How Much Is My Car Accident Settlement Worth?

Posted on May 7th, 2019 by Caldwell Wenzel & Asthana

You’ve been injured in a car crash due to another person’s negligence. You might be asking yourself, “How much is my car accident settlement worth?” While there is no definitive answer to that question, because every car accident is different, there are some general things to consider when filing your claim and negotiating with insurers.

Average Nationwide Settlements

Car accident data gathered over recent years shows that the average auto accident settlement in the U.S. is approximately $21,000. That average rises to around $31,000 when there are more serious injuries involved. These figures are just averages, however. The unique factors in your own accident, including the severity of your injuries, will be the bigger determinant of what your accident settlement is worth. It can be a good idea to contact an experienced Alabama car accident attorney who understands insurance settlements when wondering what your claim might be worth.

No One-Size-Fits-All Formula

Contrary to what many people think, insurance companies don’t have a one-size-fits-all formula they use in determining settlement amounts. But many adjusters commonly use a multiplier of two, or three for more severe injuries, to arrive at settlements.

Here’s a basic example:

Imagine you spent $5,000 on medical bills following your accident. You also missed work for a week, so lost $1,000 in income. In dollar amounts, the accident has cost you $6,000. If the adjuster multiplies this by two, your settlement would be $12,000. For more severe injuries, your settlement might be $18,000.

It’s important to remember that insurance companies are in the business of making money, so they try to keep settlement payouts as low as possible. The first offer you receive from an insurance company is probably not their best offer. Don’t be afraid to turn it down and seek a better settlement if you feel the offer doesn’t fairly compensate you.

Factors to Consider in a Settlement

When considering what you think is a fair settlement amount, look at:

All of your medical costs. For example, did you ride to the hospital in an ambulance? Were you hospitalized? Have you had follow-up visits with a doctor or are you now undergoing physical therapy because of your injuries? Do you have to take medication for your injuries? These costs add up quickly, so be sure to factor in everything related to medical treatment when considering what your car accident settlement might be worth. Include smaller things as well, such as transportation and parking costs you incurred when going to doctor’s appointments.
Lost time at work. If you couldn’t work because of your injuries, factor in how much income you lost.

There are also less definitive losses you may suffer in the future, such as potential future medical costs that could arise from your injury, or future lost income if you become debilitated and unable to work.