If you were in a car accident that you believe was at least partly someone else’s fault, you’re probably wondering how much money you might receive as compensation for your losses. These losses ("damages," in legalese) can include things like medical expenses, damage to your car, and lost income, as well as pain and suffering.
To get some real-life answers, we surveyed our readers across the United States to ask about their experiences. We examined the key factors affecting both compensation for car accidents and the time it takes to complete the process. These factors include auto insurance policy limits, the extent of any physical injuries, whether you hire an attorney, and how you navigate the claims process.
This article explains what we learned about typical outcomes in car accident claims—and circumstances that can make a difference in those outcomes.
Car Accident Settlements Vary Widely
As our survey confirmed, the amount of compensation in car accident cases varies widely, from a few hundred dollars to hundreds of thousands. The overall average settlement or award reported by our readers was $23,900.
The data from our survey, which we collected from 2015-2020, is consistent with national data from the Insurance Information Institute (III). According to the III’s survey, from 2020-2023 the average compensation for auto liability claims involving injuries ranged from a low of about $20,900 in 2020 to a high of about $26,500 in 2023. (The average was $6,551 for claims involving only property damage.)
Understanding the Numbers
It’s important to remember that averages can be misleading. A relatively small number of very large auto accident settlements or awards can skew the average upward. That’s one reason the median amount—the midpoint at which half of the payouts were higher and half were lower—is a more accurate reflection of typical awards. In our survey, the overall median payout was about $8,200. More than a third of readers (35%) received $5,000 or less, while just under a quarter (23%) received $20,000 or more.
It’s also worth emphasizing that these figures are the average and median amount of actual settlements or awards that readers received. If we included the readers who received nothing (counting them as having payouts amounting to $0), the average compensation on a car accident claim in our survey would drop to $13,500.
Understanding the Auto Insurance Claims Process
Of our readers who received compensation for their car accident claims, the vast majority (98%) got the money in a settlement rather than a court award—reflecting that most car accident cases settle instead of going to trial.
So, in the typical scenario, the amount you receive will depend on how much the other driver’s insurance company agrees to pay in a settlement. No matter how much economic loss you experienced because of a car accident, the insurer won’t offer a settlement for more than the limits on the insurance policy.
So, if the person who caused the accident was underinsured (and you didn’t have a policy with good underinsured motorist coverage), you could end up with a settlement that doesn’t cover all of your medical bills, lost income, or pain and suffering. (If you live in a state with no-fault car insurance, the same is true when your own policy is insufficient.)
Similarly, if a completely uninsured driver caused the accident, you could end up with no compensation at all unless you had uninsured motorist coverage in your policy.
You may be able to file a personal injury lawsuit against a driver whose insurance won’t cover your losses. But keep in mind that a driver with no auto insurance (or a bare-bones policy) may not have enough assets to make a lawsuit worth your time or money.
(Learn more about how insurance affects car accident cases.)
It Can Take Time to Successfully Resolve a Claim
For readers who received no compensation, the claims process took an average of 5.4 months. In contrast, it took almost twice as long—an average of 10.7 months—for readers who filed successful claims to receive a settlement check. In the rare car accident cases that go to trial (2% of the successful claims in our survey), it takes much longer to receive an award—typically two to three years or more.
Behind the overall average durations, our survey revealed a fairly wide range of timeframes for resolving car accident claims successfully, whether through a settlement or a court award after a trial. About four in 10 (39%) received their payouts within three months, while it took more than two years for 13% of readers.
Injuries Can Mean Higher Payouts, but Also Longer Waits
It shouldn’t be a surprise that, if you were physically injured in your car accident, you’re generally more likely to receive a higher settlement or award than if you had no injuries. Claims that involve injuries also take longer to resolve than claims that don’t.
On Average, Injured People Receive More Compensation
In our survey, the average settlement or award for injured readers was $29,700, while the average for those who weren’t injured was $16,700. Of course, the average for injured readers includes those who had a range of medical conditions, from bruises and sprains to head injuries and spinal fractures.
The nature and severity of your injuries will have a significant impact on how much you collect for your car accident. Serious injuries not only lead to substantial medical bills, but can also result in significant lost income. As a general rule, those damages lead to higher settlements or awards—especially because insurance adjusters and attorneys often calculate the amount of damages for pain and suffering by applying a multiplier to more tangible, “economic” damages.
If You’re Injured, It Will Probably Take Longer to Resolve Your Claim
It won’t come as a surprise that it can take much longer to resolve a car accident claim when you suffered physical injuries in the crash. After all, you shouldn’t agree to any settlement until you’ve completed your medical treatment and have added up your healthcare bills and other economic damages like lost income.
In our survey, readers who reported physical injuries said it took an average of 14.5 months to receive a settlement or award, compared to 4.9 months for those who weren’t hurt in the accident—nearly three times longer. Ongoing medical treatment was also the most common reason that readers cited for delays in resolving their car accident claims.
The more severe the injuries, the longer it will probably take to resolve an insurance claim. To get a better picture of that effect, we asked readers about their medical bills related to the accident. Sure enough, higher medical bills led to longer average times to resolve their cases. Readers who had medical expenses of $10,000 or less reported that it took a little over 12 months, on average, to get a settlement or award. In comparison, it took readers with more than $10,000 in medical expenses an average of about 17 and a half months to resolve their claims.
It Pays to Have a Negotiating Strategy
An auto insurance claim can be complicated and stressful, especially if you have significant injuries or financial losses. Understanding how to approach the process can make a significant difference in the amount of compensation a claimant receives.
Beginning Negotiations With a Demand Letter
At some point after you’ve filed a claim for your car accident, you may receive a settlement offer. You might be tempted to accept this money. But it’s important to understand that this first settlement proposal is generally the beginning of a negotiation, not a final take-it-or-leave-it offer from the insurance company.
If you decline the insurance company’s initial settlement offer, you or your lawyer would typically respond by sending the insurer a formal demand letter. (You might also send a demand letter if the insurer hasn’t made an offer.) After that, the insurer will probably make a counteroffer, and you (or your attorney) can begin settlement negotiations.
These back-and-forth negotiations take time, of course. In our survey, readers who reported sending a demand letter told us that it took 17 months from the time of the accident before they received compensation, compared to just under nine months for those who didn’t take this step. But the extra time paid off in settlements that were, on average, nearly twice as high.
Filing or Threatening to File a Lawsuit
Readers who told us that they (or their lawyers) either filed or threatened a lawsuit in their car accident case received significantly higher settlement amounts than those who didn’t take this step: an average of $43,300, compared to $21,800. Filing a lawsuit—or simply telling the insurance company that you plan to do so—sends a strong signal that you’re serious about holding out for a fair settlement.
Understanding the Strength of Your Claim
Readers who did not send demand letters or signal that they might file a lawsuit may have missed out on an opportunity to improve the outcome of their claims. Keep in mind, though, that people with stronger claims may also have a greater incentive to negotiate and to hold out for a better settlement.
Readers who used these strategies were also more likely to have an attorney—which itself is a considerable advantage in settlement negotiations. An attorney can help you understand the strength of your claim and then negotiate on your behalf for the best settlement.
The Advantage of Legal Representation
Our survey results showed that readers with legal representation were much more likely to receive a payout than those who dealt with the insurance company on their own. And when they did get a settlement or award, represented readers took home more than twice as much in compensation as unrepresented readers, even after deducting the typical attorneys’ fees.
You can learn more about the reasons for these results in our article on what lawyers cost and how they affect outcomes in car accident claims.
As we indicated above, the specifics of your case—such as the severity of your injuries, the extent of vehicle damage, and the other driver’s insurance coverage—can affect both the outcome of your car accident claim and a lawyer’s level of interest in representing you. If you have questions about how to proceed with your claim, or are concerned that you may not be fairly compensated, you should explore the possibility of hiring an attorney.
