What is the Average Car Accident Settlement? 

James D. Payer | December 20, 2024 | Car Accidents

If you or a loved one has been injured in a car accident in Florida, you may be entitled to compensation. You may be able to recover money for your medical expenses, lost wages, and other losses. During the legal process, it’s common for both sides to consider a settlement. A settlement offers a way to resolve your case without going to trial. 

A settlement occurs when the at-fault party or their insurance company offers you a fixed sum of money in exchange for releasing them from further liability. While some cases go to trial, the majority of car accident claims are settled out of court. 

Determining what an “average” settlement looks like can be challenging. There are many factors that influence a settlement amount. It is helpful to understand these factors and how they might affect your claim. 

A settlement can be proposed by either side at any point before the trial. Both parties will negotiate the amount until they reach an agreement or determine that a trial is necessary. Several factors play into how large a settlement offer might be: 

Extent of Your Injuries and Losses

A primary purpose of a settlement is to compensate you for your injuries. More severe injuries and greater financial losses tend to result in higher settlement amounts. For example, if your hospital stay and rehabilitation are extensive and costly, you can reasonably expect a settlement that covers these medical bills. Your settlement will likely cover your ongoing and future healthcare costs as well. 

Costs of Litigation

Settling a case can save both parties the expense of a lengthy trial. Defense costs, including attorney fees and expert witnesses, can add up quickly. If a fair settlement can prevent these high litigation costs, the at-fault party and their insurer may be inclined to offer an amount closer to your claim’s full value. 

Strength of Your Evidence

Evidence establishing the other driver’s negligence is crucial. If you have strong proof of fault, your bargaining power increases. Evidence like witness statements, police reports, or surveillance footage can be very compelling. 

On the other hand, if your evidence is limited or unclear, you may receive a lower settlement offer. The defense will try to discount your claim’s strength if your evidence is weak. 

Insurance Policy Limits and Financial Resources

The at-fault driver’s insurance policy limits and their personal financial resources can affect the settlement amount. If the responsible party carries substantial liability coverage or has sizable assets, you may be able to secure a larger settlement. Conversely, if their coverage is minimal, your recovery may be limited. 

How Large Should Your Florida Car Accident Settlement Be? 

It depends on the unique circumstances of your case. Every car accident is different. The final settlement amount will hinge on the factors above and the specifics of your situation. Ultimately, only you can decide whether a settlement offer fairly compensates you for your injuries and losses. 

An experienced Florida car accident attorney can provide valuable guidance. A lawyer will review the evidence, consider the likely costs of litigation, and help you determine a fair range for settlement. 

Contact Our Orlando Car Accident Law Firm For Help Today

If you’ve been injured in an accident in Orlando, Florida, and need legal help, contact our experienced car accident lawyers at Payer Law Personal Injury Lawyers to schedule a free consultation today.

We proudly serve Orange County and its surrounding areas: