Everything You Need To Know About Car Accident Settlements

Getting involved in a car accident is nerve-wracking, especially if you get injured. If this happened to you, the best course of action is to file a claim for the damages that were incurred by the accident. 

Thinking about the compensation you can recover is natural at this stage. After all, you’ve probably had a few sleepless nights wondering if you’ll be able to cover your medical bills and repair all the other damage.

To put your mind at ease, we’ve put together this article that gives you a clear idea of the factors that may impact your settlement, as well as the car accident settlement calculator used by insurance companies.

Is There An ‘’average’’ Settlement Amount?

Unfortunately, there is no average settlement amount as the value of settlements significantly differs from one case to the next. 

There are also too many factors involved in a case that directly affect the sum of money the injured party can receive.

This is why you should hire a personal injury attorney right away - they can take a look at the facts of your case and your documentation to come up with the value of your case.

Factors That Determine The Settlement Amounts

Before taking a look at the car accident settlement calculator, you should first be familiar with the circumstances that directly contribute to the sum of money you can recover. 

1. The type of the crash 

No car accident is the same - it can be a simple fender bender or a serious accident which results in significant injuries and property damage. In other words, the settlement for an accident that had no injuries will be a lot lower than the one for a crash that led to injuries and two totaled vehicles.

Regardless of the circumstances, if you want to file a personal injury claim, you will need to have information such as:

1. Medical expenses

2. Cost of repairs

3. In case of severe injuries, the estimated costs of continued care

4. Additional fiscal losses such as lost income

2. Your insurance policy

As you’re probably already aware, Florida has a no-fault accident law that dictates you first have to seek compensation via your auto insurance before filing a personal injury claim. 

This is why contacting your insurance company should be the first step you take after your car accident. That way, you can start getting your coverage through your insurance before even determining which party is liable for the accident.

3. Your PIP policy

All Florida drivers must have at least $10k of personal injury protection (PIP) coverage. This is important as it gives you the necessary recompense after your car accident.

The PIP coverage may reimburse you for the following expenses:

1. Travel costs 

2. 60% of lost income

3. Death benefits up to $5k

4. 80% of medical costs

While PIP is useful for receiving coverage right after a crash, it does have limitations.

For instance, the benefits you receive can’t exceed $2.5k unless you have an emergency medical condition. You also need to undergo treatment within 14 days of your accident if you want to receive coverage for medical expenses. If you miss this time window, your medical costs won’t be covered by PIP.

Most people also resort to filing personal injury lawsuits because PIP doesn’t cover losses for pain and suffering. 

4. Caps on damages

The amount you can obtain in a personal injury case is limited by law and mostly refers to punitive damages. These can only be awarded in certain circumstances and  represent a way to punish risky behavior demonstrated by the at-fault party.

In Florida, punitive damages are capped at 500k and can't be higher than three times the amount of other damages.

How an attorney can help you calculate the value of your claim

Even though it’s not possible to make up an average, your personal injury attorney can help you come up with the likely settlement you can receive. 

They will likely use the car accident settlement calculator to do it. This is a simple formula that even insurance companies use to value the claim. The projection is based on the outcome of the case if it would go to a trial.

The car accident settlement calculator formula is: special damages x (multiple general damages) + lost wages.

The special damages are losses that happened through the defendant’s actions that have a clear monetary value. Calculating these can be easily quantified and usually includes damages such as:

1. Medical expenses

2. Loss of wages

3. Property damage

Next up, the general damages are a bit more complex. They are directly related to the actions of the defendant but aren’t easy to quantify financially because there are no bills or receipts. These may include:

1. Emotional damages such as pain and depression (pain & suffering)

2. Loss of enjoyment

3. Loss of consortium (damaged relationships)

General damages are calculated with a multiplier method. It consists of assigning a value from one to ten that’s based on the severity of your injuries and how they impacted your life. To put it differently, if your injuries and accident were more serious, the multiplier will be higher.

For instance, if you only suffered a minor sprain and your vehicle suffered minimal damage,  you will be assigned a multiplier of 1.5. 

If you suffered extensive injuries like brain damage and your car was totaled, you will receive either a 4 or a 5.

This number (the added total of general and special damages) will be added to the number of lost wages that occurred due to your injury. So if you missed two weeks due to your injury, you can be compensated for those two weeks of pay.

Contact The Best Personal Injury Attorneys

Even though you can use the car accident settlement calculator yourself, you’re going to need a personal injury attorney to reach a more precise number. You’re also going to need someone to assign the value to your case and negotiate with the insurance company on your behalf.

More importantly, if your attorney is unable to negotiate a favorable settlement, they can help take your case to trial. 

This is a pretty important role and your legal counsel’s experience can play a crucial role in how much money you’ll be able to recover. If you’re looking for someone with a proven track record, look no further than Law Offices of RITE.

Our attorneys have seen it all and can help you build a stronger case to recover the maximum settlement for your damages.

Call (904) 500-RITE (7483) or send a message to info@rite4justice.com to book a free case review.

Note: 

The information in this blog post is for reference only and not legal advice. As such, you should not make legal decisions based on the information in this blog post. Moreover, there is no lawyer-client relationship resulting from this blog post, nor should any such relationship be implied. If you need legal counsel, please consult a lawyer licensed to practice in your jurisdiction.