Enter Your Accident Details
Estimated Settlement Breakdown
Economic Damages
$0
Non-Economic Damages
$0
Gross Settlement
$0
Final Estimated Settlement
$0
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How Auto Accident Settlements Are Calculated
Understanding how insurance companies and courts calculate auto accident settlements can help you evaluate whether a settlement offer is fair. Most settlements consist of two main types of damages: economic and non-economic.
Economic Damages
Economic damages represent the actual financial losses you've incurred because of the accident. These are typically easier to calculate because they're based on bills, receipts, and documentation. Economic damages include:
- Medical expenses (past and future)
- Lost wages and future lost earnings
- Property damage (vehicle repair or replacement)
- Other out-of-pocket expenses
Non-Economic Damages
Non-economic damages compensate for the pain, suffering, and reduced quality of life resulting from your injuries. Since these are subjective, they're typically calculated using a multiplier method applied to your economic damages (specifically medical and wage-related losses).
The multiplier typically ranges from 1.5 for minor injuries to 5 for catastrophic injuries, based on factors like injury severity, recovery time, and impact on daily life.
Adjustments for Fault and Policy Limits
In comparative fault states, your settlement may be reduced by your percentage of fault. Additionally, insurance policy limits cap the maximum payout regardless of your calculated damages.
Worked Example
Let's consider a sample case with the following inputs:
- Medical expenses: $12,000
- Future medical: $3,000
- Lost wages: $5,000
- Future lost earnings: $10,000
- Property damage: $2,500
- Other expenses: $500
- Pain & suffering multiplier: 2.5
- Comparative fault: 20%
- Policy limit: $50,000
Calculations:
Non-Economic = 2.5 × (12,000 + 3,000 + 5,000 + 10,000) = 2.5 × 30,000 = $75,000
Gross = 33,000 + 75,000 = $108,000
Adjusted = 108,000 × (1 - 0.20) = $86,400
Final = min(86,400, 50,000) = $50,000 (due to policy limit)
Frequently Asked Questions
How accurate is this calculator?
This calculator provides estimates based on common formulas used in settlement negotiations. However, actual settlement amounts can vary based on many factors including jurisdiction, specific circumstances, evidence quality, and negotiation skills. Use this as a starting point for understanding potential compensation ranges.
Should I rely on this instead of a lawyer?
No. This calculator is for informational purposes only and is not a substitute for legal advice. Insurance claims and personal injury law are complex areas where professional guidance is essential. We recommend consulting with a qualified attorney who can evaluate your specific case.
What is the pain & suffering multiplier?
The pain and suffering multiplier is a number (typically between 1.5 and 5) that reflects the severity of your injuries and their impact on your life. Minor injuries with quick recovery typically use lower multipliers (1.5-2), while severe, permanent injuries use higher multipliers (3-5). Factors considered include injury type, treatment duration, recovery prognosis, and impact on daily activities.
How does comparative fault affect my payout?
In states with comparative fault laws, if you're found partially at fault for the accident, your settlement will be reduced by your percentage of fault. For example, if you're 20% at fault and your calculated damages are $100,000, your settlement would be reduced to $80,000. Some states have rules that bar recovery if you're more than 50% at fault.
Can I download the report and share with my insurer/lawyer?
Yes, you can export your calculation results as both CSV and PDF files. These reports include your input parameters, calculation breakdown, and the final estimated settlement. You can share these with your insurance adjuster or attorney as a starting point for discussions about your claim.
Privacy & Data Security
This calculator operates entirely in your browser. No personal data or calculation inputs are stored on our servers or transmitted over the internet.
When using the "Copy Result Link" feature, your inputs are encoded in the URL. Avoid including any personally identifiable information in your inputs.