A motor vehicle accident can impose overwhelming financial and emotional burdens on a victim. When a Gulfport resident is involved in an automobile crash, they may find themselves physically, financially, and personally impacted. If their losses were caused by the actions of another person, they may be unsure of how to protect their rights to later seek compensation for their damages.
While a victim is coping with the aftermath of a devastating motor vehicle accident, they may receive an offer to settle their claims arising out of their collision. This post will explain settlements in the context of motor vehicle accidents. It does not provide legal advice to any reader. Victims of motor vehicle accidents can always speak with personal injury attorneys about their legal options, including settlements and litigation for the recovery of their damages.
What is a settlement?
A settlement is a type of agreement that exists in the law. When a person has a possible legal claim against another party, the potentially liable party may attempt to settle the victim’s claims by offering them money in exchange for the victim’s waiver of their rights to sue. In essence, a settlement is a contract that exchanges financial compensation for the loss of the victim’s rights to pursue their damages in court.
Why would any victim settle their legal claims?
Readers may question why any victim would choose to waive their rights to sue on their personal injury claims. There are several reasons why settlements may be beneficial to some personal injury victims. First, the recovery of damages through litigation is not a guarantee when a victim files a lawsuit. A settlement provides compensation based on the terms of the victim and liable party’s agreement.
Second, some settlements fully compensate victims for their full accident-related losses. When a victim has minor injuries and quantifiable losses, they may be able to secure a settlement amount that covers the full extent of the harm they suffered.
However, when a victim has extensive losses or is not able to fully identify the scope of their losses, a settlement may be detrimental to their interests. That is because once a settlement agreement is signed, a victim may no longer be able to sue for more compensation even if their damages exceed the amount of their settlement. It is important that victims speak with legal professionals about offered settlements before they accept them. Their rights may be impacted by accepting settlements which may in the future prevent them from receiving the compensation they deserve.