1. Economic damages — the losses you can add up
These are documented, dollar-for-dollar losses. They are usually the foundation of the claim:
- Past and future medical bills (ER, imaging, surgery, therapy, medication)
- Lost wages and lost earning capacity
- Property damage, rental car and towing
- Out-of-pocket costs like travel to treatment and home help
2. Non-economic damages — pain and suffering
Physical pain, emotional distress, sleep problems and the loss of activities you enjoy are real losses too. Insurers often estimate them using the severity and length of treatment, which is why consistent medical care and documentation matter so much.
3. Fault
If you share some blame, most states reduce your compensation by your percentage of fault. A few states bar recovery entirely if you were even partly at fault. How fault is proven — police report, photos, witnesses, video — can change the value of a claim significantly.
4. Available insurance
A claim is often limited by the at-fault driver's policy limits. State minimums can be as low as $25,000 or less per person. Your own underinsured motorist coverage, a commercial policy (trucks, rideshare, company vehicles) or more than one at-fault party can increase what is available.
Why the first offer is usually low
Insurers often make quick offers before you know the full extent of your injuries. Once you accept and sign a release, the claim is closed — even if you later need surgery. Getting a free review before accepting any offer is the simplest way to protect yourself.
Frequently asked questions
Is there a car accident settlement calculator?
Online calculators can only guess, because they can't see your medical records, fault evidence or insurance limits. An attorney's free review gives a far more realistic picture.
How long does it take to get a settlement?
Simple claims can settle in a few months; claims with serious injuries usually take longer, because a claim can't be valued properly until treatment is complete or its future is clear.
Are car accident settlements taxable?
In the U.S., compensation for physical injuries is generally not taxable income, but parts such as interest or punitive damages can be. Ask a tax professional about your situation.