Motor vehicle accidents are a leading cause of death and injury for people in the United States. As per the Centers for Disease Control and Prevention, these accidents have great financial costs for victims. The estimated cost of deaths related to traffic crashes is approximately $55 billion.

Suppose you or someone close to you has been injured in a car accident. It’s important to learn about car accident injury lawsuits and typical compensation amounts associated with car accident claims. Understanding typical car accident settlement amounts can help victims make informed decisions after a crash has happened.

Accident Liability: Who’s Responsible?

Under certain laws, the fault of a car accident is incredibly important to identify. This is because, in many states, those at fault must face financial responsibility for damages caused by an incident. Other states implement a “no-fault” rule, which means regardless of fault, everyone may still hold some responsibility for resulting injuries or damage. If the state follows comparative or contributory negligence rulings, compensation depends on each party’s contribution to the accident; if you are entirely responsible for the crash, you must cover all costs. However, when multiple drivers share fault in an accident, each driver may have to pay out proportionally.

In the event of a car accident, the parties involved must contact their respective insurance companies to make claims against their coverage. If an individual’s policy cannot cover medical bills or vehicle damage costs, it is possible to file a personal injury lawsuit against the responsible party. Additionally, some states abide by comparative fault rulings. For example, if an investigation finds that a victim was partly responsible for the accident, then damages can reduce their contribution; if found over 51% responsible, all potential compensation claims may be dismissed, and the other party can file a claim against them.

What Types of Damages Can You Receive After a Car Accident?

There are two types of compensation benefits: Economic damages and non-economic damages. Economic damages refer to those with a fixed value, whereas non-economic damages may be difficult to measure due to their nature. 

Examples Of Economic Damage Include:

  • Medical Costs: It is important to consider medical expenses related to an accident. This includes hospital care, professional fees, physical therapy, lab tests, diagnosis, prescription medications, and mobile devices or tools. It may also cover future medical treatments associated with the incident.
  • Loss Of Income: Hospitalized accident victims because of incapacitation may be compensated for lost income or wages. Compensation is provided for temporary disabilities, such as those requiring long-term treatment, until a set date. For permanent disabilities with no further medical remedy available, compensation may go on indefinitely.
  • Vehicle Damage: If your car has been damaged due to the accident, you have a right to receive benefits for car repair costs. You’ll need to bring your vehicle to a nearby service center to assess the damage. Once approved, you will be eligible for compensation for the repair costs.
  • Funeral costs: For wrongful death cases, the surviving family can demand compensation for any out-of-pocket expenses they incur while arranging funeral services. Compensation may be available if the victim dies at the accident scene or in an affiliated hospital while receiving medical attention.
  • Punitive Damages: Punitive damages may be awarded in cases where the evidence suggests the crash was intentional and the at-fault party deliberately sought to harm or injure the victim. In such instances, this party must pay punitive damages.

Examples of Non-Economic Damage Include:

  • Pain and suffering: The court compensates victims for the emotional distress and trauma from an accident. This includes all pain inflicted during, immediately after, and lasting through recovery.
  • Loss of consortium: Loss of consortium is a type of compensation available to those affected by accident. It accounts for the negative impacts on family life caused by accidents, such as lack of companionship or diminished marital relationships. In some cases, spouses can make claims if their spouse has experienced a drastic personality change after the incident.
  • Loss of enjoyment: Mental trauma is a frequent consequence of motor vehicle accidents. Victims may be left with life-long psychological injuries and, in some cases, physical paralysis or cognitive disability. Such injuries can severely limit the ability of victims to experience life fully and realize the enjoyment that comes from everyday activities.


In conclusion, victims of car accidents are entitled to several types of financial compensation, such as medical bills, lost wages, and other damages. The compensation an individual will receive depends on the seriousness of the incident and the resulting injuries.