Calculating Car Accident Compensation: Key Factors to Consider

Car Accident Compensation

Given the rate of car accidents each minute, about 43% typically result in injuries. And if you’re not at fault for the accident, this can turn into a pricey issue. You may have to pay for medical fees, repairs, and you might even end up missing work. To avoid these expenses, it’s crucial to seek a compensation consultation. A car accident settlement can significantly aid in restoring normality to your life. Below are some factors to consider when calculating compensations.
Car Accident Compensation
Car Accident Compensation – You may have to pay for medical fees, and repairs, and you might even end up missing work. To avoid these expenses, it’s crucial to seek a compensation consultation.

7 Key Factors That Will Affect Your Car Accident Compensation

A victim in a car accident may have to deal with financial burdens plus various injuries. Car accident compensation helps you get your life back to how it was originally before the accident happened. Since one accident can impact the people involved differently, the compensation may be different too. So here are a few factors that may affect your compensation:

Type and Seriousness of Injuries

Injuries are common outcomes of car accidents, particularly when the collision is severe. From that, the nature and severity of your injuries can influence the amount of your compensation.
Typically, severe injuries will result in larger verdict amounts or legal settlements. Indeed, if your injury requires surgery or an extended recovery period, filing a complaint against the driver at fault becomes more straightforward. For instance, if you suffered from a brain injury, you may receive more compensation than if you broke an arm and recovered within a few days. 
However, don’t let this stop you from getting financial recovery for an injury that’s less severe. If you are the victim of a car accident, your job is to properly explain how the injury affected your body. You should also include how the injury affected your lifestyle. You can do this by presenting your medical bills, testimony from the doctors, and a journal of the issues that occurred due to the injury.
In most cases, engaging a car accident lawyer can significantly enhance your chances of receiving the compensation you are entitled to. Your lawyer can help you get a rough compensation estimate, create a personal injury claim, and obtain evidence to prove it.  

Liability and Fault for the Crash

If someone else is responsible for causing the car accident, you can recover most of the costs of your damages. However, if you share responsibility for the incident, then your financial recovery will be reduced. It’s really very imperative to talk with a car accident lawyer about the potentially responsible parties before you pursue your claim. In some instances, more than one person may hold liability. For example, a driver was drunk when they went behind the wheel. The establishment or person who allowed the drunk individual to drive could be held partly responsible.

Medical Expenses Compensation

To ensure an accurate overview of necessary coverage when coming up with a settlement plan after a car accident, make sure to keep track of all documentation from each and every appointment along the way. Medical bills can quickly add up; this includes everything from hospital fees associated with initial injuries and transportation costs related thereto, as well as serial check-ups or subsequent treatment sessions further down the line. Be aware though – without proper proof documented via medical records insurers may doubt that injuries sustained were solely due to collision accidents at hand – it’s important therefore not to leave any room for debate. 

Earning Capacity and Lost Bonuses

It is imperative to consider lost wages such as unpaid leave and possible forfeited bonuses when evaluating compensation for accidents. If injuries sustained hinder one’s capacity for future work, predicted earnings should also factor into calculations given their significant impact on livelihoods. The nature and income level associated with previous employment are factors utilized in determining total compensation received; however unemployed claimants are exempt from this consideration.

Mental and Emotional Trauma                                 

Car accidents can cause more than physical injuries. They can also cause severe mental and emotional trauma. A decision on whether the mental and emotional distress you’ve experienced should be considered in your compensation is typically made in consultation with an auto accident lawyer and a medical professional. Therefore, it’s important to seek counseling from a medical professional who can document the impact of the trauma on your life.

Overall Property Damage

Your rights as a property owner extend beyond merely possessing tangible objects like cars, motorcycles, and helmets. When these assets are damaged or lost beyond repair, alerting your insurer is highly recommended for an evaluation process. Your settlement amount inclusive of these items’ recent market values will be determined with absolute fairness.

Patience Level

Calculating your car accident settlement requires meticulousness and careful reflection. Remember that taking more time might result in a higher settlement offer. Nonetheless, it also implies an extended period before resuming your regular activities.
Ultimately, the duration of your fight for settlement is in your hands. If you wish to conclude negotiations within a week, accepting a smaller offer, that’s your prerogative.. However, if you take your case to court with the help of a car accident attorney, it may take months to years to settle the compensation.

Who Will Pay For Your Claim?

Liability plays a big role in knowing who pays for the damages after an accident. If you are at fault, then you may end up paying for the other driver’s damages and the same goes if the other driver is responsible. In some cases, both drivers may be at fault and may end up paying each other’s damages. If the liable person has insurance, then their insurance company will pay for all the damages. Otherwise, you may need to get compensation from your own uninsured motorist policy and insurance company.

What Insurance Will Pay For

Each insurance company has different guidelines on what types of damages your policy will cover. Here are the most popularly-known types of insurance coverage: 
  • Liability insurance: pays for damages from your negligence
  • Collision insurance: covers replacements or repairs of vehicles damaged in an accident
  • Comprehensive insurance: protects you from damages like vandalism, theft, or weather damages
  • UM/UIM insurance: this coverage kicks in if the other person involved in the car accident doesn’t have enough or any insurance
Ensure you thoroughly understand your policy to know exactly what types of damages are covered. Should you have any doubts, don’t hesitate to reach out to your auto accident attorney for clarification.


Evidence is a huge factor to bring to support your compensation and get a higher settlement. By considering these key factors, you can receive better compensation and return to your life as you know it. Get a better understanding of car accident compensation and calculation by browsing through the rest of our guides.

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