Typical Car Accident Settlement Amounts

When you’re in a car accident, injuries are your priority. “Is everyone okay?” is usually the first question. However, once the dust settles and a few months pass, the next questions usually involve wondering how much settlement you will receive to cover your medical costs, lost wages, pain and suffering, and other costs incurred. Let’s look at typical car accident settlement amounts in TX.

How the Settlement Process Works

Unfortunately, you’re not going to receive a settlement if you’re 100% at fault for the accident. In that case, your own insurance company pays up to the limits of your policy. 

However, if your fault is 0%, the other driver’s insurance policy will pay you. If you feel the insurance company’s payment offer is unfair, your personal injury attorney will generally send a demand letter detailing your reasons for needing more money. 

If the insurance company does not budge, your attorney may advise filing a lawsuit. After your attorney files the lawsuit, most insurance companies will work harder to negotiate a settlement. Going to court is expensive for an insurance company, and most will not choose to go into the courtroom to settle the matter. 

Negotiations with the insurance company can last several months, but there are specific guidelines that insurance companies, courts, and attorneys use to determine fair settlement amounts. Both sides of the negotiation will look at these guidelines to fairly negotiate your settlement. 

What Factors Determine My Settlement?

The Law Dictionary results from internal reporting reveal an average of $24,000 per case in 2013. However, every case varies widely. A typical car accident settlement amount will take into account:

• Extent of your injuries
• How long your injuries will affect you 
• Whether you suffered permanent injury, disfigurement, or permanent scarring
• Your pain and suffering, including emotional pain
• Lost wages
• Future lost wages
• Detrimental effects on your career, family, or children
• Medical bills
• Physical therapy bills
• Future medical bills 
• Personal property damages
• Medications and future medication needs
• Hospital bills
• Emergency medical transport bills

Because of all the factors involved, negotiations may go back and forth for many months in a personal injury case. Many attorneys and courtrooms use an actual worksheet to determine a typical car accident settlement amount. 

Car Accident Settlement Worksheet

Negotiations usually determine car accident settlement amounts using a worksheet designed for this purpose. As an example case, take a look at the standard worksheet below and put your information in to find a reasonable settlement amount for your case. However, consider that your case may have additional factors. 

Everyone’s personal injury worksheet will look different. In addition, each individual may have other amorphous factors such as pain and suffering that affect the total amount. Your estimated personal injury worksheet may look something like this:

Medical Bills: 

• Physical therapy after accident until now $5,320
• Medication: $1,300
• Hospital Bills: $15,324
• Ambulance transport: $2,000
• Doctor bills: $2,300

Property Damage: 

• Body work on your 2014 Honda Odyssey minivan: $5,230
• Busted radiator replacement: $305

Lost Earnings:

• 15 days missed work after an accident $2,400

Estimated Future Medical Expenses 

• Surgery after health insurance pays 40% co deductible: $4,320
• Physical therapy after surgery: $3,504

Future Lost Income:

• 15 days work due to future planned surgery and recovery: $2,400

TOTAL SUM $44,403

Use a Multiplier

Each case is different and has additional factors involved. Therefore, after adding up your damages, multiply your total by a “multiplier” to get a good idea of a reasonable settlement. 

Use 1.5 as a starting point. If you have extensive injuries that will last a lifetime, you may go as high as 5. Still, a settlement with a multiplier of 5 involves severe medical issues with continuing pain or lifelong struggles due to the accident. 

Total Settlement amount for the example above:

• Total Low-End Estimate = $44,403 x 1.5 = $66,605
• Total High-End Estimate = $44,403 x 5 =  $222,015

Expectations for Settlement

Insurance companies consider many factors when deciding whether a number is negotiable or outrageous. Suppose you have an expert witness psychiatrist who will attest to your level of pain and suffering. In that case, you have a better chance of a larger personal injury settlement.

Talking with your personal injury attorney about expectations can keep your estimate realistic. Most insurance companies know that they may pay more when they negotiate with an experienced attorney who understands the dynamics of car crash settlement negotiations. When you stand alone without litigation experience, you don’t know how to fight for a fair settlement. 

Discussing your case with a personal injury attorney yields the best results because they understand which factors may increase your settlement in a courtroom. If your attorney can convince the insurance company that they will pay more if your case goes to court, then your settlement will be more significant. 

We Can Help

If you’re wondering how to calculate a personal injury settlement, consider talking with us at Jarrett Law Firm. Our focus on personal injury cases means successful negotiations with insurance companies that yield best-case settlement amounts. We work on contingency, which means we don’t get paid until you get a fair settlement. Contact us today and find out how we can help you move forward.