A person who has been permanently disabled after a car accident, or who is dealing with the tragic occurrence of losing a loved one in a collision, may feel that they deserve a huge monetary award. Money won't change what happened, but it can make the person's life less burdensome and can send a strong message to whoever was responsible. That "message" aspect is part of the reason for payments known as punitive damages. However, these damages are only awarded in certain circumstances.
Typical Kinds of Compensation in Accident Cases
Typically, the at-fault driver's insurance company pays a settlement to the injured person. That settlement is intended to pay for expenses such as medical bills and lost wages while off work. Injured persons sometimes hire attorneys to help them get a better settlement if they feel the insurer's offer is unfair. A lawyer often can persuade an insurer to provide additional compensation for less tangible aspects, such as emotional pain and suffering.
Only about 5 percent of personal injury cases proceed to trial, but only a jury can award punitive damages.
About Punitive Damages in Injury Cases
Punitive damages are intended to address behavior such as gross negligence, recklessness or malicious misconduct. States have varying laws about the types of behavior that can lead to punitive damages.
In a car accident case, a jury might award these damages if the other driver was engaging in reckless or malicious behavior such as driving while intoxicated, passing a stopped school bus with its red lights flashing, or deliberately crashing into someone else's car.
Punitive damages amounts can be very high, and people sometimes hear reports of an award in the millions of dollars. However, research published in 2005 indicated the median award was only $64,000.
What Does This Mean for You?
If you are interested in seeking punitive damages for something terrible that has happened because of a car accident, be aware of the inherent problems involved.
An automotive insurance company is only required to pay the maximum coverage the insured person has purchased. If their policyholder has a maximum liability amount of $100,000, for example, the company will never be required to pay out more than that. You would need to sue the at-fault driver in an effort to gain more compensation.
Only a wealthy individual could pay you an enormous sum. The big monetary awards tend to come from corporations, medical malpractice insurers and government entities, not from individuals.
In addition, some states have caps on the amount that can be awarded for certain types of incidents.
You may actually be better off having an auto accident attorney negotiate a fair settlement for you than attempting to pursue punitive damages in court. Contact a lawyer for a free consultation so you can make an informed decision about how to proceed.
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