Many people ask after a motor vehicle collision: “What is the average settlement of a car accident case?” This question arises from the need to understand the financial implications of an accident, the potential for compensation, and the next steps to take. While each case is unique and settlements vary, exploring the concept of the average settlement of a car accident case can provide valuable insight.

The quick answer to the question posed is it mostly depends on the severity of injuries, followed by the amount of damage to the vehicle, and lastly the amount of insurance (policy limits) available. With that in mind, based on our experience and data from various reputable sources (Insurance Information Institute, Lawyers.com, Forbes), the average settlement of a car accident case in Maryland is between $8,000 – $17,000 when you exclude extreme outlier settlements.

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Decoding the “Average Settlement of a Car Accident Case”

The concept of the “average settlement of a car accident case” can be misleading. An average is calculated by summing settlement amounts from various cases and dividing by the total number of cases. However, this number may not reflect the vast range of settlement values and could misrepresent what to expect in an individual case.

Why “Average Settlement of a Car Accident Case” Figures Can Be Deceptive

A simple average does not necessarily predict what you will receive for your car accident case. Several factors influence this, including:

Wide Range of Case Values: Settlements range from small amounts in minor fender-benders to multi-million-dollar awards in catastrophic injury or wrongful death cases. Averages lump all these cases together, potentially skewing expectations.
Influence of Outliers: Large settlements from severe injury cases can inflate the average, making it seem higher than what is typical for less serious accidents.
Confidentiality of Settlements: Many settlements are private, meaning available data may not represent all cases accurately.
Geographic Variations: Settlements can vary by location due to state laws, jury tendencies, and cost of living differences. The average settlement of a car accident case in one state may differ significantly from another. Additionally, states have different laws that cap how much can be recovered in the most severe of car accident cases.

Factors That Impact the Average Settlement of a Car Accident Case

Instead of focusing solely on a potentially misleading average, it is more useful to understand the factors that cause settlements to deviate above or below reported figures.

Example Settlement Ranges

While settlements can vary widely, here are some general estimates:

Minor injuries (soft tissue injuries, no long-term impact): $5,000 – $15,000
Moderate injuries (broken bones, longer recovery time): $15,000 – $30,000
Severe injuries (permanent disability, traumatic brain injury, spinal cord damage): $100,000 – $1,000,000+
Fatal accidents (wrongful death claims): $500,000 – $1,000,000+ (Maryland has a limit on noneconomic damages of ~$950,000 currently)

These numbers are approximate and depend on individual case factors such as medical expenses, lost income, and pain and suffering.

Injury Severity and Its Impact on Settlements

Injury severity is the most significant factor affecting the average settlement of a car accident case. More severe injuries typically result in settlements far above the average due to:

Higher Medical Costs: Extensive medical treatment increases settlement values and skews averages upward.
Lost Income and Disability: Severe injuries may lead to substantial lost wages and long-term disabilities, significantly increasing economic damages.
Pain and Suffering: Non-economic damages for pain and suffering can be much higher in serious injury cases.

Conversely, minor injuries generally lead to settlements below the average.

Liability Disputes and Their Effect on Settlement Averages

Establishing fault is another major factor influencing the average settlement of a car accident case. If liability is unclear, settlements may be lower due to:

Contested Fault: Insurance companies may resist offering large payouts if liability is uncertain.
Comparative Negligence: In some states, compensation is reduced based on the claimant’s share of fault, bringing settlements below the average. However, Maryland is a contributory negligence state.

Insurance Policy Limits and Settlement Caps

Even when damages are substantial, insurance policy limits can cap settlement amounts, impacting the average settlement of a car accident case:

Policy Limits: If the at-fault driver carries minimum coverage, the maximum recoverable amount may be restricted.
Uninsured/Underinsured Drivers: If the at-fault driver lacks sufficient coverage, the settlement amount may be lower unless the claimant has uninsured motorist coverage.

Uninsured and Underinsured Motorist Claims

If the at-fault driver lacks insurance or carries insufficient coverage, the injured party may need to file an uninsured motorist (UM) or underinsured motorist (UIM) claim through their own insurance policy. Here’s how these claims impact settlements:

Uninsured Motorist (UM) Coverage: If the at-fault driver has no insurance, your UM policy will cover damages up to your policy limits. This includes medical expenses, lost wages, and pain and suffering.
Underinsured Motorist (UIM) Coverage: If the at-fault driver’s insurance policy is insufficient to cover your damages, your UIM coverage can compensate for the difference, up to your policy limits.
Hit-and-Run Accidents: In many states, including Maryland, UM coverage applies to hit-and-run accidents where the at-fault driver cannot be identified.
Stacking of Policies: Some states allow policy stacking, meaning you can combine UM/UIM coverage from multiple vehicles in a household to increase your compensation potential.
Challenges in UM/UIM Claims: Even when filing a claim with your own insurer, disputes may arise regarding the claim’s value, requiring legal representation to negotiate a fair settlement.

Frequently Asked Questions (FAQ)

How long does a car accident settlement take?

The time frame varies. Simple cases may settle in a few months, while complex cases involving severe injuries or disputed liability may take a year or more.

What if the insurance company offers a low settlement?

It is common for insurance companies to offer lower initial settlements. Consulting an attorney can help negotiate a fair amount or take legal action if necessary.

Can I still get compensation if I was partially at fault?

Not in Maryland as it is a contributory negligence state, meaning if you are even one percent at fault for your accident, you can’t recover compensation.

However, in some other states, you can recover in these circumstances. Comparative negligence laws allow you to recover damages even if you were partially at fault, but your percentage of fault may reduce your compensation.

Contact the Law Office of David Wasser

If you’ve been injured in a car accident, don’t settle for less than you deserve. Understanding the complexities of car accident settlements can be overwhelming, but you don’t have to navigate this process alone. Click here to call the Law Office of David Wasser today to have your case evaluated and ensure you receive fair compensation.

Conclusion: Understanding the True Value of Your Case

While the concept of the “average settlement of a car accident case” might seem useful, it is not always a reliable benchmark. Every case is unique, and settlement values vary based on injury severity, liability, insurance coverage, and damages. Instead of relying on general averages, consult with an experienced car accident lawyer to evaluate your specific case and pursue the compensation you deserve.

Sources

The information contained in this article is general in nature and is not offered as legal advice or medical advice for any particular situation nor do they in any way create a legal relationship. The opinions and conclusions in this blog post are solely those of the author, are for general informational purposes only and not directed at any specific case or to be construed as legal advice. Any links provided by the author in this article are for informational purposes only and by doing so, the author does not adopt or incorporate their contents. The Law Office of David Wasser operates throughout Maryland and Washington D.C., including Rockville, Gaithersburg, Silver Spring, Bethesda, Potomac, Germantown, Frederick, Hagerstown, and Baltimore.

Our writers used secondary sources when writing this accident news post. These sources include but are not limited to local news sources, local and state police reports, social media posts, and eyewitness accounts about accidents that take place in and around Maryland and Washington, D.C. We have not independently verified all of the facts surrounding this accident, therefore, if you find any information that is not correct, please contact The Law Office of David Wasser immediately so that we can update the post. The photo used in this post was not taken at the accident scene.