If you have been injured in a car accident that was caused by another driver’s negligence, you may be eligible to receive compensation by filing a car accident claim. Calculating a fair settlement amount can be complicated, as many factors are considered when determining the value of a car accident injury claim. Here is an overview of how car accident settlement amounts are typically calculated.
Economic Damages
Economic damages refer to quantifiable financial losses that resulted from the accident. This includes medical expenses, lost income, property damage, and other out-of-pocket costs related to the crash. Medical costs such as ambulance fees, hospital bills, physical therapy, and prescription medications are commonly included in a settlement. If the injuries force you to miss work, lost income can be recouped as well. Documentation such as medical bills, pay stubs, and repair estimates are used to verify these losses.
Non-Economic Damages
Non-economic damages are subjective losses that are harder to put a dollar figure on. These include pain and suffering, loss of enjoyment of life, permanent disability or disfigurement, and emotional distress. The severity of the injuries, length of recovery time, extent of physical limitations or scarring, and impact on quality of life are all considered when calculating non-economic damages. Plaintiffs may be asked to describe how their life has been affected by the accident in order to help determine fair compensation for intangible losses.
Comparative Negligence
The plaintiff’s degree of fault for causing the accident factors into the settlement amount. In states that follow comparative negligence rules, the plaintiff’s damages are reduced by their percentage of fault. For example, if the plaintiff is found to be 30% at fault for the collision, the final settlement would be reduced by 30%. This prevents plaintiffs from receiving compensation for damages they partly caused.
Multipliers
After economic and non-economic losses are totaled, some calculations apply a multiplier. This increases the value of the injuries to account for attorney fees and to help ensure fair overall compensation. For serious injuries or cases involving gross negligence, a multiplier of 1.5x or 2x may be reasonable. Minor soft tissue injuries may have a lower multiplier. Your attorney will negotiate an appropriate multiplier based on case specifics.
Insurance Policy Limits
The at-fault driver’s insurance policy limits impose a cap on the claim value. Even if all damages are calculated to be $500,000, for example, a policy limit of $100,000 would restrict the final payout to the maximum limit. However, filing against the at-fault driver personally for the excess amount is sometimes an option.
Comparable Settlement Data
By examining past car accident settlements and verdicts in similar cases, estimates can be made for the potential value of a claim. Your attorney will assess cases that are comparable in terms of injury types, severity, insurance limits, and circumstances in order to help benchmark a fair settlement demand.
If you have been injured and incurred damages in a car crash, consult with us to discuss your options for pursuing fair compensation through a settlement or lawsuit. With our help, you can receive the maximum settlement value based on the unique circumstances of your case.
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