When an individual receives a car accident settlement, they may wonder who pays for it. The first question to answer is whether the person responsible for the accident has sufficient insurance to file a claim. If so, the person will get a settlement from the other driver's insurance company. In addition, the other driver's insurance company will also seek compensation from your own insurance company if you are responsible for the accident. Generally, you will be reimbursed 80 percent of the total settlement amount if the other driver is at fault in the crash.
In order to receive compensation from the other driver's insurance company, the injured party must demonstrate that the accident caused him or her to incur property damage and/or injuries. This includes pain and suffering. The injured party must also show that the injuries sustained in the accident are permanent, as well as the damage to the other party's property. After a thorough investigation of the case, the settlement amount will be determined. A court will also consider the severity of the injuries incurred by the injured party. In general, the more severe the injuries, the more money the other person is likely to pay.
If you have been involved in a car accident, you may be entitled to receive compensation for lost wages. If you have been injured in the accident, you may not be able to return to your previous occupation. In this case, you can file for compensation for lost earnings through the bodily injury liability policy of the at-fault driver's insurance company. In such a case, you can also file a claim against the at-fault driver's BIL policy. However, the at-fault driver's insurance company will only pay for your unreimbursed medical bills and your lost income.
The length of time it takes for a car accident settlement depends on the type of injury. Some cases are settled fairly quickly if the injured person suffered substantial injuries. Others may take a year or more for the victim to receive a check. In such cases, the settlement amounts do not break down pain and suffering, medical bills, or wages. You may have to wait several weeks before the settlement check comes. Even if you get a settlement check quickly, you may have to wait for several weeks before it's released to the insurance company.
Kentucky is a choice no-fault state. If you have personal health insurance, your insurer will pay for your immediate medical bills. If you do not have PIP, you will have to file a claim through your own insurance. However, if the other driver does not have PIP, you may still have auto insurance bills. And if the other driver is not insured, your insurer will expect you to pay them out of your settlement. Discover more.
Although physical injury settlements are not taxable, emotional distress claims may be. If the other party was at fault in the accident, the state may tax this portion of the award. If the other party has insurance, this money will not be taxable. In addition, claims for emotional distress are often based on breached contracts. The IRS does not tax such claims. However, the federal government does not tax emotional distress claims.