If you’ve been in a rear-end accident, you’ll want to know what kind of payout you can expect from the settlement.
You may also like to know how you might increase your payout.
An average car accident settlement might be around $22,000. However, the actual payout depends on many factors, including the severity of your injuries, the damage to your property, and the at-fault driver’s insurance coverage.
But there’s another decisive factor—one which you can directly affect.
It’s the quality of legal representation.
Studies show that an experienced rear-end accident lawyer can get their clients a 3-3.5x higher payout than victims who represent themselves.
And the best part is, you can get started for free.
At No Bull Law, our team of lawyers has helped numerous clients get the compensation they need to bounce back from the accident. To know what we can do for you and receive an accurate estimate, we recommend you to get on a free consultation call.
If you want more info on average settlements and factors that decide how much you may expect, you can keep reading. (Just keep in mind that the figures mentioned may not apply to your case.)
What Is the Average Rear-End Accident Settlement In Texas?
When it comes to settlements for motor vehicle accidents, the figures can vary dramatically, depending on the circumstances.
For minor accidents, where property damage and injuries are limited, you could see settlement amounts in the range of $3,000 to $9,000.
However, when the rear-end collision involves moderate damage and results in a severe injury such as a fracture or a herniated disc, settlements typically fall between $15,000 and $50,000.
The truth is, there is no state-wide data that would tell us the exact average, which is why we’ve based these figures on various studies. However, these studies have a great range because huge settlements can skew the results.
To get a clearer idea of what you might expect, you should look at the median settlement. For rear-end accidents, the median is around $25,000. This figure is closer to the norm for many cases, so it's a useful benchmark.
Of course, every case is unique, and these figures are rough estimates. The settlement amount for your rear-end accident depends on a variety of variables specific to your situation.
Your settlement amount could be higher or lower than the median due to these factors:
1. Severity of Injuries
Since medical expenses account for a large chunk of the car accident settlement, the compensation amount naturally depends on the severity of injuries.
To put it simply, your settlement amount should be higher when:
- The recovery period is long.
- The treatments involved are complex.
- The resulting condition is permanent or lifelong.
Now, let’s talk figures. But again, please keep in mind that these are general estimates and may not accurately represent your own injuries.
- A minor injury such as whiplash and bruises may result in a payout of around $10,000 - $25,000.
- Major injuries like fractures and first-degree burns may increase the settlement amount to around $50,000 - $175,000.
- In the rare case of a catastrophic injury such as brain damage or paralysis, settlements can range from $100,000 to upwards of millions.
2. Liability
Texas law follows the modified comparative fault rule for all types of accidents.
What does that mean?
Each driver is assigned a percentage of the fault after the auto accident. If you’re deemed to be more than 51% at fault, you don’t get any compensation.
However, if you share up to 50% of the blame, you will receive a payout. The amount will be reduced by the percentage of your fault.
For example, if the settlement amount is $10,000 and you’re 10% at fault, you can only collect a maximum of $9,000.
3. Insurance Policy Limits
Remember that the at-fault driver’s liability insurance pays for your injuries and property damage. So, the payout ultimately depends on the upper limits of their policy. The greater the coverage, the higher the compensation you’re likely to receive.
Keep in mind that many drivers carry the minimum liability coverage required by Texas law. Here’s how much it covers:
- Per person (bodily injury to one person): $30,000
- Per incident (bodily injury to multiple people): $60,000
- Property damage: $25,000
If you're involved in a rear-end crash with a driver with minimum coverage and have incurred $40,000 in property damage, you can only recover up to $25,000.
4. Number of Parties Involved
If more than one person is seriously injured in the same rear-end car accident — for instance, in a multiple-vehicle pile-up — there may not be enough liability insurance to fully compensate all accident victims. As a result, you might receive a lower settlement amount.
5. Quality of Evidence
Evidence such as dashcam footage, surveillance footage, eyewitness accounts, and photographs of the accident scene can be used to establish the at-fault driver’s liability.
Additionally, after reviewing the evidence, the insurance company may reduce your fault percentage (which increases your payout).
6. Drunk Driving
Drunk driving accidents often lead to significantly higher settlements.
Why?
In a drunk driving accident, you may be awarded additional compensation through punitive damages, which are intended to penalize the driver for their actions.
7. Legal Representation
The skills and experience of your personal injury attorney can potentially increase the payout from your settlement.
A study by the Insurance Research Council has shown that having a knowledgeable car accident lawyer on your side can maximize your settlement value by 3 - 3.5x.
They can protect you against lowball offers and ensure that all damages are taken into account, including ones you might not have considered.
What Damages Are Included in Your Compensation?
Your lawyer will first identify all the losses you've incurred due to the motor vehicle accident. These losses (also referred to as damages) are then used to determine the amount of compensation you’re entitled to.
Here’s a breakdown of damages that could be a part of your settlement:
Economic Damages
These damages include expenses you’ve incurred or will incur as a result of the accident. This includes:
- Costs for emergency medical attention, hospital stays, treatment, and future medical expenses.
- Cost of repairing or replacing your vehicle and other personal property such as phones, watches, etc.
- Income you’ve lost while recovering from the accident.
- Future lost income if your injuries result in long-term or permanent disability.
- Cost of renting a car or using public transportation when you cannot drive your vehicle.
Non-Economic Damages
These damages compensate you for the pain, suffering, loss of enjoyment of life, emotional distress, and other non-financial impacts you have experienced due to the accident.
To calculate pain and suffering damages, a rear-end accident lawyer could multiply the economic damages with a number from 1 to 5, depending on how severe the situation is.
As mentioned earlier, punitive damages punish the at-fault driver for particularly bad behavior, such as drunk driving or intention to harm. Punitive damages are limited to the greater of the two:
- $200,000 (if no economic damages are awarded)
- Double the economic losses plus an equal amount of non-economic damages, up to $750,000.
A personal injury lawyer then adds up all these damages to calculate your potential compensation. They will request this amount from the at-fault driver’s insurance company during the claims process.
Now, let’s look at what happens while filing a claim.
How Does the Claim Process Work for Rear-End Accidents?
Here are all the steps involved in making an insurance claim after the accident:
1. Filing a Claim
You’ll have to file a claim with your insurance company (when you’re not sure who’s liable) or the other driver’s insurer if you’re certain they are at fault.
If you haven’t hired a personal injury lawyer at this point, we strongly suggest that you do so ASAP. The process involves a lot of paperwork, and the sooner you get someone on board, the better they can help you.
First, your lawyer needs to write a demand letter addressed to the insurer that includes the following details:
- How the auto accident happened
- The extent of property damage and injuries
- The total sum of damages incurred, along with a detailed breakdown
Your lawyer will include all relevant evidence, including a police report, medical history, and photos of property damage and injuries sustained.
2. Investigation
After the claim is filed, the company assigns an insurance adjuster to investigate the motor vehicle accident.
This includes:
- Reviewing the submitted documents
- Evaluating the damage done to your vehicle
- Interviewing witnesses
- Determining who’s at fault
Note that the insurance adjuster’s job is to reduce the claim so the insurance company pays less. They are more likely to give a lowball offer when someone is unrepresented.
3. Initial Offer
Once the investigation is complete, the insurance company will make an initial settlement offer. This amount is often lower than what you expected and may not be enough to cover all your losses. You need to think twice before taking it because you cannot negotiate for a higher amount once you accept the offer.
Your lawyer should offer their expert opinion and determine whether the offer they’ve made was fair or not.
4. Negotiation
If the initial offer is too low, your lawyer will negotiate with the insurance company.
With their knowledge of similar cases, they’ll clearly understand what your case is truly worth. They can push back against lowball offers and apply the right kind of pressure to ensure the insurance company offers a fair settlement.
5. Settlement Agreement
Once both parties agree on a settlement amount, you'll be asked to sign a release form. This form waives your right to pursue any further legal action related to the accident. After signing, the insurance company will process your payment.
6. Payout
After the settlement agreement is finalized, it can take a few weeks for the payout to be processed and for you to receive the funds.
If your health insurance has covered medical treatment costs, the insurance company may place a lien on your settlement to recover those expenses. These liens will be deducted from the settlement amount before you receive your payout,
A lawyer can negotiate liens with the insurer, ensuring that it doesn’t eat into your car accident settlement.
But that’s not the only thing attorneys can do to secure a larger payout.
How Can a Lawyer Maximize Your Rear-End Accident Settlement?
As mentioned earlier, a lawyer can maximize your settlement by 3-3.5x. Here’s how they make sure you get every last penny:
- They work closely with doctors to assess the full extent of injuries to come up with a figure that ensures all potential future medical and related costs are accounted for.
- They can obtain better evidence and build a stronger narrative to prove you were not at fault.
- They also have access to accident reconstruction specialists and medical professionals who can prove that the other driver was at fault, reducing your share of the blame.
- Their presence prevents insurance companies from acting in bad faith, stalling negotiations, or offering low settlement amounts.
- They determine the best legal approach if your medical bills and damages exceed the at-fault driver’s insurance coverage.
If you need a car accident lawyer in Texas who can do all this and more, No Bull Law can help you charge ahead toward justice.
If You’ve Been Rear-Ended, No Bull Law Will Back You Up
Filing an accident claim and getting a fair settlement can feel like a battle with all the red tape involved. But it doesn’t have to be a fight you face alone.
At No Bull Law, we believe in a no-nonsense approach to getting compensation. Here’s how we work:
- You consult us for free personalized advice, and we’ll help you understand your legal options.
- We’ll start investigating your claim and analyzing the evidence you provide.
- Once we take your case, we’ll fight relentlessly, ensuring you don’t settle for less than you deserve.
And rest assured, you won’t owe us any fees until we win your case.
Ready to take your rear-end accident case by the horns?
FAQs about Rear-End Accident Settlements
1. How Long Do Rear-End Car Accident Settlements Take?
Fortunately, most rear-end collision settlements are resolved in a matter of months. However, there are a few factors that can slow down the process:
- Severe injury: If the accident victims are severely wounded and the case involves significant financial exposure, insurance companies might fight harder and prolong negotiations to reduce the settlement amount—especially if policy limits are significant and they have the capability of covering the damages. On the flip side, if they recognize clear liability and want to avoid further legal risk, they’ll settle faster to minimize their exposure.
- Number of vehicles: In motor vehicle accidents involving multiple cars, the process takes longer due to the number of individuals, policies, and legal teams involved in the cas
- Disputes over value or legal issues: If there are disagreements about a claim’s value or legal implications, insurance companies might bring in a mediator to settle the argument, which can lead to delays.
2. What Mistakes Should You Avoid When Filing a Rear-End Accident Claim?
Make sure you don’t do the following when during the claims process:
- Apologizing for the rear-end crash when reporting it to the insurer, as it could be considered an admission of guilt, potentially reducing the payout.
- Avoiding medical checkups even if you feel fine, as some injuries, like whiplash, can develop over time.
- Taking the first settlement offer in order to save time.
Navigating the claims process alone can feel like driving without a GPS; you might get lost or take longer to reach your destination. Hiring an experienced personal injury attorney can ensure you get compensation quicker than you normally would.
