If you have been injured in a car accident, you may be entitled to a settlement that covers all the damages incurred. However, not all car accident settlements are the same. There are several factors that influence how much compensation you may receive.
Understanding these factors can help you manage expectations and build a stronger case to maximize your claim. Below in this guide, we have outlined 9 such factors that can impact your car accident settlement and what you can do to improve your chances of a fair payout.
1. The Severity of Your Injuries
One of the biggest factors affecting a car accident settlement is the extent and severity of your injuries. More severe injuries, such as traumatic brain injuries, spinal cord damage, fractures, and permanent disabilities, generally result in higher settlements due to the increased medical costs and long-term impact on the victim’s life.
For example, if you suffer minor whiplash, your medical bills may be low, and your recovery time may be short. However, if you sustain a serious back injury that requires surgery and months of rehabilitation, your settlement will likely be much higher to cover these ongoing costs and any lost wages due to the inability to work.
2. Liability and Fault in the Accident
Your settlement amount is directly impacted by who is at fault for the accident. If the other driver is 100% responsible, their insurance company will typically cover all of your damages. However, if you were partially at fault, your settlement may be reduced according to your percentage of liability.
For example, in comparative negligence states, if you are found to be 20% at fault for the crash, your total compensation may be reduced by that amount. In some states with contributory negligence laws, even a small percentage of fault may bar you from recovering damages altogether.
Having solid evidence, such as police reports, eyewitness testimony, and dashcam footage, can help prove liability and maximize your settlement.
3. Available Insurance Coverage
The at-fault driver’s insurance policy limits play a huge role in determining your compensation. If they have minimal coverage, their policy may not be sufficient to cover all your damages. In such cases, you may need to seek compensation through your own uninsured/underinsured motorist (UM/UIM) coverage if you have it.
If your damages total $100,000, but the at-fault driver only has $50,000 in coverage, you may have to pursue additional compensation from your own insurer or file a lawsuit. This is why it’s important to understand your own insurance policy and coverage options before an accident occurs.
4. The Strength of Your Evidence
The more compelling evidence you have to support your claim, the stronger your settlement negotiation will be. Evidence such as photos of the accident scene, medical records, police reports, and witness statements can all help prove liability and the extent of your injuries.
If surveillance footage clearly shows the other driver running a red light before hitting your car, it will be much easier to prove fault and demand a higher settlement. Without strong evidence, insurance companies may downplay your injuries or dispute your claim, leading to a lower payout.
To collect strong evidence, you will have to hire an accomplished team of accident attorneys who are motivated to fight for your rights and get you the right amount of compensation.
5. Medical Treatment and Documentation
Seeking immediate medical attention after an accident is crucial for your health and your claim. Insurance adjusters closely examine your medical records to determine the legitimacy of your injuries. If there are gaps in treatment or if you delay seeing a doctor, insurers may argue that your injuries are not serious or were caused by something else.
Additionally, following your doctor’s treatment plan is essential. If you stop going to physical therapy or ignore medical advice, insurers may claim that you are exaggerating your injuries, which can significantly lower your settlement. Keeping detailed medical records, bills, and prescriptions can help demonstrate the full impact of your injuries.
6. Lost Wages and Impact on Employment
If your injuries prevent you from working, you may be entitled to compensation for lost wages. This includes missed workdays, reduced earning capacity, and future lost income if your injuries prevent you from returning to your previous job.
For example, if a construction worker suffers a hand injury that prevents them from using heavy tools, their ability to earn a living may be permanently affected. In such cases, settlements often account for long-term financial losses, including potential career changes and job retraining costs.
7. Pain and Suffering Compensation
In addition to medical bills and lost wages, you may be entitled to non-economic damages for pain and suffering. This compensation covers the physical pain, emotional distress, anxiety, depression, and overall reduction in quality of life caused by the accident.
If you develop PTSD or severe anxiety after the accident and can no longer drive, your settlement may include compensation for mental anguish. The amount awarded for pain and suffering is subjective and often depends on how well your attorney argues the case.
8. The Negotiation Skills of Your Lawyer
Having an experienced personal injury lawyer can make a huge difference in the amount of compensation you receive. Insurance companies have teams of lawyers who aim to minimize payouts, and without strong legal representation, you may settle for far less than you deserve.
A skilled lawyer will collect evidence, negotiate aggressively, and counter lowball settlement offers. They will also handle legal paperwork, expert testimonies, and court proceedings if necessary. Hiring an attorney with a strong track record in car accident cases can significantly increase your chances of receiving a fair settlement.
9. The Willingness to Take the Case to Court
Insurance companies often try to settle claims quickly to avoid going to trial. If you and your lawyer are willing to take the case to court, insurance adjusters may be more likely to offer a higher settlement to avoid costly litigation.
However, if an insurer knows that a victim is eager to settle quickly, they may offer a lower amount, assuming you won’t fight for more. Being patient and prepared to go to trial can put pressure on the insurance company to increase their offer.
