Nobody expects to have an accident, but the reality of things is that they do happen. Unfortunately, you never know when disaster will strike. It is this reason that motivates car owners to insure their vehicles. It comes with many blessings. In case you are faced with adversity on the road, you can easily get back on your feet, thanks to the financial cushion that insurance provides.
It is vital to equip yourself with some knowledge on car accident settlement. Here is what you need to know.
- The insurance company wants to protect its bottom line
Having in mind that the insurance company doesn’t look forward to offering a lot will help. That is why you need to involve a Rockford car accident lawyer as you pursue your claim. Insurance companies usually start with a low offer, and if you do not know better, you will jump at it. A professional has experience with personal injury cases similar to yours and knows the size of the settlement you deserve. With a car accident attorney by your side, the insurance adjuster will not be able to take advantage of you.
- Car accident settlements are taxable
Will your settlement award be taxed? Since it is considered as an income, you are going to be taxed. However, note that there are exemptions to this. For one, if you sustained injuries in the accident, then your settlement may not be taxed. However, note that this only applies to observable bodily harm: the injury has to be physical. The other exemption is on medical expenses. Compensation for medical expenses is always tax-free.
Non-economic damage compensation will, however, be taxed. Therefore, if you get compensation for emotional distress, you owe taxes. The same goes for settlement for loss of income or wages.
- You may receive your settlement in installments
Do you receive your car accident settlement in bulk? Well, not always. Some insurance companies distribute the settlement over several years, after agreeing on the amount to disburse within given periods: for instance, every month.
- Settlements are not the same
It is important to note that two drivers involved in a car accident may not receive the same size of the settlement. Settlements do vary, for one based on the type of policy one chooses. Other factors determine the kind of settlement one receives. One is the severity of injuries sustained and damaged. The more serious your injuries, the higher the settlement amount you receive. Also, the ability of a victim to prove liability will determine the amount of settlement he or she will receive.
Car accident settlements are not in black and white. There is a lot that you may still not be aware of. That is why it is advisable to work with a car accident attorney from Mahoney & Mahoney to get proper guidance on the same. With adequate knowledge of car accident claims, you will know what to expect in your case.