How Do Car Accident Settlements Work?
A car accident settlement is an agreement between you and the at-fault driver’s insurance company to resolve your injury claim without going to trial. In exchange for a set amount of money, you agree to give up your right to pursue further compensation for the crash. Most car accident claims in Georgia and South Carolina end this way.
The process usually begins when you file a claim with the insurer, continues through an investigation, and ends with negotiations that produce a final agreed-upon payment. If adjusters offer far less than a claim is worth, your car accident lawyer pushes back.
At H Groves Law, LLC, we have helped injured people for nearly 10 years. We represent clients in Atlanta, Columbia, and throughout Georgia and South Carolina. In this guide, we explain how car accident settlements work, including the process, what affects settlement value, and how long a settlement takes.
Reporting the Car Crash and Investigation
A strong settlement starts with what happens in the hours and days after the crash.
Accident Reporting in Georgia and South Carolina
Georgia law requires drivers to report crashes that cause injury, death, or $500 or more in property damage. South Carolina law requires drivers to report any crash that causes injury, death, or $1,000 or more in property damage.
Calling 911 from the scene is usually the quickest way to report a car crash. The responding officer will prepare a report, which you or your attorney can request later. You should also notify your own insurance company promptly. Most policies require timely notice, even if you plan to file your claim against the other driver’s insurer.
Proving Fault
To recover compensation in Georgia or South Carolina, you must show that the other driver was legally responsible for the crash. This generally means proving four things. The driver owed you a duty to drive safely, the other driver was careless or reckless, their behavior caused the collision, and you suffered real damages as a result.
Common examples of driver negligence include speeding, texting while driving, running red lights, following too closely, failing to yield, and driving under the influence.
Important Evidence
The more evidence you have, the harder it is for insurance companies to minimize car accident settlements. Valuable evidence includes:
- The police crash report and any citations issued
- Photos and videos of the vehicles, road conditions, skid marks, traffic signals, and your injuries
- Names and contact information for eyewitnesses
- Dashcam, traffic camera, or nearby business surveillance footage
- Vehicle data, such as event data recorder (“black box”) information
- Cell phone records if distracted driving is suspected
- Medical records that connect your injuries to the crash
Some of this evidence disappears quickly. Surveillance footage may be overwritten within days, and damaged vehicles may be repaired or scrapped. A car accident lawyer can send preservation letters and act fast to secure evidence before it is lost. In serious cases, your attorney may also work with accident reconstruction experts to show exactly how the crash happened.
Filing a Claim and Settlement Negotiations
After gathering evidence, the next steps are filing a claim and negotiations. Experienced car accident attorneys understand how to advocate for your rights.
Be Cautious When Dealing With Adjusters
Adjusters often sound friendly and helpful, but their job is to limit car accident settlements.
- Insurers may ask for a recorded statement and take your words out of context. You generally are not required to give a recorded statement to the other driver’s insurer.
- Signing a broad authorization lets the insurer dig through your entire medical history and argue that your injuries existed before the crash.
- An early settlement offer may arrive before you know the full extent of your injuries. Once you accept, you cannot ask for more money later.
- Adjusters may suggest that a gap in treatment means you were not seriously hurt.
Keep conversations brief and factual, and refer the adjuster to your attorney whenever possible.
How a Lawyer Negotiates Car Accident Settlements
When you hire a car accident lawyer, your attorney takes over all communication with the insurance company. Negotiations usually follow these steps:
- Your lawyer collects crash reports, medical records, bills, wage documentation, and expert opinions.
- Your attorney determines the full value of your claim, including future medical care and long-term effects on your life.
- Your lawyer sends the insurer a detailed demand letter explaining why its policyholder is liable and how much compensation you are owed.
- The insurer typically responds with a lower offer. Your lawyer responds with evidence and legal arguments to justify a higher figure.
- If the insurer will not make a fair offer, your attorney can file a lawsuit. Many cases still settle during litigation, sometimes through mediation.
Implications of a Settlement Release
Before you receive your car accident settlement check, you will be asked to sign a release. This is a binding legal document. By signing it, you give up your right to pursue any further claims related to the accident against the parties named in the release, even if your injuries turn out to be worse than expected.
Your attorney should review every release carefully before you sign it so that you understand exactly what you are agreeing to.
What Impacts the Value of Car Accident Settlements?
No two car accident settlements are the same. The amount depends on your injuries, how the crash has affected your life, and how much coverage is available.
Medical Bills
Compensation can cover emergency care, hospital stays, surgery, doctor visits, physical therapy, prescription medications, and mobility equipment. If your injuries require future treatment, your car accident settlement should account for those costs. Your attorney may work with your doctors or medical experts to estimate future care needs.
Lost Income and Reduced Earning Capacity
If your injuries forced you to miss work, you can seek money for lost wages, salary, bonuses, and benefits. Pay stubs, tax returns, and employer statements help document these losses. Some injuries have long-term effects on your ability to earn a living.
A permanent disability may prevent you from returning to your job or force you into lower-paying work. In these cases, you may seek compensation for reduced earning capacity. Vocational experts and economists can help calculate what you would have earned over your career if the crash had never happened.
Pain and Suffering Damages
Pain and suffering covers the physical pain, emotional distress, anxiety, loss of enjoyment of life, and other non-financial harms caused by the crash. Insurers and attorneys often use one of two approaches to calculate pain and suffering in car accident settlements.
- The multiplier method multiplies your economic damages, such as medical bills and lost wages, by a number that usually falls between 1.5 and 5, depending on the severity of your injuries.
- The per diem method assigns a daily dollar amount to your pain and multiplies it by the number of days you are expected to suffer from your injuries.
Serious injuries, long recoveries, permanent scarring, and lasting limitations generally support higher pain and suffering awards. Journals, photos, and statements from family and friends can help show how your injuries have changed your daily life.
Policy Limits
The at-fault driver’s insurance policy limits often set a practical ceiling on car accident settlements. Georgia and South Carolina both require drivers to carry at least $25,000 in bodily injury coverage per person, $50,000 per accident, and $25,000 for property damage. These minimums are often not enough to cover serious injuries.
When the at-fault driver’s coverage falls short, other sources may be available. These can include additional policies that cover the at-fault driver, or claims against an employer if the driver was working at the time of the crash.
How Long Does a Car Accident Settlement Take?
Most car accident settlements take anywhere from a few months to a year or more. Straightforward claims with clear liability and minor injuries may resolve in a few months. Cases involving serious injuries, disputed liability, or multiple insurance policies often take longer, especially if a lawsuit becomes necessary.
Several factors affect how long car accident settlements take.
- Lawyers usually advise waiting until you reach maximum medical improvement (MMI) before settling. At that point, your doctors can predict your future care needs.
- Crashes involving commercial trucks, multiple vehicles, or unclear circumstances may require expert analysis.
- Some insurers negotiate in good faith, while others delay and make low offers.
- Litigation adds time for discovery, depositions, and mediation.
It may be tempting to accept a quick offer to cover mounting bills, but settling too early can leave you paying for future treatment out of your own pocket.
Deadline for Car Accident Claims in Georgia and South Carolina
Every state sets a deadline, called a statute of limitations, for filing a lawsuit after a car accident. If you miss it, you will likely lose your right to compensation, and the insurance company will have little reason to negotiate.
You generally have two years from the date of the accident to file a personal injury lawsuit in Georgia. Under S.C. Code § 15-3-530, you generally have three years from the date of the accident to file a personal injury lawsuit in South Carolina.
The time limit may be paused if a child is injured. Shorter deadlines may apply when a government vehicle or agency is involved. The rules are complex, and exceptions can apply. It is wise to speak with an attorney as soon as possible after your crash.
Contact H Groves Law, LLC for a Free Case Review
After a car accident, you should be focused on healing, not fighting with an insurance company. At H Groves Law, LLC, we handle the investigation, paperwork, and negotiations so you can focus on your recovery. For nearly 10 years, we have stood up for injured clients in Georgia and South Carolina, and we have recovered $36.1 million in settlements.
We know the tactics adjusters use, and we are prepared to push back to pursue the full compensation you deserve. Contact us today to schedule your free case review.
