You may already know that Utah is a no-fault car insurance state and that the injured party has to first file a compensation claim with his insurance company for medical expenses and property damages. You also may be aware that the victim can only lodge a third-party claim (with the at-fault driver and/or his insurance company) if the damages fulfill certain conditions.
Our firm has been making victims aware of their rights and helping them become more informed litigants. Continuing in the same vein, here’s a FAQ related to settlement from a car accident that helps you understand other events that unfold before the case gets settled.
What is Better: Filing a Lawsuit or Settling Before the Trial?
Though most victims file a lawsuit, a majority of cases get settled before they reach the trial stage. Settling out-of-court saves precious time and money (court costs), and does not make the at-fault party hostile. The key to a successful settlement lies in the skills and experience of your personal injury attorney in Utah. He must:
(a) Build a rock-solid case
(b) File for compensation that is rightfully due (one that is not exaggerated either way)
(c) Not rush through the settlement process (for example, by pressurizing the victim)
(d) Negotiate with the facts on the table in a straightforward manner (no drama out of court)
The victim’s lawyer must build a strong case, file a lawsuit, and accept a settlement of a car accident if the at-fault party is being reasonable.
Are Online Settlement Calculators Reliable?
No way! Online calculators use inert logic while each case is subjective and has its peculiarities. You may get heavily short-changed if you rely on online calculators to figure out a compensation claim.
When to Reject Settlement from a Car Accident?
If the victim’s chances of winning the case are high, and the at-fault party and his insurance company are intent on offering a sum that is way lower than the compensation calculated by the victim’s attorney, then such settlement offers are summarily rejected.
Also, the victim’s personal injury attorney advises him on quantifiable and non-quantifiable claims. Attorneys check past case judgments to figure out the amount of non-quantifiable injuries (non-economic pain and suffering) awarded by juries in the past. Both the victim and his personal injury attorney reconcile their adjusted claims and the chances of winning with the offer made by the at-fault party. If the offer is unreasonable, the victim declines; if reasonable, the victim’s lawyer negotiates and settles.
How Do Victims Reimburse Their Attorney’s Fee?
All skilled and experienced lawyers in Utah work on a contingency fee basis. That means – you don’t pay if you don’t win. As per standard practice, lawyers get their fee from the car accident settlement received by their client. If clients don’t win, we don’t get paid.
Typically, 33% of the compensation claim represents the attorney’s fee. However, attorneys charge more for cases that result in a lawsuit being filed. Note that all lawyers who work on a contingency fee basis are open to negotiations with their clients.
Also note: If you file a suit, you have to bear the court costs.
How is the Settlement Sum Taxed?
Punitive damages and interest are taxable as per the Internal Revenue Service (IRS). The IRS has specified different rules for taxing physical injuries, mental anguish, loss of wages, and loss in property value. Please download this publication for more clarity on the subject. Any tax questions should be directed to your preferred tax professional.
Here’s hoping that we have clarified the doubts you may have had about a settlement from a car accident. If you need more clarity, we will be happy to offer you a free consultation.
FREE INITIAL CONSULTATION
We urge you to contact us and set up a free initial consultation with our team of skilled, experienced, and trusted Utah car accident attorneys.
This no-pressure, no-obligation meeting comes without any strings attached. Use it to clarify all your doubts about your car accident case.
During the free meeting, we will opine about:
- Your chances of winning
- The approximate compensation claim
- How cases similar to yours were resolved in the past
- How we have helped our clients receive hundreds of thousands of dollars in claims
- And much more
All it takes is just one phone call to arrange a meeting.
So, go ahead and contact us, you have everything to gain and nothing to lose.
