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There’s no one-size-fits-all average amount for car accident settlements. However, it’s possible to analyze factors impacting settlement amounts to estimate the financial worth of your accident. NST Law’s experienced attorneys can help you determine how much your car accident claim is worth and fight for fair compensation.
Key Takeaways
- Car accident settlements vary dramatically depending on individual circumstances, so there isn’t a clear average car accident settlement you can expect to receive.
- Insurers often try to lowball car accident victims into accepting unfairly low compensation.
- A car accident attorney can help you determine how much your car accident settlement may be worth.
- The experienced car accident lawyers at NST Law will fight hard for you to receive the compensation you deserve.
Is There an Average Car Accident Settlement?
There is no exact answer for how much an average car accident settlement is worth. Multimillion-dollar settlements awarded to car accident plaintiffs can skew data sharply upward, meaning the average settlement looks much higher than most plaintiffs typically receive. An attorney can help you determine your settlement’s likely financial value based on your case’s circumstances.
Examples of Car Accident Settlements:
NST Law has an extensive record of securing successful settlements for clients injured in car accidents. Case results we are particularly proud of include:
- $255,000 for a passenger injured in a rollover accident
- $230,000 for a car accident victim who suffered a connective tissue injury to the back and neck
- $150,000 for a client who survived an auto accident with severe injuries
Our firm has handled a wide variety of car accident cases throughout the southern United States, including at our Memphis office. We closely examine all circumstances of your case to fight for a settlement proportionate to your damages.
Key Factors Affecting the Amount of Car Accident Settlements
Car accident compensation amounts depend on many factors, including:
Severity of Injuries
The severity of your injuries is generally the biggest determinant of how much you will receive in a car accident settlement.
Minor injuries typically result in smaller settlements, usually only enough to cover medical bills and vehicular damage. Settlements for plaintiffs with moderate injuries vary depending on the case details. Severe or catastrophic injuries, especially those resulting in permanent disability or wrongful death, usually receive higher settlements.
Common car accident injuries include traumatic brain injury, whiplash, broken bones, and organ damage. It’s essential to seek medical attention promptly after an accident to determine the extent of your injuries.
Economic Damages
Economic damages compensate you for financial losses from your accident, including medical expenses, lost wages, and property damage. Your economic damages will be calculated based on medical bills, vehicle repair receipts, and other evidence of financial loss.
Non-Economic Damages
Non-economic damages compensate you for losses without specific financial value, such as pain and suffering, emotional distress, and loss of consortium. You must demonstrate long-term impacts on your life, such as post-traumatic stress disorder or anxiety, that are directly connected to the accident.
Insurance Coverage
Insurance coverage significantly impacts car accident settlements. Policy limits for the applicable coverage cap the compensation you can receive.
If the other driver in your accident was uninsured or underinsured, you may be responsible for costs associated with the accident. Your car insurance policy’s uninsured/underinsured motorist coverage, often called UIM, can help protect you if you’re hit by an uninsured driver who can’t cover your costs.
Some states also require personal injury protection insurance, or PIP insurance. In Arkansas, PIP coverage is optional. PIP insurance covers injuries or deaths that occur in an accident. While PIP insurance isn’t mandatory, it helps minimize an accident’s financial impact.
How Car Accident Settlements Are Calculated
Car accident compensation factors impact the settlement calculation process in different ways.
Your medical expenses and lost wages are significant when calculating a settlement. Documentation of missed work and out-of-pocket medical care can demonstrate a clear financial cost for which you should be compensated.
Pain and Suffering Damages
If your case includes a claim for pain and suffering, those damages also must be accounted for in settlement negotiations. Because pain and suffering are harder to quantify, your compensation will be calculated using the multiplier or per diem method.
The multiplier method multiplies your medical costs by a number, usually one to five, with higher numbers correlating to more severe suffering. The per diem method estimates the number of days you suffered and pays you a set amount—usually roughly a day’s wages—per day.
Your attorney can help determine which method is appropriate in your case.
How Insurers Handle Payout Calculations
Insurance policy limits cap your settlement compensation at the maximum amount of the insured party’s liability policy. Insurers evaluate claims to pay out as little as possible to car accident victims, searching for flaws in your case and denying that your suffering was as extensive as you claim. An attorney can help you defend yourself against insurers seeking to minimize your payout.
How State Laws Impact Car Accident Settlements
The laws of the state where your accident occurred play a major role in determining the amount of your settlement. Comparative negligence laws, minimum insurance requirements, and statutes of limitations for personal injury claims all impact how much you could receive for your car accident.
NST Law represents clients in Tennessee, Arkansas, Mississippi, and Missouri.
Tennessee
Tennessee state laws that may impact your settlement include:
- Comparative Negligence: Tennessee drivers partially liable for their personal injury damages can still recover compensation if they share less than 50 percent of the blame. However, a partially liable driver’s settlement will be reduced in proportion to their fault. For example, if a judge finds you responsible for 30 percent of an accident, you will only receive 70 percent of the settlement amount.
- Minimum Insurance Requirements: Tennessee requires all drivers to carry liability insurance of at least $25,000 per injury per person, $50,000 for total injuries per accident, and $25,000 for property damage per accident.
- Statute of Limitations: The statute of limitations for Tennessee car accident claims is one year. Tennessee’s statute of limitations is one of the nation’s shortest, so it’s vital to file quickly if you were injured in an accident.
Arkansas
Arkansas state laws that may impact your settlement include:
- Comparative Negligence: Arkansas’ comparative negligence law stipulates that drivers who are partially liable for their damages can still recover compensation if their proportion of fault is less than the other driver’s. However, a partially liable driver’s settlement is reduced in proportion to their fault.
- Minimum Insurance Requirements: Arkansas requires all drivers to carry at least $25,000 per injury per person, $50,000 for total injuries per accident, and $25,000 for property damage per accident in liability insurance.
- Statute of Limitations: The statute of limitations for car accident claims in Arkansas is three years.
Mississippi
Mississippi state laws that may impact your settlement include:
- Comparative Negligence: In Mississippi, drivers who are partially liable for their damages, no matter the proportion of their fault, can still receive compensation. However, a partially liable driver’s settlement is reduced in proportion to their fault.
- Minimum Insurance Requirements: Mississippi requires all drivers to carry at least $25,000 per injury per person, $50,000 for total injuries per accident, and $25,000 for property damage per accident in liability insurance.
- Statute of Limitations: The statute of limitations for Mississippi car accident claims is three years.
Missouri
Missouri state laws that may impact your settlement include:
- Comparative Negligence: In Missouri, drivers who are partially liable for their damages, no matter their shares of fault, can still receive compensation. However, a partially liable driver’s settlement is reduced in proportion to their fault.
- Minimum Insurance Requirements: Missouri requires all drivers to carry liability insurance of at least $25,000 per injury per person, $50,000 for total injuries per accident, and $25,000 for property damage per accident.
- Statute of Limitations: The statute of limitations for Missouri car accident claims is five years.
Can a Lawyer Help You Get a Higher Settlement?
A lawyer can typically help you get a higher car accident settlement than you could secure alone.
Your car accident lawyer will work to negotiate a better settlement than the insurer’s initial offer. An attorney can provide an accurate estimate of what your injuries are worth and identify a low settlement offer. With an attorney on your side, you’ll be better equipped to reject low settlement offers and pursue litigation if necessary.
At NST Law, we strive to maximize compensation for our clients. Our attorneys will fight hard for you to receive a fair settlement after a car accident.
Settlements and verdicts we’ve secured for car accident victims include:
- Our firm represented a young man who was severely injured in an automobile accident caused by a construction company that negligently failed to place proper traffic signs at an intersection. As a result, our client’s vehicle violently collided with another vehicle, and our client sustained traumatic and permanent brain injuries. We developed the case by retaining experts such as a life-care planner and a neurological psychologist to demonstrate our client’s special needs. The case was litigated and mediated with a settlement for over $2.2 million. Before settling the case, we significantly reduced the client’s medical bills, which netted more money for the client.
- Our firm represented a Tennessee couple involved in an accident with a driver who hit them head-on while driving on the wrong side of the road. The wife suffered significant injuries, while the husband died after being rushed to the hospital. NST filed suit to protect our clients’ rights. After conducting a thorough investigation into the facts of the accident and identifying all potentially liable parties, our firm was able to uncover two additional insurance policies that were not previously disclosed, including an excess umbrella policy. The case was resolved for the total policy limits of $1.4 million.
Contact Our Car Accident Attorneys
Don’t wait to file a claim after a car accident. Our legal team is ready to fight for fair compensation on your behalf.
Call The Champs at NST Law at 800-529-4004 or contact us online today for a free consultation.
