Auto accidents are common, with about 38,000 people killed and more injured annually. If you are an accident victim, you must understand your rights and learn the truth about car accident settlement amounts.
Car accident settlements are calculated based on the collision’s unique circumstances. For instance, what a victim who suffered property damage gets will typically be less compensation than the package for someone who lost a loved one. Nevertheless, car accident settlements are meant to cover the victim’s losses, including their medical bills, emotional distress, and lost wages.
Here, we detail the factors affecting the number of car accident settlement victims. They include but are not limited to insurance coverage, liability, financial loss, state laws, and the severity of injuries.
Insurance Coverage
Drivers are typically required to have liability insurance; the insurance pays compensation when such incidents occur. However, the insurer can only pay up to policy limits; if the damages exceed, they will not pay the excess. Accident victims can, however, pursue a claim against the driver directly for the losses their insurer could not cover.
However, there is a very good chance the driver will not have enough assets to pay additional damages. Therefore, pursuing a court case when an insurance company has made an offer at the policy limit may be a waste of time.
Liability
The clearer the liability in a crash, the larger the settlement the victim receives. If the fault is clear, the at-fault driver’s insurer will accept responsibility for the accident and provide a reasonable settlement offer. If the fault is unclear, the insurer may not offer any; if they do, it would be low.
Furthermore, if both parties share the blame, it can significantly impact the compensation, depending on the state. In states that practice contributory negligence laws, if one party shares even one percent of the blame, they cannot be compensated.
Meanwhile, in states that practice comparative negligence laws, the driver can collect compensation even if they were mostly at fault. For states that follow comparative negligence states, a victim can pursue a compensation claim if they do not share 50 or 51 percent blame.
Financial Loss
How much financial loss the victim suffers also affects the accident settlement amount they get. After all, the purpose of the settlement is to make a crash victim whole for the losses caused by the collision. Therefore, if the individual sustained substantial losses due to the accident, including medical bills and loss of wages, the settlement should cover it.
State Laws
The state laws for where the accident occurred also determine the settlement amount. For instance, drivers must rely on insurance coverage in no-fault states to pay for their injuries. They can only seek compensation from the other driver’s insurer after they might have exhausted their coverage.
On the other hand, fault states require that the at-fault driver bear responsibility for the losses. This could mean even victims of minor crashes can get settlement offers from the other driver’s insurance company.
Severity of Injuries
Lastly, the severity of injuries is a major factor impacting the average car accident settlement received. According to a survey, uninjured car accident victims get up to $16,700 in settlement, while injured victims get up to $29,700.
Conclusion
“It is important to understand how car accident settlements are calculated and the factors affecting them,” says attorney Michael Foster. “With this understanding, victims can make informed decisions, ensuring they get the right compensation for their losses.”
