Nine Factors That Determine How Much To Expect From a Car Accident Settlement 

November 14, 2024 | Car Accidents

Nine Factors That Determine How Much To Expect From a Car Accident Settlement 

If you’ve been injured in a car accident that wasn’t your fault, you’re likely entitled to file a personal injury claim against the responsible party. However, the amount you can expect from a car accident settlement depends on various factors. Understanding these elements can help you navigate the process effectively.

This article outlines nine key factors that influence the value of a car accident settlement. Continue reading so that you can recover full compensation for your injuries and other damages.

Severity of Injuries

The severity of your injuries is one of the most significant factors impacting the value of a potential settlement. If injuries are more severe, medical bills can be significant, and recovery times can be lengthy.

Serious injuries such as broken bones, traumatic brain injuries, or spinal cord injuries often result in larger settlements compared to minor bruises or sprains.

Medical Expenses

Your current and future medical expenses play a crucial role in calculating your settlement, including: 

  • Hospital bills
  • Surgery costs
  • Rehabilitation and physical therapy
  • Prescription medications
  • Assistive devices (such as wheelchairs or crutches)

Keep detailed records of all medical treatments and expenses to support your claim.

Lost Wages and Earning Capacity

If you’re unable to work, you could be entitled to recover the following compensation for lost wages: 

  • Income lost during recovery
  • Reduced earning capacity if you can’t return to your previous job
  • Future lost earnings if you are permanently disabled

Documentation from your employer and medical professionals can help substantiate these losses.

Pain and Suffering

Pain and suffering refer to the physical discomfort and emotional distress caused by the accident. These are considered non-economic damages and can be challenging to quantify. 

Factors influencing pain and suffering compensation include:

An experienced attorney can help assign a monetary value to these intangible losses.

Property Damage

The extent of damage to your vehicle and personal property affects your settlement. You’ll likely receive compensation for repair or replacement costs. Providing repair estimates, receipts, and photographs of the damage can strengthen your claim.

Insurance Policy Limits

The at-fault party’s insurance policy limits can cap the maximum amount you can recover. 

If their policy limit is insufficient to cover your damages, you may need to explore other avenues, such as:

  • Your own uninsured/underinsured motorist coverage
  • Pursuing personal assets of the at-fault party (though this can be challenging)

Understanding the insurance policies involved is essential in assessing your potential settlement.

Clear Liability

When liability is straightforward and clearly rests with the other driver, insurance companies are more likely to offer a fair settlement. 

Evidence that supports clear liability includes:

  • Police reports indicating fault
  • Traffic camera footage
  • Witness statements

If there’s a dispute over who is at fault, it may reduce the settlement amount or prolong the negotiation process.

Comparative Negligence

Arizona follows a pure comparative negligence rule, which means your compensation can be reduced by your percentage of fault in the accident. For example, if you’re found to be 20% at fault and your damages total $100,000, you would receive $80,000.

Being partially at fault doesn’t prevent you from recovering damages, but it does impact the settlement amount.

Having an experienced personal injury attorney can significantly influence your settlement. 

An attorney can:

  • Accurately evaluate the value of your claim
  • Gather and present compelling evidence
  • Negotiate effectively with insurance companies
  • Represent you in court if necessary

Without legal representation, you may risk accepting a lower settlement than you deserve.

What Damages Are Available in a Car Accident Settlement?

In a car accident settlement, you may be entitled to economic and non-economic damages.

Economic damages are tangible expenses resulting from the accident, including:

  • Medical expenses: Current and future medical costs related to the injury
  • Lost wages: Income lost due to inability to work
  • Property damage: Costs to repair or replace your vehicle and other damaged property
  • Rehabilitation costs: Expenses for physical therapy or occupational therapy
  • Out-of-pocket expenses: Transportation to medical appointments, home care services, and more

Non-economic damages compensate for intangible losses that don’t have a specific dollar value, such as:

  • Pain and suffering: Physical pain and emotional distress
  • Loss of enjoyment of life: Inability to engage in hobbies or activities you once enjoyed
  • Emotional distress: Anxiety, depression, or psychological trauma resulting from the accident
  • Disfigurement or disability: Permanent physical changes or limitations

In rare cases, punitive damages may be awarded if the at-fault party’s actions were especially reckless or malicious. However, punitive damages also require that your case go to trial. They also have a higher burden of proof standard than for the other forms of compensation.

How Much Does It Cost To Hire a Personal Injury Attorney?

Many personal injury attorneys work on a contingency fee basis, which means:

  • No upfront fees: You don’t pay anything out of your pocket when you hire the attorney.
  • Payment upon recovery: The attorney’s fee comes from a percentage of the settlement or court award.
  • Percentage agreement: Typically, the fee ranges from 25% to 40% of the recovered amount, agreed upon before representation begins.

This arrangement allows you to access legal representation without financial strain. It also aligns the attorney’s interests with yours, as they are motivated to maximize your compensation.

A Car Accident Attorney Can Help You With the Settlement Process

Navigating a car accident claim can be complex, especially when dealing with insurance companies aiming to minimize payouts. Understanding the factors that affect your settlement can empower you to make informed decisions.

An experienced attorney can provide valuable guidance, handle negotiations, and advocate for your best interests. If you’ve been injured in a car accident, don’t hesitate to seek legal assistance.

Contact an Experienced Phoenix Car Accident Lawyer for Help With Your Claim

If you were injured in an accident in Phoenix, AZ, and need legal help, contact our Phoenix car accident attorneys at Runion Personal Injury Lawyers to schedule a free case review today.

Runion Personal Injury Lawyers
1221 E Osborn Rd. Suite 201
Phoenix, AZ 85014
(602) 595-5559

Runion Personal Injury Lawyers
400 Gold Avenue SW Suite 650
Albuquerque, NM 87102
(505) 594-3621