How Much is My Car Accident Settlement Worth?

Insurance companies calculate total loss ratios to ensure they remain profitable. A high loss ratio means the insurance company is probably making losses and might fight to ensure you get less than what you deserve. As such, it’s important that you get a rough idea of the compensation you deserve to avoid getting tricked into accepting a lower offer.

There’s no sure way of determining what your accident settlement is worth. That’s because it depends on several factors, some of which are beyond your control. Keep reading to learn how to estimate your settlement and examine the factors determining your settlement amount.

What Is the Average Settlement Payout for Car Accidents?

The average settlement payout for car accidents in 2020 was between $20,000 and $25,000 for both injuries and property damage. Considering inflation, this range could be higher in 2024.

That said, the average settlement payout doesn’t mean your settlement will fall within that range. In some instances, you can go home with triple the range amount or nothing at all. It all depends on how you approach the claims process and the legal expert handling your claim.

Factors Affecting Your Car Accident Settlement Amount

Several factors affect how much settlement you’re eligible for after a car accident. Some of the most notable ones include:

Severity of Injuries

The more severe your injuries are, the more you’ll receive in settlement. Severe injuries take longer to treat, and the treatment is more expensive. It also means you’ll stay longer out of work compared to when you have less severe injuries. Insurance companies will pay more for severe injuries to cover medical expenses and living costs while you’re out of work. Some injuries may also require long-term care and rehabilitation.

Examples of severe injuries that attract hefty settlements include:

• Spinal cord injuries
• Traumatic brain injuries or concussions
• Internal organ damage

Property Damage

The extent of damage to your personal property, including your vehicle, is also important in determining your settlement amount. For instance, a minor fender bender will attract lower compensation amounts than a full head-on collision that damages the car’s engine and other critical components.

It’s worth noting that property damage could also mean damage to property outside of the car. For instance, if a vehicle crashes into your garage or damages valuable items inside your car, the driver will be held responsible for the damages.

Degree of Fault (Liability)

Missouri observes a pure comparative negligence law. According to this law, both parties involved in a car accident will be assigned a percentage of fault. They’re then eligible to recover damages, but the damages will be reduced proportionally to their degree of fault.

Let’s say you get involved in an accident that was 30% your fault and 70% the other driver’s fault. Under Missouri law, your compensation will be reduced by 30%, meaning you’ll only get 70% of the original compensation amount.

It’s also worth noting that you—the aggrieved—must prove that the at-fault party neglected their duty of care and is therefore liable for the accident. To prove that, you must:

• Show that the at-fault party owed you a duty of care.
• Show that the at-fault party breached this duty of care through reckless driving, DUI, or other forms of wrongdoing.
• The breach of their duty of care led to injuries and property damage.
• You suffered the said injuries and had your property damaged.

Proving negligence is easier said than done, especially when the insurance company puts up a strong defense against you. That’s why it is important to seek the help of a qualified and experienced attorney to help you with the case. 

Lost Income and Earning Potential

In cases where you’re too injured to go to work, the at-fault party’s insurance company will compensate you for your lost wages. This means the longer you stay out of work, the higher your settlement. Similarly, the higher your pay, the higher your compensation.

There’s also the possibility that your injuries could prevent you from advancing your career or getting a better-paying job in the future. In this case, the insurance company must compensate you for any future missed opportunities and your diminished earning potential.

How to Calculate Car Accident Settlement Amount

Here are steps that you can follow to get a rough estimate of your compensation amount:

Calculate Economic Damages

According to Missouri law, economic damages refer to financial losses you incur following a car accident. You can quantify these damages because they involve tangible losses. Examples of economic damages include:

• Medical expenses
• Property damage
• Lost wages
• Loss of earning potential

Calculate Non-Economic Damages

Non-economic damages are damages that you cannot assign a monetary value to. These are usually subjective and harder to calculate. They include:

• Pain and suffering
• Loss of enjoyment of life
• Loss of consortium
• Emotional distress
• Disfigurement and disability

Punitive Damages

The court may award punitive damages to the victim if the at-fault party showed disregard for the victim’s safety and well-being. For instance, if the at-fault driver fled the scene after the accident despite seeing that the victim was clearly hurt. 

Common punitive damages are the following:

• Driving under the influence (DUI)
• Driving without a license
• Gross negligence
• Malicious intent

Adding the economic, non-economic, and punitive damages should give you a rough estimate of your settlement’s worth. If you find it hard to come up with these figures, you can ask your attorney to help you crunch the numbers for a more accurate estimate.

Get the Compensation You Deserve

There’s no certain way of working out the exact value of your settlement, but the information above should help you come up with a range of what to expect. Remember, Missouri has a statute of limitation for car accident claims. You have up to five days to report your car accident before your claim is void.

If you find the claims process too complicated for you to handle, you should hire a reputable car accident or personal injury attorney to help with the claims process and get you the compensation you deserve.

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