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 concern their potential compensation. Here’s a guide to help you understand how car accident settlements are determined.

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 thousands 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 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 using a cell phone, the settlement may be higher.
• The other driver’s liability insurance coverage. Many 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 matters 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. Michigan uses modified comparative fault. If you were 40% at fault, your noneconomic recovery would generally be reduced by 40%.
• The severity of your injuries and their impact on your daily life. To collect noneconomic damages for pain and suffering, you must sustain a threshold injury that affects your ability to live your normal life.
• Whether multiple vehicles were involved. If more than one person is injured, available insurance may be shared among the claimants.
• Where the case is filed. Settlement amounts can vary depending on venue, especially if there is a jury trial.

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 settlement. Some accident claims can be settled in a matter of months, while others may take a year or more to resolve.

Delays can happen if the insurance company disputes the seriousness of your injuries or who was at fault. An experienced lawyer may also advise waiting until the full extent of the injuries is known.

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

• Investigation
• Initial offers
• Negotiations
• Filing a lawsuit
• Going to trial

Not every case goes through every step. Many claims are resolved during negotiations. Some cases may require a lawsuit or trial to reach a fair outcome.

DO I NEED TO HIRE A LAWYER TO GET THE MAXIMUM CAR ACCIDENT SETTLEMENT?

Hiring a lawyer is not required, but it is highly recommended for a number of reasons:

• Claimants represented by accident attorneys often recover more than those who handle claims on their own.
• Proving you suffered a threshold injury is a difficult process that requires medical and legal evidence.
• Having an experienced lawyer on your side can let you focus on recovering from your injuries.
• A knowledgeable lawyer can help you navigate Michigan’s 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 noneconomic damages such as pain and suffering, you must be less than 50% at fault for the accident. If you are 50% or more responsible, you are not eligible for those third-party damages. Michigan is a modified comparative negligence state, so your percentage of fault also reduces the amount you may recover.

Insurance companies will often try to prove the plaintiff shares blame for the crash. A skilled accident attorney can help present the evidence on fault and damages.

Fault is not a bar to Personal Injury Protection (PIP) benefits. Drivers and occupants are generally eligible for PIP regardless of who caused the accident.

RECEIVING DAMAGES FOR PAIN AND SUFFERING

In Michigan, a plaintiff must suffer a threshold injury to be eligible for noneconomic damages. The law defines that as a serious impairment of body function, serious permanent disfigurement, or death.

The injury or impairment must affect the person’s ability to lead their normal life. It does not have to be permanent, but it must be more than minor.

HOW MUCH DOES IT COST TO HIRE A CAR ACCIDENT LAWYER?

A reputable accident lawyer will not charge up-front fees to take your case. Auto attorneys work on a contingency basis. They typically collect about one-third of the verdict or settlement when the case is resolved, subject to Michigan Court Rule 8.121. Case expenses such as medical records are often deducted from the recovery.

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

To get your case started, fill out the brief form below or contact us for a free, no-obligation consultation.