Car accidents can lead to serious physical, emotional, and financial challenges. One of the key concerns for victims is understanding how much they can expect from a car accident settlement. Several factors play a role in determining settlement amounts, including the severity of injuries, medical expenses, lost wages, and the at-fault driver’s insurance coverage.
In this blog, we will explore the key factors that determine how much to expect from a car accident settlement, including the role of injuries, medical expenses, lost wages, and insurance coverage, while highlighting the importance of working with an experienced Alpharetta car accident attorney to ensure you receive fair compensation.
Types of Car Accident Injuries and Their Impact on Settlement Amounts
Car accident injuries directly affect the amount of compensation a victim can expect to receive in a settlement. The severity of the injuries plays a significant role in determining the settlement amount. Below are the key types of injuries and how they influence car accident settlements.
Severe Injuries and Higher Settlements
Severe injuries typically lead to higher settlement amounts. Injuries like spinal cord damage, traumatic brain injuries, and serious fractures can result in long-term medical care, ongoing treatments, and permanent disabilities. These factors significantly increase the value of a car accident claim. The more serious the injury, the greater the potential for a larger settlement to cover medical expenses, lost wages, and pain and suffering.
Minor Injuries and Lower Settlements
Minor injuries, such as whiplash or soft tissue injuries, often result in smaller settlements. While these injuries can still cause pain and require medical treatment, they typically do not lead to long-term health problems. Therefore, the compensation for minor injuries usually covers medical bills and lost wages without adding significant amounts for pain and suffering.
Pain and Suffering Damages
Pain and suffering are a key part of any car accident settlement, particularly when the injuries are severe. This category includes both physical pain and emotional distress caused by the accident. The impact of pain and suffering on a settlement depends on the severity and permanence of the injury. Georgia law allows victims to seek compensation for non-economic damages under O.C.G.A. § 51-12-2, which covers both pain and suffering, as well as emotional distress.
How Much To Expect From a Car Accident Settlement
The severity of an injury plays a large role in determining the settlement. For instance, a broken bone may result in a settlement ranging from a few thousand dollars to tens of thousands, depending on treatment costs and recovery time. In contrast, severe injuries like a spinal cord injury may lead to settlements in the millions of dollars due to lifelong care needs and long-term disability.
Medical Expenses and Ongoing Treatment
Medical expenses are one of the largest factors in determining the amount of a car accident settlement. The costs of immediate medical care and long-term treatment can significantly affect car accident settlements and influence the final settlement amount. Below is an overview of how medical expenses and ongoing treatment impact car accident settlements.
Immediate Medical Expenses
After a car accident, victims often face a range of medical expenses, from emergency room visits to surgeries and hospital stays. These expenses are typically covered in a car accident settlement. The cost of immediate medical treatment is a critical factor in calculating the total value of the claim. Insurance companies generally consider the total cost of care when determining the settlement amount.
Ongoing Medical Treatment
For some car accident victims, injuries require ongoing treatment, including physical therapy, follow-up doctor visits, and long-term care. The need for continued medical care can increase the value of a settlement. Settlements often account for future medical expenses to ensure victims can receive necessary treatments without financial hardship. Ongoing treatment for severe injuries, such as spinal cord injuries or traumatic brain injuries, can result in substantial settlement amounts.
Impact of Insurance Coverage on Medical Expenses
Insurance coverage plays a major role in how medical expenses are paid. In Georgia, victims of an auto accident can rely on their personal injury protection (PIP) or medical payments (MedPay) coverage, if available, to cover medical bills. Additionally, uninsured motorist coverage (UIM) can be crucial when the at-fault driver lacks sufficient insurance coverage. These types of coverage help ensure that medical costs are covered, even if the other party does not have enough insurance.
Proving Medical Expenses in a Claim
Accurate documentation of medical expenses is essential for a successful car accident claim. Medical records, bills, and receipts must be organized and presented to support the compensation claim. Working with an experienced car accident attorney can help ensure all medical expenses, including ongoing treatment, are included in the settlement demand.
Lost Wages and Loss of Earning Capacity
Lost wages and loss of earning capacity can significantly affect the value of a car accident settlement. The time an accident victim loses from work, as well as any lost income and long-term impact on their ability to earn income, are key factors in calculating compensation. Below is an overview of how these factors influence settlement amounts.
Lost Wages Due to Injury
When a person is injured in a car accident and cannot work, they are entitled to compensation for the wages they lose. Lost wages typically include the income a victim would have earned during the period they are unable to work due to the accident. The amount of lost wages is generally calculated based on the person’s regular earnings and the length of time they were unable to work. This amount is an important part of the car accident claim, especially for individuals with jobs that require physical activity or frequent time at work.
Loss of Earning Capacity
In cases where an injury results in long-term or permanent disability, a victim may suffer from a loss of earning capacity. This means the injured person may no longer be able to earn the same income they did prior to the accident. For example, if a car accident causes a severe injury that prevents a person from performing their job or forces them to take a lower-paying job, this can be factored into the settlement. A car accident lawyer can help assess the long-term impact of the injury on the victim’s career and earning potential.
Proving Lost Wages and Earning Capacity
To prove lost wages, victims need to provide documentation such as pay stubs, tax returns, and statements from their employer. For loss of earning capacity, the victim may need to provide expert testimony, such as vocational assessments or labor market studies, to show how the injury affects their ability to earn a living. Proper documentation is essential to ensure these damages are included in the settlement.
Impact of Insurance Coverage
Insurance companies may dispute claims for lost wages and loss of earning capacity, especially if the injury is not clearly related to the victim’s ability to work. Having a car accident attorney who is experienced in handling these claims can help ensure that lost wages and future earning capacity are accurately calculated and included in the settlement demand.
How Car Accident Settlement Amounts Are Calculated
The calculation of an average car accident settlement is based on several key factors that help determine the fair compensation for the victim. These factors include medical expenses, lost wages, pain and suffering, and the severity of injuries. Below is a breakdown of how car accident settlement amounts are typically calculated.
Medical Expenses and Treatment Costs
One of the primary factors in calculating a car accident settlement is the total cost of medical expenses. This includes all current medical bills for hospital stays, surgeries, physical therapy, and doctor visits. Additionally, future medical expenses for ongoing treatments or surgeries related to the injury are also considered in the settlement amount. The more extensive and long-term the medical treatment, the higher the settlement value.
Lost Wages and Earning Capacity
Lost wages are another significant factor in determining a settlement. Victims are entitled to compensation for the income they lost due to their injuries. This amount is typically calculated based on the victim’s regular salary or hourly wage and the length of time they were unable to work. In cases of long-term or permanent injuries, the settlement may also include compensation for loss of earning capacity, which is based on the future income the victim is no longer able to earn.
Pain and Suffering
Pain and suffering refer to the physical pain and emotional distress caused by a car accident. This includes the pain from injuries, mental anguish, and the impact the accident has on the victim’s quality of life. While pain and suffering are subjective, they are a key component of the settlement. In Georgia, victims can seek compensation for pain and suffering, with the amount determined based on the severity of the injury and its long-term effects.
Property Damage
Car accident settlements also account for property damage, such as damage to the victim’s vehicle. The costs to repair or replace the vehicle, along with any other damaged personal property, are typically included in the settlement. Insurance companies will evaluate the extent of the damage to determine the compensation amount for property damage.
Liability and Insurance Coverage
The amount of liability insurance the at-fault driver carries is another key factor in the settlement. In cases where the at-fault driver has insufficient insurance, victims may need to rely on their own uninsured motorist coverage (UIM) for compensation. Insurance companies will review the policy limits and coverage types to determine the amount they are willing to offer.
Negotiation and Legal Representation
The negotiation process also plays a role in the final settlement amount. Insurance companies often make initial offers that are lower than what the victim is entitled to. An experienced personal injury attorney can help negotiate a higher settlement by presenting evidence of the victim’s losses, including medical bills, lost wages, and pain and suffering.
Contact an Experienced Alpharetta Car Accident Lawyer Today!
If you’ve been involved in a car accident and are unsure about how much to expect from your settlement, our team at Horst Shewmaker is ready to assist you. We understand the complexities of car accident claims and are committed to helping you navigate the process.
Contact us at (404) 400-1175 for a free claim review today!
