Car accidents are dealing with life events. An accident can be physically, financially and emotionally draining. Mounting stress can seem impossible to handle as you worry about the severity of your injuries, missed work, and piling up bills. While the physical and emotional damage suffered after an accident will take some time to recover from, financial recovery can be sought immediately by seeking an auto accident settlement .
If you have decided to seek compensation, you will likely be interested in determining the average compensation value as a way to evaluate what you can recover. Calculating an average is not an easy task. Insurance companies use statistics to calculate averages for different accident scenarios. However, it is rare for any two given accidents to be exactly the same, and no accident almost never fits the profile of an “average” claim. Therefore, when trying to determine the value of your claim, it is important to understand how insurance companies calculate estimates and what should be included in their compensation efforts.
Is there a formula for calculating car accident settlements?
There is no exact formula to calculate the average compensation amount for a car accident. An insurance company will never admit this, but adjusters often use a very basic formula to quickly predict what a jury may award you for an injury claim if the case goes to trial.
An adjuster will take your total financial loss incurred as a result of the accident and multiply it by a factor (usually two or three). For example, if your medical bills, property damage, and lost wages totaled $75,000, your claim can be estimated at $150,000 with a multiplier of two.
The multiplier is used to estimate other factors that may play a role in your claim, such as physical pain and mental anguish. The multiplier used can vary and there is no simple answer to determine which multiplier the insurance company will use. Generally, the factor will be closely related to your medical expenses. Lower medical costs ($500-$1,000, for example) will justify a smaller multiplier (1.5 to 2), while higher medical costs may justify a multiplier of three or four. The theory is that the more medical treatment you require, the more pain, discomfort and suffering you will need to compensate for.
Of course, there are other factors involved in the settlement calculation. Factors include how long after the accident you sought medical attention, your age, medical history, and circumstances surrounding the accident. The important thing to remember is that this formula for compensation value is only an estimate. Experienced personal injury attorneys know better than anyone that psychological injuries cannot be directly correlated to physical injuries. Even with only minor physical injuries, the traumatic experiences of a car accident can cause serious and life-altering mental health conditions. Therefore, your claim may be worth more than the insurance company estimates.
How are car accident settlements calculated?
The true value of your car accident compensation will be the sum of the damages suffered as a result of the accident. Ultimately, there are three types of damages that could be involved in a Texas car accident case: economic, non-economic, and punitive damages.
Economic damages
Economic damages are damages awarded to compensate for financial losses. Economic damages can include medical bills, property damage, household services, vocational rehabilitation, lost wages, and loss of earning capacity. It is important to understand that the medical expense calculation must be more than what you have already paid. Your future medical expenses (surgeries, treatments, prescriptions, etc.) related to the accident must also be taken into account in your financial damages.
Non-economic damages
Non-economic damages are more difficult to estimate, because the damage is not as tangible. Non-economic damages include compensation for pain, suffering, damage to reputation, humiliation, loss of consortium, and loss of life.
punitive damages
Unlike economic or non-economic damages, punitive damages are not awarded for a loss. Rather, punitive damages are awarded as punishment for the other driver’s actions to prevent similar conduct in the future. Punitive damages are most frequently awarded in drunk drivers or speeding-related accidents.
How do I know if I am entitled to a claim?
Generally speaking, you likely have a right to a lawsuit if you were injured as a result of another person’s negligence. Negligent road behavior includes, but is not limited to:
- distracted driving
- Speeding
- Driving under the influence
- Without regard to traffic signs or signs
It is also worth noting that the other driver is not the only individual who can be held responsible for an accident. If a dangerous road condition caused the accident, local or federal government authorities may be held responsible for poor design, construction, or maintenance. A vehicle or parts manufacturer could also be at fault if the accident was the result of a vehicle defect or malfunction. A car accident attorney can review your accident to help you determine if you have a claim and who should be responsible.
Who pays the agreement?
The origin of your compensation will depend on the circumstances surrounding your accident. The settlement will come from your insurance, or the other driver’s insurance company.
If the accident was your fault and you have collision coverage, your insurance company will cover the damage to your vehicle. If the cost of the repairs is more than the value of the car, your insurance will likely consider the car totaled and pay you a lump sum. Because Texas is an at-fault state, you will be responsible for paying your own medical bills if the accident was your fault.
If the other driver was at fault or partially at fault for the accident, their insurance company will be responsible for paying the settlement. However, policies have a set limit. If the compensation value exceeds the limit or the other driver did not have insurance, the other driver could be responsible for damages that he pays out of his own pocket. However, if you have underinsured or uninsured motorist coverage, your insurance company may also be responsible for paying for your damages.
Does hiring an experienced car accident attorney increase your potential compensation offer?
It is a common misconception for accident victims to believe that an insurance company has their best interest at heart. It is important to remember that insurance companies are for-profit businesses and will do everything they can to reduce your business expenses. Many companies will use deceptive tactics to reduce or deny your claim. Even if the insurance company is not trying to be disingenuous, it is very rare for an initial offer to cover the full value of your claim.
People who choose to file a claim without an attorney are often angered by low offers and unfair settlement tactics. When a person obtains legal representation, their personal injury attorney can help them determine the full value of their claim and fight for what they deserve.
No one wants to settle for an average settlement, and you won’t be able to maximize your offer by simply submitting a claim. Your attorney will be able to persuade the insurance company to conduct a deeper investigation. If a proper settlement cannot be reached after an investigation, your attorney will file a lawsuit to ensure every penny is recovered.
Patterson Law Group Can Help You Earn What You Deserve
The Patterson Law Group law firm was founded on the foundation that every injured victim of negligence deserves justice. Our lawyers do one thing and we do it well: fight for your rights. Regardless of the severity of your accident or your injuries, we can help you recover the compensation you deserve. We will handle your claim while you focus on your recovery.
The Texas statute of limitations for personal injuries is two years. If you do not take legal action within two years of your accident, you will lose your ability to file a claim. Contact the Patterson Law Group law firm today by filling out the form or calling (817) 784-2000 to schedule a free initial consultation and discuss your legal options.
