Once a signed car accident settlement agreement is reached between the involved parties, the victim will receive payment in a lump sum or through structured payments. When car accidents occur, they often result in serious injuries and major medical expenses. Damages for victims are resolved through out-of-court settlement agreements handled by the injured party’s lawyers and the insurance company that represents the at-fault party.
Were you injured in a Libertyville car accident? Call Bogdan Martinovich, Attorney at Law, for a free consultation at 847-996-1350.
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Illinois Car Accident Statistics
In Illinois, car accidents are the leading cause of personal injuries and deaths. In October 2023, 833 fatal car crashes were reported by the Illinois Department of Transportation (DOT). Data shows that 905 people died in these crashes involving motor vehicles, semi-trucks, motorcyclists, bicyclists, and pedestrians. In addition, DOT data showed that 32% of motor vehicle crashes and deaths occurred in Cook County and Lake County, and data noted a growing concern for car crashes and deaths in these counties.
Car accidents often result in severe, long-term, or permanent injuries that result in large medical bills and lost wages due to the injury victim’s inability to work, They also cause pain and suffering, emotional distress, loss of enjoyment of life, and the need for therapy, physical rehabilitation, and mobility aids. While some victims pursue legal action for damages through a car accident lawyer in civil court, others pursue out-of-court settlement agreements negotiated between their car accident lawyer and insurance companies.
Types of Car Accident Settlements
An Illinois car accident settlement commonly takes one of two forms. The type of settlement that best fits your case depends on the nature of your injuries and the impact they will have on your life.
Lump Sum Payments
In lump sum payments, the victim receives a one-time car accident settlement check to cover damages including medical bills, lost wages, and property damage. Lump sum settlements may take several months to process due to negotiations, but once a settlement agreement is signed by the victim, lawyers, and insurance companies, the victim will usually receive the payment within 6 weeks. These are an ideal option for cases that don’t require long-term medical treatment and disability.
Structured Settlements
Structured settlement payments are often the same dollar amount as lump sum payments, but payments are spread out over an extended period and paid in installments to ensure long-term support. Structured settlements are commonly paid through U.S. Treasury bonds, annuities purchased from the defendant’s insurance company, and personal funds from the defendant. Since treasury bonds and annuities are backed by the government, they offer protection against risky investments and pose fewer financial risks for the victim. The downside is not being able to instantly access funds to cover unexpected bills and expenses.
Before accepting any type of settlement agreement, victims should discuss the car accident lawsuit process and the pros and cons of car accident settlements with a lawyer who can provide important information and legal advice.
What Factors Impact Settlement Payments?
In car accident settlements, payments for damages are based on the circumstances of the accident and the victim’s injuries. To determine payouts, car accident lawyers and insurance companies look closely at the following factors:
Comparative Negligence Rules
In Illinois, car accidents and injuries are linked to “modified comparative negligence” rules. This means that fault for Illinois car accidents is based on the degree of each driver’s negligence. Comparative negligence, also referred to as comparative fault, is a legal principle that assigns blame to two or more parties based on the degree of negligence that each party contributed to the incident. The amount of compensation awarded to a victim in a car accident is based on his or her percentage of blame. For instance, if the victim is found to be more than 50% responsible for the accident, no compensation will be awarded. If the victim is found to be 30% responsible, compensation will be reduced by 30%.
When a car accident occurs, the scene is typically investigated by local police officers, which initiates an accident report that helps prove fault in a car accident claim. Before officers file a formal police report, they will examine the accident site, gather physical evidence, talk to crash victims and witnesses, and take photos of visible hazards, tire marks, and property damage. The information gathered at the accident scene becomes part of the official police report, so it can be used as evidence to prove fault in car accident settlements and lawsuits.
Insurance Policy Limits
Insurance policy limits for drivers play a big role in car accident settlements. The insurance company that represents the at-fault driver will not pay out more money than what is agreed to under policy limit terms. Automobile liability coverage in Illinois is mandated by state law and split into two categories:
- Auto Liability Coverage – Current Illinois law requires drivers to have Minimum Liability Coverage of 25/50/20: $25,000 for bodily injury per person, $50,000 for bodily injury per accident, and $20,000 for property damage per accident.
- Uninsured/Underinsured Motorist Coverage – This type of coverage is related to bodily injury. The law requires $25,000 per person and $50,000 per accident.
Liability coverage only covers personal injuries and property damage that a driver causes to another person. If you are an at-fault driver, liability coverage is used to pay for the other driver’s expenses, not for your injuries or damages.
Severity of Injuries
The severity of a person’s injuries is a major consideration when calculating car accident settlements. Severe injuries like head trauma, traumatic brain injury, amputated limbs, back and neck injuries, and spinal cord injuries will result in higher settlement agreements than minor injuries. While minor injuries heal faster, severe injuries often result in long-term medical care, higher medical bills, lost wages or loss of employment, medical aids, and in-home support.
What Are the Damages Available?
The average settlement for a car accident includes a variety of damages that are meant to bring a victim back to a state of financial wholeness. Recoverable damages are broken down into two categories – economic damages and non-economic damages.
Economic Damages
Economic damages include expenses that are easy to calculate. Calculable expenses are reached by adding up the victim’s expenses that are directly linked to the car accident. They usually include:
- Present and future medical bills
- Present and future lost wages
- Property damage to vehicles or personal property
- Out-of-pocket medical expenses for medications, medical equipment, and transportation costs
Non-Economic Damages
Non-economic damages are more difficult to quantify because they are not based on calculable expenses. They are awarded to compensate victims for things that are not attached to bills and receipts. Non-economic damages are typically awarded for the following:
- Physical pain and suffering
- Physical disfigurement and scarring
- Emotional stress and psychological trauma
- Loss of the quality or enjoyment of life
- Loss of the consortium of a spouse, child, or other family member
When car accidents involve multiple drivers,how are car accident settlements calculated? Before numbers can be calculated and money can be awarded in a settlement agreement, the cause of the accident and the identity of the at-fault drivers must be determined.
Reaching a Settlement Agreement
If you’re injured in an Illinois car accident and want to reach a settlement agreement out of court, your lawyer can help you through the process. Your lawyer can explain how settlements are distributed and any expenses that may be deducted from your total settlement payment. Common settlement deductions include:
- Government insurance debt
- Health insurance liens
- Medical debts
- Excess medical expenses
- Vehicle rental fees
- Utility or rent bills
If you have any of these debts, your lawyer can work on reducing them before your settlement gets distributed. Your lawyer is representing you and expects to get paid, however, most personal injury lawyers operate with a contingency fee, a “no-win, no-fee” rate that is taken out of the final settlement amount. This works in your favor because your lawyer will do his or her best to get you the maximum settlement amount that covers your expenses and legal services.
Is it worth suing after a car accident? If you’re on the fence about car accident settlements vs. civil court trials, your lawyer can explain the differences and give you advice on the right course of action. While civil court trials may promise better financial results, the process usually takes more time, up to 8 or 9 months in some cases. Settlement agreements happen much faster, usually within 60 days, and there are ways to speed them up. Your lawyer can speed up your settlement agreement by communicating regularly with the designated insurance company, submitting all required documents and insurance information on time, providing information related to your medical care and expenses, and setting a timeline for final results.
If you’re injured in a Libertyville car accident, contact Bogdan Martinovich about your legal options. We offer a free consultation to review your case.
