Thousands are killed in car accidents yearly, with many more injured. The monetary damages from these are huge, amounting to fifty-five billion dollars per year in medical and lost wage costs. If you have been an accident victim or know someone who has, you must know your rights.
Firstly, you are entitled to a certain amount of compensation in settlement. This article teaches you how to calculate the amount due to you and the factors that affect car accident settlement amounts.
How Do You Calculate Car Accident Settlements?
Car accident settlements are typically calculated based on the circumstances surrounding the collision, and as Gregory J Panzo of Largey Law Firm often explains, knowing the average settlement amount for car accidents may be less helpful to victims. For example, crash victims who did not sustain serious injuries will get money offers from an insurer than someone who did.
Generally, the purpose of car accident settlements is to cover the losses an accident victim suffered because of the crash. The amounts are usually based on medical bills, property damage, pain and suffering, emotional stress, and lost wages. How much insurance coverage is available, as well as the determination of who is responsible for the accident, will affect the settlement amount.
According to reports from the Insurance Information Institute, the average you can claim for bodily injury after a crash is $20,235. However, a survey showed that the average amount received was $20,235, with the average property damage claim being $4,711. Nevertheless, most crash victims with bodily injury do not get up to $10,000.
What Factors Can Affect the Amount of Car Accident Settlements?
Several factors can influence how much a car accident victim receives as a settlement for damages. They include liability, insurance coverage, and the severity of the victim’s injuries.
Insurance Coverage
Most states require that drivers have liability insurance; the insurance company pays compensation if there is any infraction. However, the insurer can only pay up to policy limits; they will not pay an excess if damages exceed the insurance coverage amount.
While victims can directly pursue a claim against the at-fault driver, many do not have enough to pay. As such, going to court for additional compensation after the at-fault driver’s insurer has made a settlement offer at the policy limit.
Liability
The clarity of liability also dictates the settlement amount; settlement is typically larger if liability in a collision is clear. The at-fault driver’s insurer will accept responsibility and provide a reasonable settlement to avoid a lawsuit. However, where liability is uncertain, there may not be a settlement offer, or it may be very low.
Victim’s Injuries
The severity of the victim’s injury is typically a significant factor in determining car accident settlement amounts. The rules here differ from state to state; in no-fault states, the victim’s insurer will cover the cost of damages.
They can claim compensation against the at-fault driver’s insurer if their coverage gets exhausted. Contrarily, in fault states, the driver responsible for the cash will pay for damages.
Financial Loss
The last factor here is the extent of financial loss the victim suffered. The purpose of the settlement is typically to make the victim whole for losses suffered due to the collision. These losses include those related to their injuries and property damage.
Conclusion
Car accident settlements aim to provide financial relief to victims for the losses they’ve endured, including medical bills, property damage, and lost wages. However, many factors, such as the severity of injuries, liability, and available insurance coverage, can influence the settlement amount.
Understanding these factors is key to ensuring you receive fair compensation. If you’ve been in an accident, consider seeking professional legal advice to help navigate the process and secure the settlement you deserve.
Remember, every case is unique, and having the proper guidance can make a significant difference. Knowing your rights and taking timely action are crucial steps toward achieving a fair resolution.
