Vehicle accidents, even minor ones can be financially devastating. You have unexpected bills you’re probably struggling to cover. You have a good idea of your accident claim’s value so it’s a bit of a shock when the settlement check is less than you expect. Why is your compensation check less than your agreed settlement?
You’re probably dealing with some common out-of-pocket expenses impacting accident settlement amounts. Your out-of-pocket costs can range from a few hundred to several thousand dollars depending on the complexity of your accident claim. So, what are some of the expenses not covered by your economic damages?
Potential Costs Not Covered By Economic Losses
Your economic losses typically cover your medical expenses, property damage costs, and even lost income. While this can seem like everything’s covered, you can run into some things you may not be able to claim as an economic loss. This can include things like:
- Over-the-counter medications
- Medical supplies, including bandages, wraps, gauze, etc.
- Prescription drugs
- The cost of traveling out of town for medical treatments
- The cost of affordable care for your children
- The cost of paying someone to help you with household chores and activities of daily living
This isn’t to say you’re definitely on the hook for these costs. Your insurance or the at-fault driver’s policy may cover some or all of these costs. Insurance policies can widely vary and this impacts what you’re paying out of your pocket.
Home and/or Vehicle Modification Costs
Catastrophic injuries are often life-changing. Eventually, you recover from a broken bone. Other types of injuries can permanently impact your mobility. You may need a wheelchair lift installed in your home or vehicle.
Doorways may need widening and ramps installed. Adding a walk-in shower or shower bar comes with a cost that’s not always covered by insurance.
Proving Out-of-Pocket Expenses in Personal Injury Claims
Who may cover your out-of-pocket expenses depends on accident liability. If you’re the at-fault driver, then it’s up to your insurance carrier to decide what’s covered. When you’re not the at-fault driver, their insurance provider is responsible for covering your damages. This may include some or all of your out-of-pocket expenses. Before you can get any of these costs taken care of, you must prove each expense is reasonable.
Your healthcare provider can testify that medical supplies, equipment, and medication are a necessary part of your treatment plan. They can also provide evidence your safety modifications are vital for your safety. Getting multiple estimates for any modification can help show your costs are reasonable. Since proving these are necessary expenses and not luxury splurges can be tricky, it’s a good idea to partner with an experienced accident attorney.
You May Have Out-of-Pocket Accident Attorney Costs
Most personal injury attorneys charge what’s known as contingency fees. This type of fee structure lets clients pay their attorneys when they settle their accident claims.
Your attorney fees are deducted from your settlement check. After your attorney is paid, you get a check for the rest of your settlement. Contingency fees typically run anywhere from 33% to 40% and can take a significant amount out of your compensation.
Contingency fees don’t cover everything your accident attorney does on your injury claim. You’re probably going to have some case expenses and these are out-of-pocket costs. Things like costs for your medical records and accident reports are separate costs. All court fees are passed on to you, along with any filing costs. Even sending the all-important demand letter comes with a fee.
Anytime your attorney needs to make copies of your documents or mail a letter to the insurance company and/or at-fault driver, you should expect to pay these costs.
While these types of costs tend to be rather minor, after all, stamps and copies are usually only a few dollars. However, some costs can quickly add up and take a huge chunk out of your personal injury settlement. If your attorney needs to bring in accident scene investigators, it can be pricey. The same is also true if you need medical expert testimony.
Before signing a contingency fee agreement, check to see what’s covered. You can’t ask the insurance company to cover extra attorney expenses, but at least you’ll have a better idea of what your accident claim may cost.
Protecting the Value of Your Car Accident Claim
You don’t want to watch your potential accident settlement shrink just because your economic losses aren’t exactly considered standard. You can spend weeks and even months arguing with the insurance company. However, this may be a way you can sail through settlement negotiations.
Protecting the value of your personal injury claim may even be a little easier than you think, especially if you’re keeping track of all your accident-related expenses. This means documenting everything and saving all of your bills, receipts, and modification estimates.
Try to Document the Accident Scene
Not all out-of-pocket expenses stem from catastrophic injuries. Remember, your prescriptions, over-the-counter medications, and even rides to medical appointments are often looked at as extra costs. If your injuries aren’t demanding an immediate ride to the hospital, try to document the accident scene.
You’re not crawling around with a magnifying glass. You’re not turning into a detective. However, you can take some pictures of the accident scene with your smartphone. Just use the handy camera app. Try to get some pictures of your vehicle’s position after the accident. This can go a long way towards helping establish fault. Remember, accident liability plays a crucial role in your potential settlement amount.
Surveillance camera footage can also help establish liability. Make a note of the cameras’ locations. Your personal injury attorney can subpoena the footage.
Don’t Let Out-of-Pocket Expenses Unnecessarily Reduce Your Accident Settlement Amount
You need every cent of your potential accident settlement. However, some costs the insurance companies fight to pay. To help avoid being hit with extra costs, it’s a good idea to work with an experienced personal injury attorney. While your accident lawyer may not be able to get all of your out-of-pocket expenses covered, they can help ensure you receive a fair settlement.
