The Factors You Need To Consider When Calculating Damages For A Car Accident

Published on: November 23, 2022

Last Updated on: June 8, 2024

Car Accident

toc impalement

When assessing compensation for a victim after a vehicle accident, you should consider various criteria.

These considerations include how the plaintiff’s quality of life may be affected, medical expenses, future medical treatment costs, lost wages, and potential future lost wages.

You can also consider the impact on the plaintiff’s future employment prospects and the time lost in seeking medical attention for their injury.

Since they make more money when payouts are low, insurance firms always work to keep awards to a minimum. However, personal injury attorneys work to get as much money as possible.

An expert personal injury attorney will determine the value of intangible damages due to an accident, including pain and suffering and loss of quality of life. While insurance companies often solely concentrate on medical costs associated with accidents.

What Is A Car Damage Settlement?

Be careful if an auto insurance provider sends you a check right after a collision. By receiving the check and cashing it or depositing it, you can settle your claim, depending on how the bill is delivered to you, if you need a release, and whether the check is marked as “Full Settlement.”In most situations, you don’t want to settle until you or your attorney have agreed to all terms and payment.

When determining the settlement amount, you should consider the extent of the accident victim’s injuries, the cost of past and future medical expenses, and how much the injury will affect your future quality of life. You can also find a settlement by the monetary amount for which prior comparable cases have been settled or found in their favor.

When an insurance company offers to compensate an automobile accident victim, the best place to find a professional attorney is in Greensboro. You can lead to higher offer when hiring car crash lawyers in Greensboro, NC, because they will help you to build a strong case and submits a demand package.

You can make a settlement after an agreement between the injured person and the at-fault driver or insurance provider without going through a trial and jury verdict. The number of people involved in a collision is one of several variables that can affect the value of an automobile accident.

Factors To Consider When Calculating Damages for a Car Accident

Here are some key elements to consider when determining your potential compensation, among the many aspects to consider when calculating the damage of a car accident.

Factor #1: The Wildcard in Insurance

 insurance coverage

The type of insurance coverage for each driver involved in the collision has each policy’s maximum limits, which determine the value of an automobile accident claim.

For example, drivers who register their cars in Pennsylvania state need to follow the below minimum coverage:

  • $15,000 for each accident victim who suffers or dies.
  • $30,000 for each additional person injured or killed in the accident.
  • $5,000 to repair the other driver’s car.

Pennsylvania is one of the few states in the union with a no-fault insurance system. However, Pennsylvania drivers have a full tort insurance option or limited tort coverage, unlike residents of other states like Florida and New York.

Here are some examples of each:

  • Full Tort Insurance: With this general choice of liability, a driver can file a claim for monetary and non-monetary damages, regardless of the severity of their injuries.
  • Limited tort Insurance: Drivers can lower their rates with this coverage. However, unless their injuries are deemed substantial, they give up their ability to sue for specific damages such as pain and suffering. Injured parties can still file a third-party claim against the at-fault driver’s insurance coverage or sue them directly for economic damages, such as medical costs and property damage.

The following are additional ways your insurance may affect your settlement, either favorably or unfavorably:

  • You did not have uninsured/underinsured driver coverage on your policy, and the at-fault driver either had no insurance or a policy with insufficient coverage to pay for your injuries. (harmful effect)
  • The accident occurred by your lack of insurance or insufficient coverage (adverse effect).
  • Several parties were at fault for the accident, and each has an insurance policy that you can use to get compensation for your injuries. (beneficial effect)
  • Your policy contains medical benefits meant to aid with expenditures, and you or the driver had more insurance than was legally necessary. (beneficial effect)

Factor #2: Establishing Liability

Establishing liability is the cornerstone of a successful automobile accident settlement. If you’re asking “how much a car accident plaintiff can recover,” you should know that the amount you get when you file a claim depends on the nature of the collision.

Mistakes & Fault

Regardless of fault, your medical benefits insurance will help pay some of your bills. However, proving that the other motorist was at fault in the collision that caused your injuries will allow your attorney to successfully fight your case to obtain a favorable judgment or third-party insurance claim on your behalf through.

Also, liability insurance may cover your negligence in personal injury claims, and other behaviors, like intentional ones.

You should demonstrate the following criteria for negligence:

  • The negligent party has the responsibility to drive his vehicle legally and safely.
  • The liable party can breach this duty of care. For example, it is possible that the driver was tired or distracted at the time of the collision.
  • As a result of the violation, you had an accident that cost you money in the form of medical bills and lost wages.

If the other driver can show that you were also at fault in the collision, this may reduce the amount of your payout. For example, consider the case where another driver rear-ended your vehicle due to following too closely. However, because of your broken tail light, you didn’t know you had slowed down until the other driver did until it was too late to prevent a collision.

Factor #3: Your Medical Costs, Present and Future

Medical Costs

The degree of injury experienced affects the compensation granted in an auto accident lawsuit. For example, the average settlement for an injury or death resulting from a car accident will generally be higher than in a case where minor injuries have occurred. Proving the severity of these damages as early as possible is very important in a car accident injury settlement.

High-Speed ​​Car Accident Settlement Offer

Before the full extent of your injuries is known, it’s common for an at-fault driver’s insurance provider to offer you a fast, affordable settlement. It is especially true when there is a clear responsibility towards the other driver.

The downside is that no one can predict the extent of damage in the event of a catastrophic accident and how much more care you will need in the future. However, if you agree to a quick initial settlement, you won’t be able to ask for more money if your injuries turn out to be more severe than you thought. You could be missing several amounts for ongoing medical expenses because of your damages.

Future Healthcare Costs

You can deduct the following medical expenses from your settlement:

  • Ambulance service
  • Hospital emergency services
  • Services for surgery
  • Hospital treatment
  • Diagnostic procedures and laboratory work
  • Physical exercise
  • Rehabilitation Center
  • Therapies

A knowledgeable personal injury attorney will rely on the advice of medical professionals familiar with these injuries to estimate the costs of any additional medical treatment you may need.

Possible Problems

When it comes to disclosing medical expenses, a few things that can hurt your chances of the settlement include:

  • If you don’t “feel” injured after a catastrophic accident, get checked out by a doctor. Since many injuries have gradual signs, safety is, of course, the most crucial factor. Another reason is that the longer you delay seeking medical attention, it will be easier for the insurance provider to deny that the accident caused your injury.
  • In personal injury cases, the defense often raises the issue of pre-existing injuries. Your lawyer can prepare for this argument if you tell him about a pre-existing injury to the same part of your body as your current illness.

Factor #4: Your Work Potential

Another aspect of a car accident settlement or a lawsuit is the amount of time you missed from work due to your injury and inability to work.

Courts and insurance providers will consider the seriousness of your loss and the likelihood of long-term impairment.

How will this affect your ability to make money if you can resume employment but are not in the same capacity as before the accident? What if you are completely and permanently unable to work? These are the issues that your accident attorney will work with your doctors and other medical professionals to determine the value of your case.

Compensation for Lost Wages and Auto Accidents

If you are employed by someone else and receive a monthly paycheck for your employment, lost wages are one of the simpler elements of a car accident lawsuit.

If you work for yourself or at least get your money from commission, it’s a little challenging. You can also use your last year’s tax returns, calendars that indicate missed work appointments, missed business opportunities at conferences and meetings, and other similar documents to show your income.

Factor #5: Property Loss

If someone else causes an accident and damages your vehicle, their mandatory property damage insurance will cover your vehicle’s repair and replacement costs. Depending on your coverage and other responsible party coverage, you could have other tools at your disposal to assist you in recovering these expenses.

Factor #6: Other Expenses Paid Out of Pocket

After a car accident

After a car accident, recovery is an expensive process. When negotiating a settlement, you can reduce expenses such as:

  • The price of an automobile rental when you fix or change the price
  • Travel expenses to and from doctor’s appointments
  • The price of altering your home’s access if your injuries make using a wheelchair necessary. Wheelchair ramps, low worktops, widened doors, and stairs are just a few examples of home modifications.
  • Prosthetic cost
  • The cost of paying a professional to perform household tasks that you can no longer perform

To claim these costs, you must keep copies of all receipts, and you must be able to prove that they were necessary given the details of your injuries and your circumstances.

Factor #7: How It Will Affect Your Life

As previously stated, injured parties with full tort coverage and some circumstances, even limited tort coverage, can file claims for non-economic damages. These losses can affect your emotional health, relationships, and ability to engage in interests and hobbies you once enjoyed.

These costs are sometimes the most damaging aspects of your illness, even though they are complex to put a monetary value on.

Non-economic damages include:

  • Sorrow and anguish
  • Regret and discomfort
  • Loss of enjoyment of life’s joys;
  • Debilitation

According to the plaintiffs’ age at the time of the injuries, you can award non-economic damages seriousness of the injuries and the scope of the effects in a personal injury case.

However, your attorney can use these damages and the possibility of a significant monetary award if the case moves forward as effective bargaining chips when trying to settle your case.

Factor #8: What If The Insurance Company Declines To Make a Fair Settlement Offer?

Most personal injury cases can settle without going to court. But sometimes, the insurance provider won’t engage in a meaningful discussion or a settlement that accurately reflects the damages you claimed.

If this is the case in your claim, your attorney will go through your legal options with you, including whether you want to go to court or whether you are willing to accept a less-than-ideal settlement offer.

Your lawyer will never choose you in such matters. However, they can help you weigh the advantages and disadvantages of each choice so you can select the one that will work best for you and your recovery.

Factors to be discussed in this context include:

  • How convinced are you? Did you share the blame? Is it easy to establish the liability of the other party?
  • Are your wounds precise and lasting? Judges and juries often hand down large verdicts in situations where the injuries are specific and have accurate psychological and lifestyle effects.


Undoubtedly, many variables that affect the value of a car accident claim are within your control. It will be easier for you to prevent errors and mistakes that can reduce the value of a claim if you know how these factors affect it.

Read Also:


Arnab Dey

Arnab is a passionate blogger. He shares sentient blogs on topics like current affairs, business, lifestyle, health, etc. To get more of his contributions, follow Smart Business Daily.

Related Articles