Car Accident Settlement Glossary

Understanding the terminology used in car accident claims can help you navigate the settlement process more effectively. This glossary covers legal, medical, and insurance terms you'll encounter when pursuing compensation for your injuries.

Legal Terms (20)Medical Terms (20)Insurance Terms (15)

Legal Terms

Plaintiff: The person who files a lawsuit seeking compensation for injuries or damages. In car accident cases, this is typically the injured party.
Defendant: The person or entity being sued. In car accident cases, this is typically the at-fault driver or their insurance company.
Liability: Legal responsibility for causing harm or damages. In car accidents, liability determines who is financially responsible for injuries and property damage.
Negligence: Failure to exercise reasonable care, resulting in harm to another person. Most car accident claims are based on proving the other driver was negligent.
Comparative Negligence: A system where fault is divided among parties based on their percentage of responsibility. Texas uses modified comparative negligence, reducing damages by your percentage of fault.
Statute of Limitations: The time limit for filing a lawsuit. In Texas, personal injury claims must be filed within 2 years of the accident date.
Demand Letter: A formal letter sent to the insurance company outlining your injuries, damages, and the compensation amount you're seeking to settle the claim.
Settlement: An agreement to resolve a legal dispute without going to trial. The at-fault party (or their insurer) pays compensation in exchange for releasing future claims.
Verdict: The decision reached by a judge or jury after a trial. Can be a plaintiff verdict (awarding damages) or defense verdict (no award).
Damages: The monetary compensation sought or awarded in a lawsuit. Includes economic damages (medical bills, lost wages) and non-economic damages (pain and suffering).
Economic Damages: Quantifiable financial losses including medical expenses, lost wages, property damage, and future medical costs.
Non-Economic Damages: Subjective losses that don't have a specific dollar value, including pain and suffering, emotional distress, and loss of enjoyment of life.
Punitive Damages: Additional damages awarded to punish particularly reckless or intentional conduct. Rare in typical car accident cases but possible in drunk driving or extreme negligence situations.
Contingency Fee: A payment arrangement where the attorney receives a percentage of the settlement or verdict (typically 33-40%) rather than hourly fees. No fee if no recovery.
Deposition: Sworn testimony given outside of court, recorded by a court reporter. Used during the discovery phase to gather information before trial.
Discovery: The pre-trial phase where both sides exchange information, documents, and evidence relevant to the case.
Mediation: A voluntary settlement negotiation process where a neutral third party helps both sides reach an agreement without going to trial.
Arbitration: A form of dispute resolution where a neutral arbitrator makes a binding decision after hearing both sides, similar to a private trial.
Subrogation: The right of an insurance company to recover money it paid for your claim by pursuing the at-fault party. Your health insurer may have subrogation rights against your settlement.
Release: A legal document signed when accepting a settlement, giving up the right to pursue additional compensation for the same accident in the future.

Medical Terms

Whiplash: A neck injury caused by rapid back-and-forth movement of the head, common in rear-end collisions. Symptoms include neck pain, stiffness, and headaches.
Soft Tissue Injury: Damage to muscles, ligaments, and tendons rather than bones. Includes sprains, strains, and contusions.
Herniated Disc: When the soft inner portion of a spinal disc pushes through the outer ring, potentially compressing nearby nerves and causing pain, numbness, or weakness.
Bulging Disc: When a spinal disc extends beyond its normal boundaries but hasn't ruptured. Less severe than a herniation but can still cause pain and nerve compression.
Cervical: Relating to the neck region of the spine (C1-C7 vertebrae). Cervical injuries are common in car accidents due to head and neck movement during impact.
Lumbar: Relating to the lower back region of the spine (L1-L5 vertebrae). Lumbar injuries often result from compression forces during collisions.
Thoracic: Relating to the mid-back region of the spine (T1-T12 vertebrae). Less commonly injured than cervical or lumbar regions due to rib cage protection.
TBI (Traumatic Brain Injury): Brain injury caused by external force, ranging from mild concussions to severe injuries causing permanent cognitive impairment.
Concussion: A mild traumatic brain injury caused by a blow to the head or violent shaking, affecting brain function temporarily.
Fracture: A break in a bone, ranging from hairline cracks to complete breaks requiring surgical repair with plates, screws, or rods.
Contusion: A bruise caused by trauma. Can affect skin, muscles, or internal organs. Brain contusions are bruises on the brain tissue.
Laceration: A deep cut or tear in the skin or tissue, often requiring stitches or surgical repair.
ROM (Range of Motion): The full movement potential of a joint. Reduced ROM after an accident indicates injury severity and is documented in medical records.
MMI (Maximum Medical Improvement): The point at which a patient's condition has stabilized and is unlikely to improve significantly with further treatment. Important for settlement timing.
Prognosis: The expected course and outcome of an injury. A poor prognosis (permanent limitations) typically increases settlement value.
MRI (Magnetic Resonance Imaging): An imaging test using magnetic fields to create detailed pictures of soft tissues, discs, and organs. More detailed than X-rays for soft tissue injuries.
CT Scan: Computed tomography imaging that creates cross-sectional images of bones and tissues. Often used in emergency rooms to detect fractures and internal bleeding.
EMG (Electromyography): A test measuring electrical activity in muscles and nerves, used to diagnose nerve damage from disc herniations or other injuries.
Physical Therapy: Treatment using exercises, stretches, and manual techniques to restore movement, strength, and function after injury.
Epidural Injection: An injection of steroid medication into the space around spinal nerves to reduce inflammation and pain from disc injuries.

Insurance Terms

Bodily Injury Liability (BI): Insurance coverage that pays for injuries you cause to others in an accident. Texas requires minimum $30,000 per person / $60,000 per accident.
Property Damage Liability (PD): Insurance coverage that pays for damage you cause to others' property. Texas requires minimum $25,000 coverage.
PIP (Personal Injury Protection): Optional no-fault coverage that pays your medical expenses regardless of who caused the accident. Texas does not require PIP.
UM/UIM Coverage: Uninsured/Underinsured Motorist coverage that protects you if the at-fault driver has no insurance or insufficient coverage to pay your damages.
Policy Limits: The maximum amount an insurance policy will pay for a claim. A driver with 30/60 limits has $30,000 per person and $60,000 per accident coverage.
Adjuster: An insurance company employee who investigates claims, evaluates damages, and negotiates settlements. Their goal is to minimize payouts.
Claim: A formal request to an insurance company for compensation for a covered loss or injury.
Premium: The amount paid for insurance coverage, typically monthly or annually.
Deductible: The amount you pay out-of-pocket before insurance coverage kicks in. Higher deductibles typically mean lower premiums.
First-Party Claim: A claim filed with your own insurance company, such as using your collision coverage or PIP benefits.
Third-Party Claim: A claim filed against the at-fault driver's insurance company seeking compensation for your injuries and damages.
Bad Faith: When an insurance company unreasonably denies or delays a valid claim. May give rise to additional legal claims beyond the original damages.
Reservation of Rights: A notice from an insurance company that it may not cover a claim while it investigates. Protects the insurer's right to later deny coverage.
Stacking: Combining coverage limits from multiple vehicles or policies to increase available compensation. Texas allows stacking of UM/UIM coverage.
Total Loss: When vehicle repair costs exceed the vehicle's actual cash value. The insurer pays the vehicle's value minus any deductible.

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