Auto Accident Insurance: What's A Fair Settlement?

The amount of money paid out in insurance settlements for auto accidents varies depending on several factors. The severity of injuries, the extent of property damage, and the number of people injured all play a role in determining the final settlement amount. According to surveys, the average settlement in 2020 was between $20,000 and $25,000, with most respondents receiving less than $10,000. However, it's important to note that each case is unique, and the settlement amount will depend on the specific circumstances of the accident. Factors such as insurance coverage, negotiation willingness, and the degree of fault attributed to each driver can also influence the final payout.

Severity of injuries

The severity of injuries is a key factor in determining the value of a car accident settlement. The more severe and long-lasting the injuries, the higher the settlement amount is likely to be. This is because serious injuries often lead to higher medical costs and have a significant impact on the victim's life, including their ability to work and earn a living.

Serious injuries such as brain injuries, spinal cord trauma, internal injuries, and limb amputations typically result in larger settlements. These injuries often require extensive medical treatment, rehabilitation, and long-term therapy, which can be costly. They may also result in permanent disabilities, which can impact a person's quality of life and ability to work. In such cases, the settlement amount may include compensation for medical expenses, lost wages, future lost income, pain and suffering, and loss of enjoyment of life.

On the other hand, temporary injuries, such as broken bones or soft tissue injuries, generally result in lower settlement amounts. These injuries typically heal within a few weeks or months, and a full recovery is expected. The settlement may cover medical expenses, lost wages, and pain and suffering during the recovery period but may not include future medical expenses or long-term disability compensation.

The average settlement amount for car accidents involving serious injuries is higher compared to cases with minor or no injuries. According to sources, the average settlement for car accidents with serious injuries can range from $29,700 to $37,248.62, while cases with minor or no injuries typically settle for between $10,000 and $15,000.

It is important to note that each case is unique, and the final settlement amount will depend on various factors, including the severity of the injuries, the extent of property damage, insurance coverage, and the degree of fault. Consulting with an experienced personal injury attorney can help individuals understand their legal options and determine a fair settlement amount based on their specific circumstances.

Property damage

The amount of money received from insurance settlements for property damage caused by auto accidents varies depending on the specifics of the case. The average property damage claim in the US is around $4,500 to $4,700, but this number is not indicative of what you may receive.

The value of a car accident settlement depends on the type and severity of the damage caused to the vehicle and other property. Settlements for property damage are typically lower than those for personal injury, and minor accidents may result in settlements of a few thousand dollars to cover repairs. However, more serious accidents that result in totalled or severely damaged vehicles can lead to significantly higher settlements, ranging from $100,000 to millions of dollars.

It is important to note that insurance companies may try to lowball or deny claims, so having strong evidence of the accident, the other driver's fault, and the extent of the damage is crucial. An experienced lawyer can help build a strong claim and negotiate for a fair settlement, ensuring that all damages are properly considered and compensated.

Fault

In most states, the person found responsible for causing the accident is expected to cover the victim's damages. Typically, the at-fault driver's liability auto insurance will pay out for medical bills, property damage, lost wages, and other losses incurred by the victim. The insurer representing the at-fault driver will usually make a settlement offer to the victim, which is a lump-sum payment in exchange for the victim waiving their rights to any further claims.

However, if the victim believes that the offered compensation is unfair or insufficient, they may choose to file a car accident lawsuit. While lawsuits can occur after motor vehicle accidents, most cases are settled outside of court. Insurance companies often prefer to avoid the cost and time associated with a trial, and victims often want to avoid the uncertainty and length of a court case.

The determination of fault can also vary depending on the state. Some states follow a contributory negligence rule, where a driver cannot collect any compensation from the other motorist if they are found to be even 1% at fault for the collision. In contrast, pure comparative negligence states allow a driver to collect compensation from another motorist, even if they are mostly at fault. Modified comparative negligence states fall somewhere in between, allowing drivers to pursue a claim as long as they are not 50% or 51% responsible for the crash.

It is worth noting that insurance coverage limits can also impact the settlement amount. Insurance companies will only pay out up to the policy limits, and if the damages exceed this amount, the insurer will not cover the excess. In such cases, accident victims may need to pursue additional compensation directly from the at-fault driver. However, this can be challenging, as many individuals may not have the financial means to pay for these additional damages.

Additionally, the severity of injuries and the extent of financial loss will also influence the settlement amount. Settlements are intended to compensate crash victims for their losses, including medical expenses, lost wages, and property damage. Serious injuries or permanent disabilities will typically result in higher settlement amounts compared to minor injuries or property damage.

Insurance coverage

The amount of money you receive from a settlement depends on the insurance coverage available and the insurance company. The coverage of insurance available and a determination of who is at fault will also affect the average car accident settlement.

Most states have an insurance coverage requirement, which is usually $25,000 per person and $50,000 per accident. This is the minimum liability coverage requirement in Kansas, Illinois, and Missouri. Most states also require uninsured motorist coverage if an auto accident occurs with a driver who is uninsured. In Kansas, Illinois, and Missouri, the minimum requirement for uninsured motorist coverage is also $25,000 per person and $50,000 per accident.

Drivers’ insurance policies and insurance providers have a major influence on the car accident settlement process and the final settlement amount. If an accident happens in Missouri, the insurance company of the at-fault driver is responsible for paying medical bills, property damage, and any injuries that result from the car accident.

In some cases, it’s easy to prove who’s at fault. In other cases, the fault may be shared between the drivers, which can have a major impact on the settlement. In some states (contributory negligence states), if a driver is even 1% at fault for a collision, they cannot collect any compensation from the other motorist. In pure comparative negligence states, a driver can collect compensation even if they were mostly at fault. In modified comparative negligence states, a driver can pursue a claim as long as they are not 50% or 51% responsible for the crash.

If you have personal accident insurance, this can provide protection if you get into an accident. Personal accident insurance, also known as fixed indemnity insurance, covers both minor damage and major disabling events. However, it does not cover vehicle damage or liability if you are responsible for a car accident. Accident insurance is supplemental insurance and is most helpful when used in combination with a major medical plan. It covers expenses not covered by your medical plan, such as copayments and deductibles, as well as non-medical costs like rent or utility bills.

How Car Accident Settlements Are Calculated

The settlement amount is generally based on the losses a crash victim experienced, including medical expenses (current and future), lost wages, property damage, and pain and suffering. The settlement is intended to make a crash victim whole for the losses the collision caused.

How to Maximize Your Settlement

A car accident lawyer can help you maximize your settlement by collecting evidence, handling the legal process, and negotiating with the insurance company. They can also advise you on whether a settlement offer is reasonable.

Negotiation willingness

• Understanding the process: It is important to understand the negotiation process and be prepared for back-and-forth communication with the insurance company. This includes knowing what your policy covers, calculating your damages, and setting a minimum settlement figure that you are willing to accept.
• Flexibility: While it is crucial to have a desired settlement amount in mind, being flexible and willing to negotiate is essential. Be open to counteroffers and be prepared to justify your demands with supporting documentation.
• Patience and persistence: Negotiating a settlement can take time, and it is important to remain patient and persistent. Insurance companies may try to pressure claimants with low initial offers or quick settlements. However, by being patient and standing firm, you increase the chances of receiving a fair settlement.
• Emotional appeal: While it is important to provide documentation and facts to support your claim, don't underestimate the power of emotional appeal. Emphasize how the accident has negatively impacted your life, including any pain, suffering, or long-term effects.
• Professional representation: Consider hiring an experienced attorney who can guide you through the negotiation process and ensure your rights are protected. Attorneys can provide valuable insights and improve your chances of obtaining a favourable settlement.
• Settlement acceptance: Remember that accepting a settlement offer concludes your case, and you cannot pursue additional compensation. Carefully consider the offer and compare it to your expected court award, taking into account the costs and uncertainties of litigation.

Frequently asked questions