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What Is The Average Settlement For A Car Accident?

If you have been involved in an auto accident, you’re probably dealing with medical expenses, lost wages, property damage, insurance payments, and emotional distress. Car accidents always seem to happen at the wrong time, and they can leave you struggling with issues you never thought you’d have to deal with.

An auto accident settlement can reimburse you for the money you’ve incurred on your injuries and damages. It can make up for medical bills, lost wages, the cost of repairing or replacing your vehicle, and pain and suffering damages. It's hard to determine the average settlement for a car accident because each accident is a very unique situation that must be examined closely.

How Much Should I Expect from a Car Accident Settlement in Georgia?

Motor vehicle accident settlements vary based on many factors. Often, the severity of your injuries is one of the biggest factors that’ll determine your settlement. For instance, a person who sustained severe injuries in a car accident may get a $500,000 payout, while another person who suffered minor injuries may only get a $4,000 payout.

To get a rough estimate of how much to expect from an auto accident settlement, add up all your medical bills, car repairs or replacement costs, and lost wages. Then multiply that sum by a number between 1 and 5, where 1 represents minor injuries and 5 represents severe injuries. For instance, let’s say you suffered a traumatic brain injury in a car accident and paid $100,000 in medical bills. You were out of work for one year, which made you lose $70,000 in income.

Your average settlement for a car accident might be approximately $850, 000 ($100,000 + $70,000 = $170,000 x 5 = $850,000).

Another factor that will determine how much to expect from a car accident settlement is the amount of available insurance coverage. For instance, if the at-fault party in your car wreck has plenty of insurance coverage available your car accident claim may settle for more. However, if the responsible party has limited bodily injury liability coverage, your personal injury claim may settle for less. Thus, it’s essential to hire a Decatur personal injury attorney because he or she can look for all available insurance coverage. There might be insurance coverage you don’t know exists.

How Much Do Insurance Companies Pay for Pain and Suffering?

Every personal injury settlement where someone is awarded a payout takes many factors into account. This includes the severity of your injuries, medical care received, the length of recovery time, and the long-term effects of the personal injuries on your daily life. Other factors may include the insurance coverage available and the type of case.

Typically, the average payout for pain and suffering in most claims is under $15,000 because most claims involve minor injuries.

The severity of the injury is a factor that affects the value of pain and suffering damages significantly. 

car accident settlement

How is Pain and Suffering Compensation Calculated?

Since you can’t provide a jury or the insurance adjuster with a “bill” for pain and suffering, your Decatur car accident attorney will use the facts and circumstances in your case to maximize the value of your pain and suffering compensation.

Often, the parties involved agree on a specific method for calculating pain and suffering damages. Two methods are popularly used to determine pain and suffering compensation.

The Multiplier Method

This is one of the most common methods for valuing pain and suffering damages. This method uses your medical bills as a basis for pain and suffering damages.

A number between 1 and 5 is used as the multiplier. Typically, the more severe your injuries and the longer it takes to heal, the higher the multiplier. Your total medical costs multiplied by the multiplier equals the amount of your pain and suffering compensation. For instance, if your multiplier is 4 and your medical bills total $45,000, your pain and suffering compensation will be $180,0000 ($45,000 x 4).

The insurance representative will argue for the lowest possible multiplier, while your personal injury lawyer will build a case to explain why you deserve the highest possible multiplier. While this isn’t a perfect system, it works in most cases.

The Per Diem Method

This method bases your pain and suffering compensation on the number of days between the day of the injury and the day when you’re released from the hospital. A figure is assigned for the per diem. The figure depends on several factors, including the severity of your injuries, the effect of your injuries on your daily activities and life, and the duration of your recovery. 

Thus, your per diem is higher if you sustained severe or catastrophic injuries that resulted in surgery, therapy, and tremendous disruption to your daily life. 

You can calculate your pain and suffering compensation by multiplying the per diem by the number of days it took you to recover.

For example, if you stayed in the hospital for 300 days after a motor vehicle crash, and your per diem is $400, then the value of your pain and suffering compensation would be $120,000 ($400 x 300). 

How Much is Whiplash Settlement for Pain and Suffering?

When one driver is completely at fault for an Atlanta car accident because they didn’t exercise care for other drivers on the road, this is known as negligence. Personal injury claims, especially those involving whiplash, must prove negligence was a factor. 

A jury will determine a whiplash personal injury settlement offer that reflects the severity of your injury and the way the injury has affected your life. Whiplash’s personal injury settlement amounts or trial verdicts vary significantly. However, most mild to moderate whiplash injury claims are valued between $2,500 and $10,000. While more serious whiplash injuries involving medical treatment for several months wind up with settlement amounts or trial verdicts exceeding $30,000. Severe neck injuries affecting the vertebrae or the nerves are valued at upwards of $100,000. 

Only an experienced car accident attorney can advise you successfully on how much to ask for a whiplash settlement. Without an experienced personal injury attorney by your side, you might not file viable claims against the responsible party, and you may not negotiate a reasonable settlement offer.

Ideally, every auto accident victim would be awarded compensation for the exact amount of damages they have incurred. Also, they’d receive that money as soon as possible.

Unfortunately, the insurance claim process doesn’t work that smoothly. If you’re concerned about the outcome of your car accident case, working with a car accident attorney can help. At Marks Law Group, we’re ready to help you recover the maximum possible compensation from the at-fault party to cover your medical bills, lost income, property damage, and pain and suffering. We have been helping car accident victims in Decatur and throughout the state of Georgia for decades recover the compensation they deserve and we can help you too.

To schedule a free initial consultation, call us today at (404) 939-1485, or chat with us online to learn how we can help. 

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