How to Calculate a Settlement From a Car Accident
Most of us prefer to avoid legal problems, but sometimes these issues arise out of nowhere. A car accident is one such legal issue since it happens suddenly and causes damage. Determining how much that damage is worth to the parties involved requires knowing the costs of the accident and how to collect in your particular state.
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Things You'll Need
- A calculator Receipts from earnings statements Receipts from repairs stemming from damages
Instructions
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Determine your state's laws. Most states employ some form of what's known as comparable fault when it comes to automotive accidents, but there are exceptions when strict liability is used. Find out which method the courts in your particular jurisdiction use.
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Add up total damages. Whatever the settlement for an auto accident is, the calculation has to begin with a provable number. Examples of the types of monetary damages that can be added into this overall number include the cost of repair to the car, medical expenses, and lost wages. If the accident is serious enough to cause permanent injury, settlements can include potential future earnings that have been lost, too.
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Hire an attorney. By consulting with and ultimately hiring your own attorney, you increase your chances of getting a larger settlement. An attorney can help identify potential damages that you might overlook. Many attorneys can be hired on a contingency basis, meaning that the attorney gets paid only if you do--usually one-third of the settlement.
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Know the law regarding strict liability. In strict liability states, there may be no mitigation of damages. Plaintiffs who file a tort case (a civil wrong), which is what an auto accident is, can recover 100 percent of their damages.
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Know the law regarding comparable fault, or comparative negligence. In states that employ comparable fault, a judge or jury will decide the percentage of fault and assign those percentages to both the plaintiff and the defendant. For example, say the defendant is deemed to be 80 percent liable for the accident and the plaintiff bears 20 percent of that burden. The plaintiff would then get 80 percent of the overall settlement if the case goes to trial.
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Attempt to settle the case. In any tort action, a settlement offer is likely so that the case can stay out of the courtroom. The parties' attorneys will again be a benefit here because they will discuss the circumstances surrounding the accident with their clients. By doing so, attorneys get a sense of what the comparable fault percentages are likely to be at trial and can help come up with a good number that can lead to a settlement.
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Tips & Warnings
Include everything that is a cost or damage from the accident in the initial calculations. Find a good tort attorney. Be honest about your role in the accident from the start. It makes you look better to a judge or jury in the end.
