If you’ve been injured in an accident, you might be wondering, "Who pays the settlement in a personal injury case?" Medical bills, lost wages, and other damages can quickly add up. You may be counting on the settlement to cover those expenses. In this post, we’ll explain who typically pays, how the process works, and what you need to know when pursuing your personal injury case.
What Is a Personal Injury Case?
Before diving into who pays the settlement, let’s first address what a personal injury case is. A personal injury case arises when you are harmed due to another party’s negligence, carelessness, or intentional wrongdoing. In other words, when someone else’s actions cause you harm, you have the right to pursue a personal injury claim or lawsuit for compensation. This could happen from a car accident, slip-and-fall, a third-party workplace injury, medical malpractice, or other cases identified in this list:
Types of Personal Injury Cases [click to see a list]
The claim process
The process usually starts with filing a claim with the insurance company of the person or company responsible for what happened. This first step is all about gathering and presenting all the important info related to your injury claim. It is a "paper case" made up of documents that show who's at fault and how your accident-related injuries impact your life.
When you put together evidence to give to the the insurance company, you provide proof of the accident, which can include police reports, photos of the scene, witness statements, and anything else that helps establish fault and liability.
Some things you’ll need to provide include:
Police Reports: If the accident was serious enough to involve the police, their report is key to showing what happened.
Photos: Photos of the accident scene, any damages, and your injuries can speak volumes.
Witness Statements: If there were people who saw the accident happen, their statements can help confirm the facts.
Medical Records and Bills: These documents show how badly you were injured, what treatments you received, and how much you’ve spent on healthcare.
Proof of Lost Wages: If you missed work because of your injury, you’ll need to show how much income you lost. This could include pay stubs or a letter from your employer confirming the days you were out.
IT IS NEVER A GOOD PLAN TO INITIATE OR ENGAGE IN A SETTLEMENT NEGOTIATION UNTIL AFTER YOU HAVE REACHED AN ENDPOINT IN YOUR MEDICAL TREATMENT.
Solid Evidence, Solid Casef
If your evidence is strong and clearly backs up your injury claim, you have a good chance of reaching a fair settlement with the insurance company. This settlement should ideally cover your medical bills, lost wages, pain and suffering, and other damages that stemmed from the accident.
If you’re able to reach a good agreement with the insurance company, great! You’ll receive the compensation you need to recover and offset the financial toll the accident caused.
The insurance company will require you to sign a release and settlement agreement. The release is beyond the scope of this blog post. However, it is important to know that when you sign a settlement and release agreement, you promise not to accept a penny more than the amount of compensation you negotiated. If you were to later realize that you need further medical treatment and demanded more compensation, it is likely that you will be barred from collecting it. Therefore, it is highly advisable to consult with an attorney before entering into a settlement and release agreement. You may inadvertently sign away rights to full compensation or even undervalue your claim.
Who Pays the Personal Injury Settlement?
The person or entity that is responsible for paying your settlement depends on the circumstances of your case. Generally, the insurance company of the person or business at fault will foot the bill, but let’s break this down further.
1. At-Fault Party’s Insurance Company
In most personal injury cases, the insurance company of the person responsible for your injury will pay the settlement. For example, if you were injured in a car accident and the other driver was at fault, their auto insurance will likely pay for your damages, including medical expenses, lost wages, and pain and suffering.
2. The At-Fault Party
In some cases, the person who caused the injury might not have insurance or enough coverage to pay for the damages. If that’s the case, the individual may be personally responsible for paying the settlement. However, it’s important to note that most people don’t have the financial means to pay significant damages out of pocket.
3. Multiple Liable Parties
In some accidents, more than one party may be at fault. For instance, if you’re injured at a business due to their negligence or a commercial truck is involved in the accident, multiple parties may be responsible. In these cases, multiple insurance companies will be involved, and the settlement may be divided among them.
4. Government Entities
If the injury happened due to government negligence (such as unsafe roads or faulty infrastructure), a government entity might be liable. However, suing a government agency can be tricky, as certain rules limit when you can file a lawsuit against them.
5. Employers and Commercial Entities
If while you were working, you were injured in an accident caused by someone other than your employer or co-worker, you can pursue a worker's compensation claim and a claim agains the person or business responsible for your injuries. This is often referred to as a 3rd Party Claim. Claims against businesses often carry higher insurance limits, meaning they may be able to cover larger settlements. You can read all about workers compensation and third party claims in a separate blog article.
What If the At-Fault Party Doesn’t Have Insurance?
Unfortunately, it’s common for drivers or businesses to have inadequate or no insurance. So, what happens if the person who caused the injury has no coverage or not enough insurance to pay for your damages?
1. Uninsured/Underinsured Motorist Coverage
If you have uninsured/underinsured motorist coverage through your own insurance policy, this can cover the damages. This coverage helps fill the gap if the at-fault party’s insurance is either non-existent or insufficient to cover your medical bills, lost wages, and other costs.
2. Pursuing the At-Fault Party’s Personal Assets
If the person responsible has no insurance and not enough assets to pay for the damages, you might be able to pursue their personal assets, such as their savings or property. However, this can be a lengthy and challenging process.
What Factors Can Affect Who Pays the Personal Injury Settlement?
The person or entity responsible for paying your settlement can depend on several factors:
Insurance Limits: The amount of insurance the at-fault party has will determine how much they can pay for the settlement. If their insurance limits are low, you may have to pursue additional sources.
Multiple Liabilities: If multiple parties share responsibility, the settlement might be divided among different insurance companies or entities.
What happens if the insurance company isn't being reasonable?
Not all claims go smoothly. Sometimes, the insurance company won’t offer a fair settlement, or they may deny your claim altogether. When that happens, it might be time to take the next step: filing a lawsuit.
Filing a Lawsuit
A lawsuit means you’re taking legal action, usually in a courtroom, where a judge or jury will decide what compensation is owed to you. It’s a more complicated process than dealing with the insurance company, and it often means more time and legal fees.
Why You Need a Good Attorney
Filing a lawsuit is a big deal, and it’s critical to have a good personal injury attorney on your side. They’ll guide you through the legal maze, stand up for you in court, and work hard to make sure you get the compensation you deserve. Not all attorneys are created equal.
In New Hampshire, when you file a personal injury lawsuit the Courts require the parties to first attend mediation to attempt a settlement before going to trial. Settlement can occur at all stages of a lawsuit including up to, during, or even after a trial.
Bottom Line: Be Prepared
If you’ve been injured, getting compensated typically starts with filing a claim with the insurance company of the responsible party. This is a detailed process that requires careful documentation and evidence gathering. While a fair settlement is the goal, sometimes it takes filing a lawsuit to get the outcome you deserve.
Make sure you’re ready for whatever comes your way by gathering strong evidence from the start and having a reliable attorney by your side. That way, you’ll be prepared to pursue justice and secure the compensation you deserve. Contact Apis Law.
FAQs About Personal Injury Cases
Who pays the settlement if I get injured in a car accident?
In most car accident cases, the at-fault driver’s insurance company will pay for the settlement. If the driver is uninsured or underinsured, your own uninsured/underinsured motorist coverage can help pay the damages.
Can I sue the insurance company directly?
What if I was injured at a store or business?
What happens if the person who caused my injury doesn't have insurance?
How long does it take to get a settlement in a personal injury case?
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