If you get into a car accident, there will be expenses. Even a minor fender bender will mean paying car repair bills. In accidents that cause injuries, the medical expenses begin with the first trip to the emergency room. You’ll likely incur a substantial financial burden when you add lost wages. What makes matters worse is when the accident wasn’t your fault.
That means you wouldn’t have been paying any of those expenses if it weren’t for some other driver’s negligence.
Fortunately, a remedy is available for victims of a car accident caused by another driver’s negligence. That remedy might come in the form of a settlement meant to cover your out-of-pocket expenses and compensate for your pain and suffering. Who pays for car accident settlements?
The short answer is the at-fault party’s insurance company or the at-fault party themselves. Getting to those settlements can be challenging, especially if there are questions about who is at fault.
One way to increase your chances of achieving a fair settlement is to get support and guidance from an experienced Lanham car accident attorney like the attorneys at GDH Law. We understand the limitations of settlements and will always fight so our clients can receive the maximum amount they are due.
As you pursue a car accident settlement, it is essential that you also understand the challenges and limitations. That begins with determining who is at fault.
Maryland’s Contributory Negligence Law
Maryland follows the contributory negligence law, which significantly impacts the outcome of any potential settlement. Under this law, an accident victim found to be even partially at fault for the car accident will not be able to recover any damages from the other driver.
Even if you’re found to be just 10% at fault, you won’t be able to file a claim against the driver.
That law raises the bar on the inherent burden of proof from your perspective. In other words, you need to present evidence that you weren’t responsible in any way for the accident. An insurance company will do all it can to prove otherwise. If you establish that you weren’t responsible for the accident, you can move forward in your pursuit of a settlement.
Insurance Policy Limits
Every Maryland driver is required to carry liability insurance. This mandate is put into place to protect drivers. You might be a very capable driver, but if you hit a patch of ice on the road and slam into a parked car, you would be responsible for the damages.
The minimum requirements for vehicle insurance are the following:
- $30,000 for bodily injury
- $60,000 for two or more people
- $15,000 property damage
It is important to note that an insurer is only obligated to pay up to the amount stipulated by the policy. In other words, if your medical bills are $50,000 and the at-fault driver has the minimum coverage, you would only be entitled to $30,000.
You and your car accident attorney can file a civil complaint to make up the balance. That means taking your claim to trial and presenting your story before a jury.
Applying the Collateral Source Rule
In addition to the contributory negligence law, Maryland applies the collateral source rule. This allows plaintiffs to get compensation for medical expenses even if their insurance already covers them. In addition to liability insurance, most drivers also carry personal injury protection (PIP).
This insurance covers medical expenses, lost wages, and any other bills related to the car accident.
The collateral source rule means that the at-fault driver can’t use the fact that the accident victim is already “covered” to avoid paying a settlement. For example, the accident victim might have to stay home from work for two weeks to recover from their injuries. They might have sick leave and PTO time that covers that time out of work.
However, they are still entitled to be paid for that time from the settlement.
Settlement Payout Options
If you prevail in your claim against the at-fault driver’s insurance company, you have settlement payout options to consider. There are benefits and drawbacks to these options.
Lump-Sum Payout Settlement Option
A lump-sum payout means you’ll get one check for the entire amount you’ve agreed to. While this might seem like a fast way to get the funds in your account, a lump-sum payment can be worth less than longer-term structured settlements. However, a lump-sum payment is helpful if you want to pay off your debts and start fresh.
Structured Settlement Option
With a structured settlement payout, you’ll receive installments over an agreed-upon amount of time, such as monthly or annually. When you add up all the installments, you might find they could exceed a lump-sum payment. That is because insurance companies would prefer not to show a significant “loss” on their books.
Regardless of your settlement payout option, you’ll need to sign an agreement releasing the insurance company from further action. You won’t be able to go back and ask for more money if your condition changes.
You need to discuss these considerations with a qualified car accident attorney. At GDH Law, we help our clients calculate the complete and fair amount they need to be satisfied. Once we agree to work on the case, we’ll begin settlement negotiations immediately.
We aim to find a fast and fair resolution for all our clients. Call to get the process started with a free consultation.
