How Much to Expect from A Car Accident Settlement

What Goes Into Determining a Car Accident Settlement?

If you have the misfortune of being involved in an auto accident, working with a car accident lawyer will likely help you obtain a higher offer to settle from the insurance company than if you were unrepresented.

You might be wondering how much to expect from a car accident settlement, as many variables can impact your eventual settlement amount.

Compensation for medical bills and car repairs is straightforward to evaluate, and you can expect to be reimbursed for the amounts you paid.

When it comes to pain and suffering, your attorney will guide you toward negotiating the strongest possible settlement for this component of your claim.

The defendant’s insurance company typically leads with the lowest acceptable offer. Insurers often protect their profits by minimizing payouts. The claims adjuster may attempt to prove that you had unnecessary surgery or treatment, or they might argue that you were able to work.

You may not always need to file a lawsuit to get the compensation you deserve for whiplash or other minor auto injuries. Often, the insurance company and your attorney will arrive at a reasonable agreement before the matter goes to court.

Read on to discover how much you can expect to receive when your settlement check arrives. If you need funds before your car accident case settles, Uplift Legal Funding’s car accident loans can help.

How Much Can You Expect from a Car Accident Settlement?

If you are involved in an auto accident, you might be able to recover compensation for damages and injuries from your insurance or from the other party’s coverage.

As long as you have collision coverage, your insurance carrier will pay to repair your vehicle, even if you were responsible for the crash. If the cost of repairs is greater than the car’s value, the insurer might consider your vehicle totaled. In this event, you will receive a lump sum amounting to the car’s current worth.

What happens if the negligence of another driver caused the wreck? In this case, you may be entitled to compensation for damages, losses, and pain and suffering from the other party’s insurance provider.

You are likely to receive an initial offer from the insurer that is substantially lower than you expected. Consider this the insurance company’s opening position, which you can hopefully improve upon with the help of your attorney.

Average Auto Accident Settlement Amounts

The unique nature of each case makes it challenging to calculate average settlements.

That said, there is a simple framework for most car accident scenarios, as follows:

• Minor injuries: For whiplash, minor soft-tissue damage, and other minor injuries, settlements are typically between $10,000 and $25,000.
• Long-lasting injuries: Injuries requiring physical therapy or surgery typically lead to settlements between $50,000 and $75,000.
• Spinal injuries: Spinal injuries not involving paralysis usually lead to settlements from $75,000 to $100,000.
• Brain injuries: Brain injuries causing loss of brain function or cognitive impairment and requiring surgery lead to settlements from $100,000 to $250,000.

Injuries like paralysis or severe brain damage can be debilitating. When daily assistance is required after a car accident and injuries are this severe, settlements often reach hundreds of thousands of dollars, or even millions.

Most insurance policies have limits, though. Even if the other driver has insurance, the carrier may not pay the full amount due because of a policy limit. If you find yourself still out of pocket because of insurance policy limits, you may need to pursue the at-fault driver directly to seek the remaining compensation not covered by insurance.

Pain and suffering is a legal term for the physical and emotional distress triggered by injuries sustained in an accident.

The following components all fall under the umbrella of pain and suffering:

• Emotional or psychological conditions (insomnia, anxiety, depression)
• Temporary physical pain
• Long-lasting physical pain
• Disabilities (physical limitations)

The simplest approach to calculating the pain and suffering component of a car accident claim is as follows:

Total your bills in these areas, which are deemed special damages:

• Vehicle damage
• Lost wages
• Therapy bills
• Medical expenses

Your personal pain and suffering caused by the accident are deemed general damages.

When calculating the pain and suffering component of your settlement, you need to consider which category your case falls under:

• Current pain and suffering
• Current and future pain and suffering

The first category accounts for pain and suffering up to the point where medical treatment concludes. The second category encompasses both present and future pain and suffering.

Insurance adjusters and lawyers often use the multiplier method to determine your pain and suffering settlement amount. Using this method, your special damages are multiplied by a certain number, typically up to 5. The multiplier depends entirely on the gravity of your case. Whiplash cases often involve multipliers from 1 to 3, while severe injuries like brain damage use a multiplier of 5, or sometimes even more.

With the right legal representation, you should recover all the compensation you deserve.

[RELATED ARTICLES]:

• How to Financially Recover from a Car Accident
• How to Get the Most Money from a Car Accident

Factors That Affect How Much Your Car Accident Settlement Is Worth

How much you receive for a car accident settlement depends on many variables, including:

• Who or what was harmed in the wreck
• Whether you sustained physical injuries or the damage was confined solely to the vehicle
• Any subsequent pain and suffering caused by the accident

In some cases, you may receive a settlement limited to the cost of the damage to your vehicle, while in others, you could gain a higher settlement due to time off work while injured or long-lasting injuries causing pain and suffering.

Whatever the variables, you can maximize your final settlement amount if you retain an experienced car accident attorney.