When Should I Settle My Car Accident Claim?

If you're making an injury claim after a car accident, you're probably wondering when it makes sense to accept a car accident settlement, finalize the claim process, and get your settlement check so you can move on with your life. It's an important question, and the answer typically depends on whether:

• you've finished receiving medical treatment or your car accident injuries, or
• you have a full understanding of the nature (and cost) of medical care you'll need in the future.

Let's take a closer look at when you should (and shouldn't) accept a car accident settlement offer.

What Is "Maximum Medical Improvement" in a Car Accident Case?

You might have heard the insurance adjuster or your attorney talk about "maximum medical improvement." In a car accident insurance claim or lawsuit, maximum medical improvement means:

• the injured person (the claimant or plaintiff) has fully recovered from all car accident injuries, or
• the injured person's condition has stabilized and doctors have a clear picture of what ongoing medical care will be required, how much that care will cost, and what physical limitations the injured person might face.

If Your Car Accident Injury Picture Is Unclear, Don't Agree to Settle

You shouldn't negotiate a settlement in a car accident case until you've fully healed from your car accident injuries, or you at least have a clear understanding of the extent of your injuries and the future care you'll require. Under no circumstances should you sign a settlement agreement or release of liability until you've reached maximum medical improvement (MMI).

Once you settle, you're agreeing to release the at-fault driver from any liability (legal responsibility) in connection with the accident that caused your injuries. If your injuries turn out to be worse than you first thought, or complications arise, you can't go back and ask for more money. Your case is closed forever as soon as you sign a settlement agreement and the at-fault driver is permanently off the hook for additional or unforeseen accident-related losses ("damages" in the language of the law). More on the release a bit later.

Don't Rush to Settle Your Car Accident Claim

You can file an insurance claim and lawsuit while you're still receiving treatment for your car accident injuries. In fact, you should notify your own insurance company and the at-fault party's car insurance company about the accident as soon as possible and let them know that you intend to pursue a claim for your injuries.

You should also find out the deadline for filing a car accident lawsuit (called the "statute of limitations") in your state. If you wait too long and miss the statute of limitations deadline, your case will almost certainly be dismissed and you won't be able to seek compensation for your losses in court.

It's also important to attend every medical appointment you make, cooperate with all of your healthcare providers, and do everything your doctors tell you to do in terms of follow-up care. As an insurance claimant or a personal injury plaintiff, you have a legal obligation to mitigate your damages—which simply means you have to take all reasonable steps to get better and avoid doing anything that might make your condition worse.

What Is a "Release" in a Car Accident Settlement?

When you agree to settle your car accident case, the insurance company will require you to sign a "release" as part of the resolution of your claim. This document is just what it sounds like. By signing it, you agree to release the at-fault driver (and their insurance company) from any further legal responsibility in connection with the accident. So, it's crucial to make sure you understand the full nature and extent of your crash-related losses before you sign the release and give up your right to take any further action over the accident.

Learn more about what to consider before you sign a release in a car accident case.

Talk to a Car Accident Lawyer Before You Settle

If you've been offered a car accident settlement, and you're not sure whether it's a good idea to accept it, it might make sense to talk to a car accident lawyer. A lawyer can help you figure out the fair value of your claim, negotiate with the insurance adjuster, and fight for you in court, if it comes to that. Learn more about how an attorney can help with your car accident claim.