How Much Will I Receive in a Car Accident Settlement?

Getting involved in a car accident can be a highly traumatizing experience, especially if the accident resulted from someone else’s negligence and not yours. Car accidents can result in significant personal injury and property damages, and the financial burden of such an incident can extend beyond your insurance coverage. Many car crash victims pursue legal action against negligent drivers to cover their economic and non-economic losses and ensure stability throughout their recovery. Although some lawsuits might end in a jury trial, most cases get settled outside the court. In a settlement, the legal teams of the defendant and plaintiff meet to negotiate a mutually agreeable amount. Upon acceptance, the case no longer moves forward to a trial. The amount you might be able to receive as settlement varies between different cases depending on the circumstances of each incident. Here is a brief overview of car accident settlements and how the law calculates them.

Types of Compensable Damages in Car Accidents

Car accident settlements involve two types of compensable damages: economic and non-economic. Economic damages can be assigned a monetary value, such as medical expenses, loss of income, costs of ongoing therapy, and more. Non-economic damages, on the other hand, involve intangible losses such as emotional distress, pain, suffering, and more. Although these damages are not quantifiable, they are assigned a monetary multiplier through which an estimated equivalent amount is calculated.

Factors Affecting Settlement Amount

Your settlement amount depends on several factors that might be unique to the circumstances surrounding your accident. Some of these might include the severity of your accident, the extent of your injuries, the amount of insurance coverage, your fault for the accident, the state you live in, and more. These are details that you need to keep track of in a car accident settlement. There’s no way to know for certain how much is owed if your legal team does not have all the details.

Accident Severity

The severity of your car crash is one of the biggest factors in determining your settlement amount. In most cases, the more severe accidents are associated with more serious injuries and in turn a higher total amount in medical bills. As a result, their settlement amounts are higher. You are still owed financial compensation no matter how severe the accident is. But if you need to stay at the hospital for long periods that change how your case is viewed.

Extent of Injury

More severe injuries are related to a longer period of incapacitation and subsequently a longer recovery period. The sum you receive as a settlement in such cases will be higher due to the higher amount of medical bills and other amounts in damages. These details are important to build your case in your favor. Medical bills are expensive, especially if your injuries cause you to not be able to work. You should be compensated for that money loss.

Insurance Coverage

The insurance coverage of the negligent driver is used to settle your demands in a car accident lawsuit. If the said driver does not have sufficient insurance coverage, you can seek compensation through a personal injury lawsuit and settle for a fair amount that covers all your damages. It’s always important to have coverage, especially for situations like this. Keep track of these details so your legal team understands your situation.

Your Fault

If you were at fault for the accident, your settlement amount will get reduced by the percentage of your fault. For instance, if the court determines that you shared 10 percent of the fault, your settlement amount might get reduced by 10 percent. You will be represented regardless of who is at fault, but it might not work in your favor. Receiving any form of financial compensation can still help your situation and get you back on your feet.

Calculating Damages

When it comes to car accidents, calculating damages can be complicated. Although some states use a simple calculation based on a percentage of a victim’s medical bills and lost wages, most use calculations involving multiple factors such as future earning capacity, pain and suffering, and more.

To ensure that you receive a fair settlement for your car accident, it is important to consider all potential elements when receiving compensation. Your lawyer should be able to help you with the process of calculating damages so that you can maximize the amount of your settlement.

When determining the amount of compensation you should receive in a car accident settlement, there are five major areas that must be taken into consideration:

  1. Current Medical Bills – Any medical expenses you have incurred up until the time of your settlement will need to be accounted for and reimbursed to you. This includes bills for emergency care, hospitalizations, doctor visits, medications, and rehabilitation expenses.
  2. Future Medical Expenses – If car accident injuries require ongoing medical care or treatment in the future (e.g., corrective surgeries), those costs must also be accounted for in the settlement agreement so that victims are not left with unprotected out-of-pocket expense obligations after the case is resolved.
  3. Pain and Suffering – Pain and suffering refer to any sort of physical or psychological pain or distress caused by an injury incurred in an accident (e.g., anxiety or depression). It’s important to accurately provide information about these damages as they play an important role when it comes time to calculate a fair compensation sum in your case resolution offer.
  4. Lost Earnings – In cases involving loss of work due to severe injury suffered in an auto crash, lost earnings may need to factor into any potential settlement agreement depending on how long recovery is expected to take before normal wages resume. Consideration also needs to consider future earning capacity if reduced due to never being able to recover pre-accident levels of productivity or capability as part of motor vehicle collision rehabilitation process requirements.
  5. Property Damage – Automobiles can sustain significant damage during collisions making them unsafe for regular operations; these costs will likely need An auto body repair may need repair prior to continuing normal operations; keep all quotes from shops offering repair services detailing deliverables offered by each shop along with pricing so the proper cost considerations account when discussing any potential final compensation amounts regarding property damage.


If you or your loved one got involved in a car crash due to someone else’s negligence, you might be able to file a lawsuit against the driver to obtain financial compensation for your losses. The amount you receive as compensation through a car crash lawsuit settlement depends on multiple factors specific to each case. It’s suggested that you keep track of all the details of the accident. That way you’re able to create a case to bring to a trusted law firm that will do everything in its power to help you.