Disclaimer: The settlement amount for a car accident that resulted in injury depends on many factors specific to each case. So please take into account that the figures mentioned in this article won’t give you an accurate assessment of how much your case may settle for.
The typical car accident settlement amount falls somewhere around $20,000-$30,000, provided the case is handled by an attorney.
This is based on the median settlement payout, which gives a more accurate idea of what most car accident victims get than the average (which is usually skewed by outliers).
However, your case may be much different than the median case, and settlement amounts for a car accident can range anywhere from $1,000 to several million dollars (though those are outliers).
The typical car accident settlement amount varies based on injury severity, injury type, liability, and a ton of other factors.
But one of the top factors is your legal representation, which protects you from insurance companies trying to save a buck by undervaluing your car accident claim.
At No Bull Law, we have years of experience in personal injury law and know how daunting the process feels for our clients.
Don’t fear! We’ll deep dive into the Texas car accident settlement process and the factors involved in getting a fair settlement. However, if you want advice on your specific case, you might start by booking a free consultation, and one of our lawyers will help you out.
Nota: Queremos que la justicia en los acuerdos por accidentes de automóvil sea lo más clara y accesible posible. También ofrecemos consultas legales gratuitas en español.
This Article Contains:
- What is the Typical Car Accident Settlement Amount With Injury in Texas?
- How Are Car Accident Settlements Amounts with Injury Calculated in Texas?
- How Does Hiring a Lawyer Increase Your Chances of Getting a Higher Settlement Amount?
- Hire a Personal Injury Lawyer from No Bull Law
- 6 FAQs About Car Accident Settlements with Injury
According to the Insurance Information Institute, the average car accident settlement for bodily injury claims in the US in 2022 was $26,501.
There are no state-wide statistics for car accident settlement amounts in Texas, so you’ll find studies suggesting averages ranging from $20,000 to $300,000. This is because a few outliers in the settlements these studies take into account can heavily skew the average upward.
The median amount is a more accurate portrayal of what most car accident victims settle for, which sits around $20,000-$30,000.
Again, this is provided you have an attorney present, which increases settlements by, on average, 3-3.5x.
The typical settlement amount also depends on the severity of the injury:
- Minor Injury: The typical settlement is around $10,000 to $20,000. These tend to occur in low-speed collisions, require short-term medical treatment, don’t cause permanent damage, and cause minimal lost wages.
- Moderate Injury: The average settlement ranges between $50,000 and $175,000. These involve a higher medical bill, a longer recovery, and moderate loss of income. Think of fractures, wounds that need stitches, or herniated discs, for example.
- Severe Injury: The average car accident settlement involving severe injury ranges between $100,000 to $500,000. Typically occurring in high-speed crashes, these can include spine and brain injuries or anything causing lasting damage. You’ll probably need surgeries, rehabilitation, and long-term care. They result in a sizable loss of income or earning capacity.
- Catastrophic Injury: Settlements can range from $500,000 to over $1million. These are permanent, life-altering injuries like amputations and disabling conditions. They will result in complete or near-complete loss of earning capacity for accident victims. In the worst cases, a catastrophic injury can be fatal, leading to a wrongful death claim.
Note: You may think you sustained only a minor injury in the motor vehicle accident. However, some injuries might not show symptoms until later. This is all the more reason to consult with a Texas law firm, as they can help you determine the necessary medical exams.
Texas is an at-fault state. That means you have to file a claim with the at-fault party’s insurance company if you’re injured in a Texas car accident. Their insurance company will calculate your settlement.
The most common way insurance companies do this is by using the multiplier method. The insurance company will add up your economic damages and multiply that by a number representing the severity of your injury (pain, suffering, prognosis, long-term implications) and other factors. (We’ll get into these below.)
However, insurance companies have a financial motive to discredit and undervalue your car accident claim. You are allowed to dispute a settlement offer and negotiate for a fair amount, and a good car accident lawyer can help you do so.
So, what goes into a fair settlement calculation?
7 Factors That Can Impact Your Car Accident Settlement Amount With Injury in Texas
An attorney will usually look at the following factors when determining what would be a fair settlement amount:
1. The Kinds of Damages Involved
There are three kinds of damages you could claim compensation for in a Texas car accident settlement — economic, non-economic, and punitive. Let’s look at some examples.
Economic damages can be objectively tracked and totaled and may include:
- Medical expenses, including all future medical treatment and equipment costs related to the accident
- Loss of income, both for your recovery period and for any changes to your future earning capacity
- Property and vehicle damage sustained in the accident
- Cost of services like housework or childcare you may need while recovering
- Costs to accommodate disability, such as modifications to your home
- Cost of legal representation for the settlement process or court hearings
Non-economic damages have no concrete dollar value, but you may be entitled to financial compensation based on severity. They can cover:
- Pain and suffering
- Emotional distress
- Chronic pain
- Disability
- Diminished quality of life (E.g., impaired ability to engage with hobbies, friends, & family)
Punitive damages involve:
- Rare cases where the at-fault party displayed gross criminal negligence or malice — E.g., drunk driving, road rage, street racing, excessive speeding, or intentional acts.
- In such cases, you may be awarded damages which act as a punishment for the perpetrator.
- In Texas, punitive damages are capped unless the cause of the accident was a felony-level crime.
2. Who Was At Fault
Texas has something called a “comparative negligence” law that can affect your car accident case.
Here’s how it works:
As a car accident victim, you could be found partially at fault for an accident. Your personal injury settlement can be reduced proportionately.
For example, imagine Driver A was driving through an intersection legally but slightly too fast. Driver B, who skipped a red light, then hits them. Driver A could be assigned 10% of the blame for the accident because they might have avoided the crash if they followed the speed limit. As a result, Driver A’s insurance settlement is reduced by 10%.
3. Insurance Limits
Car insurance is mandatory in Texas, and there is a minimum required coverage (as outlined by the Texas Department of Insurance) consisting of:
- $25,000 for property damage
- $30,000 per person
- $60,000 per accident
Insurance companies only pay settlements up to the maximum the at-fault party’s policy allows per accident, even if your damages are worth more than that.
The more insurance coverage the at-fault driver has, the more compensation you can access.
But don’t worry. There are steps you can take if the at-fault party is uninsured or underinsured and can’t cover your full costs.
4. Type of Injuries
The type of injury may increase or decrease your settlement amount. For instance:
- Cases often settle for less if they involve only soft tissue damage (skin, muscles, ligaments, tendons). This includes sprains, strains, cuts, scrapes, and bruises.
- On the other hand, settlement amounts are higher for more severe injuries to areas like your:some text
- Bones
- Spine and neck
- Head and brain
- Ears
- Eyes
- Internal organs
- Skin, in the case of severe burns and scars
5. Other Accident Circumstances
Some other factors that might affect your settlement amount are:
- Commercial Vehicles: If the at-fault driver was in a commercial vehicle, they may be insured through their employer. Businesses tend to have higher insurance limits, so you're likely to get a higher compensation than in other cases.
- Point of Impact: Head-on collisions tend to result in the most serious damage and fetch higher settlements. Other points of impact, from most to least severe (generally speaking), are:some text
- Side-on collision (where one vehicle drives straight into the side of another)
- Rear end collision (where one vehicle drives into the back of another)
- Side-swipe (where two vehicles are parallel when they make contact)
- Violation of Traffic Laws: You may get a higher settlement if the at-fault party breaks a traffic law — E.g., by running a red light, not following the right of way, or making an unsafe U-turn.
- Lack of Enclosure: If the car accident victim is not in an enclosed vehicle, such as in cases of a pedestrian accident, bicycle accident, or motorcycle accident, there tend to be more severe injuries, leading to a higher average settlement.
6. Your Legal Representation
It can be very difficult to calculate your damages and navigate the insurance settlement process on your own. A personal injury lawyer can help you assess what you’re owed, deal with paperwork, and ensure you don’t accept a lowball offer.
In fact, Insurance companies may offer a higher settlement purely because you have an attorney with a track record of winning in court, like the experienced attorneys at No Bull Law.
In fact, according to a study by the Insurance Research Council, a personal injury lawyer can help you get a settlement that’s 3 to 3.5 times higher on average than if you don’t have a lawyer.
So don’t wait, and book a free consultation ASAP.
7. Other Factors That Can Negatively Affect Your Car Accident Settlement Amounts
There are a few factors that can potentially harm your case results. Mainly because insurance companies might try to decrease the value of your settlement based on them. They are:
- Lack of Evidence: You don’t have enough supporting documentation to prove your lack of liability, economic damage, or pain and suffering. Examples of supporting evidence include:some text
- Doctors’ statements and invoices to prove medical expenses
- Income statements to show lost wages
- Supporting documents for property damage (E.g., vehicle assessment by a mechanic)
- Photos and videos of the accident and your injuries
- Police reports and witness statements
- Family and friends’ testimonies regarding the accident’s impact on your life
- Expert testimony and accident reconstruction
- Lying and exaggerating: Insurance companies will penalize you if they believe you are being dishonest or fraudulent to obtain a higher settlement. It’s best to be honest and gather evidence to support your claim’s accuracy.
- Not getting prompt medical care: Insurance companies may rush you to settle before you have all the information you need about your medical care. Or, if you delay treatment, they can argue that the delay worsened your condition. You should always seek medical care before considering settlements.
- Pre-existing conditions and injuries: Insurance companies may try to avoid covering your medical bill if you have existing health problems. For example, if you were driving with a broken hand and injured it again in an accident, the insurance company may want to exclude costs related to the hand injury from your settlement. In such a case, legal representation is your best course of action.
- Accepting the first offer: The first settlement offer an insurance company makes will almost always be too low. Negotiation can result in a higher settlement — $30,000 more on average.
Let’s discuss more of the benefits of having legal representation if you’re injured in a Texas car accident.
Here are six ways that hiring a personal injury lawyer can help you get fair compensation after an accident:
1. Stronger Negotiation Power
As mentioned earlier, studies show that the average car accident case settles for 3 to 3.5 times more if it involves a lawyer.
Why?
A car accident lawyer can expertly assess the fairness of settlement offers. Their advice ensures you won’t accept a lowball offer, and you’ll know when an offer is good enough to settle.
Additionally, having legal representation forces insurance companies to take your settlement claim seriously, knowing that you could take it to court and win.
2. Their Payout Depends on Your Payout
Personal injury lawyers in Texas are limited to collecting 33% to 40% of the final settlement. They only get paid when they win, and how much they get paid depends on how much they win for you.
This means they have a strong incentive to get you the highest settlement they can. (Be assured, at No Bull Law, we’ll fight tooth and nail on your behalf.)
Plus, you don’t have to worry about any upfront legal costs.
3. Procedural Aid
A lawyer can help you jump through the necessary procedural hoops like:
- Filing paperwork on time
- Communicating with the insurance company
- Gathering evidence
This saves you time and effort, allowing you to focus on healing. It also ensures you don’t miss any deadlines or important legal steps necessary to get compensation.
4. Accuracy in Claims
Your personal injury lawyer will work with you to total up your expenses (economic damage plus non-economic damages) so that your claim is fair to you, accurate, and legitimate. Having an accurate claim protects your credibility and ensures you get what you’re owed in the end.
5. Clarity in Processes and Timelines
Your legal team can explain the process and any complexities that arise along the way. Claims are rarely straightforward, and your lawyer can help you understand your best options in any eventuality.
6. Representation in Court
Should you be unable to reach a fair settlement, a lawyer can help you file a lawsuit and represent you in court.
It’s highly advisable to contact a Texas law firm right from the start, not just if you need to go to court. This way, they will have a deep understanding of the facts of your case and can protect you from missteps along the way that could affect your outcome.
Looking for the best legal representation for a car accident injury settlement in Texas?
The attorneys at No Bull Law all have two things in common: Expertise and a passion for justice for our clients.
Every client we work with gets personalized care that will make you feel protected and empowered.
Here’s how it works:
- Book a free case evaluation consultation and tell us about your case.
- We start investigating your claim.
- If we take your case, we’ll fight to get you the settlement you deserve.
- You don’t pay unless we win.
Still have questions?
Read on.
Here are the answers to the most common questions about the procedure and complexities of motor vehicle accident settlements:
1. How Does the Car Accident Settlement Process Work in Texas, Step-by-Step?
If you’re injured in an auto accident in Texas, follow these steps from the time of the accident to the final settlement:
- Your safety and health is top priority after an accident. However, if you or a loved one are able to, collect information at the scene that will help you with your claim, such as:some text
- Names, phone numbers, and addresses of drivers involved
- Insurance company names and policy numbers
- Vehicle makes, models, and license plate numbers
- Witness information
- Photos, videos, and documentation
- Seek medical treatment (even if you think you only have minor injuries).
- File a police report as soon as possible.
- Report the accident to your insurance company.
- File a claim with the at-fault driver’s insurance company.
- Keep track of all your expenses related to the accident.
- Cooperate with the insurance adjuster (preferably with legal supervision) as they investigate. Tip: You have a right to refuse to speak to insurance adjusters without a lawyer present.
- Review the insurance settlement offer and negotiate if needed. A personal injury lawyer can help you do so.
This is often a long and tedious process. Many other uncertainties could be involved, such as multiple claimants, an uninsured at-fault driver, insurance companies trying to offer a low settlement, and so on.
Your best bet is to hire a reputed lawyer from No Bull Law who can take the wheel and get you the compensation you deserve.
2. How Long Does the Car Accident Settlement Process Take?
On average, an auto accident settlement takes just under 11 months to process and pay out. It takes around nine months if you accept the first settlement offer, but this will almost always put you in a deficit for covering your costs.
If you decide to negotiate and demand fair compensation, expect to wait around 17 months on average for a payout. In our experience, some car accidents are straightforward and settle very quickly, while other cases take months or even years. It all depends on the complexities of the case, how willing the parties are to cooperate, and court schedules. We provide our clients with estimates for their unique cases.
3. How Are Settlements Paid Out?
When you accept a settlement offer, you’ll receive a cheque paid into an escrow account. This account offers protections for you, your lawyers, and anyone else who’s entitled to a portion of the money, like your health insurance company.
From there, you can pay your legal team for the following:
- Fees: These cover the cost of your lawyers and usually come out of the final settlement amount, as a percentage of winnings (33%-40%).
- Expenses: These cover the costs of an investigation, particularly if your case goes to court. For instance, your legal team may bring in third-party experts like accident reconstructors or personal investigators to strengthen your case.
The remainder of your car accident injury settlement can be paid to you in one of two ways:
- Lump Sum: The entire settlement is paid out at once. This allows flexibility to cover costs (like repairing or replacing a vehicle or covering medical treatment) in the short term.
- Structured: The settlement is split up into payments and paid out over a predetermined schedule. This is beneficial for people who need long-term assistance managing the expenses of their injury.
Car insurance policies typically have per-person and per-accident limits.
Say the at-fault driver has the minimum car insurance coverage; Claimants can only get up to $30,000 each, and the coverage caps off at $60,000 total. This can make it difficult for all the car crash claimants to cover their damages.
But if you work with a trustworthy legal team, like No Bull Law, we will negotiate with the insurance companies to get you the maximum compensation possible.
We can also help you explore other avenues for recovery, such as suing the at-fault driver directly or tapping into other insurance policies.
In this case, you may be unable to get full compensation for your damages through the at-fault party’s insurance. But you have a few options:
- You can file a lawsuit against the at-fault party directly.
- You can claim from your own insurance policies, such as Uninsured or Underinsured Motorist coverage (UI/UIM), Personal Injury Protection coverage (PIP), collision coverage, and your health insurance policies.
- You can seek compensation from another liable party — E.g., the driver’s employer or a government entity responsible for road hazards that caused the car crash.
6. What Kind of Cases Do Personal Injury Lawyers Work On?
Personal injury lawyers often handle auto accidents outside of only car accidents. A personal injury settlement for a motor vehicle incident can include:
- A truck accident
- Motorcycle accident
- Bicycle accident
- Pedestrian accident involving a vehicle
- Bus accident
- Boating accident
Besides auto accidents, a personal injury case can include anything where bodily injury took place, from a construction accident to an oil rig accident.
At No Bull Law, we take pride in offering comprehensive legal representation for personal injury cases. Our team can represent you in a wide range of cases, including a car accident, slip and fall accident, medical malpractice incident, workplace injury case, product liability case, and wrongful death claim.
Get the Car Accident Settlement Amount You Deserve
Understanding the typical car accident settlement amount in Texas and the factors insurance companies use to value your settlement claim can greatly impact the final amount you receive.
Proper legal representation helps you cut through the confusion and shady tactics that stand between you and the payout you deserve.
Contact No Bull Law for a free consultation today — No catch, no nonsense, no fluff. Our dedicated and experienced lawyers are ready for battle in your personal injury case.
