Reasons Why Some Auto Accident Settlements Are Lower Than Others

Posted on: 7 October 2020


When you are involved in a car accident, you will most likely have your case settled rather than going to court. You will want to seek the maximum possible settlement because failing to reach a good settlement can mean that you may not have enough money to cover your bills and account for lost wages. However, there are several factors that can affect how large your settlement will be.

Insurance and Policy Limits

If the other driver was carrying an insurance policy, you may be limited by the policy limits. If the accident was very expensive, the other driver might simply not have a policy that will be able to cover the damages. You may attempt to seek compensation from the motorist directly for the remaining amount that you believe your settlement is worth, but this would only be possible if the defendant has assets that you can collect.

However, if the driver is not carrying auto insurance, you may not be able to reach a settlement because he will refuse to settle. Most often, when a driver is not carrying auto insurance, this is because he cannot afford it and will likely not have any assets.


You will only be able to reach a settlement if the other party is at least partially at fault for the accident. In some cases, both you and the other motorist might be considered partially at fault for the accident. If this is the case, you may only receive a partial amount of the damages you have suffered if you are considered partially at fault.

The Attitude of the Insurance Provider

Even if you are entitled to compensation for your injuries, the insurance provider may do everything possible to try to reduce how much you will be compensated. You may receive a much lower settlement offer that you can choose to accept. However, you are better off speaking with a personal injury attorney who can negotiate on your behalf to reach the best settlement offer possible.

The time frame for a settlement to be reached can be quick if all parties are cooperative. Taking time to make sure that you fight for the maximum possible settlement after calculating all your damages can be tricky, but your personal injury lawyer will be able to advise you as you navigate your insurance and settlement.

For more information about the settlement after an auto accident, contact a local personal injury law firm.