You’ve been in a car accident. Somewhere between receiving the hospital wristband and making the phone call to your employer explaining why you can’t come in, one critical question grows more and more prominent in your mind: How much should I get from a car accident settlement? How much money, exactly, do insurance companies owe me?
It’s a fair and pressing question, and the answer won’t come solely from an online search. While this article will provide important information about how your settlement value will be calculated, the truth is that only an experienced car accident lawyer can provide the precise figure you seek. That’s why you should call Alexander Law Group LLP at (408) 289-1776 for a free, no-pressure consultation with our compassionate intake team.
Key Takeaways – Calculating Car Accident Settlements
- Every car accident is unique, and so are the resulting settlements: The proper settlement amount depends on the victim’s injuries, unique damages, the circumstances of the crash, and certain other relevant factors
- Damages don’t stop at medical bills: A fair settlement must include lost income, emotional anguish, psychological distress, rehabilitation costs, and other economic and non-economic impacts
- Insurance policies limit what you’re eligible to collect: The at-fault driver’s coverage—and your own uninsured or underinsured motorist coverage—can shape your options, but insurance policies are not always the only route to compensation
- An experienced lawyer knows what’s fair, and knows how to execute: A capable attorney from Alexander Law Group LLP will calculate your immediate damages and long-term needs, then demand that liable parties pay you a fair sum of money
- Settlement negotiations are a strategic, high-stakes back and forth: Timing, the presentation of documentation, and the compelling presentation of evidence can enhance the effectiveness of our case, and potentially convince liable parties to pay up
- It’s in your interests to reach out to our firm as soon as possible: The sooner you retain us, the less likely it is that deadlines get missed, rights get violated, and a promising claim crashes and burns
The Essential Ingredients of a Fair Car Accident Settlement
A settlement isn’t just about “pain and suffering” or about medical bills. A fair car accident settlement must replace what’s been lost—all of it. Such a fair settlement covers both economic and non-economic damages, two sides of the damage done when motor vehicles collide.
Economic Damages: What Can Be Clearly Measured by Money
These are the financial losses you can calculate on paper in a relatively straightforward manner:
- Medical costs
- Rehabilitation costs
- The cost of transportation to and from medical appointments
- Lost income
- Property damage-related expenses (including any temporary transportation, modifications to your home because of accident-related disability, and other accident-related property costs)
Documentation of these economic damages—bills, statements, receipts—will be critical support for our settlement demands.
Non-Economic Damages: The Less Obvious (But Equally Important) Toll of a Car Accident
Then there’s everything that can’t be tallied on a spreadsheet but weighs just as heavily on your life as your financial damages:
- Pain and suffering, which includes the physical agony and discomfort that car accident survivors often endure
- Loss of enjoyment of life, which can include the loss of your daily routine, hobbies, social life, and other activities that brought you joy before the crash
- Emotional and psychological distress, which might include anxiety, depression, and post-traumatic stress disorder (PTSD)
- Loss of consortium, which is the harm intimate relationships suffer when they or their loved one is in a car accident
Our clients’ damages are arguably the most crucial detail of a car accident case. That is why we go the extra mile to familiarize ourselves with those damages, gather extensive documentation, and work to make our case valuation as accurate as possible.
What Variables Influence How Much You Should Ask For?
When it comes to settlement value, there’s no “average” car accident. There’s only your accident—your injuries, your losses, your future. Your car accident attorney will evaluate each of the details that tend to influence a case value, such as:
The Severity of Your Injuries
Data shows that the more severe a survivor’s injuries are, the more costly the total value of their case is likely to be.
A sprained wrist is not the same as a spinal cord injury. Though a sprained wrist can be painful and certainly worth pursuing compensation for, a spinal cord injury can prevent an accident victim from walking ever again. These kinds of differences matter when calculating a settlement value.
The Duration of Recovery
An injury that heals in weeks affects your life differently from one that takes years. The value of settlements must account for time off work, rehabilitation, future medical care, and other long-term burdens you might shoulder.
The Immensity of Your Injuries’ Impact on Your Daily Life
How much has your accident changed the way you live? Can you return to the same job? Can you pick up your children, cook nightly meals, or drive without suffering pain?
These kinds of questions are critical in valuing your non-economic damages in particular.
The Clarity of Who Is at Fault
California follows comparative negligence laws, which means your compensation could be reduced if you’re partially at fault. However, we often prove that another party is entirely responsible for our clients’ damages.
Understanding the share of fault for an accident is essential when demanding compensation from insurance companies or other parties.
The Details of Insurance Coverage
No matter how strong your case, insurance coverage limits can influence settlement negotiations. Similarly, if the at-fault motorist lacks auto insurance, this fact is immediately relevant to our settlement negotiation strategy.
The Role of Auto Insurance Coverage When Seeking a Car Accident Settlement
Insurance can be both a lifeline and a limiting factor. Our car accident attorneys speak the language of auto insurance policies fluently, and we must consider:
The At-Fault Driver’s Liability Coverage
Every California driver must carry minimum liability coverage. Unfortunately, the minimums—$15,000 per person and $30,000 per accident—might barely cover an ER visit, let alone surgery and long-term rehabilitation.
When your financial losses exceed liability coverage limits, we consider where else we can pursue compensation from.
Your Own Uninsured / Underinsured (UM/UIM) Motorist Coverage
UM/UIM coverage protects you when the at-fault driver’s insurance doesn’t provide enough compensation—or doesn’t exist. Many Californians don’t realize how critical this coverage can be until an attorney helps them use it effectively.
Med-Pay and Collision Coverage
Medical payments coverage (MedPay) and collision coverage can bridge the financial gap while your attorney is advocating for your case. Though MedPay coverage limits are relatively modest, this insurance can help cover emergency treatment and other medical services immediately.
The Role of a Car Accident Lawyer in Determining How Much to Ask For
You can’t assign a value to your own case without knowing the hidden costs of an accident—you don’t know what you don’t know. We do know those hidden costs, and that makes us a priceless resource for you.
Your lawyer’s job will be to establish the potential value of your claim, using evidence, medical experts, and their experience.
How a Lawyer Constructs Your Case Value
- Gathering evidence detailing fault, liability, and your damages
- Calculating the damages you’ve already suffered
- Projecting future needs and related damages
- Calculating the total cost of your economic and non-economic damages
- Negotiating urgently but strategically for for fair compensation
Alexander Law Group LLP has decades of experience handling complex car accident cases across California. Our attorneys—led by Richard Alexander and his team of trial-tested advocates—leverage our knowledge and experience to calculate what’s fair and achievable for our clients.
Who Pays for a Car Accident Settlement?
Knowing who is responsible for paying a settlement can be as important as knowing how much to ask for, and we may seek compensation from:
Insurance Companies
In most cases, the insurer for the at-fault driver pays the settlement. But multiple insurers may share responsibility—yours, theirs, and possibly insurers for other parties, such as an employer whose employee causes an accident while on the job.
Liable Employers
If a delivery driver, company vehicle, or rideshare driver caused your crash, the employer’s commercial policy may apply. These policies often have higher limits and require more complex negotiations.
Manufacturers
Sometimes, the cause isn’t another driver—it’s a defective airbag, a faulty brake system, or a dangerous roadway design. Alexander Law Group LLP has successfully led many product liability cases.
Municipalities
When dangerous road conditions, such as defective traffic signals and blemished driving surfaces, contribute to accidents, municipalities sometimes have to pay for the cost of their negligence.
The At-Fault Individual Driver
An at-fault driver is often personally liable. They may be the party we seek compensation from if insurance limits prevent insurers from paying the full amount of your damages.
How Settlement Negotiations Really Work
Securing a settlement is not as simple as slapping down a number on a piece of paper in front of an insurance representative or another lawyer. This is a multi-step process that typically involves:
- The Demand Letter: This formal letter lays out your injuries, damages, and the settlement amount you seek. It’s supported by documentation, including medical opinions and witness statements.
- The Offer and Counteroffer: Insurers typically start with a low offer—sometimes insultingly low. Your attorney’s job is to respond with serious, evidence-backed counteroffers.
- Mediation or Arbitration: Many cases settle after both sides agree to compromise with the help of a neutral mediator. This can be an effective strategy, but in some cases, we are more insistent on receiving the entire sum we demand.
- Litigation: If the insurer refuses to be fair, your lawyer will prepare for trial. Our lawyers’ readiness to go to court often motivates liable parties to offer higher settlements before the first gavel cracks.
Attorney Richard Alexander and his team are known statewide for their impressive trial results. Insurers know that when Alexander Law Group LLP represents a client, lowballing is never a successful strategy.
Frequently Asked Questions
When our clients have the answers they need, they have peace of mind. That’s why we proactively present some questions and answers we often hear from car accident survivors:
1. How long does it take to get a car accident settlement?
Every case is different. The timeline varies based on the complexity of your injuries, the clarity of liability, and whether the insurance company negotiates fairly. The more serious your injuries and the more extensive your damages, the longer the process may take. Even so, we’ve found that patience often pays off.
2. Do I have to go to court to get a fair settlement?
Not necessarily. Most car accident cases settle before trial. However, having a firm like Alexander Law Group LLP, which is known for winning at trial, often convinces insurers to offer fair settlements earlier rather than risk losing in court.
3. How much does it cost to hire Alexander Law Group LLP?
There are no upfront costs, and we cover case-related fees. This is called a contingency fee, and it means we must recover compensation to earn our fee. This arrangement also means minimal stress for car accident survivors like you.
Don’t Wait—Call Alexander Law Group LLP Today to Discuss Your Car Accident Settlement
California law gives car accident victims a limited time to file a claim—usually two years from the date of injury. Should you miss that deadline (for any reason), you could lose your right to secure any compensation. At that point, liable parties have all the leverage.
In other words, it’s vital to contact a lawyer as soon as possible after your crash. Early involvement allows your legal team to preserve evidence and take over communications with insurers, who may be urgently trying to lowball you.
Call Alexander Law Group LLP today at (408) 289-1776, or contact us online for a free, confidential consultation. There’s no fee unless you win—and no better time to start your case than right now.
