Do you really need a car accident attorney? You had a car accident and maybe you are at fault for the accident or not, and you are wondering how the claim settlement process will go along through your car insurance company. What are Typical car accident settlement amounts? and how much does a lawyer get from a car accident settlement?
Do you need to hire a car accident attorney or does your car insurance have the best customer care that you do not need those expensive lawyers? What formula is used to calculate the settlement you are entitled to?
The typical car accident settlement is approximately $42,000. On the other hand average settlement for a car accident where there are minor injuries is somewhere between $10,500 to $15,500.
On average, your car accident attorney will get 30-40% of what you will receive as your claim settlement. Cases that go to trial usually cost much more in legal fees than when the claim is settled out of court.
Average claim settlement differs from one car accident to another and is largely affected by the severity of personal injuries and other financial losses. Also, what you receive as a settlement will also be affected by the amount of insurance coverage the at-fault driver carries.
This article covers several questions our site visitors ask. Feel free to go through the article contents below and look at the only topics you may be interested in. Here you go!
Page Contents
Factors that affect your car accident settlement
So you just filed your car accident claim through your insurance company or you filed a lawsuit challenging the settlement from your insurance firm. Will you receive all the amounts of money you think you are entitled to?
Well, factors that affect your car insurance settlement include the following:
- Insurance coverage. All insurance coverages carry a coverage limit. For instance, a liability limit could be stated as $25,000/$50,000. This means an insurance company won’t pay more than $25,000 if one person is injured, or not more than $50,000 for all injuries where more than one person is injured.
- The severity of injuries. Expect less settlement amount if you sustained minor injuries like whiplash. According to my insurance broker, the average claim settlement for whiplash is somewhere between $10,000 to $15,000 and this figure could be lower if you hire no attorney to negotiate on your behalf.
- Your country or laws in your state are different and affect how car accident settlements are handled. For instance, certain states warrant no payment if a driver is partially at-fault for the car accident.
- Your financial losses. Some of the losses involved in car accidents include medical bills, car damages, lost wages, and pain and suffering. These losses carry the largest portion of your final settlement.
How do they calculate car accident settlement?
Each car accident is handled differently because losses are not always the same. Some life-threatening accidents usually are complex and settle for large amounts of money. If you want to maximize your claim settlement, look no further than hiring an attorney.
Personal injury lawyers know exactly how to collect good evidence, handle all legal aspects and know how best to squeeze maximum damage settlements from insurance companies. You may be entitled to more than what you received for car damages or personal injuries – only attorneys know better.
What you receive as your car accident settlement also depends on the following:
- Insurance coverage
- Your insurance company
- Who is negotiating on your behalf?
A standard formula that is used to calculate your car accident claim settlement usually takes into consideration the following:
- Pain and suffering
- The severity of your injuries
- Lost wages due to inability to work
- Fault for car accidents and
- Medical expenses
The other simple formula used to compute what personal injury settlement you are entitled to is as follows:
car accident claim Settlement = economic losses x non-economic losses + lost wages.
Economic losses are all damages that can be assigned a monetary figure and these include medical expenses, car damages, pain and suffering, and others.
Non-economic car accident losses are damages that are impossible to assign a monetary value for instance disabilities, depression, mental issues, and other psychosocial effects of the accident. For instance, the couple may not be able to enjoy lovemaking again.
Claim adjusters or the jury usually assign a number (1-5) to represent the gravity of non-economic losses and the gravity of the accident. A minor accident where there were minor injuries could be assigned a 1, while accidents that are very debilitating or life-threatening could carry the highest weight of let’s say a 4.5 or 5.
Here is an example of how your car accident claim could be calculated.
Special damages (economic losses) = $35,000
General damages (weight of non-economic losses) = 3
Lost wages (period of not working) = 8 months.
Average car accident settlement = ($35,000 x 3) + (8 months x $5,000 salary) =$145,000
Average Car Accident Settlement Amount
I already highlighted the average car accident settlement amount right at the top of this article. But, everyone knows car accidents are different for instance what sort of automobiles were involved? How many people were injured and how severely were the involved cars damaged? All those affect the final payout of your settlement.
According to Brown and Crouppen Law Firm, Below are the average settlements depending on the type of automobile involved:
- The average car accident claim settlement is the lowest at around $41,700. Only USA approximations are given.
- If the accident involved a truck, expect the average claim settlement to be around $42,900.
- Surprisingly Motorcycle accidents carry the highest claim settlement amounts. If the accident involved a motorcycle, the expected claim settlement is around $67,500.
The numbers given above are just approximations based on available data. Your case will most likely be different and the person who investigates and makes you an offer is different. Those numbers should guide your claim processes and how much you should expect depending on the type and severity of the car accident you were involved in.
Typical car accident settlement amounts for whiplash
whiplash is an example of a soft-tissue injury that normally affects the neck, though other parts of the body can be affected too. If your neck and head are forcefully pushed backward and forward, the result is damage to the ligaments, tendons, and other muscles around the neck.
If you had a car accident, the following are signs and symptoms of whiplash you should look out for:
- Severe neck pain
- Limited neck range of motion
- Whiplash pain sometimes spread to the arms
- Headache originating at the back of your head
- Ear ringing sounds
- Neck pain and stiffness and others.
According to Mayo Clinic, causes of whiplash injuries include:
- Car accidents more especially rear-end collisions
- Physical abuse and or assault. For instance one of the injuries seen in shaken babies is whiplash.
- Sports injuries like hard tackles.
Whiplash is considered a minor injury and the average claim settlement is anywhere between $10,000 and $100,00. If your whiplash is so severe and debilitating, expect a settlement of anywhere between $1 and $5millions. Attorneys usually investigate case by case to arrive at a fair settlement.
If you just had a car accident, do take chances as you may have more serious injuries well knowing it is a simple whiplash. The following factors could make the outcome of your whiplash worse:
- If you had a high-speed injury.
- Old age
- Previous whiplash injuries
- Pre-existing medical conditions like back pain and others.
Average settlement for soft tissue injury car accident
The term soft tissue refers to the following:
- Ligaments
- Tendons and
- Your muscles.
The most common soft tissue injuries include:
- Sprains
- Strains
- Contusions
- Bursitis and
- Tendinitis.
Almost all car accident results in soft tissue injuries or pain. You will hardly escape a car accident without soft tissue problems if you are lucky to escape more severe injuries like bone fractures, or internal organ damage.
If you sustained soft tissues injuries as a result of a car accident, you may be entitled to the following damages:
- Medical bills. If you sustained any injuries make sure you seek medical care and keep your records handy. Your settlement will consider those costs and other ongoing treatments.
- Pain and suffering. You will need a personal injury lawyer if you want to get a reasonable settlement for your pain and suffering.
- Lost income. Your settlement should include all lost income, for instance, missing your salary for a certain period you were grounded, or lost your job. You should also get compensated if you are unable to work up to your full original potential.
- Property damages. Your car needs repair, or you lost personal items like a laptop or pieces of jewelry.
Soft tissue injuries have many different outcomes and their average settlement varies a lot. Some victims of Soft tissue injuries have received $15,000 for ankle sprain and others have reported $20,000 for shoulder sprain.
According to my attorney, his whiplash cases usually fetches between $25,000 to $100,000. According to him, he has been able to squeeze somewhere between $100,000 to $360,000 for his clients who suffered a herniated disc. So as you can see guys there is no exact figure you will ask as your soft tissue settlement.
If your attorney is experienced enough, your claim process should be smooth as he knows best how to negotiate for all your losses and damages. According to Forbes, clients who hire personal injury attorneys usually get a 4X higher settlement compared to the car accident victims who decide to go with no attorneys.
How much does a lawyer get from a car accident settlement
Some countries, or states if you live in the USA have tried to establish a limit on how much a lawyer receives from a car accident settlement.
In the USA, an attorney is entitled to somewhere between 30 to 40% of your final settlement.
For instance, if your car accident settlement = $100,000, Then your attorney will take home an amount between $30,000 to $40,000. If your settlement case goes to trial, your lawyer should get a cut of 40%.
There are other charges your lawyer could deduct from your settlement apart from his 30-40% cut. Other personal injury lawsuit additional costs include the following:
- The cost of filing your case with the local court.
- Investigation fees. An investigator sometimes visits the accident scene to gather more evidence.
- Expert witnesses. Your lawyer may have paid all expert witnesses in your cases like doctors, or police officers who are testifying in your case.
- Some medical records retrieval could have cost a fee.
Typical car accident settlement amounts in California
As far as car accidents are concerned, there are 12 no-fault-based policy states in the USA and these include the following: Florida, Hawaii, Kansas, Kentucky, Massachusetts, Michigan, New Jersey, New York, and others. If you had an accident and sustained personal injuries (PIP), you will need to file your claim through your personal injury protection other than going after the at-fault driver’s insurance coverage.
In these no-fault states, every driver is mandated to purchase personal protection (PIP) insurance coverage. Unless your injuries exceed your PIP or your car sustained serious damages, you are not supposed to go after the other driver’s liability insurance coverage.
On the same note, there are 38 states in the USA that do not subscribe to a no-fault policy and California is one of them. Other states that are fault-based include Maine, Maryland, and others.
In states that subscribe to fault-based policies, the at-fault driver’s car insurance company usually pays on behalf of their insured, or else the at-fault party pays from their own pockets.
Since California is a fault-based state, you will be liable for all car damages and personal injuries you caused in the car accident. In such states, drivers are encouraged to buy full car insurance coverage or buy higher liability coverage to avoid paying from their own pockets in case they cause serious car accidents.
If you are living in California and were involved in a car crash, expect a Typical car accident settlement amount somewhere between $14,000 and $28,500. So the average car accident settlement in California is around $21,000. Of course, life-threatening car accidents usually fetch more settlement amounts compared to minor car wrecks.
Average Settlement Amounts for Personal Injury Car Accident
Personal injury is nothing but a legal term used to refer to injuries to the body, mind, and emotions. This is a term that is commonly used when car accident victims file claims for settlements as a result of losses from a car accident.
The 5 most common types of personal injuries include:
- Auto accident injuries. These are injuries sustained in road traffic accidents. You will be entitled to medical expenses, pain and suffering damages, and other accident-related effects on your body.
- Doctor or any health worker malpractice. If the Doctor acts contrary to set standards and his actions cause any form of pain and suffering, you may be entitled to medical malpractice damages.
- Injuries from the ineffective product. If you get injured while using a poor-quality product, you may be entitled to product liability damages.
- Slip and fall accidents. If you slipped and fell on any private or public premises, you may qualify for compensation. Your case could be strengthened if you can prove that the property is dangerous to others.
- Wrongful deaths. If a person dies due to the negligence of others like an unmarked construction site, the family could be entitled to compensation.
The average car accident settlement differs from country to country, or from state to state for people living in the USA. Your claim adjuster will investigate your car accident losses and come up with a fair settlement. Should you get aggrieved by the low settlement offer, hiring a lawyer to negotiate on your behalf remains one of the best options.
According to my research, the average car settlement amount for personal injuries in the USA is around $19,500. But, this tells nothing about what your case will settle for since not all car accidents cause the same injuries.
Typical car accident settlement amounts in texas
I already listed examples of states that follow no-fault policies and others that are fault-based states in the USA. Just like other states already mentioned, Texas is an at-fault state as far as a car accident is concerned.
This implies that the at-fault driver is liable for all injuries and car damages he/she caused. You will need to go after the at-fault’s car insurance company for all compensation/damages from the accident you got involved in.
Because every case is unique, determining the actual average car accident settlement in Texas is hard. According to an attorney I consulted, the typical average car accident settlement in Texas is somewhere between $15,500 to $2 Millions. The wider range shows car accidents vary from one to another, and settles for different amounts.
Average settlement for car accident pain and suffering
Pain and suffering can be defined as legal term that refers to the physical and emotional effects of an injury. The causes of injuries are many of which car accidents remain the common culprit.
Some of the damages you could be entitled to under pain and suffering include the following:
- Muscle aches
- Permanent, or temporary activity limitations
- Scarring
- Depression and
- Potential shortening of life.
Your settlement for pain and suffering will depend on the accident and the severity of the injuries you sustained. If you intend to file for pain and suffering damages, expect your Average settlement for car accident pain and suffering to be somewhere between a few thousand dollars up to around $300,000. Your case is unique and different, it will likely settle for different amounts but should be in that range.
Typical car accident settlement amounts after surgery
Every car accident victim who is injured due to negligence of other drivers should seek compensation for the following losses:
- Pain and suffering
- Medical expenses
- Lost wages
- and other things like depression, and inability to fend for self and others.
In the USA, surgery is one of the most expensive medical procedures. Surgery costs are a factor that should be considered in your compensation because it could make your medical bills higher, could lead to severe forms of pain and suffering, and eventually, you could lose your salary as you recuperate.
The average time to recover from surgery is somewhere from 2 weeks to 2 years depending on so many factors. People in senior years and others with pre-existing medical conditions usually take a relatively long time to recover compared to young and healthy individuals.
According to this site, the average cost of surgery in the USA is somewhere around $4,000 to $170,000. Because there are other additional costs related to medical surgical procedures like surgeon follow-up visits and others, expect your average surgery settlement to be a figure near $170,000.
Typical car accident settlement amounts in Canada
I included this query just because a few of our Canadian visitors wanted to know the answer.
For some of us from Canada, the exact settlement also varies from one accident to another just like in the USA. Typical car accident settlement amounts in Canada fall in the range of $250,000 to $600,000. This settlement is even higher if youths are involved, with an average settlement somewhere between $1 to $3millions.
Reasons to get a lawyer after car accident
Hiring a car accident attorney is the best thing you should do if you want to recover fully from car accident losses, and also if you want to get the settlement you deserve. I have already told you how on average, your settlement amounts will be at least 4 or 5X higher if an attorney is involved in your claim negotiations.
Here are 5 reasons you should hire a personal injury attorney after your car accident:
- Knowledge of all possible damages: An attorney knows all possible damages you are entitled to and the fair settlement amounts you should receive. Your lawyer knows better how to prove to your insurance company or to courts of law the damages you are entitled to like medical bills, pain and suffering, disability, disfigurement, and property damages.
- Injuries and damages not obvious at the spot: I have seen and heard people die from car accident injuries yet they felt okay at the accident scene. It’s true, some injuries may not be apparent on the spot, only to show up hours, days, weeks, or months later. Just like personal injuries, some car damages are hard to spot especially for inexperienced drivers. What appears as simple damage could be hiding serious structural damage that would later cost you thousands of dollars.
- Personal injury laws and regulations. The laws that pertain to Personal injury and car accidents vary from state to state or country to country. Most people do not know all the traffic laws in their areas of Jurisdiction. Your lawyer is experienced enough to know all the laws of the land, the compensations you are entitled to, and how best to file and table them.
- Expert and evidence-based negotiations: Your car insurance wants to offer you the quickest settlement just to stop you from hiring an attorney and make them cough out much more money. Most of us just buy insurance coverages but we do not know how best to interpret our policies. We basically do not know what we are entitled to. Your lawyers know better the buttons he will press and get a good settlement for you.
- Low risks of losing your claim. Wrong filing of lawsuits, late lawsuit submission, and error in case presentations could all lead to you losing your claim. You could end up paying damages for the accident you did not cause. Hiring a personal injury attorney largely increases your chances of winning a claim because 90-95% of personal injury cases that go to trial are won by the plaintiff (claimant).
In summary, every car accident results in either car damage or personal injuries, or both. If you are not the at-fault driver, you should not incur lots of financial losses when there is someone else responsible for your losses. You should receive a settlement for your financial losses, property damages, and other non-economic losses. Hiring a car accident attorney who charges somewhere between 30-40% of your settlement, largely increases your chances of winning the claim and hence a fair claim settlement.
