Car Accident Settlement 2017-2021: How Much Are Payouts?

Navigating the complicated car accident settlement claims process can be difficult and overwhelming. Being informed on what to expect allows you to increase your financial recovery.

In this blog post, we will discuss how state laws factor in when considering settlements for car accidents. We’ll also cover how having legal representation may help maximize potential compensation.

Short Summary

  • Understanding car accident settlement claims involves evaluating losses and obtaining legal representation.
  • State laws, injury severity, medical expenses, and lost income all influence settlement amounts.
  • Legal representation is essential to maximize financial recovery for a favorable settlement outcome.

Understanding Car Accident Settlement amounts

Car accidents can have long-lasting consequences, causing victims to suffer physical, emotional, and financial harm. It’s important that car accident settlements adequately recompense these losses.

The average car accident settlement amount in the United States is around $19K-$20K. This amount will vary depending on each case’s individual circumstances.

car accident settlement meeting with lawyer

To ensure they receive a fair resolution, many car accident victims enlist an experienced personal injury lawyer or personal injury attorney. They advocate on the victims behalf on the car accident claim for damages caused by a car accident.

These lawyers are well equipped with the expertise and knowledge needed to navigate through complex proceedings about car accident claims. Consequently they can secure the maximum possible compensation for those affected.

The Role of Insurance Companies

When it comes to determining a car accident claim, various factors must be taken into account by insurance companies.

These include the medical treatment needed for injury-related damages, property damages, and any lost wages that may have been incurred due to the car accident.

Kansas, Illinois, and Missouri all mandate minimal liability coverage, which amounts to $25K per person or up to $50K in overall payouts on an accident claim. When calculating their potential car accident settlement, this is important for those residing in these states.


Insurance firms look out for their own financial well-being during negotiations.

Hence, an insurance company can offer post-accident lowball car accident settlement amounts if things don’t go in your favor.

If you experience such denial over claims, immediately contact an experienced personal injury lawyer or personal injury attorney to ensure you have proper representation. They will advocate on your behalf while trying to secure fair payments following investigations surrounding the car accident.

The personal injury lawyer will then be able to provide an assessment based on the average car accident settlement in comparable cases.

Negotiating a Fair Car Accident Settlement Amount

It is essential to ensure a just settlement when calculating how much compensation for your damages.

The best way to reach an agreement that both sides can accept is by hiring a car accident lawyer to evaluate all aspects, including property damage, the victim’s age, life expectancy, medical treatments cost, rehabilitation costs, lost wages, pain and suffering damages, etc.

They work alongside insurance companies to negotiate on your behalf towards the highest possible settlement figure achievable. This is based on lost income, medical expenses, and future earnings potential.

Your legal representative will obtain evidence that builds up into powerful arguments to enhance getting you the biggest financial outcome available. The settlement will restore justice and give peace of mind to coping with the associated injuries and suffering due to this auto accident.

The personal injury lawyer’s primary focus is claiming reasonable reimbursement for bodily injury, medical bills, lost wages, pain and suffering damages, vehicle damage, etc. It is without compromising fair treatment, regardless of whether it’s the insurer or another party responsible for payment arrangements.

Key Factors Influencing Car Accident Settlement Amounts

A fair car accident settlement amount for car accident victims will be based on various factors. These include the severity of the injury, medical bills incurred, lost wages, loss of potential earnings, and pain and suffering damages. Statistics have shown that typically these settlements are around $29700.

Medical expenses from treatment after an accident can involve hospital charges, consultations with doctors or physiotherapists, medicines, and other related treatments deemed necessary for recovery.

Lost income could range from regular salaries not received due to being unable to work and benefits no longer available. It also considers future opportunities affected by the injuries sustained in the car accident.

By getting informed about what influences a car accident settlement, victims will be better equipped to seek their rightful compensation amount. Both immediate and particularly long term if there is a lasting impact associated with all elements involved in this unfortunate situation.

Injury Severity and Long-Term Effects

The severity of any injury sustained may influence the settlement amount after a car accident.

Catastrophic and permanent injuries, such as traumatic brain or spinal cord damage, can make for substantial settlements of hundreds of thousands to millions. The large amount is due to medical expenses over time and long-term disability implications.

Smaller-scale harm like whiplash often results in far lower payments that might equate to just thousands rather than more significant six-figure amounts.

Regardless, it is essential when negotiating with an insurance company about money owed following a trauma from a car accident that all related details are documented. These include treatments received during the recovery process, rehabilitation treatments, and enduring consequences due to suffered injuries.

These variables help create reliable arguments made on your behalf by your attorney working towards obtaining fair compensation desirable under the circumstances at hand.

Medical Expenses and Rehabilitation Costs

Medical bills and rehabilitation costs must be considered in any car accident settlement when determining the amount. These could encompass medical bills from hospital stays, doctor visits, physical therapy sessions, and prescription medications, among other treatments.

To accurately calculate any car accident settlement amounts in a final agreement with an insurance company, you must factor in the following. The severity of injuries, what has already been spent on care, and potential future needs that may arise due to the car accident.

Insurers often look for ways to reduce their payout by challenging certain services or pricing methods. It is why you must have total clarity regarding all current & possible upcoming medical payments connected to this incident should you want a fairer recompense from them.

With appropriate documentation detailing each expenditure plus valid evidence establishing everything required. Then there’s no doubt one can successfully plead their case for suitable compensation covering those medical charges and rehabilitation fees accordingly!

Lost Income and Future Earnings

Regarding car accident settlements, lost income and future earning potential can significantly influence the total amount. This involves considering absentee days multiplied by hourly rates or daily wages and any vacation or sick leave due to the car accident.

Other factors such as occupation, age, and expected salary increases all help determine someone’s post-accident earnings, particularly if their injury has prevented them from returning to work fully functioning.

For a fair settlement of lost wages & future earnings to take place, records must be kept detailing absences plus losses incurred regarding benefits, etc., while also noting anything which may have hindered one’s ability to earn going forward after an automobile accident.

Having these documents at hand enables attorneys better access to negotiate with insurance companies so that those involved receive adequate compensation accordingly.

Average Car Accident Settlement Amounts 2017 – 2021

The trend in car accident settlements over the last five years is displayed in the graph below.
(Source: Insurance Information Institute – extracted May 2023)

State Laws and Their Impact on the Average Car Accident Settlement

The laws of each state determine the at-fault driver, set a deadline for filing claims, and differentiate between fault and no-fault states.

In no-fault areas, one must depend on insurance to receive compensation, whereas, in normal circumstances, you can sue the responsible person. When it comes down to car accident settlement negotiations, having an understanding of your local legislation is imperative, along with knowledge of car accident injury settlement amounts.

Consulting with experienced car accident attorneys will help guarantee an equitable outcome while protecting your rights adequately.

No-Fault vs. Fault States

In the states that operate on a no-fault system, individuals cannot depend solely on another driver’s insurance for injury coverage. They must rely instead upon their own policies to cover any damages sustained.

An example of this kind of policy is Personal Injury Protection (PIP), which can offer up to $10,000 in medical bills or lost wages from an incident.

Being based out of a no-fault state is advantageous since victims are financially protected against severe injuries, even during minor car accidents. On the other hand, those living in fault states have different legal avenues they may pursue when seeking compensation. Such as filing claims through the at-fault driver’s insurer.

Understanding how these procedures work might prove more complex than expected. So involving professional help like a specialized lawyer would be beneficial if someone wants assurance that they get just compensation for all losses incurred due to involvement with a vehicle crash.

Statute of Limitations

When filing a car accident claim, the statute of limitations must be considered. The time limit to file will depend on your state and ranges from 60 days to several years.

In Georgia, for example, OCGA 9-3-33 specifies that a lawsuit needs to be filed within two years following a car accident.

It is essential not to miss this deadline as it can have serious consequences, such as loss of rights regarding compensation eligibility.

Thus, seeking legal counsel in relation to claims should happen promptly after any car accident so you do not lose out later.

To ensure all steps are followed correctly, having advice from experienced car accident lawyers nearby could help guarantee timely proceedings related to your personal injury claim.

Calculating Pain and Suffering Compensation

A car accident settlement being discussed between an insurance company and a car accident victim using the multiplier method

Figuring out a car accident settlement can be difficult, especially determining the amount of compensation for pain and suffering.

Insurance companies usually decide this value through two methods: using either multipliers or per diem amounts.

While each has its own benefits and drawbacks, which one to use will depend on factors such as how severe the injury was and what kind of physical distress is present.

Multiplier Method

When deciding on a car accident settlement, many people use the multiplier method to figure out an appropriate level of compensation for pain and suffering.

This process involves adding together all medical bills incurred as well as lost wages, then multiplying the total by anything from 1.5 to 5 based on the injury’s severity to estimate damages due for suffering.

Although this is commonly used, it’s essential not to forget that each case presents its own individual details, which can affect how much one should be awarded.

Consulting with a car accident lawyer specializing in these accidents will help ensure your claim has been adequately calculated according to those specifics.

Per Diem Approach

The per diem technique for assessing damages compensation due to pain and suffering is determined by a court or insurance company.

This method assigns each day of the claimant’s anguish an amount proportionate to their injury severity.

For example, if someone experienced ten days of pain from a broken arm, the assigned daily rate could reach $100, totaling $1000 ($100 x 10).

When utilizing this approach, claimants must find skilled car accident attorneys to confirm proper daily rates are applied to receive sufficient recompense reflecting how much was genuinely endured in terms of distress.

Since this model provides more structure in calculating damages resulting from such traumas as physical trauma, its merits have been embraced within legal procedures when appropriate circumstances arise.

These include personal injuries incurred through car accidents and associated negligence on behalf of involved auto insurance companies.

A picture of a car crash with a person receiving legal representation to maximize their settlement for car accident.

For maximum car accident settlements, having a legal representative is essential.

A competent attorney can gather pertinent facts, build up a strong argument and negotiate with the auto insurance company on your behalf to secure the most comprehensive financial recompense for any damages or injuries suffered.

By engaging experienced personal injury lawyers for your claim, you will have better chances of attaining a desirable outcome granting adequate reparation.

Gathering Evidence and Building a Strong Case

To maximize your car accident settlement, assembling and organizing evidence is critical.

Taking pictures of the scene, talking to witnesses, acquiring a police report, and documenting skid marks or any debris present are essential steps in forming a strong case.

Gathering medical documents such as doctor’s notes detailing injury details and treatment will help bolster your argument for fair compensation from an insurance company.

Organizing this evidence proficiently can increase your chances of obtaining a favorable outcome for your car accident claim.

Negotiating with Insurance Companies

A successful car accident settlement is essential and challenging when negotiating with insurance adjusters.

To get the most out of negotiations, it’s necessary to be totally prepared.

Remain calm, polite, and professional while emphasizing the mental distress caused by the incident and any physical or financial losses experienced due to the car accident.

If you feel no suitable agreement is being offered, consider finding a car accident lawyer specializing in such cases for help.

They may secure more money from your final payment than without their assistance, helping maximize your financial recovery following this traumatic event.

Car Accident Settlement Examples for Specific Injuries

When obtaining a suitable settlement for specific injuries, the amount can vary widely depending on how serious the injury is and what kind of case you have.

Certain kinds of injuries result in particular ranges when it comes time to determine the settlement amount for personal injury claims.

For example, typical car accident settlement amounts for whiplash may garner between $10k-$20k.

Typical car accident settlement amounts for traumatic brain damages often lead to payments in the neighborhood of $50k – $100k, while typical car accident settlement amounts for spinal cord traumas typically bear settlements of $100k -$350k+.

Understanding these typical car accident settlement figures helps those seeking fair compensation fight better-informed battles.

Car Accident Settlements For Whiplash Injuries

Whiplash injuries can restrict neck mobility

Whiplash, which is often a minor injury but can still affect your daily life and require medical care and time off work, may manifest as pain, stiffness, or limited motion in the neck caused by sudden jerking movement resulting from car accidents.

The typical car accident settlement amount for these injuries usually ranges between $10K to $20K for moderate cases. At the same time, more serious whiplash victims might receive up to one hundred thousand dollars upon reaching an agreement with their insurance provider.

To ensure that you will get appropriate compensation due to a car accident, it’s essential to document all related health treatments and hire an experienced car accident lawyer.

Car Accident Settlements For Traumatic Brain Injuries

Brain Injuries potentially have long-term consequences

Traumatic brain injuries (TBIs) are a serious form of harm to the head caused by an unexpected and forceful physical impact, for example, from a car accident, fall, or sports injury.

These kinds of injuries can range between mild and severe, with possible consequences on physical well-being, cognitive capacity, and emotional health.

The settlement amount following these events has been known to be in the region of $50k-$100k depending upon intensity and severity levels combined with individual circumstances regarding each instance.

To ensure that you receive due recompense for your TBI, it is essential to thoroughly note any treatment provided medically along with recovery efforts done, plus any long-term effects linked directly back to said trauma.

Be sure this detailed information has passed through to your lawyer to help them make strong arguments when negotiating such cases against insurance companies while also providing peace, knowing that fair compensation is ultimately attained after enduring such difficulty.

Car Accident Settlements For Spinal Cord Injuries

A car accident settlement being discussed between an insurance company and a car accident victim for a traumatic brain injury

A spinal cord injury can lead to permanent or temporary paralysis and other impairments. Such injuries typically require costly medical care and ongoing rehabilitation expenses.

The settlement amount for these types of cases may be worth between $100,000 – 350,000, depending on the severity and specifics of each individual case.

To ensure a fair settlement amount is obtained, complete documentation showing all treatments received must be presented to your lawyer to build a compelling legal argument with the insurance company for adequate compensation.

With proper preparation, one should expect to get what they deserve from their claim resulting from a severe spinal cord injury.

Insurance Coverage

According to the Insurance Information Institute, three types of auto insurance policies exist. These are for liability, collision, and comprehensive insurance coverage.

“Liability insurance pays for the policyholder’s legal responsibility to others for bodily injury or property damage. Collision and comprehensive insurance cover property damage and theft to the policyholder’s car.”
Source: Insurance Information Institute


A thorough understanding of the car accident settlement process and all factors influencing your financial recovery can help you obtain just compensation.

With guidance from an experienced attorney, evidence collection, and negotiations with insurance companies involved in your case, it is possible to secure maximum monetary reimbursement – giving yourself peace of mind as you move forward.

The power lies within knowledge, so ensure that yours is comprehensive enough to have what’s owed rightfully delivered.

Frequently Asked Questions

What is the average car accident settlement in Illinois?

The typical settlement for individuals involved in a car accident in Illinois is estimated to be between $3,000 and $10,000. The sum can vary significantly depending on the severity of the injuries sustained and damage caused by the incident. Thus, considering all aspects before estimating a final amount as part of compensation for any such event is essential.

What is the average settlement for a car accident in Georgia?

In Georgia, car accident settlements can range anywhere from a few thousand dollars to upwards of two hundred thousand dollars, depending on the severity of the crash. Those cases with more serious repercussions usually award higher figures due to their magnitude and accompanying injury claims.

What is the average cost for a severe injury in a collision?

The National Safety Council states that severe injuries resulting from a car collision can be financially devastating, with average costs ranging between $81,000 and an astonishing $1.5 million in cases of fatalities. Altogether, vehicle accidents put US citizens back more than 230 billion dollars every year.

What are examples of bodily injury?

Bodily harm that originates from a mishap or incident can be various. Some examples include fractures, lacerations, contusions, internal bleeding, and nerve damage. The correct insurance plan is essential to help with associated medical bills for any resulting bodily injuries incurred during an accident.

How much is the typical car accident settlement?

Car accident settlements vary widely, with most cases concluding around the $14,000 to $28,000 range. On average, though, they usually pay about $20,000 depending on any losses or injuries from the car crash.

Note: Insurance Information Institute

Legal Disclaimer: The content provided on is for general informational purposes only. It is not intended as legal advice, nor does it constitute an attorney-client relationship. The information may not be accurate, complete, or updated when viewing. and its authors disclaim all liability for any actions taken or not taken based on the content of this site. Always consult with a licensed attorney in your jurisdiction before making any legal decisions. This website may contain links to other websites. We are not responsible for the content, accuracy, or opinions expressed in such websites, and such websites are not investigated, monitored, or checked for accuracy or completeness by us.

Similar Posts