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What Is the Average Car Accident Settlement? [2024 Guide]

Use the chatbot on this page to find out if you qualify for a Car Accident Lawsuit Claim.

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Written By:
Tor Hoerman
Tor Hoerman

Attorney Tor Hoerman, admitted to the Illinois State Bar Association since 1995 and The Missouri Bar since 2009, specializes nationally in mass tort litigations. Locally, Tor specializes in auto accidents and a wide variety of personal injury incidents occuring in Illinois and Missouri.

This article has been written and reviewed for legal accuracy and clarity by the team of writers and attorneys at TorHoerman Law and is as accurate as possible. This content should not be taken as legal advice from an attorney. If you would like to learn more about our owner and experienced injury lawyer, Tor Hoerman, you can do so here.

TorHoerman Law does everything possible to make sure the information in this article is up to date and accurate. If you need specific legal advice about your case, contact us. This article should not be taken as advice from an attorney.

Average Car Accident Settlement Overview

On this page, we’ll discuss Average Car Accident Settlement, the process to receive a settlement after a car accident, legal options for car accident victims, and much more.

Car Accident Settlement Determinations

Motor or car accidents are never easy to deal with, especially when the damage is extensive — affecting not only your vehicle but also your health and that of your loved ones.

Between the worry of bearing costly medical treatments and the stress of arranging auto repairs, the aftermath can be overwhelming.

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One recourse that can help to alleviate financial burdens is a car accident settlement.

These settlements serve as financial safety nets, helping survivors or car accident victims navigate the aftermath of car accidents with a little more ease.

On this page, we will shed light on the average car accident settlement claims, a crucial aspect of understanding your rights and securing potential remuneration after an automobile accident.

If you or a loved one have been involved in a car accident and plan to seek compensation, contact our experienced car accident lawyers right away.

You can also use the chatbot on this page to find out instantly if you qualify for a car accident lawsuit claim.

Table of Contents

Factors That Influence Car Accident Settlement Amounts

Determining the average car accident settlement can be a complex task, primarily because each case is unique with its own set of influencing factors.

These factors can significantly raise or lower the claims amount of car accident cases, as well as the time it takes to process and award settlements.

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Here are some of the most common and crucial factors that influence car accident settlement claims:

  • Severity of injuries: The more severe and long-lasting your injuries, the higher the car accident injury settlement amount is likely to be.
  • Impact on quality of life: If the accident has had a significant impact on your ability to work, participate in daily activities, or enjoy life in general, this can be factored into the accident settlement amount.
  • Medical expenses incurred: The cost of medical treatment, not only for immediate expenses but also for ongoing or future medical bills to care for permanent injuries, will play a significant role in determining the injury settlement amount.
  • Lost wages: If you had to take time off work due to injuries from the accident, you may be entitled to compensation for lost income.
  • Pain and suffering damages: The emotional trauma, pain, and suffering resulting from the accident can also be taken into account.
  • Insurance coverage: The insurance coverage available to the plaintiff, including minimum liability coverage and underinsured or uninsured motorist coverage, can also influence the settlement amount.
  • Circumstances of the auto accident: Factors such as who was at fault, whether there were any contributing elements (like the other driver being drunk), and the extent of property damage can also impact the accident settlement amount.

It is essential to note that states may implement different laws regarding the minimum insurance coverage and at-fault driver, which may further affect car accident lawsuit settlements.

All these factors make each case unique and make it difficult to determine an exact estimate for car accident settlements.

Consulting a car accident lawyer may help you learn more about how settlement amounts are determined in your state.

Average Car Accident Settlement Amounts

While average figures can still vary greatly due to the unique circumstances of each accident, it is helpful to have a basic understanding of how these settlements are typically calculated and a realistic idea of what to expect from your claim.

The type of auto accident plays a large role in estimating the settlement amount, as it typically dictates the severity of injuries and overall damages.

A minor fender bender generally results in lower car accident settlement amounts compared to a catastrophic accident involving commercial trucks and multiple vehicles.

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Minor Car Accidents

Minor car accidents, often characterized by minimal property damage and injuries, typically result in lower settlement amounts when compared to more severe accidents.

Cases that result in soft tissue injuries, such as whiplash or sprains, and injuries that have a short recovery period, also count as minor accidents.

The average settlement range for these cases commonly falls at around $5,000, with the potential to go higher, depending on the specifics of each case.

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Factors that play vital roles in determining the exact car accident settlement amount:

  • The extent of the car damage
  • Medical expenses incurred
  • Duration of treatment
  • Loss of income
  • The degree of fault

It’s essential to consider that even minor car accident injuries like whiplash may sometimes lead to significant medical bills or lost wages, both of which can considerably increase the settlement value.

Serious and Catastrophic Car Accidents

Serious or catastrophic car accidents often result in significantly higher settlement amounts, frequently ranging between $50,000 and sometimes over $500,000.

These high figures are due to the severity of the injuries sustained, which are typically life-altering and create long-term implications for the car accident victim’s health and quality of life.

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Factors that may categorize a crash as a serious or catastrophic accident include:

  • Severe injuries: An auto accident causing life-changing or potentially permanent injuries, such as traumatic brain injuries, spinal cord injuries, amputations, or severe burns that will require extensive or continued treatment fall into this category.
  • Multiple vehicles: Collisions involving multiple cars, trucks, or other vehicles can increase the likelihood of serious injuries and extensive damage.
  • High-speed collisions: Crashes occurring at high speeds tend to have a greater impact, increasing not only the risk of damage to the vehicle and surrounding property but also the risk of severe injuries.
  • Rollover accidents: These accidents can lead to significant injuries due to the vehicle’s violent motion and potential for ejection.
  • Commercial vehicle accidents: Collisions involving large commercial trucks or buses often result in serious injuries or fatalities due to their size and weight.

The vast medical expenses, extensive rehabilitation costs, loss of income, and the significant impact on the car accident victim’s quality of life all contribute to the substantial payouts in serious and catastrophic car accident settlements.

Car Accidents Involving Wrongful Death

When it comes to car accident settlements involving fatalities or wrongful death, the landscape becomes much more complex and challenging.

These tragic cases can often result in substantial compensation, often ranging between $100,000 to over $1,000,000.

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The high figure reflects the gravity of the loss, encompassing factors beyond immediate medical bills:

  • Projected future earnings
  • Funeral expenses
  • Loss of companionship
  • Emotional trauma experienced by the surviving family members

Securing a car accident settlement for such cases is not a straightforward process.

The negotiation process can be tedious, requiring a comprehensive understanding of the law, astute negotiation skills, and a thorough investigation into the circumstances surrounding the accident.

Consulting with experienced car accident attorneys is crucial as their legal expertise can play an imperative role in accurately evaluating car accident claims, negotiating assertively with insurance companies, and ultimately, ensuring the bereaved family receives the maximum compensation possible.

Typical Car Accident Settlement Process

The car accident settlement process typically starts with the victim or their family filing a claim against the at-fault party’s car insurance company.

This step leads into the negotiation process, where victims often benefit from the assistance of an experienced car accident lawyer to navigate the complex legal landscape and advocate for their rights.

The settlement process frequently involves back-and-forth negotiations with the insurance company, aiming to reach an agreement on the compensation amount.

The process’s length varies depending on the case’s complexity, settlements often resolve within a few months to a year.

A significant deviation from the usual process occurs when the at-fault party lacks insurance coverage.

The victim may have to resort to suing the at-fault driver directly or filing a claim with their own insurance company.

Scenarios such as these often involve more complications, making the assistance of a knowledgeable car accident lawyer even more crucial.

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Below are the general steps to take if you’re seeking car accident compensation:

  • Gathering evidence
  • Contacting your insurance company and a law firm
  • Negotiating with the at-fault party’s insurance company
  • Litigation, if negotiations fail

Gathering Evidence

The first step to securing a fair settlement offer is gathering or collecting all information and physical evidence related to the accident.

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Possible evidence in a car accident case may include:

  • Police accident report
  • Medical records
  • Photos of the scene and damages
  • Witness testimonies or statements
  • Pertinent insurance details.

When seeking medical treatment, remember to ask for your attending doctors’ or nurses’ contact information and to request documentation of your injuries before treatment.

Make sure to also keep records of all related treatment expenses.

It’s important to remember that the more evidence you can present supporting your stance, the stronger your case will be.

Contacting Insurers and Lawyers

Report the accident to your insurance company as soon as you are well enough to do so.

A crucial part of the process is to provide the company with all the necessary details to help them investigate the claim and determine the best course of action.

If another party was involved in the accident, notify their insurance provider as well.

It is highly recommended to seek the assistance of a car accident lawyer.

Experienced car accident attorneys can guide you through the legal process and ensure you understand your rights and options for seeking compensation.

Lawyers may also help you better understand your claim’s value before entering negotiations, whether it is with your own insurance provider or the other party’s insurance company.

Negotiation and Settlement Offer

Once the insurance company has reviewed your claim and completed its investigation, it will make a settlement offer and will take into account factors such as the extent of the damage, the cost of repairs, and any medical expenses incurred as a result of the auto accident.

This part of the negotiation process requires you to review the offer critically.

Understanding the full extent of your damages and potential future complications is vital to determining whether the offer is fair.

This is where consulting experienced car accident lawyers can be invaluable.

Litigation

Most car accident claims settle outside of court, but sometimes an auto accident settlement cannot be negotiated and the case proceeds to the litigation stage.

Remember, the goal here is to secure a settlement that fully covers your damages and supports your recovery.

If a fair settlement cannot be reached through negotiation, the case may need to go to court.

This step requires a thorough understanding of legal processes and is best handled by a legal professional.

Moving forward with litigation can prolong the process and it can take several weeks or a couple of months to file a claim in court and up to a year for the discovery phase.

It is only once this process is done that the court trial can proceed.

Once the trial goes to court, it can take as little as three days to finish.

A car accident settlement may be reached at any point during the entire litigation process.

If a fair offer is made and both parties reach an agreement, then the settlement amount will be determined.

Why It Is Crucial To Start the Settlement Process Right Away

It’s essential to note that the clock starts ticking once the accident happens, as each state has a statute of limitations for filing a car accident claim, which is usually between one to three years.

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In Illinois, the statute of limitations for filing a car accident compensation claim differs depending on whether you file for a personal injury claim or a property damage claim:

  • Personal injury claims: Two years from the date of the car accident
  • Property damage claims: Five years from the date of the accident

There are also certain exceptions to these rules.

Possible exceptions to the statute of limitations may include:

  • The discovery rule or if the injuries from the accident are not obvious or discovered at a later time
  • Tolling or pausing of limitations for car accident victims who are minors or mentally incapacitated individuals.

If you were involved or injured in a vehicular crash and wish to claim car accident compensation, make sure to take note of these time limits and possible rule exceptions to ensure you file your claim properly and receive the payment you are due.

Consulting a car accident or personal injury attorney may help you understand applicable deadlines to your case and ensure you succeed in your claim.

TorHoerman Law: Your Personal Injury Lawyer

While the average car accident settlement figures can serve as a baseline, they should not be taken as the definitive value for every case.

Each car accident lawsuit settlement is influenced by a number of factors and specific circumstances surrounding the accident.

Seeking personalized legal advice is the best course of action for anyone involved in a car accident.

It is strongly recommended to contact a car accident attorney to get a precise evaluation of your case and potential compensation.

Your case is unique, and you deserve a settlement that accurately reflects your specific circumstances and losses.

If you or a loved one believe that you have a car accident claim, contact us today.

You can also use the chatbot on this page to find out if you qualify for a car accident claim instantly.

Frequently Asked Questions

  • How is the average car accident settlement amount calculated?

    The average car accident settlement amount is typically calculated by considering several key factors.

    These factors include:

    • Severity of injuries sustained
    • The extent of property damage
    • Medical expenses
    • Lost wages
    • Pain and suffering
    • Liability determination.

    Insurance companies and legal professionals often assess these variables to arrive at a fair compensation figure that takes into account the unique circumstances of each case.

    It is crucial to consult with an experienced attorney who can provide guidance and negotiate on your behalf to ensure you receive a settlement that accurately reflects your specific situation.

  • What factors influence the size of a car accident settlement?

    The size of a car accident settlement can be influenced by various factors.

    Key considerations include:

    • Severity of injuries sustained
    • Extent of property damage
    • Medical expenses
    • Rehabilitation costs
    • Lost wages
    • Strength of liability evidence
    • Negotiation skills of your legal representation.

    The jurisdiction and the insurance policies involved can also play a role in determining the final settlement amount.

    It is essential to work closely with an experienced attorney who can assess these factors and advocate on your behalf to maximize your compensation.

  • What should I do if my car accident settlement offer is too low?

    If you receive a car accident settlement offer that you believe is too low, it’s crucial to consult with an experienced attorney immediately.

    An attorney can review the offer, assess the strength of your case, and negotiate with the insurance company to seek a fair and equitable settlement.

    Insurers often offer lower initial amounts in hopes of minimizing their payouts, but legal representation can help ensure that you receive the compensation you rightfully deserve based on the facts of your case.

    Your attorney can also explore the option of pursuing a lawsuit if necessary to achieve a more favorable outcome.

  • Are there guidelines for determining car accident settlement amounts?

    Car accident settlement amounts are not governed by strict legal guidelines or standards that apply universally.

    Settlements are typically determined through negotiations between parties involved, often with the assistance of legal professionals.

    They are influenced by various factors, including:

    • The circumstances of the accident
    • The extent of injuries and damages
    • The applicable insurance policies.

    While there are no fixed standards, consulting with an experienced attorney can help you understand what is reasonable and just in your specific case, ensuring you receive a fair settlement that considers your unique situation and the applicable laws in your jurisdiction.

Written By:
Tor Hoerman

Tor Hoerman

Owner & Attorney - TorHoerman Law

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