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What is The Average Settlement for a Car Accident?

What is The Average Settlement for a Car Accident

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If you’ve been in an accident, you may wonder if it’s worth it to contact a lawyer, and if you do, what does the average settlement look like?

While there’s no one average compensation number, there are factors that give you an idea of how much you’re going to get back. So if you’ve been in a car accident, keep reading to learn more about your potential settlement.

First Things First, Contact a Lawyer

By working with a lawyer specializing in car accidents and personal injuries, you’ll likely receive higher compensation than if you are to represent yourself. Even if you feel like you remember everything about the accident very clearly, lawyers are professionals that will bring up information during negotiations that you could miss.

Remember, it’s the insurance company’s goal to offer you the lowest amount possible as compensation. However, a car accident lawyer’s job is the exact opposite. To maximize your settlement, a claim through insurance typically won’t cut it. A lawyer can help you navigate the documentation you should provide and persuade the insurance company to look into the matter further. While launching an investigation or possibly even taking the case to court can sound like a time investment, you’ll find that hiring a lawyer for a more reasonable settlement is well worth it in the long run.

What to Expect From Your Settlement

There are many factors an insurance company or judge will take into account when determining the amount for compensation. According to All Law, damage calculations are often based on the following criteria:

  • Medical treatment – bills, liens, and expenses related to the medical treatment you received for your injuries
  • Pain and suffering – mental and emotional damage
  • Lost Wages – income you have already lost due to your injuries
  • Future lost income – income you will lose in the future due to your injuries
  • Property Damages – damage to your vehicle

How an Insurance Company Calculates Your Settlement

As we said, there is no average settlement, but many insurance companies abide by the “multiplier rule” to settle on what they believe to be fair compensation. Here’s how the “rule” or “formula” is applied:

  • Total up the number of claimants’ bills for property damages and medical treatment, often referred to as “special damages.”
  • Multiplies that amount by a number (usually between 1-5) to arrive at the value of the claimant’s pain and suffering and other non-financial losses. This number is referred to as “general damages.”
  • Adds the total of the medical treatment bills to the general damages number, then adds in and lost wages (past and future) and property damages to arrive at the total amount of what your settlement is worth to the insurance company.
    Here’s an example of the formula:
  • The total amount of medical treatment and property damage – $2,000
  • Multiply the $2,000 by what the insurance company picks at the multiplier, for this case, let’s use 3, toget $6,000.
  • We’ll assume lost wages come to a total of $1,000.
  • So, $2,000 + $6,000 + $1,000 = $9,000.
    In this case, $9,000 would be what the insurance company sees as fair. However, they aren’t likely to offer you that full amount as the first offer. According to Injury Claim Coach, the insurance company has claims adjusters that “are trained to do everything possible to minimize settlement payouts.”

Talk to One of Our Car Accident Lawyers at Flickinger • Boulton • Robson • Weeks

At Flickinger • Boulton • Robson • Weeks, we’ll help you calculate your average settlement and help you fight for fair compensation. Our team has over 25 years of experience assisting Utah citizens to recover financially after a car accident occurs. Give us a call today to get in touch with a car accident lawyer that will be by your side every step of the way. We have offices throughout Utah, including Provo and South Jordan.