Picture this familiar scenario: you’ve been in a car accident, and after months of stressful negotiations, the insurance company finally agrees to a settlement of $100,000. Sounds like you just won the lottery, right? Well, it’s not quite that simple. There are various elements involved that can significantly impact how much of that settlement you’ll actually pocket.

Settlements are negotiated agreements designed to resolve legal disputes. They allow both parties to avoid the potential costs, uncertainties, and emotional strain associated with a trial.

However, the gross amount of a settlement isn’t necessarily the net amount you will receive, and certain costs like attorney fees, medical expenses, and potential liens need to be taken into account. Many individuals aren’t aware of these factors, leading to misunderstandings and disappointment when they realize their take-home amount is less than they anticipated.

At Great West Injury Law, our job is to demystify these complex aspects of personal injury claims and guide you through the process, ensuring that your interests are well protected. Read on to learn how your settlement might be affected by these factors.

Settlements vs. Fees, Expenses, and More

When it comes to the breakdown of a personal injury settlement and the kinds of factors that might affect what you end up taking home, there are a few significant areas to consider:

  • Attorney Fees: In personal injury cases, attorneys usually work on a contingency fee basis. This means they receive a percentage of the settlement as their payment. Their percentage may vary based on factors like the complexity of the case, whether it goes to trial, and the experience level of the attorney. It’s important to discuss and understand this fee structure with your attorney beforehand so there are no surprises when the settlement arrives.
  • Medical Expenses: One of the primary reasons for pursuing a personal injury claim is to cover medical costs. These costs may include hospital bills, doctor visits, physical therapy, medication, and any future medical expenses related to your injuries. Depending on the specifics of your case and your insurance, a portion of your settlement may be earmarked to cover these costs.
  • Liens: Liens are legal claims or rights against your settlement funds. They may come from medical providers who treated your injuries, auto insurance companies, or even government entities if you received government benefits due to your injury. These entities have a right to be reimbursed from your settlement for their services or benefits they provided.
  • Other Legal Costs: Besides the attorney’s fee, there are other legal costs associated with a personal injury claim. These can include court filing fees, the cost of obtaining medical records, expert witness fees, deposition costs, and more. Like the attorney fees, these are generally deducted from the settlement.

Understanding these factors will help manage expectations and avoid disappointment when the settlement check arrives. It’s smart to discuss these elements upfront with an experienced personal injury firm, like our team here at Great West Injury Law, to ensure you have a comprehensive understanding of how your settlement will be broken down.

On the Settlement Negotiation Process

The negotiation process is a crucial part of any personal injury claim. It’s a back-and-forth discussion with the at-fault party’s insurance company, aiming to reach an agreement on the amount that adequately compensates for your losses.

While your attorney handles much of this process, it’s essential to stay informed and involved, ensuring the final settlement aligns with your needs and expectations.

Before accepting a settlement, there are a few key questions you should ask yourself:

  • Does this settlement cover all my current and future medical expenses related to the accident?
  • Is my lost income due to the inability to work covered in this settlement?
  • Does this amount consider the pain and suffering I’ve endured because of the injury?
  • Will this settlement cover any long-term changes to my quality of life?
  • Are all liens and legal costs factored into this settlement?

Remember, once a settlement is accepted, it is typically final. You cannot go back and ask for more money later if you realize the amount was insufficient to cover your needs. This makes it all the more important to carefully consider these questions and discuss them with your attorney.

Your Compensation Matters to Us

Deciphering where exactly the money from your settlement will end up can be complex, but having the experience of our team of attorneys at your side can help guide you through the process, ensuring your best interests are protected. We can help negotiate the deductions and liens and work to reduce them where possible. An attorney can also help you understand the potential net amount you might receive from a settlement before you decide to accept an offer.

Reach out today for a free consultation on your case.