How Much Settlement Should You Get After A Car Accident?

The insurance company will review your claim and provide you with a settlement offer. However, you may ask yourself if you're settling for a fair and equitable settlement for your car accident injuries.
Car crash dangerous accident on the road.

Injury in a car accident entitles you to seek compensation for your injuries and other related losses from your insurance company or the at-fault driver’s insurance provider. However, you must notify the insurance company first, prepare all the necessary paperwork, and file your claim before them as soon as possible.   

The insurance company will review your claim and provide you with a settlement offer. However, you may ask yourself if you’re settling for a fair and equitable settlement for your car accident injuries. Read on to help you find an answer to this question.

Basis For Car Accident Settlement

Before knowing how much you can settle for your car accident injuries, it’s essential to familiarize yourself with the basis for car accident settlement. Ideally, your insurance company or the at-fault driver’s insurance provider will compensate you for the following: 

  • Medical expenses 
  • Lost wages and earning capacity
  • Vehicle damage
  • Pain and suffering and other related losses

These factors can help determine how insurance companies come up with a settlement offer. But to consider these costs in calculating your settlement, you and your lawyer need to prove that they directly resulted from the injuries caused by the car accident. Some evidence you may use include medical records, police reports, photographs of the scene, video surveillance of the accident, and statements from eyewitnesses.  

To know more about car accident settlement, you may check out some reliable legal advice resources online for more valuable information.    

Factors That Can Affect Your Car Accident Settlement  

Every car accident is different. As such, knowing how much settlement you should get after the collision may vary, depending on the circumstances. Many factors affect the total amount of compensation you may receive. These can include: 

  • Type And Severity Of Injuries: Your car accident settlement may depend on the type and severity of injuries you’ve sustained. For example, an injury that causes you to lose your entire arm may require a larger settlement than the ones that cause a sprained wrist. Also, an injury that needs surgery and rehabilitative care may merit a higher car accident settlement.    
  • Type And Length Of Treatment: If the injuries require extensive medications, including surgery and future medical treatment that may last for years, a large car accident settlement will make a lot of sense. Otherwise, minor compensation for your injuries would do.  
  • Amount Of Medical Bills: Your car accident settlement should be sufficient to cover your medical bills. Hence, expenses associated with doctor visits, prescriptions, medical procedures, and medical equipment are considered when calculating how much settlement you should receive following a car accident. The higher your medical bills, the higher your compensation will be.   
  • Liability: You can receive a fair car accident settlement if you’re able to establish the other driver’s liability. You can do this by proving that the car crash caused your injuries, resulting from their negligence. However, if you live in a state that adheres to the rules on comparative negligence, your settlement will be reduced if you’re found to be partly at fault for what happened.   

These factors can significantly affect the settlement you receive after a car accident. Because of this, it’s essential to work with a dedicated car accident lawyer to guide you through the process. They can also negotiate with the insurance company on your behalf to ensure you get the right amount of settlement you deserve.    

What Is Considered A Fair Car Accident Settlement Offer?

In most cases, a fair car accident settlement offer is approximately 80% of the total damages or losses you’ve incurred due to what happened. While there’s no specific formula for the calculation, you may calculate a settlement from a car accident by adding the economic damages, such as medical bills, lost wages, and vehicle damage, together and multiplying the total by three. 

When calculating pain and suffering, most insurance companies use an algorithm method. They input information regarding a particular injury, and the computer algorithm provides them with a figure. However, it’s important to note that these computer algorithms are unique to each insurance company, so your settlement may differ from others.  

Lastly, whatever method the insurance company will use to calculate your settlement, the same can be valid as long as it’s fair and legal. You can have your lawyer review the insurance company’s settlement offer before accepting it to protect your interests.  


With the information mentioned above in mind, how much settlement you should get may depend on certain factors, particularly on the unique circumstances of your case. While you can’t have a definite figure, you can increase your chances of receiving a large settlement by hiring a car accident lawyer. 

Tom Brown
Tom Brown is an automotive market enthusiast living in the United States. He holds a diverse background in automotive marketing and enjoys utilizing that to produce insights into the inner workings of the industry.