• Understand the scope of settlement opportunities and interview several attorneys before making your final selection.car crash image by dawn from Fotolia.com
  
  Whether you are an accident victim or the driver determined to be at-fault, the process of reaching a settlement is a tedious one. Reduce the amount of time involved by attempting to reach a settlement without requiring a court trial. Compose a diary detailing the accident. Keep records of all expenditures. Take pictures of the accident scene, your injuries and vehicle damages and get a copy of the police report. If you incurred bodily or property injury, project your financial needs for medical care payments, repair and replacement costs, and loss of wages. Carefully interview attorneys before making your final selection.
  
  

Pretrial Settlement

• Most accident settlements are negotiated informally to eliminate the need to go to trial in a civil court. Attorneys representing the accident victim, the person at fault, and insurance companies reach an agreed-to financial settlement amount. Typical considerations include medical costs, loss of wages and property damage. Accident victims must confirm if legal fees are covered in the settlement amount. Acceptance and receipt of payment closes the claim.
  
  

Structured Settlement

• Major accidents that involve serious bodily injury or even death, when a driver is determined to be at-fault (like in the case of a drunk driving accident), often result in major financial awards. In these cases, insurance companies will often propose a structured settlement payment instead of a lump-sum payment. Structured payments can be made over a number of years or even for the remainder of life of the accident victim(s). Oftentimes, the insurance company will propose structuring an annuity policy as the means to provide payments as well as expenses of the accident victims. Evaluate the benefits of a combined lump-sum payment and a structured annuity. Using that strategy could reduce risks of depleting funds.
  
  

Mediated Settlement

• In cases where the attorneys for the victim and the insurance company cannot settle before trial, many courts and judges recommend mediation. A third-party mediator will attempt to get both parties to reach an agreement. Mediation sessions are informal and do not take place inside a courtroom. If the parties reach agreement, the mediator oversees drafting an agreement to be signed by all parties, detailing the terms that were reached, payment amount and dates.
  
  

Arbitration Settlement

• Settlements reached through arbitration are more formal than mediated settlements. In this case, both parties select and approve a person to serve as the arbitrator, who usually has specific expertise in the area of dispute. The arbitrator will make a final decision. While the powers and structure of arbitration are close to an actual trial, the costs involved are significantly less versus going to trial. Arbitration is also a faster process and provides more flexibility in decision-making and final determination.