Consider These Pointers Before Accepting a Personal Injury Settlement

When a person is injured due to an accident, the process of dealing with insurance claims and legal considerations can be stressful. One of the main steps in this process is accepting a personal injury settlement. 

This decision needs to be taken carefully, as reopening a lawsuit after settlement can be difficult and sometimes impossible. So, before you agree to a settlement in a personal injury case, consider these pointers.

Know the Full Extent of Injuries

The first thing you should consider before accepting a settlement is whether the amount is fair and compensates for the full extent of your injuries. You may not yet fully know the long-term effects of an injury, especially when you are still in the process of medical treatment or recovery. 

Medical professionals only can assess your health and explain the full consequences of the injuries. If you accept a settlement too early, you agree to a payout that doesn’t cover future medical expenses or long-term emotional distress.

Understand the Release of Liability

When you accept a settlement, you will be required to sign a release of liability form. This document means you waive your right to pursue any further legal action related to the incident in exchange for the settlement. 

So, it is essential to understand the consequences of this agreement. Once you sign the release, you cannot reopen a lawsuit. You can’t claim any additional damages if your injury worsens later. 

Be Clear on Tax Implications

In some cases, the money from a personal injury settlement may be taxable depending on the nature of the damages.

For example, compensation for medical expenses cannot be taxable, whereas compensation for lost wages may be considered taxable. So, before accepting a settlement, you should consult a lawyer and tax professional to understand the tax implications.

Consider Non-Economic Damages

Compensation for medical expenses, lost wages, and property damages comes under economic damages. Many personal injury claims involve another type of damages, which is called non-economic damages. It includes pain and suffering, emotional distress, or loss of enjoyment of life.

These damages are immeasurable, but they can significantly impact your overall health. Be sure to check whether the settlement includes compensation for these non-economic damages. 

Consider Future Lost Earnings

In some personal injury cases, your ability to earn an income could be impacted, whether due to temporary disability, permanent disability, or the need for ongoing treatment. When considering a settlement, it is essential to check whether compensation for future lost wages is added.

Also, if you would have earned some additional income if you had not been injured, you can get compensation for that. So, discuss future earning capacity with your lawyer and consider how the settlement accounts for these potential long-term financial consequences.

Consult a Personal Injury Lawyer

Even though getting a settlement for personal injury claims without an attorney is possible, having legal representation is highly recommended. Because those attorneys know the complexities of injury law, they can say whether the settlement is fair.

Most personal injury attorneys work on a contingency fee basis, which means they only get paid after you win your case. This fee is typically a percentage of the final settlement or court award. If you do not win your case, you do not need to pay the attorney, so you do not need to worry about upfront legal fees.

Conclusion

Accepting a personal injury settlement can provide the financial relief you need, but it’s not a decision to make quickly. Take the time to gather all the necessary information, consider all the factors involved, and choose the best choice for you and your future.