The value of a car accident settlement can vary greatly from case to case. Knowing the factors that impact car accident settlement amounts can help you understand what to expect from your case and avoid any lowball offers. Read on to learn what factors affect car accident settlement amounts and how they play a role in determining fair compensation for your injuries.
The Severity of Your Injuries
The seriousness of your injuries is one of the most important factors impacting the value of a car accident settlement, as it plays a part in nearly all other factors involved. How badly you’re hurt and whether your injuries will have permanent or long-term effects will influence the value of your medical bills, future care costs, time missed at work, and various non-financial impacts to your quality of life.
Medical Expenses and Future Treatment Costs
In at-fault auto insurance states, medical bills you’ve already incurred are included dollar-for-dollar in the valuation of your car accident settlement. You can also recover the projected costs of future medical treatment related to your injuries.
In no-fault states like Florida, your own Personal Injury Protection, or PIP, insurance will cover your medical costs up to a certain limit. However, you can still sue the liable driver to recover expenses above that limit or in cases involving serious injuries.
Properly documenting all your treatment, therapy, and hospital bills can ensure you receive full and fair compensation for your medical expenses and help create the most accurate possible estimate for your future treatment costs.
Lost Wages and Diminished Earning Capacity
If your injuries cause you to miss time at work or otherwise lose income, you can recover compensation in a car accident settlement for the money you weren’t able to earn. The longer you’re unable to return to work, the higher the damages will be. PIP coverage also applies to a portion of lost wages in no-fault states.
If you’re unable to continue working in the same role because of your injuries, you can also recover damages for any reduction in your income resulting from your disabilities.
Non‑Economic Damages
Financial losses aren’t the only damages you can recover in a car accident settlement. You can also pursue compensation for non-economic damages, which are impacts to your quality of life and well-being that don’t have a specific monetary value. Examples include pain and suffering, emotional distress, disfigurement, and loss of enjoyment of life.
Since non-economic damages have a subjective value, it’s harder to calculate exactly how they can impact the overall amount of your car accident settlement.
Property Damage
In at-fault auto insurance states, a car accident settlement can include the value of vehicle repair and replacement costs you’ve incurred after a crash where you were not liable. In no-fault states, these costs are usually covered by your own insurance policy. However, you may be able to recover the deductible from the at-fault party.
In some cases, you can also recover compensation for the diminished value of your vehicle resulting from its collision history, further increasing the potential amount of your car accident settlement.
Liability and Fault
Generally, the higher the degree of fault the other driver has for your crash, the greater the value of your potential settlement. Conversely, depending on your state laws, sharing liability for a car accident can either lead to a smaller settlement or fully block you from compensation.
Many states have adopted a modified comparative negligence system that allows crash victims who are partially liable to recover reduced damages. In Florida, you can recover compensation if you are 50% or less responsible for a car accident, but your compensation will be reduced in proportion to your share of liability.
Insurance Policy Limits
In most cases, insurance policy limits will cap the amount insurers will pay for a car accident settlement.
Florida law requires drivers to carry at least $10,000 in PIP coverage and $10,000 in Property Damage Liability, or PDL, coverage, but insurance companies will not agree to pay more than those limits even when your damages are greater.
Meanwhile, the at-fault parties’ liability insurance policy limits will restrict the amount you can recover under their coverage for an accident. While it is possible to seek compensation directly from the party’s own assets, collection is much more difficult.
If you exhaust the available insurance coverage, an experienced car accident attorney can help you seek compensation for excess damages by suing the at-fault driver directly, looking for additional liable parties, finding additional sources of compensation, and more.
Documentation and Quality of Evidence
Proving the other driver’s liability requires strong evidence of their negligence. If you can build a case that clearly shows the other driver was at fault for your injuries, you can negotiate higher settlement offers and reach a fair agreement quickly.
Conversely, the other driver and their insurer may drag out the process or refuse to pay you what you deserve if they feel your claims are weakly supported.
Legal Representation and Negotiation
Having an experienced car accident lawyer by your side can make the difference between maximizing your settlement and walking away with next to nothing.
Insurance companies will often bully and pressure unrepresented injury victims into accepting a lowball offer that doesn’t properly compensate them. Hiring a skilled attorney shows the other side that you mean business, bringing them closer to the table and helping you secure the settlement you deserve.
“Here's what the car insurance companies may think they know after a car crash. They know you probably don't know what your claim is worth, or how to calculate pain and suffering, lost wages and future earnings, current and future medical expenses, or diminished value to your car. But guess what? We do. And if we don't win your case, you owe us nothing. Farah and Farah.”
How Our Trusted Car Accident Attorneys Can Help
With more than 45 years of experience and over $2 billion in verdicts and settlements recovered for our clients, Farah & Farah understands the factors that impact the value of a car accident settlement and knows how to maximize your compensation.
Our team will work together to thoroughly investigate your crash, gather evidence to build a strong case, and negotiate aggressively with insurance companies to get you the settlement you deserve.
To learn more about how much to expect from your auto injury settlement, contact us online or call (877) 245-6707 today for a free consultation with our trusted personal injury attorneys.
