How Much to Expect from a Car Accident Settlement in California

After an accident, settlements help to cover the financial burden incurred due injuries and damages from the accident. Therefore, the settlement amount, though dependent on various factors, should reflect the victim’s legal damages. How Much to Expect from a Car Accident Settlement in California? Read it here.

At The Barnes Firm, we have handled thousands of car accident claims. When you bring your car accident case to one of our experienced lawyers, they will determine the damages to assess the value of your claim. They will then negotiate with the opposing counsel and insurance adjusters for a fair settlement that provides the necessary resources to cope with the aftermath of an accident.

No two accident cases are alike. So, let’s look at what car accident victims might expect regarding compensation.

How Is a Car Accident Settlement Calculated in California?

You may be entitled to compensation after sustaining an injury in an accident caused by someone else’s negligence. An insurer or car accident attorney estimates your settlement value based on your damages and injuries. The recoverable damages in a car accident claim may include medical expenses, lost wages and loss of future earning capacity, emotional distress, pain and suffering, and more.

An insurer may also consider the following factors when determining the value of your car accident settlement:

• The degree of daily interruptions
• The cost of replacing or repairing your damaged property
• If the injury led to social isolation or impacted your relationships
• The basis of your legal arguments and availability of evidence to support your car accident claim
• Is there an expectation of full recovery

Calculating Damages for a Car Accident Settlement

Various methods are used to calculate damages in a car accident settlement. Economic damages like medical expenses or lost wages have a direct dollar value, which makes it easier to calculate their share.

On the contrary, it can be difficult to put a direct dollar value on the intangible losses you experienced due to the accident. 

Insurers use the following two methods when estimating the value of non-economic damages in a car accident settlement:

The Multiplier Method

Under the multiplier method, an insurer multiplies the value of economic losses by a set number to determine non-economic losses. Factors that influence the multiplier’s value include the severity and permanence of the injuries. 

A car accident settlement multiplier is anything between 1.5 and 5, with those who suffered lifelong injuries qualifying for a higher multiplier. Suppose you have a broken arm in a car accident, which leads to medical damages of $20,000, with an applicable multiplier of 1.5. In that case, you can claim an additional $30,000 worth of damages for pain and suffering.

The multiplier’s value also depends on the strength of your case. The multiplier will be higher if you have solid evidence to back your claims of severe and lifelong injuries. If there are doubts about the defendant’s negligence, the multiplier is closer to 1.5.

Questions to the following questions can lead to a higher or lower multiplier value.

• Do you have a permanent disfigurement?
• Does your injury harm your family members?
• Does your injury cause limited movement?
• Do you have solid evidence of your injuries, including complete medical records?
• Is there documentation from a healthcare provider to verify your injuries?
• Will the injury last a lifetime?
• Has the injury led to a deterioration of your mental health?

The Per Diem Method

Under the per diem method, an attorney establishes a daily rate to compensate for non-economic losses sustained by the injured victim. For example, an attorney can calculate the number of days multiplied by a flat rate. In most cases, the flat rate is the value of day wages.

The above formulas make it possible to calculate the value of non-economic wages. A car accident attorney can determine the estimated value of non-economic damages, which forms a basis for negotiating a fair settlement value of your losses.

Factors That Impact the Value of Your Case

According to the Insurance Information Institute 2020 report, the average bodily injury claim was between $4,711 and $20,235 for car accidents. However, many factors go into determining the final personal injury settlements, and many can be much higher than reported averages.

Damages

Damages are the losses you suffered as the victim/plaintiff as a result of the car accident. In California, damages are classified into two categories, economic and non-economic. Economic damages are easy to quantify, and they include:

• Medical expenses, both ongoing and future costs
• Property damage
• Lost wages
• lost earning capacity
• Rehabilitation costs
• Other out-of-pocket expenses, such as tow truck fees, prescription costs, and any other costs you incur as a result of the accident

On the other hand, non-economic damages involve those losses that are harder to quantify. These include:

• Pain and suffering
• Emotional distress
• Loss of enjoyment of life
• Loss of consortium
• Punitive damages

Usually, your personal injury attorney will determine the total value of damages incurred directly, which will affect the overall value of the case.

Severity of Injuries

The extent and severity of injuries you sustained in the car accident can greatly determine the case value. California law recognizes that more severe injuries often lead to higher compensation.

For instance, injuries that result in long-term disability, extensive medical treatments, or permanent impairment typically command larger settlements to address ongoing medical needs and the impact on the victim’s life. These injuries may include:

• Traumatic brain injuries
• Spinal cord injuries
• Nerve damage
• Disfigurement
• Chronic pain
• Severe cases of whiplash
• Dismemberment
• Serious concussions
• Any other injury that involves a high level of impairment

Shared Liability

Your level of responsibility in causing the car accident is one of the considerations that affect how much you will receive as a settlement. California state follows a pure comparative negligence system, which means that even if the victim was primarily at fault, they can still seek compensation.

The key feature of pure comparative negligence is that the injured party receives compensation proportionate to the other party’s degree of fault. For example, if a court determines that a plaintiff is 70% responsible for a car accident, they can still recover 30% of the total damages. Therefore, their compensation will be reduced accordingly.

Insurance Policy Limits

Insurance policies are characterized by a limit that is payable, which the policyholder cannot control. If the responsible person has limited insurance coverage, it may constrain the overall settlement amount, particularly if the victim’s damages exceed these policy limits.

All drivers are required to carry $15,000 in liability coverage in California, which may not be enough to cover the legal damages fully.

Quality of Legal Representation

The quality of the legal representation can significantly impact the case’s outcome. An attorney who is familiar with California car accident laws will navigate the legal process, carry out the necessary negotiations, and, if necessary, litigate to ensure the victim receives fair compensation. The attorney’s ability to build a strong case and effectively present evidence can positively influence the final settlement.

What You Do After Accident Could Affect Your Settlement Amount

After an accident, the actions you take can significantly impact the eventual settlement amount you receive. Here are key considerations:

Seek Immediate Medical Attention

Seeking prompt medical attention is crucial for your health and potential settlement. Timely medical care will address the immediate injuries and also establish a clear connection between the accident and your injuries. Medical records are evidence in establishing the extent of your injuries and the necessary treatments that could strengthen your case for fair compensation.

In California, the victim has a responsibility to act reasonably to minimize harm. Failing to mitigate damages by delaying or neglecting medical treatment can be used against you. Insurance adjusters may use this gap to argue that you didn’t sustain severe injuries as you allege. This could cast doubt on the extent of your damages and potentially lower the settlement amount.

Seek Legal Assistance

The next step after a car accident is to hire a car accident lawyer to carry on with your personal injury claim. A lawyer will:

• Collect evidence, interview witnesses, and reconstruct the incident to establish liability.
• Compile comprehensive documentation of your injuries and treatments to strengthen your case.
• Handle negotiations with insurance adjusters to ensure you are not taken advantage of, and your rights are protected.
• Evaluate the full extent of your damages to advocate for a just settlement.

Do Not Accept the First Settlement

Insurance companies will try to give a quick settlement and may portray the move as sympathetic. However, note that they want to resolve the matter quickly so as to provide a lower amount. Do not accept the first offer without careful consideration.

Early settlement offers often do not account for long-term medical costs, ongoing treatment, or potential complications that may arise later. Allow a lawyer to handle such communication to avoid being swayed by insurance companies into their trick of trying to offer low settlements.

Let a Car Accident Attorney Maximize Your Car Accident Settlement

Securing fair compensation after a car accident is crucial for addressing the resultant injuries and losses. The Barnes Firm urges victims to consult a San Diego Car Accident Lawyers immediately after an accident. Early action allows for the swift initiation of the claims process, which helps build the case before the expiration of the allowable time limit.

Our team will help you go through the legal claim process and ensure you receive the compensation you deserve. Contact us today at (800) 800-0000 for free case evaluation and dedicated legal support.

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Richard Barnes – President of The Barnes Firm

Richard Barnes: “As President of The Barnes Firm, I have dedicated my career to achieving justice in hundreds of cases for the victims of injuries caused through the fault of others. Additionally, I have been honored to have been elected Best Lawyer and a Super Lawyer”

Years of Experience: 30+ years
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