What Is The Average Settlement For A Car Accident?

What is the average settlement for a car accident? If you were injured because somebody else broke the rules of the road, you deserve compensation, no matter how severe your injuries. When we first meet with our clients in St. Louis, Chicago, or anywhere in Missouri and Illinois, one of their first questions is how much money they can expect to receive in a settlement or judgment. The truth is it depends. Read on to see what a typical car accident settlement is and the factors that may determine your financial recovery. Remember, talking to us is free, so make sure to give us a call before accepting any offer from an insurance company. Call us today or fill out our online form.

You can also use our free personal injury calculator to get an idea of how much your claim might be worth. 

How Car Accident Settlements Are Calculated

Auto accidents are expensive. According to the Insurance Information Institute, deaths, injuries, and property damage in motor vehicle accidents cost $474 billion in 2020, while the National Highway Traffic Safety Administration highlights that auto accidents cost society an estimated $7,300 per second in loss of productivity. In terms of the cost of paying out the average settlement, it can be difficult to pinpoint an exact figure since many amounts remain confidential. However, most settlements typically fall within a general range, with more severe cases, such as those involving permanent disability or wrongful death, resulting in much higher compensation.

Settlements are determined by both economic and non-economic damages, reflecting common outcomes in similar situations.

Economic Damages

Economic damages include tangible financial losses, such as medical bills, property damage, lost wages, and future medical expenses. These form the foundation of most settlements. For example, the average settlement for accidents with moderate injuries can start at $10,000, depending on the specific costs incurred. These expenses are easier to quantify because they are direct financial costs you have already paid or will need to pay in the future.

Non-economic Damages

Non-economic damages address intangible losses like pain and suffering, mental anguish, and loss of enjoyment of life. Unlike economic damages, non-economic losses are harder to measure because they don’t have a clear price tag attached. They often determine the payout amount by applying a multiplier to the economic damages. For instance, if your economic damages total $10,000 and a multiplier of 3 is used, your average settlement could be $30,000. In more severe cases, such as permanent disability, the multiplier may be 5 or higher, significantly increasing the restitution. These multipliers reflect the severity of the aftermath on your overall quality of life and well-being.

Other Factors in Calculating Settlements

In addition to economic and non-economic damages, other factors, such as the defendant’s conduct and whether punitive damages may apply, could affect the final settlement amount. Punitive damages may be awarded if the other driver’s behavior was particularly reckless or malicious. These are intended to punish the wrongdoer and deter similar conduct in the future, potentially adding thousands more to the final settlement.

Settlement Amounts for Car Accidents Without Injuries

Car accidents can still lead to compensation even if no physical injuries are sustained. Compensation packages for non-injury accidents—such as fender benders—typically cover vehicle repairs, minor medical evaluations, or lost wages if work was missed. In these cases, the average sum generally falls between $3,000 and $10,000, depending on the specifics of the incident.

Even in cases where there are no injuries, the stress of being involved in an accident and dealing with the aftermath can be significant. Vehicle damage, rental car expenses, and minor medical evaluations, such as a precautionary visit to a doctor to rule out any internal injuries, can still warrant a settlement. It’s essential to document everything, even if it seems minor, because these small expenses can add up over time, and having a lawyer can help ensure that you don’t overlook anything that should be included in your claim.

While this whole process may seem straightforward, it’s still important to involve an experienced lawyer. Insurance companies often attempt to minimize payouts, and having legal representation certifies that the settlement reflects the true value of the damages. An attorney can negotiate to maximize the compensation you receive and ensure that you are not pressured into accepting a lowball offer.

Settlement Amounts for Car Accidents Involving Injuries

When injuries are involved, the amounts typically increase. In Missouri, recovery sums for accidents with injuries can range from $15,000 to well over $100,000. Cases involving serious injuries, such as broken bones, spinal injuries, or head trauma, often result in larger settlements due to the need for ongoing medical care and the long-term impact on your life.

For example, if your injury requires surgery or physical therapy, your settlement will likely be higher to cover those medical expenses. Beyond the immediate medical bills, injuries can lead to future expenses such as rehabilitation or long-term care. Missouri law also allows for pain and suffering compensation, which can significantly increase the final settlement amount. The emotional toll of dealing with serious bodily harm, which can include anxiety, depression, or the inability to return to activities you once enjoyed, is taken into account when calculating noneconomic damages.

Catastrophic Injuries and Higher Settlements

Catastrophic injuries can lead to settlements of hundreds of thousands to millions of dollars. Such injuries often require lifelong care, home modifications, specialized equipment, and result in permanent income loss.

Larger settlements consider the impact of catastrophic injuries on quality of life, work ability, and overall well-being. Settlements depend on factors like medical bills, future treatments, and lost earnings, according to the Missouri Division of Workers’ Compensation.

Factors That Determine Your Car Accident Settlement

The Severity of Your Injuries

More severe injuries typically result in higher settlements. This is due to higher medical costs, extended periods of lost income, and a more significant impact on your quality of life. These are considered when calculating both economic and non-economic damages. Additionally, injuries that cause permanent disability or disfigurement will likely increase the non-economic portion of the settlement due to the long-term effects on your day-to-day life.

Impact on Your Life

Your settlement will reflect how your injuries have affected your mental, emotional, and physical well-being. The more significant the impact, the higher the non-economic damages (like pain and suffering) will be. The court or the insurance company will assess how your injury affects your ability to work, enjoy hobbies, and maintain relationships. Loss of consortium, which refers to the impact on your relationships with family members, can also increase the noneconomic damages in a settlement.

Insurance Policy Limits

Both Missouri and Illinois have minimum insurance requirements for bodily injury and property damage. Nonetheless, the insurance policies involved—both the negligent driver’s and your own—may limit your final recovery. A skilled car accident lawyer can help you navigate these complexities and potentially secure more than the initial insurance limits, especially if multiple parties are responsible for the accident or if there are additional coverage options, such as underinsured motorist coverage.

Shared Fault

Missouri follows a “comparative negligence” rule, meaning you can still recover compensation even if you are partially at fault for the accident. Yet, your percentage of fault will reduce your settlement. For example, if the court awards you $100,000 but finds you 30% at fault, you will receive $70,000. In Missouri, you can recover damages even if you were 99% at fault, but Illinois laws are stricter, barring recoveries for individuals more than 50% at fault.

Role of Your Lawyer

Insurance companies use tactics to devalue claims, which is why it’s critical to have a strong lawyer on your side. Your attorney will investigate the accident, prove liability, and work with medical and economic experts to value your claim accurately. If the insurance company refuses a fair settlement, a trial lawyer will represent you in court and protect you during the settlement process.

At Burger Law, we’ve stood up for the injured for over 30 years. We know how to fight back against resistant insurance companies and secure the settlements our clients deserve.

“I’ve devoted my life to ensuring our clients get full injury compensation.”

 

Gary Burger

Litigation Attorney

The Process for Settling Car Accident Claims

Reporting the Collision

After an accident, the first step is to report it to the police, especially if there are injuries or significant property damage. In Missouri, accidents involving injuries or damage over $500 must be reported. Filing an accurate report is crucial for establishing the facts, which are key in the claims process. The police report will serve as an essential piece of evidence when filing a claim, helping to prove liability and confirm the details of the accident.

Insurance Provider Response

Once the accident is reported, both parties notify their respective insurance companies. The at-fault driver’s insurance typically takes responsibility for covering damages. Be cautious during discussions with insurance companies, as they often seek to minimize payouts. Insurance adjusters may try to get you to settle quickly for less than your case is worth. Consulting with a lawyer before speaking to an insurance company can help you avoid this pitfall.

Evaluating Damages

Once the insurer gathers the necessary information, they evaluate the damages, including property damage, medical costs, and other expenses. Additionally, if you’ve missed work due to your injuries, your attorney will account for the lost wages.

Negotiating the Settlement

Negotiating a settlement often involves back-and-forth communication between you (or your lawyer) and the insurance company. While it might be tempting to accept the first offer, this amount is often lower than what you truly deserve. Patience is essential, as insurance companies may delay negotiations, hoping you’ll accept a lower settlement than your claim’s value.

Filing a Formal Lawsuit

If negotiation fails to reach an agreement, you may need to file a formal lawsuit. Most cases settle before going to trial, but this move shows the insurance company that you are serious about receiving fair compensation. In Missouri, you have five years from the accident date to file a claim, so it’s essential to act promptly if negotiations fail. Going to court can be a lengthy process, but it may be the only way to ensure that you receive full compensation for your injuries and damages.

How a Car Accident Lawyer Can Help

Navigating the car accident settlement process is challenging without legal expertise. A lawyer negotiates with insurance companies, collects evidence, and ensures fair compensation for damages, medical bills, and lost wages. If negotiations fail, an attorney can take your case to court and fight for what you are owed.

At Burger Law, we have decades of experience securing fair settlements for our clients. For a free consultation, call us at (314) 500-HURT, and let us guide you through the process. With our expertise, you can focus on recovery while we handle the legal aspects of your claim.

Gary Burger

Founder | Injury Attorney
Gary Burger has dedicated his career to standing up against bullies. The founder and principal attorney of Burger Law | St. Louis Personal Injury Lawyer has helped hundreds of Missouri and Illinois individuals and families recover th …
Years of experience: 30 years
Location: St. Louis, MO

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