When a lawsuit is filed against an insurance company, it’s typically because the injured party is seeking compensation for damages sustained in an accident. Accident cases can vary widely, and the compensation awarded will depend on a number of factors. In this article, we’ll discuss how accident cases and their compensation are determined when a lawsuit is filed against insurance companies.
• Determining Liability
The first step in determining compensation for an accident case is to establish liability. Liability refers to who was at fault for the accident. In some cases, liability is clear, such as when a driver runs a red light and hits another car. In other cases, liability may be more difficult to establish, such as when two drivers collide at an intersection.
The evidence presented in court will be used to determine liability. This evidence may include police reports, witness statements, and photos or videos of the accident scene.
• Assessing Damages
Once liability is established, the next step is to assess damages. Damages refer to the financial compensation awarded to the injured party to cover expenses related to the accident. Damages can be broken down into two categories: economic and non-economic.
Economic damages refer to expenses that can be easily quantified, such as medical bills, lost wages, and property damage. Non-economic damages refer to expenses that are more difficult to quantify, such as pain and suffering, emotional distress, and loss of enjoyment of life.
To determine economic damages, the injured party will need to provide documentation, such as medical bills and receipts for car repairs. Non-economic damages are more difficult to assess and will typically require the testimony of the injured party and other witnesses.
• Comparative Negligence
In some cases, both parties may be partially at fault for the accident. This is known as comparative negligence. When comparative negligence is present, the compensation awarded will be reduced based on the percentage of fault assigned to each party.
For example, if the injured party is found to be 20% at fault for the accident, their compensation will be reduced by 20%.
• Insurance Coverage Limits
Finally, it’s important to note that insurance coverage limits can also impact the compensation awarded in an accident case. If the damages awarded exceed the insurance coverage limits, the injured party may need to seek additional compensation through other means, such as filing a lawsuit against the at-fault party.
In conclusion, accident cases and their compensation are determined through a complex process that takes into account liability, damages, comparative negligence, and insurance coverage limits. It’s important for injured parties to work with an experienced attorney to ensure they receive the compensation they deserve.