Blog > 2017 > July > Personal Injury Settlements FAQ
No car accident is a deliberate act. While you might not hold any anger against the person who caused an accident, it’s still often a necessity to take them to court. It’s surprising how often a driver who promises to take on expenses, or who acknowledges the accident was his or her fault will change stories when talking to the insurance company. Then too, the insurance company involved might also want to offer an amount that will never pay for all your medical bills, not to mention all the pain and suffering you’ve experienced. Going to court is frequently the best solution.
Why Not Settle With An Insurance Company?
Insurance companies will typically offer an amount they feel is sufficient to address compensation after an accident, but doesn’t address everything you feel you are owed. When you know you will see more medical expense, or you know the amount will not cover your losses from the accident talking to a lawyer before signing the settlement is important. Once you sign this agreement, you will not be able to take either the driver or the insurance company to court. Despite the fact future medical bills are incurred, you may only have the money from that settlement, and you may never see additional compensation in the future.Does The Insurance Company Have A Desire To Reach A Personal Injury Settlement?
Insurance companies do not like going to court. A lawsuit, even if not decided in your favor will most likely cost the company money. For this reason they are often interested in reaching a settlement, but are more inclined to hear about future expenses, or additional compensation from your lawyer.
Should All My Injuries Be Included In Settlement?One question that many injured people hear from insurance companies is in regards the degree of injury. Some hear questions about whether or not an injury had some pre-determining factor, and that the accident is not completely responsible for the full extent of the medical costs. Compensation from a personal injury claim or through litigation is for the purpose of returning you to the point you were in before the accident. Rejecting a settlement that doesn’t include costs for a condition that was made worse by the accident is recommended.If I Reject The Offer of Insurance Company – Is Court The Only Answer?
Often, an insurance company will want to settle even after you have filed for your case to go to court. Again, most companies don’t want the expense of going to court. If you are being reasonable in the amount you want to see for compensation it’s very likely the insurance company or driver will want to make another attempt to settle before the case goes to court.Will I Need to Pay Taxes On The Settlement Compensation?
If you have filed your returns, and claimed the medical expenses as a deduction, then you will need to pay income tax on the amount you receive. This will be noted as “Other Income” on your next reporting to the IRS. You will also need to report money for pain and suffering, and any amount above the amount needed to cover actual medical expenses. Any amount of your settlement intended for interest is taxable.
If you or someone you know has been injured and looking for compensations contact the SM Law Group today for a free consultation.
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