Being injured in a car accident can be inconvenient, disruptive, and genuinely life-changing. Thankfully, the law provides a remedy for people who are involved in such accidents. The offending party is going to be responsible for covering all the damages you sustained as a result of their actions or negligence – the law refers to this as compensation.
But how exactly is compensation calculated in a standard car accident claim?
How Car Accident Claims Work
Let’s start by examining how car accident claims work. After an accident, you and the other parties involved will likely be in discussions with your insurance companies, as they’ll be bearing the brunt of whatever expenses apply. The insurance company of the offending party might offer you a settlement very soon after the accident, hoping to waive legal action and take care of the matter outside of court.
However, in many cases, insurance companies are motivated to offer you the lowest possible settlement. They may not offer you compensation in line with the damages you experienced, and they may not adequately anticipate your future expenses. That’s why it’s vital to talk to a car accident lawyer as soon as possible after your accident.
Together with a car accident lawyer, you can review the insurance company’s initial settlement, negotiate with them, and fight for more. If you file a formal legal complaint, you can move forward with legal action, guiding the case through an intricate process of civil procedures and hopefully negotiating a settlement before resorting to a trial.
If you and the other parties can’t reach a settlement in a reasonable amount of time, the case will go to trial, at which point a judge or jury will determine how much compensation you receive.
How Compensation Is Calculated
The general aim of compensation is to make up for any and all losses that you suffered as a result of someone else’s actions or omissions. It isn’t necessarily to reward you or punish the opposing party, but instead is meant to make you whole. Compensation calculation is very similar, regardless of whether it’s being done by an insurance company, a lawyer, or a judge.
There are several considerations that are factored into this equation, including:
- The severity of the accident. As you might imagine, more severe car accidents are associated with greater compensation for the victim.
- Types of damages. Legal experts and courts also consider the types of damages involved, including both property damage and harm to your person.
- Mitigating and limiting factors. Sometimes, extenuating circumstances can affect damage calculation. For example, a drunk driver will typically face steeper consequences than someone who had a medical emergency when causing an accident.
- Comparative negligence. In some car accidents, multiple parties are negligent simultaneously; this also affects damage calculation in some states.
Compensation will also aim to provide damages in line with:
- Property damage. The person responsible for the accident will be responsible for paying for any of the property they damage.
- Medical bills. They will also be responsible for paying your medical bills, including bills past, present, and future.
- Lost wages. If you were out of work because of the accident, you may be entitled to compensation for lost wages as well.
- Lost future earnings. The same is true of lost future earnings, if you’re permanently unable to work in the same capacity or before.
- Pain and suffering. You’re also entitled to damages based on your subjective pain and suffering.
- Punitive damages. Some jurisdictions will also allow for punitive damages, meant to punish the person responsible for the accident.
Setting Yourself Up for Success
So is there anything that you can do to maximize compensation after a car accident?
The answer is yes.
- Get medical attention right away. Contact emergency services or make an appointment as soon as possible. You have an obligation to take care of your own injuries responsibly, or else it will be harder to prove that your harm was a direct result of the accident.
- Gather as much evidence as possible. Take photos, videos, and witness statements. Your lawyer can help you gather even more evidence later.
- Talk to a lawyer as soon as possible. Talk to a lawyer as soon as possible and follow their advice precisely. They have your best interests in mind.
- Be prepared to negotiate. Be ready to negotiate with insurance companies, even if it takes months or years. You won’t maximize compensation by taking the first offer on the table.
You don’t have to be an expert in how compensation is calculated to maximize the compensation you receive after a car accident. The most important things are to get medical attention as soon as possible and talk to a lawyer immediately after that. As long as you follow your lawyer’s advice to the letter, you’ll likely be set up for success.
