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Car accident settlements can vary greatly because each settlement is based on specific factors of the accident. The. amount of damage to vehicles and other property, severity of injuries, and number of people hurt can all radically change any settlement amount.

A survey by the Insurance Information Institute found an average property damage amount of $4,711.and an average injury settlement amount of $20,235

According to the survey, average settlements in 2020 were between $21,000 and $25,000

A survey by Martindale-Nolo survey an average settlement of $23,900.

However, these figures are averages and most survey respondents, received less than $10,000.

How Car Accident Settlements Are Calculated

Crash victims who sustain only minor property damage, would be offered far less money from an than those who lose loved ones or who sustain permanent injuries.

Car accident settlements are intended to compensate for the losses a crash victim experienced. Most car accident settlement amounts are based on:

Emotional distress

Pain and suffering

Medical bills

Lost wages

Property damage

The available coverage of insurance and a determination of which party is at fault will also affect the average car accident settlement.

Settlements: The Most Common Outcome in Personal Injury Claims

Before looking for car accident settlement examples, it’s important to understand exactly what a settlement is.

When a crash happens, the person responsible for causing the accident must cover a victim’s damages. Usually, that person’s liability auto insurance will pay for property damages medical bills, lost wages and other losses.

The insurer who represents the person responsible for the crash will generally make a settlement offer to the victims. This is usually a lump sum payment, in exchange for which the victim gives up all rights to further claims. If the victim accepts the settlement, the case is closed. But if the victim does not believe the offered compensation is fair, he or she can sue.

In cases of motor vehicle accidents, most cases settle outside of court. In fact, a Martindale-Nolo survey of readers who had received compensation for car accidents found that eighty-six per cent obtained their funds through a settlement rather than a court case.

Most claims settle both because insurers normally want to avoid the cost of a trial and because victims often want to avoid the uncertainty and delay of a trial.

How Long Will It Take to Get a Car Accident Settlement? Car accident settlements usually occur fairly quickly: which is one advantage of settling a claim as opposed to pursuing a lawsuit.

According to Martindale-Nolo, it took an average of 10.7 months for collision victims to receive a car accident settlement. More than half of victims were able to resolve their claims in less than six months.

How Much Can I Get for My Car Accident Claim?

The amount of compensation available for a car accident claim depends on the several factors, including the extent of damage suffered/.

Data on average car accident settlement amounts varies by source. One study reports the average claim for bodily injury was $20,235 in 2020, while the average property damage claim was $4,711. A Martindale-Nolo survey of readers who made car accident claims between 2015 and 2020 reported an average settlement of $23,900. Most victims received less than $10,000.

Factors That Affect the Amount of Car Accident Settlements

Many different factors impact the average car accident settlement, including the following:

Insurance Coverage In most states, drivers are required to carry liability insurance. Insurance pays compensation to victims when the policyholder is at fault. However, the insurer pays only up to policy limits. If damages exceed the amount of insurance coverage, the insurer will not pay the excess.

It is possible for accident victims to pursue a claim against the at-fault driver directly for losses not covered by insurance. However, many people do nt have enough assets to actually pay additional damages even if the court were to award them.

As a result, if an insurance company makes a settlement offer at the policy limit, pursuing a court case to try to obtain additional compensation may not be worth it.

Liability

When liability is clear in a collision, the settlement will be larger. The insurer representing the driver who is at fault for the crash will accept responsibility and likely provide a reasonable settlement offer in order to avoid a lawsuit.

If fault is uncertain, a settlement offer may be lower, or there may be no settlement offer at all. If fault is shared between the drivers, this can have a major impact on car accident compensation.

In some states, called contributory negligence states, if a driver is even 1% at fault for a collision, he or she cannot collect any compensation from the other motorist who was mostly to blame.

In pure comparative negligence states, on the other hand, a driver is allowed to collect compensation from another motorist for injuries even if the driver was mostly at fault. For example, a driver who was 75% responsible for a crash could still pursue a claim against the other driver and could receive compensation for 25% of total losses

In modified comparative negligence states, a driver can pursue a claim for compensation as long as he is not 50% or 51% responsible for the crash. Again, compensation would be lower based on the driver’s share of the fault.

Severity of Injuries Severity of an injury is a major factor determining typical car accident settlement amounts. The Martindale-Nolo survey revealed the average compensation for injured crash victims was $29,700. car accident victims who were not injured received $16,700.

State Laws

In some states, called no-fault states, drivers must exhaust their own insurance coverage to pay for their own injuries or injuries to their passengers. Once their coverage is exhausted then they can seek compensation from the other driver’s insurance.

Drivers must buy personal injury protection, which covers up to $10,000 in medical bills and lost wages. For these minor injuries, additional damages such as compensation for pain and suffering are not usually available.

In fault states, on the other hand, the driver who caused the crash will always be responsible for losses. In these states, even relatively minor crashes can result in settlement offers from the at-fault driver’s insurer that may provide more compensation.

Financial Loss

Finally, financial loss affects typical car accident settlement amounts. A settlement is generally intended to make a crash victim whole for the losses caused by the collision. The settlement includes losses related to property damage as well as lost wages/

If a motorist sustained financial losses due to missed work, extensive property damage, or medical bills.