It is generally unusual for claims to take longer than a year to settle.
How much will my car accident claim pay?
Compensation for collision-related damage varies. The most important factors boil down to the extent of the damage. The problem is additional details can be overwhelming. Due to a large dataset, exact numbers are difficult to pinpoint. It’s easier to get payment data for specific scenarios. Some examples of this are whiplash injuries and head injuries.
Car accident compensation and the factors that affect it
Liability coverage is a basic requirement in most states. The policies distribute remuneration to drivers found to be innocent. Payments are limited to the policy maximum. This means that the at-fault driver’s insurance company will not compensate beyond the extent of coverage.
Direct legal action may be taken against at-fault drivers to recover damages outside the policy maximum. However, most drivers do not have enough assets to pay the compensation that a court would award. That’s why it’s almost always better to accept the offer accordingly and avoid court. Courts are often more trouble than they are worth.
Compensation is usually paid in larger amounts when it becomes clear who was at fault in a collision. The responsible person’s insurer submits a proposal for compensation that it considers appropriate to the scope of the claim. Insurers often want to avoid lawsuits, so these compensation packages are usually fair offers.
When it is not clear who is at fault, compensation packages can be much smaller or they can stop altogether. Compensation can also be affected when the fault lies with both drivers. Various failure scenarios typically occur as follows:
- When a collision occurs in a state called a ‘contributory negligence state’, drivers cannot claim damages accordingly if they share even the smallest amount of blame with the other driver.
- In ‘states of pure comparative negligence’, drivers can claim damages if the other driver bears most of the blame. Therefore, a driver found to be 67% liable has the option of seeking compensation for 33% of the total damage.
- ‘The modified states of comparative negligence allow compensation to be sought when a driver is responsible for less than half or less than 51% (depends on the state) of the fault.
When an insurance policy states that a driver arbitrates with his own insurer to cover damages related to injuries to him or another driver, this is called a ‘no fault’ policy. No-fault policies are underwritten in certain states called ‘no-fault states’. Insured drivers must max out their policy before any damages can be claimed from another driver’s insurer.
To cover medical bills and lost wages, drivers are required to purchase personal injury protection. $10,000 is usually the limit for this purchase. When injuries are not serious, no pain and suffering payments are distributed to the insured.
In ‘failure states’, on the other hand, the driver who caused the accident will cover the damage costs every time. Arbitration negotiating a settlement for minor damages is a normal occurrence in these states.
Car accidents can leave us with financial losses. Settlement amounts are calculated to deal with the losses that the victim may incur. Monetary prizes are paid for making the victim whole. Costs related to injuries, lost wages and damaged property are all factored into the final settlement amount. The financial strains of the losses must be lifted by the agreement.