Payment After An Auto Accident: How To Chose
If you have been hurt in an auto accident that was the other driver's fault, you are likely owed monetary compensation. You can be paid either using a settlement, a court judgment, using a loan, or a structured payment plan. Read on for an explanation of each type of payment choice.
Your Case is Successful
You can be paid for your damages if the other side accepts that their client was at fault. However, it's somewhat up to you when it comes to the details of being paid.
Settlements – This is the most common way to be paid after an accident. The other side offers you a payment. After speaking with your personal injury lawyer, you agree that the settlement offer is enough to meet your needs and you accept it. In most cases, you can expect to be paid in a single lump sum in a week or so. Be sure that your vehicle damage, medical bills, lost wages, future medical needs, and other forms of damage are taken into account with the settlement.
Court Judgements – If victims and their lawyers are unable to agree on a settlement with the other driver's insurer, a lawsuit may be filed against them. The court process can be lengthy and a bit stressful for victims. However, if the court orders the insurer to pay the victim a sum of money, that check will be sent within a few weeks.
Lawsuit Loans – Although not a form of payment, lawsuit loans allow victims to be paid before the case is settled or comes to court. These loans are offered to victims based on their chances of being paid a certain sum of money. The loan only must be paid back if the case is successful. There are usually fees associated with lawsuit loans and they are an unregulated industry. Have your lawyer review the loan contract before you sign.
Structured Payment Plans – When a settlement is offered, some victims can be paid either by lump sum or by regular payments. In most cases, a structured payment plan provides the victim with a larger total payment than a lump sum payment would. These plans are usually overseen by a third-party handler and the money is insured and guaranteed to be paid even if the insurer goes out of business.
To discuss your payment options, speak to your personal injury lawyer to find out more.