10 Factors that Determine How Much to Expect from a Car Accident Settlement

When you’re involved in a car accident, the aftermath can be overwhelming. One of the most pressing concerns is understanding how much you can expect from a car accident settlement. Various factors influence this amount, and being informed can help ensure you receive fair compensation. This article outlines the ten crucial factors that determine car accident settlements.

by Meaghan T. Baca, Esq.

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The severity of your injuries plays a pivotal role in determining the settlement amount. More serious injuries typically result in higher compensation. For example, a minor injury like sore muscles or muscle spasms will likely lead to a smaller settlement amount, while a severe injury such as a traumatic brain injury or broken bones or permanent injuries can result in a much larger payout. Insurance companies and courts look at medical reports, the extent of physical damage, and long-term impacts on your life when evaluating injury severity.

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Medical expenses incurred from the accident significantly influence the settlement amount. This includes all current medical bills and anticipated future medical costs. Keeping detailed records of all treatments, prescriptions, and therapies is essential. Proper documentation ensures that all your medical expenses are accounted for, which can substantially increase your settlement. Also, because medical expenses can be influential and persuasive evidence of your injuries and future medical costs, it is important to attend all prescribed treatment and strictly adhere to your doctor’s recommendations.

If your injuries force you to take time off work, you can claim lost wages. This factor covers both past and future income loss. Calculating lost wages involves assessing your current earnings and projecting future income you might miss out on due to the accident. Accurate records and pay stubs can help substantiate your claim for lost wages. Please be aware that if you make a claim for lost wages, you will have to prove your rate of pay, hours typically worked, and possibly projected lost income. Therefore, wages paid “under the table” are usually not recoverable, but if you insist on making a lost wage for money made off the books, you may be opening yourself to a tax audit.

If you have been injured through no fault of your own, contact an experienced auto accident attorney right away.

Pain and suffering encompass physical pain, emotional distress, and loss of enjoyment of life. This factor is more subjective and can be challenging to quantify. However, it significantly impacts the settlement amount and typically makes up a majority of your settlement amount. Courts and insurance companies consider the extent of your pain and how it affects your daily activities and overall well-being. Detailed medical records and personal diaries documenting your pain and suffering can support your claim. As a point of reference, the amount of pain and suffering claimed is usually proportional to the injury suffered. The logic behind this is the worse injury you endure the more pain and suffering you likely endured. Therefore, your claim for pain and suffering must be reasonably related to the injuries you suffered.

Determining who is at fault in the accident is critical. If the other party is entirely at fault, you are more likely to receive a higher settlement. However, if you share some of the blame, your settlement amount may be reduced. Understanding the concept of comparative negligence, where the settlement is adjusted based on your degree of fault, is essential. You can read more about comparative negligence by clicking here here.

The at-fault party’s insurance policy limits can cap the amount you receive. If their policy limit is low, it might not cover all your expenses. In such cases, having underinsured motorist coverage in your policy can help. This coverage ensures you receive compensation even if the at-fault party’s insurance is insufficient. In New Mexico, the minimum liability coverage any driver must carry is $25,000 per person and $50,000 per accident. According to the Insurance Information Institute, 24.9% of New Mexican drivers operate vehicles without insurance. Source link. As such, it is important to discuss with your insurance provider what uninsured insurance policies are available to you.

Having an experienced personal injury attorney in New Mexico can significantly influence your settlement amount. An injury attorney understands the complexities of personal injury law and can negotiate effectively with insurance companies. Choosing the right attorney with a track record of successful car accident claims in can make a substantial difference in your settlement.

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Local laws and regulations can affect how settlements are calculated. Different states or regions have varying rules regarding compensation for car accidents. Understanding the specific laws in your jurisdiction can help you navigate the settlement process more effectively. For example, New Mexico courts honor the “eggshell plaintiff” rule which states damages are to be measured without regard to the fact plaintiff may have been unusually susceptible to injury or likely to be harmed. The defendant is said to “take the plaintiff as he finds him or her” meaning that the defendant, if liable, is responsible for all elements of damages caused by the defendant’s conduct even if some of the plaintiff’s injury arose because the plaintiff was unusually susceptible to being injured. NM-UIJ 13-1802.

Another nuance in New Mexico law is that a plaintiff can bring a personal injury claim directly against the 3rd party insurance company even though they did not have a personal contract between themselves and the insurance company. Raskob v. Sanchez, 1998-NMSC-045, 126 N.M. 394, 970 P.2d 580. Source link.

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Understanding these ten factors can help you estimate how much you might receive from a car accident settlement in New Mexico. Each case is unique, and the actual amount will depend on the specifics of your accident and injuries. For personalized advice and to ensure you receive the compensation you deserve, contact our Cassidy Baca, P.C. today for a free consultation. Let our experienced car accident attorneys guide you through the process and fight for your rights.

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10 Factors that Determine How Much to Expect from a Car Accident Settlement

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