When a car accident hurts you, you might wonder how much money you can receive in a settlement. It is a common question, and there is no single answer.
Every crash is unique, involving different injuries, expenses, and circumstances. Because of this, people’s settlements can range from a few thousand dollars to well over six figures. Understanding what goes into these figures can ensure you make more informed decisions as you move forward. Consult a seasoned car accident lawyer to answer your all questions.
Why Do Car Accident Settlements Vary So Much?
Car accident settlements vary because no two crashes are exactly alike. One person might suffer a fractured bone and need a short hospital stay, while another might experience long-term injuries that require months or years of physical therapy.
In one case, the other driver might admit fault immediately, while both sides can strongly contest fault in another. Different states have different insurance laws, which change how insurers process claims in each location.
Insurance companies evaluate each accident by considering the severity of injuries, the financial losses, and the strength of the evidence. They look at medical records, witness statements, vehicle damage, etc.
They use this information to decide how much to pay. However, they want to settle for as little as possible. That is why many people turn to a car accident lawyer—to push back against low offers and aim for an amount that truly covers all their losses.
What Factors Can Affect Your Car Accident Settlement Amount?
These are some factors that typically influence how much money you might receive:
- Medical Expenses: Costs for ambulance rides, hospital stays, surgeries, medication, and ongoing therapy
- Lost Income: Any income you miss out on if you cannot work while you recover
- Property Damage: The cost of repairing or replacing your car or other items damaged in the crash
- Pain and Suffering: Compensation for the physical pain and emotional distress you experience
- Policy Limits: Insurance policies have maximum limits, and your payout cannot go beyond those limits unless you file additional claims against other parties
Should You Accept the First Settlement Offer After a Car Accident?
It might feel tempting to accept the first offer you receive from the insurance company, especially if your bills are piling up. But often, the initial offer is on the low end.
If you accept it, you usually give up your right to ask for more money later—even if you find out your injuries require more treatment or you miss more work than you thought.
It is rarely wise to accept the first offer without taking time to review all of your expenses and potential future costs.
A car accident attorney will know what similar cases have settled for and can tell you if the offer is too low or close to fair. A car accident lawyer can also handle the back-and-forth negotiations with the insurance company.
How Can a Car Accident Lawyer Help You With the Settlement?
A car accident lawyer plays multiple roles in helping you pursue a fair settlement. First, they listen to your side of the story and examine details like medical records, repair bills, and police reports. They investigate the crash to see who was really at fault.
Once they have all the details, your car accident lawyer can write a demand letter to the insurance company that explains how much you want and, most importantly, why you deserve it. They also manage any legal forms, meeting all filing deadlines.
What About Medical Bills and Long-Term Costs of a Car Accident?
Medical bills can constitute some of the largest costs after a car accident. Even if you have health insurance, co-pays and deductibles might overwhelm you. You might also need physical therapy, mental health counseling, or other long-term treatments not fully covered by insurance.
A settlement can pay these bills, but you need enough to handle current and future costs.
For long-term injuries, such as those involving spinal cord damage or severe head trauma, medical expenses can last for years.
A car accident lawyer can work with medical professionals to estimate future needs. This might include ongoing medications, additional surgeries, or special equipment. Include these in your claim since you might face these costs long after the final settlement.
How Does Lost Income and Reduced Earning Capacity Affect the Payout?
If you can't work while you recover, the paychecks you miss should factor into your settlement. This is called lost earnings. You might also lose sick or vacation days during your recovery, and the settlement may account for these losses.
Reduced earning capacity is a bit different. It applies if you cannot work at the same level or in the same job as before, possibly resulting in lower earnings for years to come. This reduction can add up to a significant financial loss over time.
A car accident lawyer can calculate and include these future losses in your settlement demand.
When Should You Hire a Car Accident Lawyer?
Hire a car accident lawyer as soon as you can after a crash, particularly if:
- You have serious injuries that might need long-term treatment.
- The other driver’s fault is unclear, or the insurance company is disputing it.
- Your bills are very high, or you are missing a lot of work.
- The insurance company has offered a settlement that seems too low or pressures you to settle quickly.
Waiting too long can hurt your case. Evidence can disappear, witnesses might forget details, and the insurance company may have time to build a case against you. By contacting a lawyer early, you give yourself the best chance for a fair settlement.
Can You Get Compensation for Pain and Suffering After a Car Accident?
Yes, many settlements also include compensation for pain and suffering. This term covers the physical pain, emotional stress, and changes to your quality of life caused by the accident.
A lawyer can price these losses, so insurance companies often have formulas or methods to calculate them. Still, the final number can differ significantly from one case to another.
Speak to a Car Accident Lawyer for Real Answers
Hiring an experienced car accident attorney can make a huge difference in the outcome of your claim. A lawyer knows how to calculate damages accurately, negotiate with insurance companies, and protect you if a lawsuit becomes necessary.
Do not risk missing out on the compensation you deserve. Contact a New Jersey personal injury attorney today to learn more about your case and move one step closer to a fair settlement.