What goes into a car accident settlement
- Medical expenses: Emergency care, imaging, therapy, surgery and future treatment.
- Lost income: Time off work and any reduced ability to earn.
- Property damage: Vehicle repair or replacement, rental car and personal items.
- Pain and suffering: Physical pain, emotional distress and loss of enjoyment of life.
Why the at-fault driver's insurance matters so much
In practice most car accident settlements are paid by the at-fault driver's liability insurer, and insurers rarely pay more than the policy limit. In this hypothetical Texas case with moderate injuries and $39,000 of losses, the estimated range is $99,000 to $129,000.
| At-fault driver's bodily injury limit | What that means |
|---|---|
| $250,000 | Covers the whole estimated range, so collecting the full amount is realistic. |
| $30,000 | Below the estimate. Recovery above $30,000 usually depends on your own underinsured motorist coverage or the driver's personal assets. |
Other coverage that can pay after a crash:
- Personal injury protection (PIP): Pays your medical bills and lost wages regardless of fault in no-fault states.
- MedPay: Optional coverage for medical bills, regardless of fault.
- Underinsured / uninsured motorist (UIM/UM): Your own coverage when the other driver has too little or none.
No-fault states
About a dozen states, including Florida, Michigan, New York and New Jersey, use no-fault insurance. Your own PIP coverage pays first for medical bills and lost wages, and you can usually claim pain and suffering from the at-fault driver only if your injury meets the state's seriousness threshold. Ask a local attorney how the threshold applies to you.
Common types of crash and how fault is argued
| Crash type | Usual fault position |
|---|---|
| Rear-end collision | The following driver is usually presumed at fault, though sudden braking can shift some blame. |
| Left-turn / T-bone | The turning driver is often at fault; speeding or running a light by the other driver can change that. |
| Lane change / sideswipe | Usually the driver who changed lanes; witnesses and dashcam footage are key. |
| Multi-vehicle | Fault is often split, which makes your state's comparative negligence rule decisive. |
Dealing with the insurance adjuster
The other driver's insurer will usually contact you quickly. The adjuster's job is to close the claim for as little as reasonably possible. You do not have to give a recorded statement to the other driver's insurer, and you should not sign a medical authorisation that gives access to your entire medical history. Before accepting any offer, check it against your estimated range. The calculator shows whether it falls below, within or above it. Remember that signing a release normally ends the claim permanently.
Rideshare, hit-and-run and uninsured drivers
- Uber and Lyft accidents: rideshare companies carry commercial liability coverage while a trip is in progress, commonly up to $1 million, with lower coverage when the driver is waiting for a request. Which policy applies depends on the app status at the time of the crash.
- Hit-and-run: report the crash to police promptly. Your own uninsured motorist (UM) coverage may pay if the driver is never found.
- Uninsured driver: UM coverage, MedPay or PIP on your own policy are often the main sources of recovery.
Steps that protect the value of your claim
- Get medical care promptly and follow the treatment plan.
- Keep every bill, receipt and record of missed work.
- Get the police report and photos of the scene and vehicles.
- Be careful about recorded statements to the other driver's insurer.
- Check your state's deadline for filing a lawsuit.