How Do Settlements Get Paid?

Insurance companies typically pay settlements either in a lump sum or through a structured settlement process. Generally, insurance companies pay most personal injury settlements all at once. However, some injury victims may agree to a structured settlement, where the company pays money in installments.

An Atlanta personal injury lawyer can provide more information about how settlements get paid and what you should expect if you sustain injuries in an accident caused by someone else’s negligence.

What Is the Settlement Payout Process?

The settlement payout process determines how settlements get paid. The payout process may proceed in two ways. Depending on your situation, you may:

Get the Funds All at Once

In most cases, an insurance company will provide a lump sum of cash. In this situation, you receive all the money at once, generally with a single check. Typically, lump-sum payouts represent the best choice for injury victims. 

Receive a Structured Settlement

You may receive a structured settlement during the payout process. In this situation, the process will involve sending you regular payments for a set period, until the liable party has fully covered your losses. A personal injury attorney can tell you more after reviewing your settlement agreement.

How Will You Receive Your Settlement Money?

Once you settle your claim with the insurance company, your attorney will typically receive a check from the insurer. Sometimes, the company also sends a check to the health insurance company that covered your expenses after the accident. 

Your attorney will take money for their legal fees from the settlement check. After your attorney gets the appropriate payment, they will provide you with the remainder of the settlement money. 

How Long After Settlement Do You Get Paid?

Typically, the insurance company will provide your settlement check within two to three days after the conclusion of settlement negotiations. However, you may have to wait months for the negotiation process to conclude. 

After the company sends the settlement check, it may take several additional days for your lawyer to take their payments and get your check sent out. 

What You Need to Know About Settling Your Claim

Understanding the settlement process can help you feel more confident in resolving your claim in this manner. An attorney can provide more detailed information about:

What Accidents Result in Insurance Settlements?

You may receive a settlement to cover your losses after any injury caused by someone else’s negligence. Your lawyer will have to definitively show that someone else directly caused the incident, your losses, and your injuries to successfully secure a settlement.

For example, an attorney can step in to help you handle settlement negotiations after a:

• Motor vehicle accident
• Truck accident
• Motorcycle accident
• Pedestrian accident
• Slip and fall accident
• Dog bite injury 

You can discuss the specifics of your accident through a free consultation with a personal injury lawyer. 

Who Pays You When You Settle?

Settling after an accident means that you accept payment from an insurance company. Typically, the money will come from the insurance company that represents the negligent party. 

Can You Take the First Settlement Offer?

Insurance companies often send a settlement offer quickly after an accident, because they hope injury victims will accept a lowball offer while still recovering from the physical, mental, and emotional damages they face.

Once you sign and accept a settlement offer, you generally cannot request additional losses. Therefore, you should have a lawyer look over any deal offered by the insurance company before you accept it. 

How Do Settlement Negotiations Work?

Your attorney and representatives from the insurance company will negotiate after an initial offer. Your lawyer can make a counteroffer based on your actual losses. This process may take several months. 

An attorney can give you more information and answer questions about how settlements get paid.

How Can You Use Settlement Money?

Once you have the money from your settlement, you can utilize the funds however you see fit to cover the losses associated with your accident. For example, these funds may pay for your:

• Medical expenses
• Lost pay
• Emotional pain
• Mental anguish
• Property repairs

An attorney should ensure that your settlement covers all of the losses caused by your accident. 

Should You Settle or File a Lawsuit?

In most cases, lawyers will recommend that you settle with the insurance company after an accident that results in an injury. Generally, a settlement will cover all of your losses, and the settlement process typically takes less time than filing a lawsuit and going through the court system. It also allows you to avoid court fees. 

You can often file a claim with the responsible party’s insurance company for compensation. For example, the at-fault driver in a car accident should have auto insurance to cover the accident. Insurance companies typically offer settlements to avoid the costs associated with a lawsuit.

Settlements act as a compromise between you and the other side. The liable party for your personal injury damages compensates you without a lengthy, expensive court trial.

What to Know About a Personal Injury Lawsuit

If you take your case to trial, there is more risk than with a settlement. While you can potentially win more in court, you can also end up with nothing if you lose. Most lawyers will advise working toward a fair settlement with the insurance company.

However, if the insurance company refuses to provide a fair settlement offer, you may need to sue the liable party.

How Are Lawsuit Settlements Paid Out?

If you go all the way through the legal process and complete a civil trial, you will not receive a settlement. Instead, the court can make an award in your favor. The judge may decide if you’ll receive a lump sum payment from the defendant or a series of payments.

Talk to Us About Settlements for Your Losses

So, how do settlements get paid? Most settlements get paid through a check from the insurance company. You’ll usually receive your funds from your lawyer after they’ve cleared the check and deducted any fees. At John Foy & Associates, we make the settlement process as straightforward as possible for you.

Our law firm can handle the negotiation and settlement details, allowing you to focus on your healing. Our team also does not charge a fee unless we successfully obtain compensation for you.

To learn more during a FREE consultation, call or contact us online. We are available 24/7 to take your call.