How Much Is a Car Accident Claim Worth?

The blue lights are no longer flashing, and the sirens are quiet. The cars have been towed away and the glass swept to the gutter. In the aftermath of a serious car accident, a lot of worries come later.

Financial concerns are a big part of the equation. The loss column adds up quickly – medical bills, time off work, a damaged or totaled vehicle, and the possibility of future expenses from injuries and other suffering. If you’re wondering how you’ll get back on your feet financially, you’re not alone.

Typical Car Accident Settlement Amount in Wisconsin

Settlement amounts can range from a few thousand dollars to several hundred thousand dollars (sometimes millions) for more severe cases.

There is no set or average settlement amount for car accident claims in Wisconsin. The value of a claim depends on several factors, including the severity of injuries, property damage, medical expenses, and lost wages. It may also include future medical costs, time off work, and compensation for pain and suffering.

However, some studies have found that the median amount in the U.S. is around $15,000 – $20,000, when it comes to auto accidents. That said, the results can vary significantly.

What Type of Compensation Could I Expect by Filing a Claim?

Legal discussion on insurance claim policy with claims document folder in meeting room.

To figure out what damages you can claim after a car accident, your lawyer will first determine who was at fault. They will investigate the crash by gathering evidence such as police reports, witness and driver statements, and photos or videos from the accident scene.

Your lawyer will also check if any drivers broke traffic laws since violations can help prove fault.

For more complicated cases, they may work with accident experts who use science to recreate the crash. These experts analyze details like speed, braking, and vehicle positions to help show who is responsible.

Once you establish liability, your lawyer may file a claim usually seeking specific damages and general damages. In some cases, car accident lawyers will also file for punitive damages.

Specific Damages

Specific damages in a car accident claim usually are the specific financial losses and expenses incurred because of the accident.

These can include:

Medical expenses: This encompasses all medical bills related to the accident, including hospital stays, surgeries, doctor’s visits, prescriptions, and rehabilitation.
Lost income: If you couldn’t work due to your injuries, you may recover compensation for the income you lost during your recovery.
Disability or disfigurement: If the accident results in a long-term disability or disfigurement, you may recover compensation for the impact on your life and future earning potential.

General Damages

General damages in a car accident claim are non-economic losses that are not tied to specific financial expenses but are based on the intangible effects of the accident. General damages are more challenging to quantify than specific damages because they involve subjective factors.

General damages can include:

Pain and suffering: Compensation for the physical pain and emotional distress you endured due to the accident and your injuries.
Emotional distress: This covers psychological and emotional trauma resulting from the accident, such as anxiety, depression, or post-traumatic stress disorder (PTSD).
Loss of enjoyment of life: Compensation for the loss of the ability to participate in activities and enjoy life as you did before the accident.
Loss of consortium: Damages that can be claimed by a spouse or family member for the loss of companionship, care, and support from the injured party.

Punitive Damages

Punitive damages, also known as exemplary damages, are a type of compensation that may be awarded in certain personal injury cases, including car accident claims.

Unlike specific and general damages, which compensate the victim for their losses, punitive damages are meant to punish the at-fault party for extreme or intentional wrongdoing and discourage others from doing the same. Courts award them for the defendant’s reckless, willful, or malicious actions.

Common situations involving punitive damages include cases involving drunk driving, intentional harm, or extreme negligence.

Wisconsin does set statutory limits on punitive damages at twice the amount of compensatory damages or $200,000, whichever is greater. There are exceptions to these limits on punitive damages, especially in cases involving serious misconduct. This includes intentional harm, criminal acts, or situations where the defendant was convicted of a felony related to the injuries.

Calculating Damages for Pain and Suffering

Lawyers typically use one of two methods to calculate pain and suffering in a car accident claim.

Multiplier method: This method involves multiplying the total economic damages (medical expenses, lost wages, etc.) by a certain factor.
Per diem method: With this approach, your lawyer assigns a daily rate to your pain and suffering, often based on the nature and extent of your injuries. They then multiply this daily rate by the number of days you’ve suffered and are expected to suffer in the future.

There’s no fixed formula for calculating pain and suffering, and the approach used can vary depending on the circumstances of the case, the jurisdiction, and legal precedents.

Calculating Damages for Future Expenses and Losses

Calculating future expenses and losses requires a thorough understanding of both legal principles and the specific details of your case.

Here’s an overview of how lawyers typically calculate these future costs in key areas:

Medical Expenses: Your attorney will collaborate with medical experts to evaluate your injuries and estimate future medical costs. This includes ongoing treatments, surgeries, therapy, and medications. They will also account for inflation to ensure an accurate estimate.
Lost Earnings: If your injuries prevent you from working or reduce your future earning potential, your lawyer will calculate the income you would have earned without the accident. They may consult vocational experts to assess how your injuries affect your ability to work and earn a living.
Pain and Suffering: To estimate future pain and suffering, your lawyer will consider the severity of your injuries, medical prognosis, and how your injuries impact your quality of life. They will also factor in how long you are expected to experience pain and suffering.

In cases of severe injury, your lawyer may collaborate with life care planners. These experts create detailed plans outlining the ongoing medical care, assistive devices, and other necessities you’ll need in the future.

Lawyers also typically account for inflation and the time value of money when calculating future expenses and losses. They may use financial experts to determine appropriate adjustments and present-day values for future costs.

Lawyers will also check for past cases similar to yours to see how courts have awarded future expenses and losses. This helps estimate what you might receive in your claim.

Won’t Car Insurance Pay My Claim? Why Do I Need a Lawyer?

After a car accident, most people figure the process is simple. Just file a personal injury claim with your insurance company. However, investigating and evaluating a car accident can be complex. A personal injury lawyer is an important ally in your corner, especially when a crash involves significant injuries, disputes over liability, or multiple parties involved.

Typically, insurance companies start the claims process by reviewing your estimate of what it will cost to repair your vehicle. Depending on your coverage, you may be reimbursed for those costs after you pay a deductible.

If the repair costs are too high, then the insurance company might total your vehicle, in which case you could recover compensation for its current market value. This also depends on your policy and coverage. But insurance companies often minimize payouts to protect their bottom line.

A lawyer can negotiate with the insurance company to maximize your compensation, including for damages not covered by your policy, like pain and suffering.

Understanding UIM/UM With a Lawyer’s Help

Additionally, an attorney can help you navigate your own insurance policy’s uninsured/underinsured motorist coverage after an accident with a hit-and-run at-fault driver.

A lawyer can investigate the accident, gather evidence, interview witnesses, and work with accident experts to determine liability. This is particularly important in states with comparative negligence laws.

Wisconsin follows a modified comparative negligence rule. That means if you are partially at fault for the accident, you can still recover damages, but your award may decrease by the percentage of fault assigned to you. If you are 51 percent or more at fault, you may not recover compensation.

When estimating how much a car accident claim is worth, a lawyer will work with healthcare providers to ensure your medical bills are appropriately handled and factored into your compensation. They can also calculate future medical costs and the potential long-term effects of your injuries.