How Much is The Average Insurance Settlement?: FAQ

When you’re hurt in a Connecticut accident, you don’t think about settlements, at least not right away. First, you seek treatment for your injuries. Often that means emergency care, follow-up appointments, and taking time off work to heal. Only after you begin to recover do you begin to wonder, how much is the average settlement for a motor vehicle accident? This question may begin to haunt you as unpaid medical bills pile up and your financial resources dwindle. 

A motor vehicle accident injury attorney understands claim evaluations so they realize that every accident, injury, and claim is unique. If you’re recovering from car accident injuries, you should also know more about claim settlements and how they work. That’s why we created, “How much is the average settlement for a motor vehicle accident,” an FAQ that provides claim information you should know. 

What is the average settlement for a motor vehicle accident claim?

There’s no simple way to answer this question because there is no simple answer. Accidents, injuries, and circumstances vary widely. In reality, not even an expert can predict what a settlement will be until involved parties negotiate an agreement and sign on the dotted line. Comparing one person’s injuries to another is like comparing apples to oranges. Some online resources use technology to make comparisons anyway. 

Average court settlement ranges nationwide:

• Minor injuries: $3,000 to $10,000
• Moderate injuries: $10,000 to $50,000
• Severe injuries: $50,000 to $150,000

The numbers above reflect the average awards received nationwide when cases went to trial. These figures are an average of all the claims in the designated category. They don’t apply to most injured people as most cases settle without going to court. 

Average paid injury claim settlements in Connecticut

Insurers, injured parties, and their legal representatives resolve most injury claims outside of the courtroom. They negotiate, mediate, or arbitrate each case until they reach an agreement. 

Typically, insurers don’t release claim payment data to the public. You can find many details in the National Association of Insurance Commissioners’ “Auto Insurance Database Report.” The publication provides bulk analyses of bodily injury claims paid in every state. Here are the most recent statistics for all bodily injury claims in Connecticut:

• Total Bodily Injury dollars paid: $565,689,630 
• Total BI claims paid: 21,375
• Average claim payment: $26,464

These statistics won’t necessarily reflect your personal situation. They are an average of large and small settlements for all types of injuries. They also don’t provide an analysis of the cases where Connecticut’s comparative negligence statutes may have reduced the settlement value.

Settlements vary significantly  

As no two people, accidents, or injuries are alike, no two settlements are the same. You should still understand the factors that may go into reaching your settlement. Many factors come into play before opposing parties finalize an injury claim settlement. These often include:

• Economic losses: This includes your total medical bills, lost income, disabilities, and continuing out-of-pocket costs.
• Non-economic losses: This considers how an injury harmed you specifically. Non-economic losses may include scarring, disfigurement, mental health issues, pain, suffering, permanent disabilities, anxiety and distress, and other issues.
• Insurance Coverage: Despite serious injuries, your ultimate settlement may depend on the other party’s bodily injury liability limit and also your own uninsured motorist, underinsured motorist, or underinsured motorist conversion coverage. 
• Your Attorney: A seasoned motor vehicle accident attorney understands how to prepare and present cases effectively, negotiate settlements and maximize your compensation for motor vehicle accidents. 

What role does insurance play in determining motor vehicle accident compensation?

Regardless of your injury severity, your compensation may depend on the amount of liability insurance available to pay your claim. This isn’t usually a problem if you sustain only minor injuries. 

Claim resolution becomes far more complicated when the negligent driver has low limits and you’re dealing with catastrophic or serious injuries. This can lead to a number of complicated outcomes before you reach a final settlement.

Negotiation based on low limits

When you make an injury claim against a negligent driver, their insurance company usually tries to negotiate a settlement within the policy’s Bodily Injury limit. If your damages exceed their policyholder’s limits, they can’t fully compensate you but they may still try to settle your claim.

When damages are greater than the available BI coverage, it doesn’t eliminate your right to recover damages. It also doesn’t necessarily alter the liability insurer’s duty to defend if you file a suit.

Underinsured Or Underinsured Conversion Contribution

When you’re seriously injured, your attorney ensures that your auto carrier establishes an injury claim on your behalf. When a negligent driver doesn’t have enough coverage to pay your claim, your underinsured motorist or underinsured motorist conversion claim should pay a portion of your injury damages. UIM coverage is mandatory in Connecticut while UIM Conversion coverage is optional. 

When you present a UIM claim, your insurer determines liability and damages independently of the other driver’s liability insurer and your attorney. 

If you have minimal limits and no conversion coverage, you have access to a maximum of $25,000 in additional coverage. Your insurer will calculate their UIM contribution based on the other driver’s negligence. They apply an offset formula to determine their contribution to your settlement.

When you make any claims under your own insurance policy, your coverage may require that you consult with your insurer before filing a lawsuit. You must also protect their subrogation rights, their contractual right to recover damages they paid out on your behalf. Your healthcare insurer may have similar rights, which can further complicate a settlement.  

Litigation

If your claim exceeds the negligent driver’s policy limits, you won’t necessarily be able to settle your claim. You can still file a lawsuit. If your attorney tries your case, a judge or jury may award you a generous settlement. Your attorney must then determine the best way to recover your compensation. 

•  Even if a court awards you a judgment in excess of the other driver’s liability coverage, their insurer will have met their duty to defend. Despite the award amount, they will still only owe damages up to their limits. They still might not pay if they can’t negotiate a release of all claims on behalf of their policyholder. The court may have some input on this. 
• When you have a judgment, your attorney can help you consider other options for recovering damages directly from the person who caused your injuries. A judgment allows you to collect damages through a lien on the negligent person’s real property, a license revocation, or alternate means.

How can I maximize my motor vehicle accident settlement?

Your role in maximizing your settlement begins at the accident scene and continues until you execute your final settlement documents. 

Call 911 

A police officer will conduct an investigation and document all relevant evidence that’s still available when they arrive. They create a formal report with a record of evidence.

Don’t admit fault

Even if you believe you caused an accident, never say it out loud. Legal liability is complicated. Leave the analysis to your personal injury lawyer and your auto insurer. Anything you say can reduce your chances of recovering compensation for your injuries.  

Document what you can 

Use your phone to photograph and document the accident scene. This is evidence, and it begins fading away before a police officer arrives. If you can’t complete these tasks yourself, ask someone to help you. 

• Photograph the accident scene
• Get pictures of the cars, their stopping positions, license plates, and damage. 
• Verify the other driver’s insurance and personal information. 
• Get witness names and contact information. 

Seek medical treatment

Never say you’re not hurt. If you’re involved in a serious crash, it often takes several days before you experience the symptoms of certain types of injuries. If you prefer to avoid emergency transport to a hospital, visit your personal physician or another medical provider. Also:

• Follow your doctor’s orders. To an insurance claims adjuster, your treatment is a reflection of your condition. If you don’t keep follow-up appointments or take your pain medication, that usually translates to minimal injury.

• Track your recovery: Keep a journal or diary of your recovery. Document your pain, medical treatment, surgeries, temporary disabilities, and the activities you can’t do. This can help you remember your recovery journey. Your documentation can ultimately assist your attorney in evaluating, negotiating, and resolving your claim. 

Remember someone might be watching you 

When you have serious injuries, you need a seasoned injury attorney, but you must also take steps to protect your right to make a claim. If you’re undergoing a difficult recovery, insurance companies do whatever it takes to confirm or dispute your injuries. They may talk to your neighbors and shoot clandestine videos of you if you venture outside or leave home. Social media investigators may track your activities online. 

Consult with a motor vehicle accident attorney

When you establish a working relationship with a motor vehicle accident attorney, you have an advocate working on your behalf. They intervene with liability insurers, investigate your case, assess the legal issues, and evaluate your injuries. While you’re recovering, your attorney prepares your case for presentation. When you’re ready, they work to maximize your settlement.  

Does fault impact the settlement amount in a motor vehicle accident claim?

Fault plays an important role in auto injury claim settlements. Connecticut’s Comparative Fault statutes acknowledge that multiple parties may share responsibility for an accident. If an insurance adjuster determines that you were partially at fault, they can reduce your settlement based on your percentage of negligence. If they determine that your negligence exceeds 51%, they have the right to deny liability for your accident and related injuries. 

When an insurance company denies liability for your claim, tradition assumes that the company and the adjuster are acting in good faith. If you’re dealing directly with an insurer, they understand that you might accept their decision and simply walk away. 

Your attorney won’t walk away

When a motor vehicle accident attorney represents you, they don’t accept liability denials without fighting back. Insurers make decisions based on their investigations but attorneys conduct investigations of their own. They seek recovery based on your injury, economic losses, and non-economic losses. 

When an insurer acts in good faith, they attempt to negotiate your case fairly. If they can’t settle your case fairly, they may recommend that you move forward with litigation. When your attorney files a lawsuit on your behalf, that doesn’t usually end negotiations:

• Courts prefer that disputing parties settle cases without going to trial. 
• Judges often urge plaintiffs and defendants to participate in informal or court-mandated negotiations. 
• Connecticut offers Alternative Dispute Resolution programs that provide negotiation and settlement alternatives. 
• Until the parties settle your injury claim, trial remains an option

How do I find the best lawyer for motor vehicle accident claims

It’s easy to find a personal injury attorney. The challenge comes when you’re trying to find the person you believe is the best lawyer for motor vehicle accident claims. It’s difficult to judge an attorney with whom you’ve had no experience. Consider treating your search as you would a hiring process. Remember:

• When you choose an attorney, you’ll be working together for months or possibly years. 
• Most law firms have an online presence. Spend time viewing their legal websites. 
• Review each firm’s practice specialties to make sure they handle auto accident injury cases.  
• Most attorney websites have a page with their lawyers’ biographies and legal background. Be sure to take a look.
• Search for each law firm’s online reviews. You’ll find them on Google, Superlawyers, AVVO, and other sites.
•  If you feel comfortable with an attorney, schedule a consultation. Some attorneys offer consultation options: via Zoom, by phone, in your hospital room, in your home, or their office.  
• Make a list of questions to discuss during your appointment. 

Where to find an attorney?

Referrals 

Ask a friend or relative for a referral. This works best if the friend or relative is honest about their own experience. Before you automatically commit to an attorney with whom you’ve never had a meaningful conversation, talk to the person offering the referral. Ask for details about their experience. Then contact the attorney.

Local Lawyers

Search online for a “motor vehicle accident attorney near me.” View the results and evaluate each law firm as a potential prospect. Proximity is one of the benefits of working with a local attorney. When you’re recovering, it’s more convenient to visit their office and easier to maintain personal contact. 

Promotional Mailings, Ads, & Commercials

Some law firms monitor accident activity in their communities and send out promotional mailings. Others appear on billboard ads and TV commercials. If you feel drawn to one of these lawyers, that’s okay. Just be sure to check them out based on the above guidelines. 

Connecticut Motor Vehicle Accident Attorneys

If you’re injured in an accident, contact a Connecticut motor vehicle accident attorney as soon as possible. When you schedule a consultation you can learn more about your legal options and discuss the value of your claim. A law firm can take immediate steps to protect your rights. Scheduling a consultation doesn’t obligate you to make a claim or file a lawsuit.