5 Things You Should Know Before You Settle Your Accident Benefit Claim

This post was originally published on Feb 17th, 2011 and updated on May 29th, 2020. 

Are you considering settling your accident benefit case?

If you are handling your motor vehicle collision file by yourself, or even just your accident benefit claim by yourself, there will likely be a moment when the insurance adjuster asks you to settle your claim.

Many residents of Eastern Ontario, including Ottawa, settle their accident benefit claim for too small an amount of money.  The main reason for this shortfall is that most claimants have no way of knowing what the total settlement amount the insurer could possibly owe you.

Do you have all the information you need before settling? 

Before you settle your claim, make sure you understand the following:

  • Income Replacement Benefits continue after 2 years post-collision if you are still unable to work at all. Many claimants think the insurance company only has to pay for two years.  This is false!
  • Are you eligible to apply for catastrophic benefits? If you haven’t already settled your claim and you are not working and still suffering serious symptoms from your collision, you should consider meeting with a lawyer.  The process to apply for catastrophic benefits is complex.
  • If you resolve your Accident Benefit claim for an insufficient amount, it can hurt your lawsuit against the driver who caused your injuries. The insurance company will be able to reduce what you could have or should have received from the accident benefit insurer.
  • Did you know that any settlement offered by the accident benefit insurer is negotiable? You should ALWAYS counter-offer, even if the insurance company tells you the offer is “final”.  Final does not always mean final.
  • The insurance company will evaluate your burn rate (the rate at which you consume benefits) when calculating the value of your settlement amount.   What that means is the insurance company will assess how much you have spent each year since your accident on medical rehabilitation expenses.  They will then use the average of those numbers to predict your future expenses.  You should find out from the insurer what the burn rate is.

Settlements are almost always final. In most cases, after you settle your accident benefit claim, you cannot go back to ask for more money….so make sure the deal you negotiate is a deal that is good to you!

For help with your accident benefit case, call the experienced personal injury lawyers at Auger Hollingsworth Professional Corporation.  We can be reached at 613 233-4529.

Check out what Donna had to say about us on Google:

“I can not thank Brenda, Charles and Andrew enough for their professional care, compassion and brilliant legal work which ensured that I received a fair and just settlement for the injuries I sustained. The settlement has allowed me to start the construction to make my beloved townhouse accessible. I still face months, perhaps years of physiotherapy and medical care but now I have the necessary funds to ensure that I can get the professional help I need. Auger Hollingsworth turned ed a devastating situation (where I thought that I would have to move, leave my townhouse community and wonderful friends ) into a situation where I can recover and age in place! If you are involved in a slip and fall I suggest that you call a Lawyer at Auger Hollingsworth (Charles Genest is great!!) immediately they will guide you step by step so that the process is clear and not overwhelming.”

Rating: 5/5 ⭐⭐⭐⭐⭐