How Does an Accident Settlement Work? Cleveland Auto Accident Law Firm Explains the Basics

August 26, 2015

Note: This is the third post in our “How Does It Work?” series.  Previous posts can be found here and here.

 While many non-lawyers have a basic understanding of how a civil trial works, few know that only a very small portion of personal injury claims actually go to trial.  The vast majority of personal injury disputes are resolved through settlement—an agreement between the parties that resolves the claims without a judgment from a court. 

Auto accident claims in particular are frequently resolved through settlement agreements.  Large insurance companies have infrastructures built to minimize their risk, which means they typically prefer not to go to trial.  However, these same infrastructures also make insurance companies and their adjusters adept at navigating the settlement process.  This is one of the many reasons that auto accident victims should retain an experienced Cleveland auto accident law firm, even when a negligent driver’s insurer is amenable to settlement.

Since almost all (if not all) auto accident claims will involve settlement discussions at some point prior to filing a lawsuit or prior to trial, it is important that injured victims understand how an accident settlement works. 

How an Accident Settlement Works

An accident settlement agreement is a contract between the injured party and the responsible party (or the responsible party’s liability insurer), typically providing that the injured party will receive a monetary payment in exchange for giving up the right to sue the responsible party.  A settlement agreement may be entered into at any time prior to the entry of judgment.  This means that settlements can occur without every filing a lawsuit, after a lawsuit is filed but prior to trial, or even during trial.

Importantly, because an accident settlement is a contract between parties, the parties are, by and large, free to construct the terms of the settlement agreement however they would like.  Settlement agreements can be tailored to the specific circumstances of the case and the wishes of the parties.  An experienced Cleveland car accident lawyer can help tailor your settlement agreement so that you achieve the best outcome in your particular circumstances.

Lowe Scott Fisher Co., LPA—Cleveland Ohio Car Accident Lawyers

If you or a loved one were injured in an auto accident due to the negligence of another, call Lowe Scott Fisher Co., LPA today to discuss your case.

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