Auto Accidents: How Much Should I Settle For?

When you think of car accident lawsuits, you may picture a judge, jury, and courtroom. In reality, though, most auto accident lawsuits end before they reach this stage; plaintiffs, defendants, and their attorneys sit down and agree to settlements between themselves, making the process quicker and more convenient for everyone.

So, you may well be wondering, How much should I settle for in an auto accident case?

How Much Should I Settle For?

Settlements vary widely from one case to the next. The most important factor dictating the value of an auto accident claim is the severity of the auto accident and the extent of the related costs.

The three most prominent forms of damages in most cases are:

• Repair/damage costs: Per the Pennsylvania Insurance Department, a car is considered “totaled” when the cost of repairs exceeds the value of the car or when the damage is too severe for repairs to be effective at all. If this happens in your case, you should be entitled to recover the market value of your car. Otherwise, you should get an amount that will cover the entire cost of repairs, along with related costs (such as towing expenses).
• Medical bills: It’s no secret that healthcare is expensive in the U.S. If you suffer injuries in a car accident, you need to consider the full extent of your medical expenses when negotiating your settlement, including expenses related to ongoing care (like rehab or physical therapy). It’s also worth noting that, if you receive inadequate or improper medical care after your accident, you might be in a position to make a medical malpractice claim.
• Lost earnings: If you sustain injuries that prevent you from working, you may be entitled to coverage of some or all of your lost earnings in your lawsuit settlement.

What About Punitive Damages?

In some cases, courts award compensation over and above the amount a defendant needs to cover their economic and noneconomic losses. This compensation (which is awarded to punish defendants for egregious behavior and discourage similar conduct in the future) is called punitive damages.

Punitive damages are only awarded in a minority of cases. Unless a defendant acts with extreme negligence, this type of compensation won’t be available.

However, if the circumstances of your case indicate that punitive damages might be a possibility at trial, your car accident attorney will take this into account during the settlement negotiation process. This might be the case if, say, the at-fault party in your accident was driving after drinking a large amount of alcohol or was driving while distracted.

How Does Motor Insurance Affect Personal Injury Settlements?

Pennsylvania’s rules on motor insurance are somewhat unusual in that motorists can choose between full tort and limited tort policies.

If you have a full tort policy, you’ll retain the right to sue for damages even if you receive compensation from your insurance company. However, if you have a limited tort policy, you may not have the right to sue for additional damages once your insurer has paid out on your claim.

However, there are exceptions to this rule, such as where:

• The at-fault driver is convicted of a DUI offense in relation to your accident.
• The at-fault driver is uninsured at the time of your crash.
• You suffered a “serious injury” in the crash, such as permanent disfigurement or serious impairment of a bodily function.
• The at-fault driver’s car is registered in another state.
• You were on foot or riding a bicycle when you had your accident.
• The other driver was using a motorcycle or a commercial vehicle.
• The at-fault driver caused your accident deliberately in an attempt to hurt themselves or someone else.

The legal doctrine of subrogation is also relevant here. If you receive coverage of medical expenses from your insurance company and later receive payments related to the same expenses from your auto accident settlement, your insurance company may be entitled to have you reimburse the sum it paid you.

Getting the Help You Need With Your Philadelphia Auto Accident Case

The aftermath of a car accident poses a huge number of challenges. However, you don’t need to shoulder the financial burden of accident recovery by yourself if the collision wasn’t your fault. If you’re wondering about your next steps, it’s time to schedule a free initial consultation with a Philadelphia auto accident lawyer.

Get in touch with The Cochran Firm in Philadelphia today by filling out our online contact form, or by calling 800-969-4400.