Key Factors Influencing Car Accident Settlement Amounts

Asking around, you'll probably learn that each car accident claim is different.

It will also get you various opinions about what your car accident settlement is going to be. The truth is that each car accident claim is indeed different. Injuries, losses, the at-fault driver's insurance coverage, and many other factors have an influence on the total settlement amount.

We'll discuss and explain the following car accident settlement factors:

1. Why Car Accident Settlement Amounts Differ

2. Factors That Affect Car Accident Settlements

3. The Fault and the Settlement Amounts

4. How Insurance Policy Limits Affect Settlement Amounts

5. Legal Assistance's Importance

Why Car Accident Settlement Amounts Differ

It is hard to give an exact number that represents the average car accident settlement, but according to the statistics, it is approximately $30,416 for car accident cases where the victims are injured.

But even this average number is very vague, and things that influence the amount of car accident settlements will help you to get an approximate amount.

For example, the State laws that you live in can change everything, including your settlement's amount. Your insurance limits and circumstances of your accident also play a massive role. The fact is that no exact number applies to each situation.

Insurance coverage, injuries, and circumstances can make car accident settlements into a few thousand dollars, but in some cases, the compensation can be in millions. Sometimes minor fender-benders with small or no injuries can have a $10,000 payout.

The professionals at Mike Morse Law Firm, who handle car accident cases every day, will explain that the legal help you get in time makes a significant difference in what you will receive.

The Main Factors That Affect the Total Amounts of Car Accident Settlements

There are several essential factors that play a crucial role in how much money you'll receive from your car accident settlement.

This article discusses them and can help you form an expected amount.

Injury Severity

First of all, it is about the injuries' severity. It is because the more injuries you have, the more compensation you can expect to get. You see, the higher the amount of medical bills, the more serious the impact on a person's lifestyle, and the longer it takes to get healed, the more compensation you will be entitled to.

Sprains, strains, and other soft tissue injuries will get you a small compensation compared to a life-changing injury like traumatic brain injury or paralysis.

According to NHTSA data, there were an estimated 39,345 fatalities in 2024, a 3.8% decrease compared to 2023. So, the total number of injuries was probably in the millions.

Medical Bills

Everything that is related to your medical care is going to be discussed during the negotiations and going to influence the total amount of your settlement.

This includes emergency medical care, in-hospital treatment, and aftercare, such as physical therapy. And even the expenses that you are going to have in the future due to your accident, such as surgery or home care. These also include in the total settlement amount.

Lost Wages

You may not be able to work and have lost wages. Even if you can work but are not as productive as before the accident, your lost earning ability is considered when calculating the settlement.

Pain and Suffering

You will be compensated for your physical pain and suffering as well. This includes the non-economic damages, such as mental anguish, emotional distress, and loss of enjoyment of life, that you have experienced because of your injuries.

Multiplier Method

Insurance companies use a system that is called a multiplier method. They multiply your economic damages by a number between 1.5 and 5, depending on the severity of your injuries. The more severe the injuries, the higher the multiplier that is going to be used to get your settlement.

Fault

If the insurance company found that you have some fault in the accident, it is going to make a difference in the total amount. In most States, comparative negligence rules are used. The amount of your settlement is going to be reduced by the percentage of fault that you had in the accident.

If you were awarded $50,000 in damages and were found to be 20% at fault for speeding, your payout is going to be only $40,000.

In some states, the fault rules are stricter. In some jurisdictions, the victims are barred from recovery if they are found more than 50% at fault. So, it is better to study your State's fault rules.

Evidence

The stronger your evidence is, the higher your chances to get a higher settlement. But what evidence can help you strengthen your case?

• The accident scene's photos

• Witnesses that saw the accident and can give their statements

• Police report

• Videos and photos captured by surveillance cameras or dashcams

• Past and current medical records

The evidence with videos that clearly show what has happened at the accident scene usually settle for much more than cases that had evidence only in the form of people's testimonies. It is very important to document everything from the day of the accident.

Insurance Policy Limits

Have you ever thought about this?

The fact is that the car insurance policy of the at-fault driver sets a maximum limit on how much the person at-fault can recover. For example, if the person at-fault has a car insurance policy with a limit of $50,000, but the accident caused $200,000 in damages, the gap will be significant.

Insurance coverage is an essential factor when talking about a car accident settlement. So, you should make sure that your underinsured motorist coverage is enough. Otherwise, your own insurance policy may cover some of the damages that the other driver caused.

Legal Assistance

Insurance companies don't look at things from your point of view, they want to save their money, and the lower the amount, the better for them. They need a help of a lawyer to stand on an even ground with the insurance companies.

According to research about personal injury cases statistics, it says that personal injury cases rarely go to court because 95-96% of them settle before trial.

In other words, it means that the majority of cases don't ever get to trial, but if the attorney has the ability and is willing to take a case to trial, it will provide some leverage during negotiations. It means that experienced legal assistance will:

• Value your case accurately

• Communicate with the insurance companies on your behalf

• Gather and preserve evidence in a case

• Negotiate your case, and

• Be prepared to take the case to court

What to Do After the Accident?

It is not a secret that time plays an important role. So, what should you do after the accident?

• Go to a hospital to seek medical help. Even if you don't see any injuries. It is better to be careful. Some of the injuries don't have symptoms for a while.

• Reporting to the police is essential. Get a copy of the report and don't forget to exchange all necessary information with other drivers, but don't admit that it was your fault. Take as many photos as you can.

• Don't talk to the insurance companies before consulting with a lawyer. What you say to them at this early stage can hurt your chances to get a better car accident settlement.

Wrapping Things Up

So, as you see, a car accident settlement amount will be affected by many factors.

The most important one is injury severity. The next are medical expenses, lost wages, and the rest of your case evidence. Insurance policy limits and your own fault in the accident, or even in some cases the other driver's fault, can also affect the settlement's amount.

As you see, it is very important to get legal assistance because the insurance companies have armies of lawyers that work hard to protect their financial interests, so do you.

The factors that influence the total amount of car accident settlements were the subject of this article. Understanding these factors will put you in a position to get the compensation that you deserve after a car accident.