A car accident settlement may cover several types of damages. This depends on the circumstances of the crash. These can include medical bills, lost wages, property damage, and pain and suffering. In certain cases, punitive damages are also counted in.
The average payout after a car accident relies on several factors. Those factors can be the severity of the accident, the extent of the injuries, and who is legally responsible for the incident.
Many people assume a settlement only covers the hospital bills and a car repair. In reality, a well-negotiated settlement accounts for every way the accident has affected your life. Understanding the different categories of damages is important when evaluating a settlement offer.
Below are the types of damages that a car accident claim covers.
Economic Damages
Economic damages are the measurable financial losses that occur because of an accident. They include costs such as
- Medical bills
- Lost wages
- Property damage
- Rehabilitation damage
- Other out-of-pocket costs related to the accident.
These types of damages are the easiest ones to calculate and prove in a settlement.
Medical Expenses
Medical expenses are the largest part of a car accident settlement because they include all the healthcare costs related to treating your injuries. Expenses such as emergency room visits, ambulance services, surgeries, and other rehabilitation treatments needed for the recovery come under medical expenses.
It is important to know that compensation is not limited to the medical bills you have already received. It also includes the estimated cost of future care or long-term medical support.
Accepting a settlement before fully understanding your current and future medical needs can lead to serious financial loss.
Lost Wages
In an accident, if your injuries caused you to miss work, you may get compensation for your loss during your recovery. This applies to workers, including salaried employees and self-employed individuals.
Besides lost wages, a settlement may also cover loss of earning capacity if your injuries permanently affect your ability to work.
Property Damage
Property damage compensation covers the cost of repairing your vehicle or replacing your vehicle that was damaged in the accident. In this, personal belongings such as laptops and phones that were inside the car at the time of the crash are also included.
Non-Economic Damages
Non-economic damages compensate for the emotional impact caused by an accident. They cover things like pain and emotional distress. These damages are an important part of a fair settlement. In this type of damage, you can get compensation for
Pain and Suffering
Pain and suffering compensation covers the physical pain and discomfort caused by your injuries. It can include ongoing pain and the inability to enjoy activities you once did.
Insurance companies calculate this compensation by applying a multiplier to your financial damages or by assigning a daily value to the pain you experience during recovery.
Emotional Distress
As you know, a serious accident can affect more than just your physical health. It can leave lasting emotional effects. Victims may experience anxiety, depression, or post-traumatic stress after the accident.
So, under this type of damage, you can get compensation for the emotional distress you went through. The impacts of the distress are supported by
- Medical records
- Therapy reports
- Evaluations from mental health professionals.
Know What You Are Owed Before You Settle
A settlement that only covers your immediate medical bills may not reflect the full value of your claim. As aforementioned, compensation can include
- Lost income
- Future medical care
- Pain and suffering
- Punitive damages.
Before you agree to any offer, it is important to carefully review all possible losses. Because once a settlement is finalized, there is no going back.
Key Takeaways
- Understanding the types of damages that are covered in a car accident settlement helps in evaluating the settlement offer.
- Economic damages are the financial losses that occur because of an accident.
- Medical expenses play a major role in car accident claims.
- Non-economic damages require strong evidence and legal support to prove.
- It is important to look at all possible losses before you agree to any offer.
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