By Debbie Emery - Breaking Celebrity News Reporter

The model and fashion blogger who was severely disfigured when she walked into a small plane propeller has reached a settlement with an insurance company after initially rejecting a $200,000 compensation offer.

As Breaking Celebrity News previously reported, Lauren Scruggs was suing Aggressive Insurance Services, the insurer of the plane and pilot, Curt Richmond, involved in her horrific December 2011 accident, and had asked a court to define whether she was considered a “passenger’’ under the terms set forth by the insurance company.

The company stated the amounts were $100,000 from each of the plane’s two policies, and according to her lawsuit that amount is the limit per passenger, but she contended that she was not a passenger on the plane because “she was not in the aircraft  or getting in or out of it at the time of the incident.

The 23-year-old blonde from Plano, Texas, lost her left eye and hand, and suffered severe cranial damage when she walked into the small plane’s propeller after a sight-seeing tour of Christmas lights in the horrific accident that left her “severely and catastrophically injured,” according to legal papers.