Auto accidents are always frightening. Even if you’ve come through one and know you’re not at fault, the legal process ahead of you is still daunting. You might be wondering what the average car accident settlement amount is, as you prepare mentally for the road ahead.
There are some easy answers that can be given. Studies show that for a car accident, the average settlement is around $21,000. If the scope is broadened to general personal injury claims, the figure rises to just under $53,000.
The average settlement figure is an interesting piece of information, but if you’re preparing for an extensive legal process and trying to gauge how much you’re willing to go through, a lot of variables have to be taken into account.
The first part of a settlement comes from determining the costs you’ve incurred that can be quantified in court. Examples of these include:
- The cost of fixing your car or purchasing a new one that would be a reasonable replacement.
- The cost of renting a vehicle in the interim time between the accident and arrival of your new car.
- Hospital and emergency room costs
- Lost wages from missed time at work
- Ongoing physical therapy
- Costs of getting to and from medical appointments—e.g., if your spouse has to take time off of work to be your transportation.
- Are you someone that did a lot of your own yard work and no longer can because of the injury? Factor in the costs needed to hire someone.
- Cost of modifying your home to make it more accessible (if applicable).
- Cost of any prosthetic limbs that may have been necessary
- Psychiatric costs to deal with post-traumatic stress (PTSD), general anxiety or depression.
All of these costs can be proven with receipts, or in the case of lost wages, with W-2 forms and a letter from a doctor verifying your inability to work.
The second part of a settlement is a thornier issue and it’s the damages that come from pain and suffering. These damages include:
- Loss of personal contentment that comes from PTSD, general anxiety or depression
- Inability to do activities you once enjoyed
- Loss of companionship (if a loved one was involved in the accident)
- General loss of enjoyment of life
It won’t surprise you to learn that insurance companies can be very difficult to deal with. Even when they aren’t, the policy limit purchased by the other driver will play a role in what they offer. Your own ability to cope with stressful negotiations, at a time when you’re suffering serious injuries, will also affect what you ultimately settle for.