Injury Victims Get Most – But Not All – of Car Accident Settlement Proceeds
If you want to know how much money you will receive after settling a vehicle accident lawsuit, you need to understand how a Colorado car accident settlement is divided.
The amount of settlement proceeds that wind up in your bank account is not the same as the total settlement amount. While you will receive most of the funds your attorney secures for you, some sums will go to pay for the cost of your lawsuit and others who provided you with help and services relating to your accident and injuries.
What is a Car Accident Settlement?
The overwhelming majority of personal injury lawsuits in Colorado Springs, including car accident cases, end in a negotiated settlement instead of a trial in El Paso County courts. In a car accident settlement, the at-fault driver (or, more likely, their car insurance company) agrees to pay the injury victim a specific amount in exchange for dismissing their lawsuit and giving up any other claims they may have related to the accident.
Car accident cases can settle before filing a lawsuit, after a suit is filed but before a trial, or even after a trial has started. But whenever the parties settle, the check the car insurance company writes has several stops to make before you receive your money. The first stop is with your car accident lawyer.
Related: Do Most Car Accident Injury Cases Go To Court?
Car Accident Settlement Divided To Cover Your Attorney’s Fees and Costs
You undoubtedly have seen TV ads or billboards for personal injury lawyers in which they say something like “You pay us nothing unless we recover money for you,” or “If we don’t get you a check, our services are free.” These statements refer to an arrangement known as a contingency fee, and it is how attorneys get paid for their work in almost every personal injury case.
Many other types of lawyers (like those who handle divorce or criminal defense) bill their clients by the hour and send out an invoice every month expecting payment. But under a contingency fee agreement, an injury victim promises to pay their personal injury lawyer a percentage of any compensation they obtain through settlement or trial. And, yes, if the attorney does not recover any money for their client, they receive no compensation for their efforts.
When you hire a Colorado Springs car accident lawyer, you will likely sign a contingency fee agreement. You agree that they will get a specific percentage of any amounts they obtain for you, usually between 25 percent and 33 percent. The percentage will likely be higher if they recover compensation through a trial instead of a settlement.
The attorney will deduct the percentage outlined in the contingency fee agreement from your settlement proceeds as payment for their work on your case. Additionally, your lawyer will subtract reasonable expenses they paid out-of-pocket while pursuing your claim. This could include court filing fees, the cost of obtaining medical records, payments to expert witnesses, copying costs, and travel expenses.
If your lawyer settles your case relatively early in the process, these expenses should be relatively low. These reimbursable expenses may take a significant bite out of your settlement if your matter goes to trial. Remember, however, that your attorney is also taking a financial risk by representing you in your injury lawsuit. If your case is dismissed without the awarding of compensation, they may have spent months or years working for nothing.
Car Accident Settlement Divided to Pay Medical Bills and Other Liens
Hefty medical bills are just one of the many costs associated with a serious car accident injury, and recovering money to pay those bills is one of the many reasons to seek compensation for those injuries. After all, the defendant caused your injuries, so they should pay for your treatment.
The doctors, hospitals, ambulance companies, physical therapists, and other healthcare providers who treated you for your injuries realize that when you seek damages in a car accident lawsuit, some of that compensation covers your medical costs. As a result, these professionals will expect to get paid for their services from an agreed-upon settlement.
Healthcare administrators will likely file a lien in your lawsuit, which will legally stake their claim to any settlement or judgment proceeds. Under the law, these liens must be paid off and released before getting your settlement proceeds. While your lawyer can, and most likely will, work with these providers to reduce their bills, the fact remains that some amount from your settlement will go to those who helped you get better.
Receiving Your Settlement Proceeds
After your lawyer, healthcare providers, and any other interested parties (such as the garage that repaired your car) receive payment for their services, you will be able to deposit your personal injury settlement check. These proceeds usually are for your non-economic damages, such as pain and suffering, and your past and future lost earnings, among other losses.
To Receive the Best Settlement Amount, Work With the Best Attorneys
The best way to ensure that you receive maximum compensation for your pain and suffering after your car accident settlement is divided is to hire an experienced and tenacious Colorado Springs car accident attorney. Such seasoned professionals know the methods insurance companies use to get out of paying victims anything and will fight to get you what you deserve. And, yes, you pay nothing in attorneys’ fees unless they recover money for you.
Speak with a Colorado Springs personal injury attorney today.
