How Much Can You Expect from Your Car Accident Settlement?

After a serious car accident, you may be thinking about filing a lawsuit. Before you decide, it’s helpful to know whether pursuing a claim for your injuries is worthwhile. The most common questions victims ask our team of auto accident lawyers concerns their potential compensation. Here’s a guide to help you determine how much to expect from your car accident settlement.

Understanding Average Car Accident Settlements: A Case-by-Case Basis

Because every accident claim is unique, the amount of compensation a victim may receive spans a wide range. A car accident settlement can vary from $20,000 to millions of dollars, depending on several factors. Typically, the more severe and long-lasting the plaintiff’s injuries are, the larger the settlement will be.

For example, our firm won an auto accident settlement of $2,700,000 for a young child who suffered a closed head injury while riding in a car that was rear-ended by a bus. Another client received $1,250,000 after sustaining multiple fractures in a car accident. And, our lawyers won $300,000 for a young man who needed arm and elbow surgery after being struck by a van.

Sometimes, compensation for victims with less serious injuries may be limited to the liability insurance carried by the at-fault driver. After July 1, 2020, the minimum liability limits were raised from $20,000 per person and $40,000 per accident to $50,000 per person and $100,000 per accident.

Factors That Can Impact Your Car Accident Settlement Amount

Below are some of the most common factors used to determine an accident settlement. Keep in mind, however, that every case is different and may involve other variables. Always ask your accident lawyer for advice about your individual situation.

• The degree of negligence on the part of the at-fault driver – For example, if a victim is seriously hurt because a driver was drunk or texting on a cell phone, the auto accident settlement is likely to be higher.

• The other driver’s liability insurance coverage – Many car injury settlements are limited to the amount of liability insurance carried by the at-fault driver.

• Whether you have uninsured or underinsured motorist coverage – This is important if you are injured in a crash with a driver who is uninsured or has insufficient liability coverage.

• The degree to which the plaintiff is at fault – If you were 40% at fault for the accident, you would receive 60% of the damages you would receive if you had no responsibility for the crash.

• The severity of your injuries and their impact on your daily life – To collect non-economic damages for pain and suffering, you must sustain a “threshold injury” that affects your ability to live your normal life.

• Multiple vehicles were involved in the accident – If more than one driver is injured, the accident settlement may be divided between the parties.

• Location of the auto accident – Victims in Detroit (Wayne County) tend to receive larger car accident settlements than those in smaller municipalities or rural areas. This is especially true if there is a jury trial.

• The reputation of your accident attorney – Insurance companies tend to make higher offers to lawyers known for going to trial when necessary and winning large verdicts in jury trials.

Injury Settlement Timelines Depend on the Process Required To Settle Your Case

As a car accident victim, it’s normal to wonder when you’ll receive your car accident settlement. Some accident claims can be settled in a matter of months, while others may take a year or more to resolve. Generally, it takes longer to settle a case where the victim has sustained extremely serious injuries because there is more at stake. In those situations, insurance companies often try to avoid liability by claiming the plaintiff’s injuries do not meet the legal standard for a threshold injury. In addition, the other driver may try to blame the plaintiff for causing the accident. Furthermore, an experienced lawyer may advise a victim to wait until the full extent of the injuries are known.

Here are some of the steps that may be necessary in order to reach a settlement:

• Investigation – Your accident lawyer and the at-fault driver’s insurance company will each conduct their own investigation. This may include interviewing witnesses, reviewing police reports and evaluating medical records.

• Initial offers – The insurance company will usually make an initial settlement offer, which is often too low to offset your injuries. Additionally, your lawyer will prepare a “demand package” that details your losses and the amount of compensation you deserve.

• Negotiations – If feasible, your lawyer may negotiate with the insurance company to reach an agreement that is acceptable to both parties.

• Filing a lawsuit – If the insurance company refuses to sufficiently increase its offer, your accident attorney will file a lawsuit against the at-fault driver and/or their insurance company.

• Going to trial – If both parties cannot reach a fair agreement, your case may proceed to trial. If that happens, a judge and/or jury will hear the details of your case and render a verdict.

Do I need to hire a lawyer to get the maximum car accident settlement?

As we’ve mentioned before, hiring a lawyer is not required, but it is highly recommended for a number of reasons:

• Research shows plaintiffs who are represented by accident attorneys receive at least three times more compensation than those who do not hire lawyers.
• Proving you suffered a “threshold injury” is a difficult process that requires the expertise of a knowledgeable accident attorney.
• Having an experienced lawyer on your side gives you the peace of mind you need to focus on recovering from your injuries.
• A knowledgeable lawyer will help you navigate the Michigan No-Fault system, which includes some of the most complex auto insurance laws in the country.

Does being partly at fault affect my car accident settlement?

To claim non-economic damages such as pain and suffering, you must be less than 50% at fault for an accident. If you are more than 50% responsible for causing the accident, you are not eligible for these third-party damages. What’s more, Michigan is a “modified comparative negligence” state. This means your degree of fault affects the amount of non-economic compensation you may receive.

Non-economic, or “third-party,” damages can be upwards of $1 million, partially depending on how catastrophically the victim is injured. Therefore, insurance companies will typically try to prove the plaintiff was primarily responsible for the crash. With a skilled accident attorney on your side, you are far more likely to win the settlement you deserve.

Finally, it is important to note that fault is only a factor when it comes to receiving non-economic damages. Drivers are eligible for Personal Injury Protection (PIP) benefits regardless of who is at fault for the accident.

Receiving Damages for Pain and Suffering

In Michigan, a plaintiff must suffer what is known as a “threshold injury” to be eligible for non-economic damages. The law defines this as kind of injury as “serious impairment of body function,” serious disfigurement or scarring, or death.

Additionally, the 2019 No-Fault reforms include a new, more stringent definition of “serious impairment of body function.” To meet this standard, the injury or impairment must affect the person’s ability to lead their normal life, even on a non-permanent basis.

How much does it cost to hire a car accident lawyer?

A reputable accident lawyer will not charge any up-front fees to take your case. Auto attorneys work on a contingency basis. This means they don’t collect their fees (typically one-third of the verdict or car accident settlement) until your case is resolved. In addition, most accident lawyers charge for out-of-pocket expenses such as obtaining and copying medical records. However, in most cases, plaintiffs do not have to pay these costs before they receive their settlement.

Car accident law is complicated, but finding the right auto accident attorney in Michigan is simple.

Call 1-800-CALL-SAM today for a free, remote no-obligation consultation from the safety of your home.