Say you did all the right things. You bought insurance and pay your premiums on time, so you expect the insurance company to pay for loss of income, medical bills, and repairs in case of an accident. You also expect litigation to be over once the insurance claim has been approved. But is it that simple? The society we live in is becoming increasingly litigious and lawsuits tend to follow accidents more often than not. Accident-related lawsuits are actually some of the most common lawsuits in America. Dealing with a lawsuit can be a nightmare from the time it takes to settle a lawsuit to the high costs associated with it. And unfortunately, civil lawsuits aren’t prevented by insurance payouts.
Your insurance company pays a certain amount when they settle a claim and that money is expected to prevent the victim from asking for more money. That’s because the victim often has to sign a legally binding agreement that exempts the party at fault from further liability. However, there are exceptions.
When can someone sue you after settling a claim?
When dealing with a personal injury or car accident settlement, victims often sign an agreement that releases the party at fault from further liability and future litigation. The agreement reassures the party at fault that they won’t have to deal with any further lawsuits. But there are cases when the victim realizes that their settlement could have been much higher. They can still sue after a settlement if they prove that the at-fault party acted in a coercive manner or that there was fraud involved, but they’ll need a full-proof case to convince the judge. Usually, judges will throw the lawsuit out if all parties have already agreed to a settlement.
Another exception is suing a different person who had responsibility for the accident. For example, a victim may find out that a manufacturing defect was also at fault for their accident after settling a case with whom they believed was the only person at fault. In this case, the victim can sue the manufacturer, but not the person they already settled with.
Remember that you must file a personal injury claim for a car accident usually within two years. Get started on your claim as soon as possible since court processes can take a lot of time.
Here’s a simplified list of when someone can sue you after insurance has already paid:
- When the victim believes you acted fraudulently when settling.
- When the victim becomes aware of another party’s involvement in the accident.
- When the victim believes they need more money to pay for accident-related medical bills.
- If you’re considered uninsured for some reason, such as failing to pay your insurance for some time.
- When the claims process takes too long, the victim can sue you personally to get money faster.
How does negotiating an insurance settlement work?
Because it’ll be very difficult to sue for further damages after you’ve settled a claim, you need to make sure you’re happy with the settlement you got. Before going through the settlement process, make sure you have a figure in mind of the minimum settlement you’re willing to accept, and never accept the first offer. Claims adjusters usually lowball the first offer to understand who they’re dealing with. If you did your homework, they’ll know not to mess with you. Be prepared to counter the adjuster’s offer with a higher payout since the final settlement will most likely be somewhere in the middle of what you and the adjuster offered.
Ask the adjuster for reasons that justify their offer. If it’s too low, you can counter those reasons. Make sure you have the proper documentation, such as medical bills, work records, pictures, and other evidence, to prove that the accident caused long-term effects. Mention the medical costs related to the accident, as well as any long-term injuries that may prevent you from providing for your family.
Driving-related accidents and personal injury cases are very complex. If you have the means to do so, consider hiring an attorney that can comprehensively review your claim. That way, you can rely on a professional to ensure that the settlement covers all current and potential future expenses. However, if you believe your lawyer gave you bad advice, you can sue your lawyer for mishandling the case, but you’ll have to prove legal malpractice.
Here’s what you need to do before accepting a settlement offer:
- Don’t sign the settlement before you understand the extent of the damages. Insurance companies will try to settle accident-related cases quickly because serious accidents can lead to significant compensation.
- Ensure that a medical professional has given you all the proper documentation regarding present and potential future medical bills.
- Ensure that you have the proper documentation for potential wages lost from not being able to work because of an accident.
- Advise your attorney to gather all the documentation that supports your claim.
- Read the terms of the settlement carefully. It is almost impossible to sue after a settlement has been reached.
Conclusion
It is almost impossible to reopen a case that has been settled because the settlement process is designed to benefit both parties. You cannot reopen the same case again after both parties agreed to a settlement.
Signing a settlement with an insurance company means you have agreed to receive the payout so the case can be closed. You then have to sign a waiver promising not to take any further action against the insurer for the same case. The waiver binds you to the terms of the contract and there are very limited exceptions to this rule. If you find proof that there was fraud in the claims process, or that the at-fault party acted in a coercive manner, you can contact a lawyer to file a lawsuit. You may also do so if you find another party was involved in the accident. But because suing someone after insurance pays is so difficult and rare, make sure that all parties involved in an accident review the agreements carefully before signing them.