How much will my car accident settlement be?

This is a very common question car accident victims ask and there is no easy answer.

The reason why there is no easy answer is because everyone’s case is different. How did your accident happen? Who caused it? What injuries do you have? How much are your medical bills? Who is the insurance company paying the settlement? There are many questions that need to be answered to find out what your settlement should be, and even then, you are more so trying to figure out an estimate, as nothing is guaranteed in this industry.

To get as close as you possibly can in figuring out how much your car accident settlement should be, here are 10 steps to help:

*Before you read these 10 steps, keep in mind, these steps are for someone who has already received a liability acceptance from the insurance company(s). If you are still trying to prove your innocence and/or get an insurance company to accept responsibility, we recommend you read our article and/or watch our video “DO I HAVE A CAR ACCIDENT CASE?” .

1. HOW MUCH PROPERTY DAMAGE DO YOU HAVE?

Although Property Damage is an unfounded causation in Texas, it doesn’t mean that Insurance companies don’t use it to evaluate your settlement anyway. The fact is, if you have a lot of property damage, you likely have shock value photos, and if you have shock value photos, the insurance company does not want a jury to see them down the road. They would much rather settle your case instead of having a Law Firm file a lawsuit. Furthermore, insurance adjuster’s are much more understanding with the treatment you received if you have a lot of property damage to back it up.

2. WHO IS THE AT FAULT PARTY INSURANCE COMPANY(S)?

The first thing to understand is the primary goal of the insurance company is to save money, and some adjusters even get bonused on their paychecks if they can help their company do exactly that. Insurance companies try to save money by calculating their risk. In other words, if they decide to offer you a specific amount of money for your settlement, they want to know what is the worst that can happen to them if you don’t accept it. With that said, not all insurance companies are the same. Some insurance companies are more generous than others because they would much rather settle cases and move on, instead of possibly having to spend even more money by defending their insureds in court. On the other side of that, some insurance companies are very stingy with their settlement offers because they believe in the end, most of the public will accept it, and if they don’t, they only suffer the consequences every now and then in a court room. Of course with this strategy, insurance companies have to spend a lot of money on Lawyers to defend their insureds. Which insurance company are you dealing with? Talk to a Car Accident Expert about it by answering the 5 questions on our HOME PAGE.

3. HOW DID YOUR CAR ACCIDENT HAPPEN AND WHO CAUSED IT?

Were you involved in a minor rear end accident caused by a driver who has a clean driving record OR was your vehicle totaled after a drunk driver ran a red light? As you can see, these are two different types of accidents and people involved. If you are involved in a bad accident where the driver has a history of accidents or was breaking the law at the time, the insurance company involved will be much more prone to giving you a higher settlement offer.

4. WHAT KIND OF INJURIES DO YOU HAVE?

This is one of the biggest factors that can change the value of your case. It is a pretty simple understanding. The more injuries you have, or the more severe your injuries are, the higher your settlement should be. On the other side of that, if your injuries are minor, you will likely receive a much lower offer from the insurance company.

5. HOW MUCH REASONABLE AND NECESSARY MEDICAL TREATMENT DID YOU GET FOR YOUR INJURIES?

How many injuries you have and how severe they are absolutely make a difference in your settlement, BUT it is also extremely important you get the medical treatment necessary for those injuries. If you do not get the medical treatment you need for your injuries, the insurance company will likely not take your injury complaints seriously. If the insurance company does not take your injury complaints seriously, your offer will be much lower.

6. WERE YOUR MEDICAL RECORDS PROPERLY DOCUMENTED?

Similar to #5, not only do you need to receive reasonable treatment for your injuries, BUT you also need to make sure your medical records are properly documented. The best way to do that is to make sure the Doctors involved in your case regularly treat car accident victims. These types of Doctors understand the treatment you need for your injuries and what the insurance company expects to see on the medical records. If you need help finding a Doctor who regularly works with car accident victims, answer 5 questions on our HOME PAGE and a Car Accident Expert will reach out to you.

7. HOW MUCH ARE YOUR REASONABLE AND NECESSARY MEDICAL BILLS?

The amount of your medical bills can drastically change how much your settlement should be. The fact is, most of the time, the higher your medical bills are, the higher your settlement offer will be. That said, it is important that the treatment you received was reasonable and the medical bills themselves are also reasonable. Furthermore, this also means if you use health insurance instead of paying full price to the medical provider, it can absolutely change the value of your case.

8. HOW MUCH COVERAGE AND POLICY LIMITS ARE AVAILABLE?

A very unfortunate reality in the car accident industry is that not all car accident victims receive a settlement that truly values their case. One way this happens is when the insurance company who is supposed to pay the settlement does not have enough policy limits to cover the value of the case. For example, lets say you have $100,000 in medical bills but the driver responsible for paying your car accident settlement only has a Minimum Limits Policy of $30,000. In this situation, the insurance company only has to offer the $30,000 on their insured’s policy which leaves the car accident victim still owing $70,000. The next step for the car accident victim is to see if they have extra coverage on their own policy to see if they can get another settlement to help cover their damages. The most common type of insurance coverage that accident victims use in a situation like this is Uninusured / Under-Insured BI Motorist Coverage. As it states in the name, “Under” insured coverage protects you in case the at fault driver does not have enough coverage to cover the value of your case. All that said, it is also important you review the BONUS step below that talks about reducing your medical bills. If you answer 5 questions on our HOME PAGE a Car Accident Expert can discuss this with you further.

9. HOW DID THE CAR ACCIDENT EFFECT YOUR LIFE?

Two people may just about have the same injuries, but what if one of them is effected more than the other? For example, they may both have lower back pain but one of them has a labor job, loves to work out and has 5 kids that requires him to use his back much more, where the other victim has no job, does not enjoy exercise and has no children. Another example could be two accident victims who received scars on their legs. One of them sees their scars as a cool story to tell and badges of honor, but the other one has developed deep insecurities, lack of confidence and can never wear shorts or a skirt again because they are extremely uncomfortable while in public. Some people handle car accidents well. They move on with their lives right away. Others develop depression. Some have major set backs in life. Some lose their jobs. People are effected in many different ways after being in a car accident and Texas Law says they need to be compensated for the joys of life that were stolen from them. It is extremely important you present this part of your case the right way. Answer 5 questions on our home page to have a Car Accident Expert reach out to you today. They will be able to answer any questions you have and can get you set up with a Lawyer who is best for you.

10. DO YOU HAVE A LAWYER?

Would you cut your own hair? Would you hire a receptionist to fix your electric? If your house was on fire, would you call a plumber? As you can see above, there are many different variables that weigh into the value of your case and it will be up to you or a Lawyer to make sure you execute all of the above steps properly to get compensated fairly. The insurance company is not going to help you. They are not going to be honest with you and tell you everything you need to know to get what you truly deserve. Regardless of how nice they may sound, their primary goal is saving their company money. Good Lawyers understand how the law is set up in Texas and know how to use it to your advantage. Furthermore, even if you know everything there is to know about car accident law in Texas, the fact remains that the insurance company is not going to take you seriously because you are not a Lawyer. When an insurance company sees a Lawyer on the other side that has proven again and again that he or she is successful when representing car accident victims, they will be more prone to offering a much higher settlement offer. Lawyers also have the ability to reduce your medical bills and legal fees if they need to, to make sure you walk away with a fair settlement. If you are represented by the right Lawyer, you will walk away with more treatment and a higher offer than you ever would on your own, even with the legal fees coming out of the case. Answer 5 questions on our home page to talk to a Car Accident Expert about moving forward with a Lawyer.

BONUS – ARE YOU ABLE TO REDUCE YOUR MEDICAL BILLS?

If you are able to reduce your medical bills, you will walk away with more money in your pocket. A common industry practice is for the accident victim or the Law Firm to get the highest offer they can on the table, and then go back and reduce the medical bills to make the numbers work. For example, lets say you have $20,000 in medical bills and a $25,000 offer on your case. At those numbers, there is $5000 more than the medical bills. However, the Lawyer can then go back to your medical providers and request they take a lower amount. For this example, lets say the medical providers reduce their bills down to $12,000. This means the car accident victim went from $5000 to $13,000 over the medical bills which increases the car accident victim’s settlement. I have worked plenty of cases where the medical bills are reduced even more than that. It’s important you talk to a Car Accident Expert today to find out how they can help you reduce your medical bills before the insurance company pays them.