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How Car Accident Settlements Are Calculated

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Kantrowitz, Goldhamer, Graifman, Perlmutter & Carballo, P.C.

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Written/Reviewed By:

Barry S. Kantrowitz, Esq.

Last Updated: May 28, 2024

Read Time: 3 mins

In the aftermath of a car accident, victims often have many questions about the nature and amount of the compensation that they may receive. Understanding how settlements are determined can be crucial in ensuring that you receive a settlement that fairly represents the amount that you are owed. For assistance in determining the full and fair amount of compensation that you deserve, contact a car accident lawyer today.

How Is The Amount Of Compensation Determined?

The amount of a car accident settlement is primarily determined by the damages sustained. These damages can be both economic and non-economic. Economic damages include tangible losses such as medical expenses, lost wages, and property damage. Non-economic damages cover pain and suffering, emotional distress, and loss of enjoyment of life. The severity of injuries, the impact on your daily life, and the fault determined in the accident all play critical roles in the final settlement figure.

What Role Does Fault Play In A Settlement?

In car accident cases, the degree of fault is a crucial factor. Most states adhere to a comparative fault rule, meaning that if you are partially at fault for the accident, your settlement may be reduced by the percentage of fault assigned to you. For example, if you are found to be 30% at fault and the total damages amount to $100,000, your settlement could be reduced to $70,000. An experienced lawyer can help you understand the laws pertaining to fault in your case and assist in proving fault on the part of the negligent party.

Can Future Expenses Be Included In A Settlement?

Yes, future expenses can and often are included in a car accident settlement. This is particularly important if injuries are severe and lead to long-term or permanent disability. Future medical expenses, future loss of earnings, and costs for ongoing rehabilitation or care should be accurately calculated and included. Proving these amounts typically requires specialist testimony and detailed documentation.

How Are Pain And Suffering Calculated In A Settlement?

Calculating pain and suffering is more subjective than calculating economic damages and often depends on the specifics of each case. Generally, insurers use a multiplier method or a per diem (daily rate) method. The multiplier method involves assigning a number (usually between 1.5 and 5) to the total economic damages, based on the severity of the injuries. The per diem method assigns a daily rate to your pain and suffering from the date of the accident until you reach maximum medical improvement.

What Should I Do If I Receive A Settlement Offer?

If you receive a settlement offer, it is crucial not to accept it immediately without consulting an attorney. Early offers are typically lower than what you might be entitled to, especially before the full extent of your injuries is known. Attorneys like those at The Law Firm of Frederick J. Brynn, P.C. always recommend having an offer reviewed before accepting it. An experienced lawyer can review the offer, negotiate with the insurance company on your behalf, and help ensure that the settlement reflects the true value of your claim.

Contact An Experienced Lawyer Today

Calculating a car accident settlement involves various factors, including assessing the damages, understanding fault, and incorporating future liabilities. Each case is unique, and having professional guidance to navigate these complexities can be invaluable. Whether it’s negotiating with insurance companies or representing your interests in court, a knowledgeable attorney is a crucial advocate in maximizing your settlement.

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 10 days ago
 
 
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   Kenny Perlow 
 31 days ago
 
 
 Trustindex verifies that the original source of the review is Google. KGG Law, and Barry Kantrowitz in particular, set the bar high for what a thorough, practical, strategic, compassionate and smart lawyer can be. Everything about Barry's advice and representation was exemplary and the stress mitigation that resulted was invaluable. On top of that, the ultimate result Barry achieved was beyond what was reasonable to expect and we are forever grateful. Often, people say that you hire a lawyer to prevent a problem. Sometimes, unfortunately, you need an attorney to solve a problem and I could not recommend Barry and his firm any more highly in that regard.
  
 
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   Aliza Ali 
 95 days ago
 
 
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   Jana Montero 
 98 days ago
 
 
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   Mike Sakmann 
 104 days ago
 
 
 Trustindex verifies that the original source of the review is Google. I sought legal advice regarding an employment matter and had an excellent experience working with Sam Smith, Esq. at KGG Law. Sam was thorough, attentive, and took the time to listen carefully to my concerns before providing clear, thoughtful guidance. I appreciated the professionalism and care shown throughout the process, and I would confidently recommend KGG Law to anyone in need of legal assistance.
  
 
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   Liz Hecker 
 110 days ago
 
 
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   Brandy Miller 
 133 days ago
 
 
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   Mike Greenspan 
 146 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Kate Carballo is a dedicated, passionate, and creative attorney whom I had the pleasure to lecture with at a state trial lawyer's conference. Kate's lecture demonstrated how she uses her innovative and "out-of-the-box thinking" to achieve outstanding results for her injured clients. That Kate is certified by the Supreme Court of New Jersey as a civil trial attorney is a testament to her skills, experience and commitment to excellence.
  
 
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   Jonathan Sampson 
 153 days ago
 
 
 Trustindex verifies that the original source of the review is Google. Was referred to KGG law by a friend and could not have asked for better legal representation. They walked me through every step of the process after my accident and began every call with “ how are you feeling” which was just one example of how much they care about their clients. They handled my case very efficiently, professionally and courteously. My attorney Kate Carballo was a rock star! So clearly experienced, she consistently made me feel at ease with the process. Highly recommend
  
 
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   Vinnie Kung 
 156 days ago
 
 
 Trustindex verifies that the original source of the review is Google. We had a great experience with the team at KGG Law. While it was a traumatic time for our family, they made it very easy for us and explained all of our options. They even performed due diligence to make sure that after our settlement, there would be no further issues which I think is even more important than the settlement itself. Thank you!

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