Who Pays Your Personal Injury Settlement?

If you’ve been injured in an accident, you might be wondering, "Who pays the settlement in a personal injury case?"  Medical bills, lost wages, and other damages can quickly add up. You may be counting on the settlement to cover those expenses.

In this post, we’ll explain who typically pays, how the process works, and what you need to know when pursuing your personal injury case.

A woman displays a $280,000 personal injury settlement check from an insurance company. She can use the funds to assist her in her recovery from her injuries and pay medical bills not covered by health insurance.

What Is a Personal Injury Case?

Before diving into who pays the settlement, let’s first address what a personal injury case is. A personal injury case arises when you are harmed due to another party’s negligence, carelessness, or intentional wrongdoing. In other words, when someone else’s actions cause you harm, you have the right to pursue a personal injury claim or lawsuit for compensation.

This could happen from a car accident, slip-and-fall, a third-party workplace injury, medical malpractice, or other cases identified in this list:

Types of Personal Injury Cases [click to see list]

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The claim process

It usually begins by filing a claim with the insurance company of the person or business responsible for the accident. This step focuses on collecting and organizing all the key details tied to your injury claim. Think of it as a “paper case” built from documents that show who’s at fault and how your injuries have affected your life.

When you put together evidence to give to the the insurance company, you provide proof of the accident, which can include police reports, photos of the scene, witness statements, and anything else that helps establish fault and liability.

Some things you’ll need to provide include:

• Police Reports: If the accident was serious enough to involve the police, their report is key to showing what happened.

  
  

• Photos: Photos of the accident scene, any damages, and your injuries can speak volumes.

  
  

• Witness Statements: If there were people who saw the accident happen, their statements can help confirm the facts.

  
  

• Medical Records and Bills: These documents show how badly you were injured, what treatments you received, and how much you’ve spent on healthcare.

  
  

• Proof of Lost Wages: If you missed work because of your injury, you’ll need to show how much income you lost. This could include pay stubs or a letter from your employer confirming the days you were out.

It’s never wise to start or take part in settlement talks until you’ve fully completed your medical treatment.

A tense discussion about the merits of a personal injury claim unfolds. A serious mediation is in progress.

Solid Evidence, Solid Case

If your evidence clearly supports your injury claim, there’s a solid chance you’ll reach a fair settlement with the insurance company. That settlement should ideally cover your medical expenses, lost income, pain and suffering, and any other losses tied to the accident.

If you’re able to come to a good agreement—great. You’ll get the compensation you need to heal and manage the financial hit from the crash.

The insurer will ask you to sign a release and settlement agreement. While the details of that release go beyond this post, here’s the key: once you sign, you’re agreeing not to ask for a single dollar more. If later you discover you need more treatment and try to seek extra compensation, chances are you’ll be out of luck. That’s why speaking with a lawyer before signing anything is a smart move—you might unknowingly give up rights or settle for less than your claim is really worth.

A woman holds a personal injury settlement check for $150,000, contemplating its significance in her ability to pay medical bills, lost wages, and her mortgage.

Who Pays the Personal Injury Settlement?

Who ends up paying your settlement depends on the specifics of your case. Most of the time, it’s the insurance company of the party at fault—but let’s take a closer look.

1. The At-Fault Party’s Insurance

In many cases, it’s the insurance provider of the person or business that caused your injury who covers the settlement. For instance, if you were hurt in a car accident and the other driver was at fault, their auto insurer would typically pay for your medical bills, lost wages, and pain and suffering.

2. The At-Fault Individual

If the person responsible doesn’t have insurance—or not enough of it—they may be personally on the hook for the damages. That said, most people can’t afford to pay large settlements out of pocket.

3. More Than One Liable Party

Sometimes, more than one party shares the blame. Say you’re injured in a store or hit by a commercial truck—both the business and other involved parties might carry some responsibility. In these situations, multiple insurers could be involved, each covering a portion of your settlement.

4. Government Entities

If your injury resulted from something like a poorly maintained road or defective public infrastructure, a government agency might be held liable. But suing a government body comes with strict rules and deadlines, which can make these cases more complicated.

5. Employers and Commercial Entities

If you were injured on the job by someone other than a coworker or employer, you might be able to file both a workers’ comp claim and a separate third-party claim against the person or business that caused the injury. These claims often involve companies with higher insurance limits—making it more likely your full damages can be covered.

You can read all about workers compensation and third party claims in a separate blog article.

What If the At-Fault Party Doesn’t Have Insurance?

Unfortunately, it’s common for drivers or businesses to have inadequate or no insurance. So, what happens if the person who caused the injury has no coverage or not enough insurance to pay for your damages?

A woman realizes that the person responsible for her injuries does not have automobile insurance. Her unpaid medical bills are climbing.

1. Uninsured/Underinsured Motorist Coverage

If your own insurance policy includes uninsured or underinsured motorist coverage, it can help cover your expenses. This kicks in when the at-fault driver has no insurance or not enough to pay for your medical bills, lost income, and other damages.

2. Going After the At-Fault Party’s Assets

If the responsible party lacks insurance and doesn’t have enough coverage, you might try to collect from their personal assets—like savings or property. But keep in mind, this route can be difficult and time-consuming.

A person injured in an accident discusses his legal options with his attorney.ff

What Factors Can Affect Who Pays the Personal Injury Settlement?

Several key factors can influence who ends up paying your settlement:

• Insurance Limits: How much coverage the at-fault party carries will impact what their insurer can pay. If their policy limits are low, you might need to look for other ways to recover the full amount.

• Multiple Liabilities: When more than one party shares fault, the settlement may be split between their insurance companies or other responsible entities.

What happens if the insurance company isn't being reasonable?

Not all claims go smoothly. Sometimes, the insurance company won’t offer a fair settlement, or they may deny your claim altogether. When that happens, it might be time to take the next step: filing a lawsuit.

Anxious anticipation fills the courtroom as the unresolved case keeps a young boy and an elderly man on edge.

Filing a Lawsuit

Filing a lawsuit means you’re taking the matter to court, where a judge or jury will decide how much compensation you’re entitled to. It’s more complex than working with an insurance company and usually involves more time and legal expenses.

Why Having a Good Attorney Matters

Lawsuits are serious business, and having a skilled personal injury lawyer on your side can make all the difference. They’ll help you navigate the legal process, represent you in court, and fight to get you the compensation you’re owed. Just remember—not all lawyers are the same.

In New Hampshire, when you file a personal injury lawsuit, the courts require both sides to try resolving things through mediation before going to trial. Settlements can still happen at any point—before, during, or even after the trial has begun.

Bottom Line: Be Prepared

If you’ve been injured, the road to compensation usually begins with filing a claim against the at-fault party’s insurance. It’s a detailed process that calls for solid documentation and strong evidence. While the goal is a fair settlement, sometimes taking legal action is the only way to get what you’re owed.

To stay ready, gather solid proof early on and work with a trusted attorney. With the right preparation and support, you’ll be in a strong position to fight for the compensation you deserve. Contact Apis Law.

Attorneys engage in a thoughtful discussion with their client regarding the potential of filing a lawsuit.

FAQs About Personal Injury Cases

Who pays the settlement if I get injured in a car accident?

In most car accident cases, the at-fault driver’s insurance company will pay for the settlement. If the driver is uninsured or underinsured, your own uninsured/underinsured motorist coverage can help pay the damages.

Can I sue the insurance company directly?

What if I was injured at a store or business?

What happens if the person who caused my injury doesn't have insurance?

How long does it take to get a settlement in a personal injury case?