April 9, 2025 | Disability Insurance
If you receive Social Security Disability Insurance (SSDI) benefits and are involved in a car accident that results in a settlement, you may wonder how that compensation could affect your monthly payments. Understanding how SSDI interacts with personal injury settlements is important, as the rules can be complex.
While SSDI generally isn’t reduced due to a car accident settlement, certain factors—like the nature of the settlement and other benefits you might receive—can potentially impact your eligibility or benefit amount. Knowing what to expect can help you protect your financial security.
What Is Social Security Disability Insurance (SSDI)?
SSDI provides monthly income for disabled workers. A worker must qualify for disability income by earning a specific number of work credits. They must also meet the Social Security Administration’s (SSA) definition of disabled.
You can receive SSDI benefits if your condition prevents you from working and you meet the other requirements for disability income. SSDI is based on your work history. You must have worked long enough to earn the required work credits by paying taxes into the system.
The SSA has another disability benefits program for people who don’t qualify for SSDI. Supplemental Security Income (SSI) is a needs-based program for disabled individuals, people who are blind, and elderly individuals who do not qualify for Social Security.
How Does a Car Accident Settlement Impact My SSDI or SSI Benefits in Florida?
Generally, receiving a car accident settlement does not impact SSDI benefits because SSDI is based on your disability and work history. It is not based on current income or resources. However, you should inform your personal injury lawyer of your SSDI benefits at the beginning of your case to avoid any problems that could arise.
On the other hand, a car accident settlement could negatively impact SSI benefits. SSI benefits are based on resources and income. Therefore, if you receive a car accident settlement, part of the settlement could be considered resources or income.
If your income or resources exceed the SSI limit, you may be ineligible for benefits. The car accident settlement could reduce your monthly payment even if you remain eligible. As with SSDI, tell your injury attorney about your SSI benefits immediately to discuss your options for protecting Social Security disability income when receiving a car accident settlement.
There could be several ways to protect a car accident settlement if you receive Social Security disability income. You may be able to pay off debt or spend down some of your assets to prevent losing SSI benefits. In some situations, an attorney can help you establish a Special Needs Trust. The trust holds the settlement proceeds for your benefit to prevent you from losing eligibility for SSI benefits.
What Is Included in a Car Accident Settlement in St. Petersburg, FL?
A personal injury settlement may include economic damages. These damages reimburse an accident victim for their financial losses. They may also compensate the victim for future losses related to permanent impairments and disabilities.
Examples of economic damages in a Florida car accident settlement include:
- The cost of medical treatment, including surgeries, hospitalizations, rehabilitative care, doctor’s bills, etc.
- Out-of-pocket expenses, including personal care, household services, and childcare
- The loss of income includes past lost wages, loss of employment benefits, and reduced future earning capacity
In addition to being compensated for financial losses, an accident victim may receive compensation for their non-economic damages.
These damages include:
- Pain and suffering
- Disfigurement and scarring
- Emotional distress
- Loss of enjoyment of life
- Mental anguish
- Impairments and disabilities
- Diminished quality of life
In some car accident lawsuits, a jury may award punitive damages. However, punitive damages are only awarded in a small number of cases when the injured party proves the other party acted with gross negligence or intentional wrongdoing.
How Can I Protect My SSI or SSDI Benefits When I Receive a Car Accident Settlement in Florida?
Hiring an experienced St. Petersburg car accident lawyer to handle your case can ensure your rights are protected. Discuss your Social Security disability benefits with your attorney during the initial consultation. If your attorney is aware that you receive SSDI or SSI benefits, they can determine the best strategy for settling your car accident claim while protecting your Social Security disability income.
Contact Our Personal Injury Law Firm in Florida
If you’ve been injured in an accident, please contact our experienced personal injury lawyers at Graves Thomas Rotunda Injury Law Group to schedule a free consultation today. We have three convenient locations in Florida, including Vero Beach, St. Petersburg, and Port St. Lucie.
Graves Thomas Rotunda Injury Law Group – Vero Beach
2651 20th St
Vero Beach, FL 32960
(772) 758-5735
Graves Thomas Rotunda Injury Law Group – St. Petersburg
200 Central Ave Suite 304
St. Petersburg, FL 33701
(772) 404-3858
Graves Thomas Rotunda Injury Law Group – Port St. Lucie
10805 SW Tradition Square Unit 024A
Port St. Lucie, FL 34987
(772) 617-8814
