Finding yourself involved in a wreck on the road is a troubling experience and one that can leave you with lasting injuries. However, with the help of an accredited lawyer, you can potentially recover compensation to help with the expenses that are associated with those injuries.
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There are many factors that affect car accident settlement amounts. By understanding these factors and how they apply to your specific case, you can set realistic expectations for what you should expect to earn based on your damages.
The Role of Liability in Car Accident Settlements
Liability is the biggest factor that will impact the settlement amount in your case. The degree of fault that is assigned to each party indicates who was primarily at fault which, regardless of insurance or court, will dictate the settlement amount.
For states that follow a comparative negligence system, you will still be eligible for a payout even if you are partially to blame for the accident. In states with a contributory negligence system, though, if you are found to be a specific percentage at fault or more you may not be entitled to any compensation.
To add perspective, say you are involved in a wreck and found to be 30% at fault. Further, assume that the gross settlement amount was $100,000. Given that you were 30% at fault, the amount would be reduced proportionally such that you would only receive $70,000. This is precisely how liability can affect what you take home.
Medical Expenses and Their Impact on Compensation
Another big factor in settlement amounts is medical bills. These can vary in scope from emergency care, ongoing treatment costs, rehabilitation, and future medical costs.
Each of these will play a role when presented to court or insurance in showing what the total cost of your damages was due to the accident. Medical records will be crucial at this stage so be sure not to throw anything away. Even a single receipt can make a difference.
On top of this, consider hiring an expert to bring in some expert testimony. This is when a professional attests to your injuries and offers their professional opinion on whether or not those are justified.
Lost Wages and Loss of Earning Capacity
Beyond standard medical expenses the courts or insurance will take into account the long-term effects of your injuries.
If those injuries that you suffered impact your ability to work to the same capacity you were able to prior to the injury, and you needed to take a significant time of work as a result, you may be entitled to compensation related to lost wages or a loss of earning capacity.
If the injuries you sustained were so severe that you have long-term disabilities then this issue is only made more prominent. The courts will often use a mathematical formula to figure out what the monetary present value of those costs is in order to provide an assumption.
Property Damage and Vehicle Repair Costs
An often overlooked cost stemming from a personal injury in an accident is that which is associated with property damage or vehicle repair costs. Insurers will take a look at the total cost to repair your vehicle to working order, along with replacement costs, in order to estimate a value for the settlement.
The condition of your vehicle before the accident, including its depreciation, will play a role in this as well, potentially reducing the value if your vehicle was already on its last leg.
Assuming the repairs to your vehicle are so severe that you need to get a rental car, the costs of that car may also be taken into account. Any property damage that occurred due to the car accident, whether yours or someone else’s, will be covered under this as well.
Pain and Suffering: How Non-Economic Damages Are Valued
Your settlement amount is not only going to be related to pure economic costs. Pain and suffering, as defined legally, is the physical discomfort and emotional distress resulting from an incident. Examples include scarring or disfigurement, PTSD, a loss of quality of life, a loss of enjoyment in life, embarrassment, and more.
Naturally, quantifying pain and suffering is not as easy as looking at a receipt. The method to calculate pain and suffering is usually either the multiplier method or the per diem method.
Under the multiplier method, your medical expenses are multiplied by a pre-set factor to determine current and future pain and suffering costs. Under the per diem structure, a daily amount is assigned then multiples against the number of days you suffered from the injuries.
Insurance Policy Limits and Their Role in Settlements
Assuming you are the party who was at fault for the car accident, you might be the one forced to pay the settlement. Having insurance is an excellent way to mitigate this cost, but be aware that you will still be on the hook if your insurance policy limit is hit.
Some plans add a cap on potential payouts which means you’ll be responsible for the remaining portion. This is why you should always look at the minimum coverage amount and compare different policies to find those with a higher limit.
It’s also worth investing in underinsured motorist coverage which offers financial protection in the event you hit a driver who isn’t carrying insurance.
Other Factors That Can Influence Settlement Payouts
All of the above factors are just the tip of the iceberg for what can impact your settlement amount from insurance or the court. Beyond just these, the following can also make a difference:
- If an expert witness testifies on your behalf and offers their opinion on your injury
- If you had any pre-existing conditions prior to the claim you are making
- If there are specific state laws or court precedents that guide a decision
- If the accident is reconstructed by experts who can assign fault more specifically
Fight for Your Rights After a Wreck
Being involved in a car accident is a scary experience but that doesn’t mean you should live with the injuries. Speak with a lawyer as soon as possible to determine whether you have options for seeking compensation for those injuries. Remember too that every injury, both mental and physical, can potentially be accounted for.
