How Much Is a Car Accident Claim Worth?

If someone caused a car accident that hurt you or a family member, you're likely considering your options to recover damages. While you probably qualify to seek compensation through a personal injury claim, you may be wondering, "How much is a car accident claim worth?" It’s a valid question when you’re dealing with injuries, medical bills, and lost wages after a collision due to another driver’s negligence or wrongdoing. However, there’s really no simple answer. 

The amount you could get from a car accident claim varies widely and depends on numerous factors. While the following article addresses key factors that can affect a car accident claim, you must consult an experienced car accident lawyer in your area to get a better idea of what to expect. An attorney can assess your claim and offer an estimate on the types and amounts of damages they could help you recover. They can also advocate for you to increase your chances of getting the maximum compensation possible.

Contact a car accident lawyers near you today for a free consultation and learn more about how much compensation you could receive from a car accident claim.

Severity of Injuries

The extent and nature of your injuries significantly impact your claim's worth. More severe injuries typically result in higher compensation due to increased medical costs, longer recovery times, and greater impact on your daily life. For instance, a spinal cord injury or traumatic brain injury will likely lead to a higher settlement than a minor whiplash injury.

Medical Expenses (Current and Future)

Your claim should cover all accident-related medical costs. This includes emergency room visits, hospital stays, surgeries, medications, physical therapy, and any other necessary treatments. It's important to consider not just your current medical bills but also any future medical care you may need due to your injuries.

Lost Wages and Earning Capacity

If your injuries forced you to miss work, you could claim compensation for lost wages. In cases where your injuries affect your ability to work long-term or prevent you from returning to your previous job, you may also be able to claim for loss of future earning capacity.

Property Damage

The cost to repair or replace your vehicle and any other personal property damaged in the accident is factored into your claim. This might include items like a laptop or phone that were in your car at the time of the crash.

Pain and Suffering

This non-economic damage compensates you for the physical pain and discomfort you've experienced due to your injuries. The amount awarded for pain and suffering often correlates with the severity and duration of your injuries.

Emotional Distress

Car accidents can cause significant psychological trauma. You may be able to claim compensation for anxiety, depression, PTSD, or other emotional issues resulting from the accident.

Liability and Fault Determination

Michigan follows a modified comparative fault rule. This means that if you're found to be partially at fault for the accident, your compensation may be reduced proportionately. If you're determined to be more than 50% at fault, you may not be able to recover damages at all.

Types of Damages in Car Accident Claims

Car accident claims typically involve two main categories of damages: economic and non-economic.

Economic Damages

These are the quantifiable financial losses you've incurred due to the accident. They include:

• All costs related to your medical treatment, from ambulance rides to follow-up appointments.


• Wages lost due to time off work for recovery or medical appointments.


• Costs to repair or replace your vehicle and other damaged property.

Economic damages are usually straightforward to calculate as they're based on actual expenses and losses.

Non-Economic Damages

These damages compensate you for the non-monetary impacts of the accident:

• Physical discomfort and distress your injuries have caused.


• Compensation for activities you can no longer participate in or enjoy due to your injuries.


• Mental anguish, anxiety, or other psychological effects of the accident.

Non-economic damages are more subjective and require a thorough assessment of your case from a qualified personal injury lawyer.

Calculating Economic Damages

To calculate economic damages, you'll need to gather all relevant documentation. This includes:

• Medical bills and records


• Pay stubs or other proof of income


• Receipts for out-of-pocket expenses related to the accident


• Estimates for vehicle repairs or replacement

You need to keep thorough records of all accident-related expenses. Don't forget to include costs like transportation to medical appointments or home modifications needed due to your injuries.

When calculating economic damages, you also need to consider future expenses and losses. This might involve projecting ongoing medical care costs or estimating future lost wages if you're unable to return to work. An experienced attorney can help you accurately assess these future costs to ensure you're not left financially vulnerable down the line.

Assessing Non-Economic Damages

Putting a dollar value on pain and suffering or emotional distress isn't straightforward. Insurance companies and attorneys often use one of two methods to calculate non-economic damages:

• Multiplier method: This involves taking the total of your economic damages and multiplying it by a number (usually between 1.5 and 5) based on the severity of your injuries. For example, if your economic damages total $50,000 and a multiplier of 3 is used, your non-economic damages would be $150,000.


• Per diem method: This assigns a daily rate to your pain and suffering, then multiplies it by the number of days you've experienced (or are expected to experience) this pain and suffering. For instance, if a rate of $200 per day is used and you're expected to experience pain for 365 days, your non-economic damages would be $73,000.

These methods provide a starting point, but the final amount can vary based on the specific circumstances of your case. Factors like the impact on your daily life, the visibility of your injuries, and your age can all influence the value assigned to non-economic damages.

One of the main challenges in assessing non-economic damages is the subjective nature of pain and suffering. Two people with similar injuries might experience very different levels of pain or emotional distress. That's why you must keep a detailed record of how your injuries affect your daily life. This could include a pain journal documenting your discomfort levels and how your injuries impact your ability to work, sleep, or engage in activities you once enjoyed.

Impact of Insurance Coverage

The amount and types of insurance coverage available can significantly affect your claim's value. Key considerations include:

• Policy limits: Insurance policies have maximum payout limits. If your damages exceed these limits, you may need to explore other avenues for full compensation, such as pursuing the at-fault driver's personal assets.


• Types of coverage: Michigan requires all drivers to carry no-fault insurance, which covers your medical expenses and lost wages regardless of who caused the accident. However, this coverage has limits. For more severe accidents, you may need to file a claim against the at-fault driver's liability coverage.


• Uninsured/underinsured motorist coverage: If the at-fault driver has insufficient insurance or no insurance at all, your own uninsured/underinsured motorist coverage (if you have it) can help cover your damages.

An attorney can help you navigate these issues and identify all potential sources of compensation.

Comparative Negligence and Its Effect on Claim Value

Michigan follows a modified comparative negligence rule, which can affect your claim's value if you're found partially at fault for the accident. If you're less than 50% at fault, you can still recover damages, but your compensation will be reduced by your percentage of fault. If you're 50% or more at fault, you cannot recover any damages.

Insurance companies may try to assign you a higher percentage of fault to reduce their payout. An attorney can represent you in all dealings with the insurance company and protect your interests.

Settlement vs. Trial: Pros and Cons

Although most car accident claims settle out of court, your attorney may need to take your case to trial if the insurance company refuses to offer a fair settlement or acts in bad faith regarding your claim. Here are some factors to consider between receiving a settlement or taking your case to court:

Settlement Pros

• Faster resolution


• Guaranteed compensation


• Less stressful than a trial


• Lower legal costs

Settlement Cons

• Potentially lower compensation than a trial verdict


• No public accountability for the at-fault party

Trial Pros

• Potential for higher compensation


• Opportunity for your case to be heard fully


• Public accountability for the at-fault party

Trial Cons

• Longer process


• No guaranteed outcome


• More stressful


• Higher legal costs

You must work closely with your attorney to consider which option is the best course of action in your case. Your lawyer may look at things such as the strength of your case, the settlement offer on the table, and your personal circumstances. They can help you make informed decisions and guide you through the process.

Keep in mind that Michigan allows you only three years to file a personal injury lawsuit in court, so you must consult an attorney to discuss your case and protect your right to seek compensation.

Role of an Attorney in Maximizing Claim Value

Working with an attorney can significantly increase your chances of receiving fair compensation. Here's how an attorney can help:

• An attorney can assess the strength of your case and provide a realistic estimate of its value based on their experience with similar cases.


• Attorneys have the resources to collect and preserve crucial evidence, including accident reports, witness statements, and expert testimony.


• Experienced attorneys know how to negotiate effectively with insurance companies, who often try to minimize payouts.


• An attorney can handle all the legal complexities of your car accident claim and ensure it meets all legal requirements. They can also explore all avenues for compensation.


• If your case goes to trial, an attorney can build a strong case and represent you in court.

An important intangible benefit of working with an attorney is your own peace of mind. You won’t have to worry about the stress and burden of legal proceedings, and you can rest easier knowing a dedicated legal professional has your back.

Common Mistakes That Can Devalue a Claim

Avoiding certain pitfalls can help protect the value of your claim:

• Don’t delay medical treatment: Waiting to seek medical care can make it harder to prove your injuries were caused by the accident. Always get checked out promptly, even if you think your injuries are minor.


• Don’t post about the accident on social media: Insurance companies often monitor claimants' social media accounts. Posts that contradict your injury claims can seriously damage your case. It's best to avoid posting about the accident or your activities while your claim is ongoing.


• Don’t give recorded statements to the insurance company without legal counsel: Insurance adjusters may try to get you to give a recorded statement early on. These statements can be used against you later. It's best to consult with an attorney before providing any statements to insurance companies.


• Don’t accept a quick settlement: Insurance companies often offer low initial settlements hoping you'll accept before fully understanding the extent of your damages. Don't accept any offers without consulting an attorney first.


• Don’t exaggerate your injuries: While it's important to fully document your injuries, exaggerating their severity can seriously harm your credibility and the value of your claim.

One of the things you must do is follow your doctor’s medical advice and adhere to your treatment plan. Failing to do so gives the insurance company ammunition to reduce or deny your claim by asserting your injuries aren’t as serious as you say.

Contact an Experienced Car Accident Lawyer Today to Get the Compensation You Need

To get the most from your car accident claim, you need to work with a seasoned personal injury attorney. The legal team at Goodman Acker P.C. has in-depth knowledge of Michigan car accident laws and a proven track record of securing fair compensation for our clients. 

You can rely on us to work diligently to build a strong case on your behalf. We can negotiate with insurance companies to get the best settlement possible, and if necessary, represent you in court.

Don't let the complexities of the legal system or the tactics of insurance companies prevent you from getting the compensation you deserve. Contact Goodman Acker P.C. today for a free, confidential consultation. We'll review your case, answer your questions, and help you understand your options moving forward.