The compensation for a car accident claim isn’t predetermined, because it depends on the specific circumstances of the case. Factors such as the extent of injuries, the costs of treatment, the availability of insurance coverage and the number of people affected can all impact the final settlement amount.
For a more in-depth understanding of claim components, the calculation process, please continue reading below.
Calculating a Car Accident Claim
Car accident claims are intended to cover the losses you or someone you love experienced. Typical car accident settlement amounts are based on things like:
- Medical Bills: The settlement amount often includes compensation for medical expenses incurred due to the accident. This covers hospital bills, doctor visits, medication costs, rehabilitation, and any other necessary medical treatments.
- Lost Wages: If the injured party is unable to work or experiences a loss of income as a result of the accident, the settlement may include compensation for lost wages. This is calculated based on the individual’s regular earnings and the duration they were unable to work.
- Pain and suffering: Pain and suffering refer to the physical and emotional distress experienced by the injured party. This is a subjective factor and can vary based on the severity of injuries, the impact on daily life, and the pain endured during recovery. Compensation for pain and suffering aims to address the intangible losses.
- Emotional distress: Emotional distress goes beyond physical injuries and includes psychological trauma or mental anguish caused by the accident. This may involve anxiety, depression, or other emotional challenges resulting from the incident.
- Insurance Coverage: The amount of insurance coverage available plays a crucial role. For instance, if the responsible party has insufficient coverage, it may impact the overall settlement amount.
- The number of injured victims: If a large number of people are injured in the accident and the at-fault party does not have sufficient insurance to compensate them all, those injured parties may have to split the available insurance coverage.
Legal representation can also impact the settlement. Our team of skilled car accident attorneys can negotiate on your behalf, ensuring that all relevant factors are considered to secure a settlement. However, remember that each car accident case is unique, which is why settlements are tailored to the specific circumstances of the accident.
Settlements Are Common in Car Accident Claims.
After a car crash, in many states, the person responsible for the accident is typically required to cover your damages.
The insurance company representing the at-fault party oftentimes proposes a settlement to the injured party. This involves a lump sum payment, and in return, the injured person agrees to forgo any further claims. If the injured party accepts the offered settlement, the claim is considered resolved. However, if they feel the compensation is inadequate, it may lead to a car accident lawsuit.
While lawsuits can arise following motor vehicle accidents, a significant majority of cases are settled outside of the courtroom. The preference for settling claims is often driven by both the insurers’ desire to avoid the expenses associated with a trial and the injured party’s wish to avoid the time, stress, and uncertainty of legal proceedings.
Common Compensation in Car Accident Claims
Those affected by a car accident have the right to seek compensation for several damages, including medical bills, lost wages, and intangible losses like pain, emotional distress, and a decrease in quality of life.
In personal injury cases related to car accidents, the damages awarded are typically compensatory. This means they aim to reimburse the injured party for their losses, which can include economic damages such as medical costs and lost wages, as well as non-economic damages like the emotional toll of pain and suffering.
Several factors influence the extent of personal injury damages and contribute to the overall value of a case. These factors include the severity and permanency of the injuries, the degree of negligence by the defendant, and the impact of the injury on the plaintiff’s life. Additionally, the skills of a personal injury attorney and the strength of the evidence presented also play crucial roles in determining the case’s value.
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Factors That Affect the Amount of Car Accident Settlements
Different factors impact the average car accident settlement, including the following:
Insurance Coverage
Drivers in most states must have liability insurance, which provides compensation to injured parties when the policyholder is at fault. However, the insurance company only pays up to the policy limits. If the damages amount to more than the coverage provided by the policy, the insurance company will not pay the excess amount.
The injured parties have the option to pursue a claim against the at-fault driver for losses that may not be covered by insurance. However, some people don’t have enough assets to pay additional damages even if the court were to award them. Or, the at-fault driver may file for bankruptcy and avoid paying any damages to the injured parties. Therefore, if an insurance company offers a settlement at the policy limit, it may not be worthwhile to continue with a court case to seek additional compensation.
Liability
On one hand, when it’s clear who is at fault for a collision, the insurer for the driver responsible will often offer a reasonable settlement to avoid a lawsuit. On the other hand, when the fault is uncertain or shared between drivers, it can affect the settlement offer and car accident compensation.
- In certain states, known as contributory negligence states, if a driver is even 1% responsible for a crash, they cannot receive any compensation from the other driver who is mostly at fault.
- In pure comparative negligence states, a driver can collect compensation from another motorist for injuries even if the driver was mostly at fault. For instance, a driver who was 75% responsible for a crash can still pursue a claim against the other motorist and receive compensation for 25% of their total losses.
- In modified comparative negligence states such as Nebraska and Iowa, a driver can seek compensation if they’re not primarily responsible for the crash. The amount of compensation received would be reduced based on the injured person’s degree of fault.
Severity of Injuries
The severity of injury plays a significant role in determining the amounts typically settled in car accident cases. Injuries that are permanent, are likely to require future care, or which result in scarring or disability will typically command a higher settlement.
State Laws
State laws vary greatly with respect to both the apportionment of liability and the necessity to carry certain insurance coverages. Some states require that insured drivers carry insurance such as Personal Injury Protection (PIP) coverage, which will often reimburse that policyholder for medical expenses up to a predetermined amount. Other states do not make coverage such as this mandatory, but allow policyholders to elect coverage such as Medical Payments Coverage (Medpay), which may be available to an injured driver or their passengers through their own insurer then.
Additionally, state laws are very different when it comes to insurers requiring or at least offering their policyholders Underinsured or Uninsured Motorist Coverage. These types of coverage, like Medpay coverage, may only be available to an injured party if that party voluntarily elected to purchase it through their own insurer.
Lastly, state laws are all very distinct with respect to what rights creditors, medical providers, and insurers have to claim a right to reimbursement from your accident settlement. For example, most states allow a health insurance company or medical providers to claim some rights to the compensation you may receive from the at-fault driver or their insurer. An experienced attorney such as those at Berry Law can help you manage these claims for reimbursement and use the full weight of the law to protect your settlement from these claims to the extent the law allows.
Financial Loss
The magnitude of financial hardship plays a crucial role in determining the usual settlement amounts for car accidents. The primary aim of a settlement is typically to fully compensate the injured party of a collision for all the losses incurred.
In cases where a driver has experienced significant financial setbacks due to missed work and medical expenses, the settlement should appropriately account for these circumstances.
The Role of Legal Representation in Determining Settlement Amounts
When it comes to car accident cases, determining the worth of your claim can be an overwhelming process. Many moving parts come into play, as you can more than likely see by now.
This is where legal representation plays a big role in helping you receive the settlement amount you deserve. Personal injury lawyers can navigate the legal process, negotiate with insurance companies, and gather evidence to build a strong case on your behalf.
Advocating for Your Rights in Personal Injury Cases
When you’re dealing with a car accident case, having a knowledgeable and experienced personal injury lawyer by your side is important. They play a key role in making sure your rights are safeguarded and that you get the compensation you rightly deserve.
They’ll help gather vital evidence to support your case, including statements from witnesses, photographs, and medical records. They’ll also gather and assess your losses, like medical expenses, lost wages, and the emotional toll of pain and suffering, to build a solid case for fair compensation.
And if negotiations with the insurance company don’t lead to a satisfactory settlement, a personal injury lawyer has the skills to file a lawsuit on your behalf. Their understanding of the legal process can significantly impact the outcome of your case.
Settlement Offer Negotiating
By negotiating, there is a potential for a higher settlement amount, which can help cover medical expenses, lost wages, and other damages resulting from the injury.
One important step in the negotiation process is to submit a demand letter outlining the injuries and damages to the at-fault party’s insurance company. This letter serves as a formal request for compensation and provides an opportunity to present the full extent of the injured parties’ losses. It’s important to accurately document and calculate all damages, including medical bills, rehabilitation costs, the costs of future treatment, lost wages, and even pain and suffering.
Compensatory damages play a crucial role in a settlement agreement, as they aim to compensate the injured parties for their losses. These damages may include both economic and non-economic losses, such as medical expenses, lost wages, and emotional distress. Negotiating a fair amount for compensatory damages is essential in reaching a satisfactory settlement offer.
Additionally, by accepting a settlement, the injured parties typically agree to release the wrongdoer from any future legal action related to the injury. This is why engaging in negotiation and striving for a fair settlement offer is essential.
Filing a Personal Injury Lawsuit or Warning of One
You may need to take legal action in cases where the responsible party denies liability, fails to offer a fair settlement, or if the injuries are severe and require ongoing medical treatment. Taking legal action can also have a significant impact on the case, as it may prompt the responsible party to take the matter more seriously and increase the likelihood of a higher settlement payout.
How Berry Law Can Help You
John S. Berry , Car Accident Attorney
At Berry Law, our personal injury lawyers have experience in handling car cases, and our team is dedicated to negotiating with insurance companies on an injured party’s behalf to ensure they receive compensation for their injuries. If a settlement can’t be reached, we’re prepared to take their case to trial to fight for the compensation you deserve.
Whether you’ve been injured in a car accident, or any other type of personal injury incident, our personal injury lawyers have the skills to handle your case with care and compassion. Give us a call today to see for yourself.
