What is a settlement in car insurance?

What does settlement mean? I submitted a PIP claim and my insurance agent keeps referring to a settlement.

Answer
“A settlement in car insurance is the amount that a car insurance carrier agrees to pay after a claim is submitted.
A settlement can come from your insurance or another driver’s.
Since you’re submitting a personal injury protection claim, your settlement will come from your own insurance. Your medical expenses and the coverage you have on your policy will determine your settlement amount.
Settlements are negotiable. If you’re not happy with the amount your insurance is offering to settle for and it’s within your coverage limits, you can opt to negotiate with them.”
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Emily Maracle
Answered on Jul 06, 2021
Emily Maracle is a car insurance specialist living in New York. Originally from the Pacific Northwest, she has a degree in English Literature and a background in customer service. She enjoys cooking, gardening, and living sustainably. In the future, she can't wait to upgrade to a hybrid or electric car.
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