What Do I Do If I’m Unhappy with My Settlement?

If you've been in an auto accident that was not your fault, then you've probably experienced the dubious "joys" of dealing with an auto insurance company in order to reach a settlement. Usually these negotiations take place between your insurance company and the insurer of the person driving the other vehicle. Negotiations can take a good deal of time, especially if there are medical expenses involved - they need to be calculated and pretty much completely paid for, before a settlement can be reached. But what do you do if your insurance company comes back and says that a settlement has been reached for a certain amount that you find completely unsatisfactory? Maybe it's not complete coverage of your own expenses that you incurred as a result of the accident, or maybe you feel as if you deserve more based on the trauma, pain and suffering you went through. What are your options?

1. Be Realistic

Unless an accident is ruled 100% the fault of the other driver (which is rare), you need to keep in mind that according to police reports, you were partially at fault for the accident, and therefore are partially liable for your own damages and expenses. You shouldn't expect to receive complete coverage for your injuries from the other insurance company.

2. Don't Be Greedy

You may have seen movies or read stories about people involved in accidents who get millions and are set up for the rest of their lives off of the settlement amount afforded to them through insurance, but you must understand that such cases are extremely rare and are unlikely to happen to you because:

• Such settlements require gross negligence on the part of another driver
• Such settlements assume that there is that much insurance coverage provided by the other driver's company
• Such settlements usually only come about in extreme accidents involving loss of life or limb
• Such settlements usually come about only through the hard work of an attorney (who gets to keep a good chunk of hat change, anyway

3. Do the Math

If the driver of the other vehicle had only $25,000 liability insurance coverage, then that is the maximum you are likely to get no matter what your expenses are unless you hire an attorney to sue personally for damages. Before you proceed to that step, however, be do the math. Unless the person involved in the accident with you happens to be wealthy you are unlikely to recoup much of anything from legal proceedings. The saying goes that you can't get blood out of a turnip, and neither are you likely to earn tens or hundreds of thousands of dollars in extra money by suing your average middle-class American. It may stink, but that is what uninsured/underinsured motorist insurance is for - to provide extra money to you through your own policy if you ever wind up in an accident caused by someone who's broke.

4. Finally, Hire an Attorney

If you've been realistic, if you're not greedy and feel your cause is just, and you've done the math and know that your needs can be met through legal proceedings, encourage your insurance company to go back and renegotiate for more - especially if the settlement amount is less than the maximum coverage provided by the other driver's insurance. If they refuse, then you should refuse to sign the settlement paperwork (which may mean foregoing legal action), and hire an attorney. A lawyer can listen to your side of the argument and decide if they want to represent you in court to personally sue for damages against the other driver. This will be a long and painful process for you, your family, and the person being sued and their family, and the only one guaranteed to come out on top is your lawyer. If you prevail, you will recoup money for your damages and suffering (assuming the defendant can afford to pay it).