Average Settlement for Car Accident

Average Settlement for Car Accident

Car accidents in New York can lead to significant physical, emotional, and financial burdens. When victims suffer injuries, they usually face medical expenses, lost wages, rehabilitation costs, and pain and suffering.

Compensation through a personal injury claim is meant to address these losses, but settlement amounts can vary widely depending on the severity of injuries, liability issues, and insurance coverage. 

Factors That Influence Car Accident Settlements in New York

Every car accident case is unique, but several key factors play a role in determining the settlement amount a victim may receive.

• Severity of Injuries – The extent of the injuries sustained in a car accident is the most significant factor affecting settlement value. More severe injuries, such as traumatic brain injuries, spinal cord damage, or multiple fractures, generally lead to higher settlements.
• Medical Expenses – A car accident injury settlement includes both past and future medical bills related to the accident, such as hospital stays, surgeries, physical therapy, rehabilitation, and medications.
• Lost Wages and Loss of Earning Capacity – If an injury prevents a victim from working temporarily or permanently, the settlement will generally cover lost income and reduced future earning potential.
• Pain and Suffering – Non-economic damages for physical pain, emotional distress, and loss of enjoyment of life can significantly impact the total settlement. Therefore, it’s important to calculate and prove these damages carefully.
• Liability and Comparative Negligence – New York follows a pure comparative negligence rule, which means a victim’s compensation may be reduced if they are partially at fault for the accident. If an injured victim is found 20% responsible, their settlement would be reduced by 20%.
• Insurance Coverage Limits – The amount of available insurance plays a key role in settlement amounts. If a negligent driver only has minimum liability coverage, compensation may be limited unless the injured victim has underinsured motorist coverage that is higher than the negligent driver’s liability coverage.

Average Settlement Ranges for Different Types of Car Accident Injuries in New York

Settlement amounts vary widely, but general trends can be observed based on injury severity. These amounts are contingent upon policy limits. 

Minor Injuries (Whiplash, Soft Tissue Injuries, Minor Fractures)

• Settlement Range: $25,000 – $100,000
• These cases often involve short-term medical treatment, physical therapy, and minor wage loss.

Moderate Injuries (More Severe Fractures, Permanent scarring,  Concussions)

• Settlement Range: $100,000 – $300,000
• Injuries requiring prolonged treatment, physical therapy, and time off work often fall into this range.

Severe Injuries (Spinal Cord Injuries, Traumatic Brain Injuries, Multiple Fractures, Amputations)

• Settlement Range: $300,000 – $1,000,000+
• Catastrophic injuries requiring surgery, long-term care, or permanent disability result in high-value claims.

Fatal Car Accidents (Wrongful Death Cases)

• Settlement Range: $500,000 – $5,000,000+
• Settlements depend on factors such as lost income of the deceased, medical expenses before death, and emotional damages for surviving family members.

New York’s No-Fault Insurance and How It Affects Settlement Amounts

New York is a no-fault state, meaning that after an accident, a victim’s own Personal Injury Protection (PIP) insurance covers their medical expenses and lost wages, regardless of who was at fault.

• PIP Coverage – All drivers in New York must carry at least $50,000 in PIP coverage. However, PIP only covers economic losses, not pain and suffering.
• Threshold for Filing a Lawsuit – To seek additional compensation beyond PIP (such as for pain and suffering), the victim must have suffered a serious injury as defined by New York law. This includes fractures, permanent disfigurement, permanent scarring, significant disability, or substantial limitation of a bodily function.

How Settlements Are Negotiated in New York Car Accident Cases

• Initial Demand Letter – The victim’s attorney submits a demand letter to the insurance company outlining the injuries, medical expenses, lost wages, and other damages.
• Insurance Company’s Response – The insurer typically makes a counteroffer, often lower than the demand amount, leading to negotiations.
• Use of Accident Reconstructionist – In complex cases, attorneys may hire specialists to strengthen the claim and justify a higher settlement.
• Trial vs. Settlement – If negotiations fail, the case may go to trial. However, most personal injury cases settle out of court because insurers prefer to avoid the risk of a jury awarding an even higher payout.

Maximizing Compensation: How a New York Car Accident Lawyer Can Help

• Determining Full Compensation – An attorney ensures that victims seek compensation for all eligible damages, including medical bills, future treatments, lost income, and pain and suffering.
• Handling Insurance Tactics – Insurance companies often try to minimize payouts by downplaying injuries or delaying claims. A lawyer fights back against these tactics.
• Proving Liability – Lawyers collect evidence such as police reports, witness statements, accident reconstruction analysis, and surveillance footage to prove negligence.
• Negotiating for Higher Settlements – Attorneys with strong trial experience put pressure on insurance companies to offer fair settlements. If necessary, they take the case to trial to secure the compensation their clients deserve.

Why You Need a Trial Lawyer for Your Car Accident Injury Settlement in New York

Most personal injury cases settle before trial, with studies showing that as many as 96% of injury claims are resolved out of court. While this might make it seem like trial experience isn’t necessary, the opposite is true. Hiring an attorney with a formidable courtroom reputation and a record of large verdicts can dramatically improve your chances of recovering maximum compensation. 

Insurance companies assess the strength of the lawyer representing the injured party before making a settlement offer. A trial lawyer with a history of success puts pressure on insurers to offer fairer and higher settlements to avoid the risks of going to court.

Reputation Matters in Settlement Negotiations

Insurance companies keep track of which personal injury lawyers consistently take cases to trial and which ones settle for lower amounts to avoid the courtroom.

• Experienced trial lawyers command respect – Insurers recognize attorneys who have successfully litigated cases before a jury and are more likely to offer higher settlements to avoid a legal battle.
• Higher stakes for insurers – When a lawyer has a history of securing large jury verdicts, insurance companies know they are facing a formidable opponent. This forces them to settle for fair compensation rather than risk a costly trial.

Trial Lawyers Provide Negotiation Leverage

Attorneys with trial experience significantly improve a client’s negotiation position. Insurance companies calculate risk, and a strong trial attorney increases the likelihood of a large payout if the case goes before a jury.

• Fear of large jury awards – Juries often sympathize with injury victims, especially in cases involving severe injuries, reckless driving, or corporate negligence. A lawyer with a reputation for securing large verdicts forces the insurer to reevaluate their settlement offer.
• Avoiding negative publicity – Trials can attract media attention, and insurance companies prefer to avoid public scrutiny. A trial lawyer’s presence increases the pressure on insurers to resolve the case quickly.

Comprehensive Case Preparation Leads to Higher Settlements

Trial lawyers approach every case as if it will go to court. This meticulous preparation results in stronger claims that convince insurers to settle for more.

• Gathering extensive evidence – Trial-experienced lawyers work with accident reconstruction specialists, medical experts, and economists to build an airtight case that demonstrates the full extent of damages.
• Countering defense tactics – Insurance companies use various strategies to minimize payouts, such as blaming the victim or downplaying the severity of injuries. A seasoned trial lawyer can anticipate these tactics and effectively counter them.

The Risk Factor: Insurance Companies Know Trials Cost More

For insurance companies, trials are expensive and unpredictable. The possibility of massive jury awards forces them to weigh the financial risks of going to trial versus offering a reasonable settlement.

• High costs of litigation – Going to trial requires insurers to pay their own legal teams, expert witnesses, and court fees. These costs add up, making a settlement with a trial-ready attorney a more attractive option.
• Juries tend to favor injury victims – If an insurer lowballs a claim and the case goes to trial, they risk a jury awarding significantly higher compensation, including punitive damages in cases of extreme negligence.

Maximize Your Settlement with New York’s Leading Car Accident Attorney 

If you have been injured in a car accident in New York, you need a powerhouse attorney who won’t back down against the insurance companies. Michael S. Lamonsoff, known as “The Bull,” has built a reputation for aggressively fighting for maximum compensation and holding negligent parties accountable. 

With a record of over $500 million in financial recoveries for injured victims, his firm prepares every case for trial, forcing insurers to take his clients seriously. Backed by a team of top litigators, expert witnesses, and legal strategists, Michael Lamonsoff is the advocate you want in your corner. Reach out to us today and let The Bull fight for you. To schedule your free consultation, call us at 212-962-1020 or fill out this online contact form.