Does Hiring a Lawyer Get Car Accident Victims Larger Settlements?

Stewart Shamon, Founding Partner of Shamon Law, APC
Stewart Shamon, Founding Partner of Shamon Law, APC

Stewart Shamon is a founding partner of Shamon Law, APC. He has a Bachelor’s degree in criminal justice from San Diego State University and earned his law degree from California Western School of Law. After 9 years of working in the sector of personal injury, criminal defense, and litigation experience, he founded Shamon Law in 2013 to follow his passion for standing up for individuals suffering in accidents and being mistreated by insurance companies. He is known to be an eloquent public speaker, problem solver, and tough negotiator.

With so many things to think about and bills to pay for car accident victims, hiring a lawyer might be the last thing on their mind. But here’s why you might want to seriously reconsider.

Car accident victims that hire a lawyer often receive larger settlements.

And this is not something law firms made up just to make money and hire more clients. Research has been conducted to back up this claim.

  • A 1999 study from the Insurance Research Council (IRC) suggests that accident victims who hire an attorney to pursue an auto insurance claim gets paid significant dividends.
  • A Consumer Panel Survey of Auto Accident Victims showed that injury victims get 40% higher settlements when they are represented by an attorney.

Attorney Representation

When it comes to compensation from insurance companies, there is also a significant difference for injury victims with attorney representation than those without.

A report from the IRC revealed that 85% of all the dollars paid out for bodily injury claims are made to clients who hired an attorney.

The same report also showed that, on average, insurance payouts are 3.5 times higher for car accident victims with legal representation.

Based on the 1999 IRC study, the difference in payout for neck sprain or strain is more than $5,000, with an injury victim with lawyer representation getting the upper hand. For bone fracture, the difference in payout is more than $20,000, minor laceration is more than $3,000, and average injury is more than $8,000.

Larger Settlements

Clearly, an accident victim gets a larger settlement when they hire an attorney than when they don\’t.

So it shouldn’t come as a surprise that the number of people who hire a lawyer to handle insurance claims has dramatically increased.

At the time the IRC study was conducted, 54% of lawyers represented auto accident victims to file a claim and/or lawsuit, 35% were hired to negotiate settlement with the auto insurance company and/or the driver at fault, and 18% were hired for advice on medical treatment, including referrals for a specific doctor, clinic, or chiropractor.

Denied a Claim

Lawyers are also hired when an auto accident victim is denied a claim by their insurance company; when the driver at fault does not have an auto insurance policy; when the settlement process is deliberately delayed by the insurance company; and when the victim is dissatisfied by the settlement offered by their insurer.

But larger settlements are not the only thing that auto accident victims gain from hiring a lawyer.

In a study conducted by the All-Industry Research Advisory Council, data showed that victims who report a significant economic loss because of the accident receive a higher rate of reimbursement per dollar.

There are instances, however, when hiring a lawyer is unnecessary.

You don\’t need one when:

  • Your insurance adjuster is offering you the full amount based on the at-fault drivers’ policy.
  • You were not injured in the crash.

Under the circumstances, hiring a lawyer with expectations for a larger settlement will turn out to be a disappointment.

Hire an Experienced Attorney

Following a car accident, it is important that you evaluate your situation and find value on whether to hire an attorney or not. You must avoid common mistakes while filing a personal injury claim. After all, better compensation comes when you have an attorney in your corner.

Shamon Law is happy to provide the following legal services to San Diego 92108, and the surrounding San Diego areas: Wrongful Death, Motorcycle Accidents, Dog Bites, Bicycle Accidents, Slip & Fall Accidents, Wills, Trust and Estate Planning, as well as Auto Accidents and other legal fields. Call us today at 619-458-3539 and see if we can help you!

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