The value of a car accident claim is the compensation you can prove and collect before fees, expenses, medical bills and liens. A car accident lawyer cannot guarantee a specific settlement. A minor injury claim may be worth a few thousand dollars, while serious or permanent injuries may lead to a much larger recovery. You may receive little or nothing if you cannot prove fault, damages or a source of payment.
The fee example below uses a $30,000 settlement and a 33⅓% contingency fee.
The amount available in your case usually depends on:
- Medical expenses and future treatment
- Lost wages and reduced earning capacity
- Vehicle damage and related expenses
- Pain and suffering
- The severity and permanence of your injuries
- Who caused the accident
- Whether you share fault
- Available insurance coverage and collectible assets
- Whether the insurer disputes fault or damages
A lawyer cannot recover more than your provable damages, the available insurance limits or the at-fault driver's collectible assets.
How Much Money Could You Receive?
There is no reliable nationwide average settlement for car accidents. A short soft-tissue injury and a permanent spinal injury have very different values, and state law affects what you can recover.
| Type of Loss | What May Be Recoverable |
|---|---|
| Vehicle damage | Repair costs, vehicle replacement value, towing, rental car expenses and loss of use |
| Medical treatment | Emergency care, ambulance bills, doctors, physical therapy, medication and related treatment |
| Lost income | Pay missed during recovery and, in serious cases, reduced future earning capacity |
| Pain and suffering | Physical pain, emotional distress, limitations and loss of enjoyment of life |
| Future losses | Ongoing treatment, disability, rehabilitation and long-term care |
| Other damages | Household assistance, permanent scarring and, in unusual cases, punitive damages |
Auto liability insurance generally covers bodily injury and property damage caused by an insured driver. Uninsured and underinsured motorist coverage may help when the at-fault driver has no insurance or not enough coverage.
What Does a Car Accident Lawyer Charge?
Most personal injury lawyers charge a contingency fee. You generally do not pay an hourly fee upfront. Instead, the lawyer receives an agreed percentage of the settlement or judgment if the case succeeds.
There is no single nationwide percentage. The fee is negotiated with the lawyer, and the written agreement should explain:
- The percentage charged
- Whether the percentage increases after a lawsuit is filed or the case goes to trial
- Whether the lawyer calculates the fee before or after case expenses
- Which costs you may owe if you lose
- How medical liens and unpaid medical bills will be handled
The American Bar Association's Model Rule 1.5 states that a contingency-fee agreement should be written and signed. It should identify the percentage used to calculate the fee, explain litigation expenses and state whether expenses are deducted before or after the lawyer's fee. State rules may add other requirements.
Example of How the Settlement Is Divided
Assume your case settles for $30,000 and your agreement provides for a 33⅓% contingency fee:
| Deduction | Amount |
|---|---|
| Gross settlement | $30,000 |
| Lawyer's fee | -$10,000 |
| Case expenses | -$2,000 |
| Amount remaining before medical bills or liens | $18,000 |
The result may change if the agreement calculates the lawyer's fee after expenses. Medical bills, health insurance reimbursement claims and medical liens may reduce the final amount you receive.
The State Bar of California and The Florida Bar both advise clients to check whether expenses are deducted before or after the contingency fee is calculated.
What Determines the Value of a Car Accident Claim?
1. The Severity of Your Injury
A claim involving a short treatment period usually has less value than one involving surgery, permanent restrictions, nerve damage, traumatic brain injury or disability.
Insurance companies and lawyers may review medical records, diagnostic imaging, the length of treatment, physician opinions and the expected need for future care.
2. The Amount of Your Financial Losses
Documented losses give the insurer and your lawyer a basis for valuing the claim. Useful records include:
- Hospital and medical bills
- Pharmacy receipts
- Pay stubs
- Employer wage-loss statements
- Tax records for self-employed workers
- Repair estimates
- Proof of rental-car expenses
- Medical opinions about future treatment or work restrictions
3. Whether the Other Driver Was Legally Responsible
You generally need evidence showing that another person's negligence caused the collision and your injuries. That evidence may include the police report, photographs, traffic-camera footage, witness statements, vehicle damage, cellphone records and medical documentation.
If you were partly responsible, your compensation may be reduced or barred under your state's comparative-fault rules.
4. Available Insurance Coverage
Insurance limits often determine how much money you can collect. A driver may be legally responsible for substantial damages but have limited liability insurance and few assets.
Your own uninsured or underinsured motorist policy may provide another source of compensation when the at-fault driver cannot pay the full claim. Coverage and insurance requirements vary by state and policy.
5. Whether Your Injuries Are Fully Understood
Settling too soon can create problems if you do not yet know whether you will need more treatment. A lawyer may wait for a clearer medical prognosis before calculating future medical expenses, permanent impairment or lost earning capacity.
Can a Lawyer Get More Than the Insurance Company Offered?
A lawyer may obtain more than an initial insurance offer by presenting stronger evidence, documenting future losses, challenging fault arguments and negotiating with the insurer. Hiring a lawyer still does not guarantee a larger settlement.
Compare the potential increase with the lawyer's fee and case expenses. Legal representation may add little value to a straightforward property-damage claim that the insurer is handling fairly. It may be more useful when:
- You suffered significant or permanent injuries
- The insurer disputes fault
- You have substantial medical bills
- You cannot work
- The accident involved multiple vehicles
- The other driver was uninsured or underinsured
- The insurer is delaying or pressuring you to settle
- You may need future medical care
- The claim involves a commercial vehicle, rideshare driver or government entity
When Is Hiring a Lawyer Probably Worth It?
Hiring a car accident lawyer is usually worth considering when the claim involves more than a minor injury and the evidence, damages or insurance coverage are disputed.
You may not need a lawyer for a clear accident involving only vehicle damage if the insurer fairly pays the documented repair costs. You should take more care before handling the claim alone if you have ongoing symptoms, missed work, disputed liability or a settlement offer that requires you to sign a full release.
Before signing a fee agreement, ask:
- What percentage will you charge if the case settles before a lawsuit?
- What percentage applies after filing a lawsuit or going to trial?
- Are expenses deducted before or after your fee?
- Do I owe costs if the case is unsuccessful?
- Who pays medical bills and medical liens from the settlement?
- Will you handle uninsured or underinsured motorist claims?
- What is the estimated net amount I could receive?
- Do I have the final authority to accept or reject a settlement?
The client generally decides whether to accept or reject a settlement. The lawyer advises the client and negotiates on the client's behalf.
Bottom Line
The gross settlement is only part of the calculation. Review what remains after the lawyer's fee, case expenses, medical bills, liens and insurance limits.
A local car accident lawyer can review the facts, available insurance and fee agreement before you accept a settlement or sign a release. This information is general and does not replace legal advice about your state or accident.