Vehicular accidents can leave victims and their loved ones with substantial medical expenses and other damages that might take a long time to recover.
In 2021, the number of medically consulted car crash injuries in the U.S. (United States) was 5.4 million. Moreover, a National Safety Council report stated that motor vehicle crashes in 2021 cost a staggering $498.3 billion.
Suppose you were involved in a car accident. In that case, injuries and vehicle damages are some of the costs you must consider. Even if you are covered by insurance, sometimes, you want the at-fault party to be responsible for the situation.
Filing a vehicular accident injury claim is one way to recover from your expenses. But how do you do it? If the accident occurred in California, how much can you expect to recover from a settlement? What factors can affect the total amount of damages you could receive?
This write-up sheds light on these questions and provides valuable tips on settling your car accident injury claim. It also discusses what and what not to do if you were involved in an accident in California.
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Average Car Accident Settlement Amounts in California
A recent U.S. data report shows that vehicular accident cases have an average amount of $21,000, most of which are between $14,000 and $28,000.
However, these figures do not reflect the amount for any specific case since the value of a claim relies on various factors. Here are some factors that might affect the value of your settlement claim:
- The nature and severity of your sustained injuries
- Property damages
- Long-term damages or disabilities
- Negligence on the part of the defendant
The Average Personal Injury Case Is Settled Out of Court
According to a recent study, only 2% to 3% of California personal injury claims are settled with a jury trial.
Cases with plenty of evidence are more manageable to settle without going to a legal proceeding. Usually, cases requiring a jury trial have complicated issues that cannot be worked around within California’s statute of limitations.
A statute of limitations states the maximum time the parties involved in a car accident must initiate legal proceedings from the date of an alleged offense. California’s statute of limitation for a personal injury settlement claim is two years from the accident date.
What Is the Minimum Settlement for Car Accidents in California?
Most states, including California, do not have a minimum settlement amount for injury claims. This means that the amount you could receive differs based on the circumstances of the case.
What to Do if There Is an Accident
After a vehicular accident, you may be confused about what steps you should take.
You should contact a personal injury lawyer as soon as possible to compile documents and deal with insurance companies swiftly. You must also report the accident to your own insurance company.
What Not to Do and What You Should Know About Obtaining a Car Accident Settlement
A mistake that car accident victims usually make is accepting the initial offer given to them by the insurance company. Often, the amount needed to cover losses goes beyond these offers.
For instance, the injuries sustained by the victim might require surgery or prolonged treatment. If the case is settled too soon, the victim cannot seek compensation for costs related to their succeeding treatment, and they would have to pay for their future medical bills on their own.
Vehicular Accident Settlement Agreement and Insurance Claim Settlement
In California, both parties involved in a car accident settlement must sign a Section 1542 waiver designed to protect individuals from denied rights to claims they aren’t aware of.
If you seek settlement for your accident, the insurance company may offer a lump sum that frees it from future liabilities for your sustained injuries. Accepting the lump sum means you forfeit your right to pursue further claims related to the incident.
Car Accidents by Settlement Types
The type of vehicular accident you were involved in plays a role in determining your settlement amount. Some accidents translate to major injuries and property damage. These types of car accidents typically result in significant settlement amounts.
Minor Car Accidents
Fender-benders and other minor car accidents could also result in injuries and car damage. In a minor car accident, settlement amounts average about a few thousand dollars. These settlements are rewarded to help victims pay for medical treatment and car repairs.
Rear-End and T-Bone Car Accidents
Rear-end and T-bone car accidents typically lead to more severe injuries. These accidents often occur at street intersections and are caused by distracted drivers.
The settlement amount for rear-end and T-bone accidents can range from $100,000 to more than a million dollars, depending on the accident’s severity.
Head-on Collisions
Similar to rear-end and T-bone accidents, head-on collisions could also cause severe or even fatal injuries. This type of crash usually happens because of overspeeding. In most cases, settlement amounts for head-on collisions are higher than for side-impact hits.
Passengers and Children
Aside from the driver, the passenger can also adversely affect your settlement if it is proven that they acted negligently. Contrastingly, passengers are also eligible for settlements if they sustain injuries in a car crash.
On the other hand, when a child is injured in an accident, you may be entitled to more damages in your claim. This is because of the added expenses for their medical care and the emotional trauma the incident caused.
Average Car Settlement Payouts by Injuries
In 2019, the number of injuries caused by an accident nationwide was 4.5 million. Additionally, in 2020, the average settlement for those injured in an accident was $29,700.
To receive economic damages, you have to prove the injury resulted from the accident. Those who have pre-existing injuries that were made worse by the car accident will most likely have a more challenging time proving their case.
Back and Neck Injuries
Back and neck injuries can range from simple muscle strains to life-threatening spine damage. Moreover, even a minor strain on your neck or lower back can lead to chronic pain and whiplash, making it difficult for you to live a normal daily life.
Accidents that cause spinal cord injuries are typically rewarded with a significant amount of compensation. California’s median for back and neck injury settlement is $10,885.
Soft Tissue Injury
A soft tissue injury includes damage to your tendons, ligaments, or muscles. More serious soft tissue injuries may require prolonged physical therapy or even surgery. The medical costs for these procedures should be added to the value of your settlement.
Herniated Disc
A herniated disc occurs when the tissue between your vertebrae is damaged. Herniated discs cause severe neck pain or pain that may affect your mobility.
Often, the recovery from a herniated disc injury is slow and will require intensive physical therapy or surgery. California’s median disc injury award is $84,550.
Shoulder Injury
Shoulder strains or rotator cuff (the muscles and tendons holding your shoulder in place) injuries are relatively common in vehicular accident cases. Like other types of injuries discussed, you can be compensated for these medical costs in your settlement.
Car Accident Settlement Process
Most vehicular accident cases are resolved through settlements rather than a court trial. Filing a lawsuit includes many complex steps before you can receive compensation for your case. Either way, working with a car accident attorney is advisable.
Car Accident Lawsuit Process
As discussed, California has a 2-year timeframe for you to file a lawsuit for your injuries. Suppose your case has a public entity defendant. If so, you must submit a claim form with the public entity’s office and file a lawsuit within six months of their denial letter.
All claims against public entities are initially denied, forcing you to take legal action as a recourse. Often, these cases enforce strict administrative guidelines that you must adhere to.
Once a lawsuit is filed, it must be served upon all defendants. After the lawsuit is served, the defendants have approximately 30 days to file their responses.
When the defendants have filed their answers, the discovery process commences. Discovery questions are answered and exchanged, then oral depositions of witnesses and parties are taken. After that, expert discovery is conducted for the case’s trial preparation.
Before a case proceeds to a trial, both party’s legal teams typically try to settle the case at mediation. Mediation is a non-binding conference where lawyers exert their best efforts to get a favorable resolution for their clients.
If the case is settled, the lawsuit ends and is dismissed. However, if the case does not settle, it will be worked up for trial preparation, especially if serious damage issues and liabilities exist.
Car Accident Court Process
As discussed, most motor vehicle accident claims are settled out of court because the trial process takes a long time to finish. Also, cases involving jury trials have smaller awards compared to how much a victim can gain through settlements.
Car Accident Claim Process
The claim process for a car accident case starts with gathering evidence and other relevant information to support your claim. This includes treatment receipts, medical records, accident photos, the injuries you sustained, and witness testimonies.
The information and evidence you have gathered must be included in your demand letter to the insurance company. It should describe your injuries and the damages you want to recover.
Once your claim is accepted, the insurance company will give you a settlement offer. You can negotiate with the insurance company until you agree to the settlement amount.
However, suppose the insurance company denies your claim. In that case, you won’t receive a settlement offer and will have to either appeal your case or take it to court.
Factors That Might Affect Settlement Value
The amount you can receive as a settlement will vary depending on many elements. The following subtopics will discuss some key factors that could affect your settlement.
Accident Victim’s Statement and Actions After an Auto Accident
Suppose you were the victim of a car accident. In that case, your statements and actions after the accident significantly determine your injury claim amount.
For instance, if you tell first responders that you feel fine after the crash and failed to seek medical care for several days, an insurance company can argue that the accident didn’t cause your injuries.
If you apologized to the other party for the crash, the insurance company might allege that you admitted fault.
Also, remember that if you speak to the other driver’s insurance company or agree to give a formal statement, the insurance company can say something that the adjuster can use to deny or lowball your claim.
Insurance Coverage Availability
California’s law states that all drivers must carry a minimum amount of $15,000 per person and $30,000 per accident as bodily injury liability. Moreover, there is also a minimum requirement of $5,000 for property damages.
Suppose the other driver is responsible for the crash and has minimum insurance coverage. In that case, the most you could receive from the insurance company is $30,000.
On the other hand, underinsured motorist coverage can compensate you for damages when the other party’s insurance coverage cannot fully cover the claim. Underinsured motorist coverage is an optional policy you can purchase with the liability insurance policy.
Severity of the Injuries
Vehicular accident injury claims that result in severe injuries often result in larger settlements because such injuries require intensive medical care and rehabilitation. Some examples of catastrophic injuries are:
- Spinal cord trauma
- Internal injuries
- Limb amputations
- Brain injuries
Medical Bills
If your sustained injuries were severe, then most likely, your medical bills will be higher as well. The value of your accident settlement could be determined by the following:
- If you require ongoing medical care
- If your wounds resulted in scarring
- Your age
- Your disabilities
Circumstances of the Accident
The negligence of the other party can also increase your settlement. For instance, if the other driver was driving under the influence of drugs or alcohol, that makes the case egregious.
You may also be granted punitive damages in some cases. Punitive damages are separate from compensatory damages and are typically given if the defendant is negligent or was involved in wrongdoing during the accident.
Lost Wages
If your injury restricts your ability to work, your lost wages should be factored into your settlement. The impact of your injury on your work, your capacity to earn, and your ability to make a livelihood must all be considered when determining a settlement amount.
Evidence
In most cases, if your evidence is strong, your settlement will also be higher. This is because the other party will know they cannot win against you should the case go to a court trial.
Future Expenses
Future expenses are paid if you sustain a disability or a permanent impairment from a car accident.
Calculating future damages can be challenging. Many factors can affect the value of these damages, such as income loss, experience, cost of care, and life expectancy.
Financial Damages
Financial damages include any expense related to a car accident. If you’re a victim, your injuries can be included in the computation for monetary damages.
Here are some common examples of financial damages:
- Physical, occupational, and other types of therapies
- Household chore assistance
- Personal care costs
- Medical expenses
- Loss of income
- Transportation expenses to medical appointments
- Medical supplies
Remember that documenting financial damages is a must to ensure that all can be included in your claim.
The Insurance Company
Some insurance companies will attempt to undervalue or outright deny your accident claim. In these cases, seeking expert legal advice from a personal injury attorney is advisable.
Noneconomic Damages
Aside from the financial damages you sustain, other repercussions, called noneconomic damages, can affect your settlement value. Examples of noneconomic damages are the following:
- Physical pain
- Emotional trauma
- Loss of life’s enjoyment
Factors That Bring Down the Value of a Settlement
Several factors can reduce your case’s value and the settlement you could receive. The succeeding subtopics will discuss these factors.
Shared Liability
Determining which party is responsible for the accident is a significant factor when calculating the value of your settlement.
In some states, including California, you could make a claim even if you were partially at fault. California’s comparative negligence rule means the percentage of your fault will reduce your settlement.
For example, if your personal injury case is worth $100,000, and you have contributed 20% of the fault, you would receive 80% of the case value or $80,000.
Insurance Policy Limits
An insurance policy has a limit to the amount it will compensate a car accident victim. The insurance policy limit is a fixed factor that you cannot manipulate.
Low insurance policy limits will barely cover your X-ray and ambulance ride expenses. California’s minimum liability coverage is $15,000, which isn’t much.
Uninsured Motorists
If the other driver is uninsured, this could pose another problem to your settlement claim. In such cases, your recourse is to look into your underinsured motorist coverage.
However, using your underinsured motorist coverage means your settlement amount may be lower because there is no insurance coverage for the damages.
Some Valuable Tips to Help You Maximize Your Car Accident Settlement
Here are some actions you can take to potentially increase the value of your car crash settlement:
- Get prompt medical attention and document your injuries
- Keep a copy of your employment records, such as pay rate statements, time sheets, and paystubs
- Do not settle for a lowball offer
- Do not forget future expenses
- Do not post your accident or injuries online
What if I Was Partly to Blame for the Vehicular Accident?
The rules for shared fault in a car accident differ depending on where the incident happened. In most states, the share of compensation might be lowered based on the percentage of fault.
For some states, you may even be barred from recovering any compensation if you were at fault for more than half of the damages.
A shared fault occurs when you are partially to blame for a vehicular accident. States have different solutions for shared fault incidents, but all require a jury to hear the case at trial.
As mentioned, California applies the comparative negligence principle. The jury will examine all the evidence presented in an injury claim resulting from the car accident and determine the percentage or degree of negligence of all parties involved. The amount you can collect from the other party will depend on the percentage of negligence attributed to you.
Will the Insurance Company Pay for the Car Accident Claim?
Yes. The car insurance company does pay the settlement. However, the at-fault driver’s insurance coverage will also significantly affect your recovery.
The insurance company will cover the settlement or verdict if the responsible party was insured within an appropriate amount. However, if the driver at fault was not insured with liability insurance, they must pay using their money.
In a personal injury case resulting from a car accident, the most optimal outcome for you is if the at-fault party’s insurance coverage is worth more than the total legal damages.
What Damages Are Accident Victims Entitled To?
Car crash victims in California are eligible for many types of damages, depending on the accident’s circumstances. Common types of damages are the following:
- Economic damages are compensation for financial losses, such as property damage, lost wages, and medical fees.
- Noneconomic damages are non-financial losses, such as emotional distress, pain and suffering, and loss of life enjoyment.
- Punitive damages are compensation in the form of punishment for the at-fault driver’s negligent or intentional conduct that resulted in the accident.
The Final Factor: The Quality of Your Attorney
An integral factor when determining the value of your case is the quality of the lawyer you hire. Find the best personal injury attorney to ensure the insurance company is held responsible for the damages and no expense is overlooked.
Should you need a lawyer well-versed in personal injury cases, PersonalInjuryLawyerSearch.org is your one-stop site.
Use the website’s search tool to find an attorney anywhere in the U.S. and learn about accidents, injuries, state laws, and other legal matters. Some even offer a free consultation for your case.
Car Accident Settlement Stories: What Are Some Examples of Car Accident Settlements in California?
Car accident settlements differ on a case-to-case basis. You can find true-to-life settlement stories online to help you learn more about insurance claims cases that might be similar to yours.
What Are Some Examples of Settlements for a California Car Accident?
Listed below are some examples of car accident cases and their respective settlement amounts:
- Case A: A woman suffered a herniated disc in an accident at a busy intersection. Following a spinal fusion surgery, she received a settlement of $230,000.
- Case B: A California-based law firm obtained an eight-figure settlement involving a motorcycle accident where the victim suffered life-altering injuries.
- Case C: A $150,000 wrongful death settlement was attained after a man was hit by a garbage truck, resulting in his immediate death.
- Case D: In Brentwood, a woman suffered severe injuries after an SUV (sport utility vehicle) struck her scooter. Her car accident lawyer proved that the other party was entirely responsible for the accident, and she was awarded $100,000 as compensation.
Frequently Asked Questions
1. How long does it take to secure a car accident settlement?
The time it takes to secure a car accident settlement depends on various factors. If you have serious injuries, settling your case could take a while. According to a survey, receiving a car accident injury claim takes about a year.
2. Why is my car accident settlement taking so long?
A car accident settlement often takes so long because the insurance company must determine negligence and fault first. Police reports can sometimes take a while to file, and your car accident lawyer must gather enough evidence to support your claim.
3. Do I need to undergo physical therapy to receive a settlement?
No. You can receive a settlement even if you haven’t sustained any injury in your accident. If you are injured and need physical therapy, the treatment cost must be factored into your settlement value.
4. Will my case go to court?
Most likely, no. Only 2% of successful car accident claims cases went to trial. Most vehicular accident cases are settled out of court since a jury trial involves a lot of time and effort.
5. How can I get more money from a car accident settlement?
Seek immediate medical assistance and contact a personal injury attorney immediately. Document all receipts and records that show your property damage and sustained injuries. Lastly, don’t accept the first settlement right away. Use it to negotiate for a fair settlement amount.
6. Is my car accident settlement taxable?
Injury-based settlements are often not taxed. On the other hand, wage-based settlements are taxable. The IRS (Internal Revenue Service) imposes strict guidelines on what settlements are part of your income and are taxable.
7. What is the average payout for whiplash injury in California?
Mild to moderate cases of whiplash in California are typically valued from $5,000 to $25,000. Slightly more severe cases involving therapy or surgery may have compensation between $30,000 and $100,000.
References
- Typical Car Accident Settlement Amounts (2023)
https://www.forbes.com/advisor/legal/auto-accident/typical-car-settlement-amounts/ - Property damage cases
https://selfhelp.courts.ca.gov/civil-lawsuit/property-damage - Filing an Auto Claim with the Other Party’s Insurance Company
https://insurance.utah.gov/consumer/auto-home/auto-insurance/third-party-auto-claim - Non-Injury Vehicle Collisions
https://www.nyc.gov/site/nypd/services/vehicles-property/non-injury-vehicle-collisions.page