How Much Does a Car Accident Settlement Cost?

How much you recover for a car accident depends on many factors. You may be able to recover compensation for your economic and non-economic losses, such as medical expenses, lost wages, property damage, and pain and suffering. Learn more Car Accident Settlement.

Some of these damages are harder to calculate than others. One of the biggest factors is the severity of your injuries.

Damages

Depending on state law and the at-fault driver’s insurance coverage, you may be entitled to compensation for damages like medical bills, lost wages, property damage, pain and suffering, and more. The amount of damages you can receive will be based on several factors, including the extent of your injuries and how much money it will cost to repair or replace your car.

You may also be able to recover future loss of earnings, which will account for any future income you would have earned had you not been injured in the accident. This can include promotions, bonuses, and other perks that you might have been eligible for had you not been injured in the crash.

Non-economic damages, such as pain and suffering, are a bit harder to calculate. Insurance companies use formulas to estimate these kinds of losses, which typically involves adding up quantifiable costs like medical bills and lost wages and multiplying them by a number between 1.5 and 5. The number used depends on the severity of your injuries.

Medical bills

In car accident cases, medical bills are typically the biggest expense. A severe injury requiring hospitalization and ongoing care can cause medical bills to mount quickly.

If the victim has health insurance or med-pay coverage through their car insurance, these bills may be covered. This will allow the injured party to avoid paying out of pocket expenses until a verdict or settlement is obtained.

Without a health insurance plan, the victim can be left with significant out-of-pocket expenses to pay. This can lead to bankruptcy.

Generally, an at-fault driver’s insurance provider will cover medical bills as part of the crash compensation award. However, if the injuries are significant and meet New York’s definition of “serious,” then the injured party may file a lawsuit to recover additional awards. This may include past, present, and future medical costs, loss of income or disability, and non-economic damages like pain and suffering. It is best to consult an experienced personal injury attorney to ensure that you receive the full amount of awards owed to you.

Lost wages

Car accident injuries can lead to massive medical bills for things like hospital stays, physical therapy, prescription medications, and assistive devices. Often, those financial costs are compounded by lost wages from time missed from work because of an injury.

Your attorney can recover these lost wages through economic damages paid by the at-fault driver’s insurance company. Your attorney will need to gather documentation including a wage verification letter from your employer, previous pay stubs, tax returns and bank records to prove the amount of money you would have earned had you not been injured in the accident.

Similarly, your lawyer can recover any overtime or performance bonuses that you would have earned had you not been injured. This is also called “excess economic loss.”

Pain and suffering

In addition to the above-mentioned economic damages, car accident victims may be able to recover compensation for pain and suffering. Unlike medical bills and lost wages, pain and suffering is a non-economic damage that’s more difficult to quantify.

While doctors can document physical discomfort by taking notes during treatment or observing tenderness, it is typically up to the victim to prove their own pain and suffering. This can be done by keeping a journal or obtaining written statements from friends and family members about how the injuries have impacted their lives.

Ultimately, a settlement for your pain and suffering is only possible if the insurance company is willing to compensate you fairly. If negotiations break down and you cannot reach an agreement with the insurer, it may be necessary to file a lawsuit. This will give you the best chance of recovering maximum compensation for your car accident injuries. A lawyer can help you determine your damages and build a strong case.