What is a Typical Amount for a Settlement for a Car Accident?

Written by Jeremy D. Earle, JD

March 10, 2023

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What is the Average Car Accident Settlement for Colorado Springs?

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Being involved in a Colorado Springs car accident is, by definition, a very stressful and upsetting event for anybody. There are numerous elements and nuances to consider. Still, for many individuals, the money component and what to anticipate in terms of financial recovery and monetary compensation is one of the most urgent issues. In this article, we take a look at the average car accident settlement

Car accidents invariably create a substantial disruption to practically every part of a person’s daily routine, impacting both their personal and professional lives, even if the injuries are minimal. There’s also the extra stress of dealing with an never-ending list of stuff, such as auto repairs, insurance claims adjusters, and medical expenses, to name a few. This make getting a car accident injury settlement critical to getting your life back.

Personal injuries incurred as a consequence of an car accident may often impede a person’s capacity to fulfil their essential obligations at work, lost wages, cause drastice medical bills, and necessitate long medical treatment.

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Given that most car accident victims are concerned about monetary compensation, it’s no surprise that one of the most frequently asked questions from potential clients is how much they should expect to receive from an car accident injury settlement and how long it will take to receive payment. Simply said, the answer will be instance-specific, based on various variables, and will vary depending on the exact circumstances of your case.

Those who have never retained and worked with an attorney before, as well as those who are unfamiliar with how to file an insurance claim and navigate the often-difficult claims process, it is understandable that they have no idea how much money they are entitled to, what to expect, or what they need to do to win their case.

An expert car accident lawyer can assist you in determining the worth of your case by looking into the specifics of any expenditures spent as a consequence of the car accident, as well as how those expenses have affected your daily life. A competent personal injury attorney will also know and know about car accident legislation, particularly Colorado car accident laws, enabling them to guide you through the sometimes-complicated personal injury claims procedure as swiftly and effectively as possible.

Another big benefit of engaging with an experienced attorney is that they may use their superior negotiation abilities to continue negotiating until a reasonable offer is reached, rather than just taking the initial offer and settling. You may be certain that you will earn the largest settlement amount available if you do so; a smart car accident lawyer with outstanding negotiation abilities will most likely enhance your car accident injury settlement offer. Studies have shown that plaintiffs who employ legal counsel for their vehicle accident lawsuits obtain substantially bigger payouts.

The amount of an automobile collision settlement is established by reviewing the average car accident injury settlement paid and the usual general results and resolutions of comparable occurrences with similar injuries in the same venue.

Personal injury lawyers nearly often operate on a contingency basis, which is the norm in the business. This means you are not compelled to pay any upfront fees or charges; the attorney will only be paid if they successfully obtain recompense for you.

What does this all imply for you? For starters, you can be confident that the contingency fee structure serves as an additional motivation for your attorney to work as carefully and efficiently as possible on your case, ensuring that you obtain the appropriate legal redress, compensation, and monetary car accident injury settlement.

This article will provide you with detailed information about the overall claims process, applicable laws and standards, factors that will affect the value of your claim, as well as a car accident settlement calculator that will serve as a comprehensive guide and include detailed insight into how car accident injury settlement are calculated and how much compensation an injured victim can realistically expect from a settlement.



The initial phase in the car accident injury settlement claims procedure occurs at the car accident site.

Step 1

Assuming you are physically capable of doing so, it is in your best interest to gather as much information and evidence as possible at the scene of the car accident, including the type of all vehicles involved and their license plate numbers, contact information for all drivers, vehicle occupants, and witnesses, insurance information for all parties involved in the car accident, photos of the property damage as well as photos of any visible injuries and photos of any potential resulting injuries.

While it is feasible to rely on the information included in a collision and car accident police report, the police may overlook important details or add erroneous information while filling out the report. They are also rarely there to see the car accident in real-time, so their narrative of what happened primarily depends on what they see after the event and what others involved in the car accident say about what happened.

Step 2

The next step is to ensure that you get the appropriate medical care for your injuries.

If your injuries are serious, emergency responders will most likely arrive at the car accident site and transfer you to the closest hospital emergency room via ambulance. Hospitals may occasionally use health insurance liens to guarantee that they get paid. Even if you were able to walk away from the collision with just minor injuries, you should visit a doctor right soon for an assessment of frequent car crash injuries.

Some injuries may not produce symptoms straight away, and they may not become obvious or manifest themselves for hours or even days after the event. This is why it’s so crucial to keep track of everything. Automobile collisions may cause emotional stress in addition to physical injuries, in which case seeking mental health care is also part of the required medical treatment. All medical expenditures should be claimed via MedPay rather than your health insurance company since this would most likely harm your case.

Step 3

Step three is to file an insurance claim under your MedPay coverage with your own insurance company. A personal injury lawyer can do this for you if you prefer, as well as set up your injury claim propertly for a fair car accident settlement.

At this point in the process, a typical issue is who pays for the vehicle accident in Colorado. Colorado is a no-fault insurance state, which means that filing a claim under your PIP medical payments coverage policy is the first step in receiving reimbursement for losses connected to injuries received in a vehicle accident.

According to Colorado law, everybody who owns a registered vehicle must have at least $5,000 in medical payments coverage; you cannot opt-out of this no-fault system until you reach or surpass your MedPay insurance limits, which is not impossible in the event of a serious car accident.

MedPay coverage in Colorado is restricted, covering just 80% of medical bills and 60% of lost income up to the policy maximum, with no compensation for non-economic losses of any type.

Step 4

It is critical to seek medical attention as quickly as possible and within 14 days of the injury, as Colorado law requires. Failure to do so will almost certainly result in you losing the PIP benefits you are entitled to them (assuming you are a resident of a state that requires PIP).

Not to mention, as well as jeopardizing your chances of reaching a fair car accident injury settlement with the at-fault party’s insurance company, which frequently claims that failure to seek medical treatment promptly indicates that the individual’s injuries are not as serious as they appear.

When addressing a car accident, it is virtually never a good idea to have your medical bills covered by your health insurance provider.

Following that, if your PIP coverage limitations have been spent, you should file a claim with the at-fault driver’s insurance provider, demanding that they pay up under the at-fault driver’s bodily injury liability policy.

If the other driver in the collision does not have valid car insurance or enough vehicle insurance coverage, or if the other driver flees the scene of the car accident, you must claim with your insurance carrier under your underinsured/uninsured motorist policy, if applicable.

The at-fault driver’s insurance company will examine the collision when you make a formal claim with them. This involves going through the police report thoroughly, recording witness interviews, and consulting with other parties, including car accident experts and medical experts.

It’s critical to realize that insurance companies and the claims adjusters who work for them will search for any excuse or chance to undervalue your claim, especially if you’re dealing with the other party’s insurer. Some insurance companies are known for using aggressive and morally problematic practices, even going so far as to infringe on your rights by using a range of misleading tactics.

Insurance companies have up to 30 days to respond to a claim, according to Colorado law. The insurance adjuster will make an initial car accident injury settlement offer once they have completed their investigation and reviewed your documents, including medical bills and any losses experienced.

Negotiating with the insurance company is the next step in the process. This is perhaps one of the most important parts of the process. You must hire an attorney to represent you, particularly if your ultimate aim is to maximize your recovery and collect the highest cash reward to which you are entitled.

The reason for this is that first car accident settlement offers are designed to persuade you to sign away your right to sue for damages, therefore eliminating any likelihood of the insurance company paying you a substantial sum later on.

Insurance adjusters are well-known for persuading individuals to take liability or partial blame for a car accident when this is not the case. As a condition of obtaining the first settlement offer payments, you will be required to sign a release or permission, thus relinquishing your rights.

Do Not Accept a Low Offer

Rather, using it as a starting point for talks is the best course of action. A person who has just been injured in an automobile accident should not be exposed to unpleasant phone conversations with insurance adjusters. When it comes to an average car accident settlement, your personal injury lawyer will be able to advise a range of the typical car accident settlement for your specific situation.

Instead, your personal injury lawyer will handle all of these conversations on your behalf and is the ideal person to fight for the highest potential cash award to which you are entitled. They have extensive expertise dealing with and battling insurance companies, which they can put to work for you to get the highest monetary compensation and achieve the best possible result.

When it comes to the claims procedure, it varies from case to case and may take anything from a few weeks to several months, and in some circumstances, even many years to resolve a vehicle accident. It takes longer when the accident is serious, with many injuries and major property damage, all of which must be thoroughly examined by all parties.

What Factors Influence the Amount of an Injury Settlement in a Car Accident?

It is very hard to assign a monetary value to a car accident lawsuit or to forecast the exact amount of compensation you will get. There is no predetermined formula; a certain sort of harm does not equate to a set quantity of money.

Car accident settlements are not one-size-fits-all, and they need a multi-factor study of several variables and elements that are unique to each case’s particular circumstances. This is why it is hard to define what constitutes an average settlement and why it is in your best interest to deal with an experienced car accident attorney.

Your attorney will be in the greatest position to assist you in determining the worth of your case based on the precise facts of the expenditures expended as well as the effect on your life as a whole. While there are a plethora of possible aspects and variables at play, we’ll go through the most important and noticeable ones that impact the value of your claim in-depth below.

Policy Restraints

In order to pay for a claim, the at-fault party must have valid insurance and the necessary finances. When filing a third-party injury claim, you are restricted by the other driver’s insurance policy’s maximum caps and policy restrictions. The greater the settlement, the more strong the insurance and the more extensive the coverage of the at-fault party. Each state has its own set of regulations and criteria for vehicle insurance.

In Colorado, for example, the minimum needed personal injury protection (PIP) coverage is $5,000 per person, as is the minimum required property damage coverage. Uninsured/underinsured motorist coverage and bodily injury liability coverage are not needed at all, and there are no minimum requirements.

As a result, if the at-fault motorist doesn’t have proper insurance, doesn’t have enough insurance coverage, or flees the scene of the car accident, the settlement amount suffers, and you may be out of luck if your losses exceed the policy limitations.

Because the coverage limitations are so high, car accidents involving business cars, such as Uber and Lyft ridesharing car accidents, usually result in huge payouts.

Liability Determination and Proof

Liability is usually typically proven in car accident cases by demonstrating that the at-fault party was careless. To establish negligence, you must show that the individual failed to exercise ordinary care while driving, resulting in a car accident that caused you to suffer damages such as medical bills and lost pay due to missed work.

The ordinary care standard states that the other party was negligent if they did not do what a reasonable person of good judgement would have done in a comparable scenario.

A rear-end collision is a classic example of clear-cut culpability. In the ideal case, proving that the other driver was totally at blame for the accident is the best method to guarantee you obtain the greatest financial compensation possible.

If it is determined that you were somewhat at blame for the accident, which is known as contributory negligence, the amount of your payout may be reduced. In such circumstances, your ultimate settlement would be lowered in proportion to the degree of culpability you were found to have in the accident, preventing you from receiving the maximum permitted compensation up to the third party’s bodily injury liability coverage policy limit.

Losses and Damages in Money

Medical expenditures missed earnings and income, and property damage should all be covered by a car accident compensation.

Ambulance transportation, ER and hospital services, surgical services, hospitalization, medications dispensed both in the hospital and prescribed for you after discharge from the hospital, diagnostic tests, lab work, physical therapy, rehabilitation, and any other follow-up treatments as needed are all medical expenses that you can claim as part of your settlement.

Two factors that could harm your ability to be compensated for medical expenses are a delay in seeking medical treatment, refusing to seek medical treatment, or any gaps in medical treatment, as this could be construed as evidence that the injuries aren’t as serious, and if you don’t seek medical treatment within 14 days of the accident, you forfeit your PIP coverage benefits; and ii pre-existing injuries may be used by the thief to deny your claim.

You may also claim the amount of time you lost from work owing to your ailments, as well as any time you missed due to injury-related appointments. The degree and severity of your injuries, as well as the likelihood of permanent impairment, where you are unable to work at all, are taken into account by both courts and insurance adjusters.

They will assess how the accident and associated injuries have harmed your earning potential and ability, even if you can return to work but cannot function as well as you did before the accident owing to your injuries. All of these factors will be examined by your automobile accident attorney, as well as contacting physicians and other medical specialists when determining the worth of your case.

If you work for someone else and get a monthly salary, claiming lost income is one of the simpler categories of losses to establish and be reimbursed for. Those who are self-employed or work on a commission basis may have a little more trouble. Still, any proof of income via paperwork, such as tax returns, evidence of time away from work, and missed conferences leading to lost business chances, will eventually be successful.

Property Loss

Suppose your automobile sustains property damage due to the at-fault party’s negligence. In that case, you have the right to seek reimbursement from the at-fault party’s insurance carrier under the at-fault party’s mandatory property damage policy.

This will cover any fees and expenditures related to repairing and/or replacing your vehicles, such as body shop repairs, rental car charges, or the cost of totally replacing your vehicle if it is wrecked.

When it comes to the minimum criteria for property damage coverage, each state has its own set of rules. Each person in Colorado, for example, is required to obtain property damage coverage with a minimum policy amount of $5,000. Furthermore, depending on the insurance coverage you and the other accountable parties have, there may be other sources available to assist you in recovering property damage expenses.

Damages that aren’t monetary

As previously stated, third-party insurance bodily injury liability claims made through the at-fault party’s insurance carrier are not subject to the same restrictions as PIP claims. They entitle you to full compensation for any remaining medical expenses, lost wages, economic and non-economic damages.

Non-economic damages include those that harm your mental well-being, relationships, and capacity to participate in any interests or activities you had before the accident. Non-economic losses are sometimes more difficult to measure, but they are often the most harmful and catastrophic consequences.

Pain and suffering, shame and/or humiliation, loss of capacity to appreciate and enjoy life’s joys, and deformity are all examples of non-economic losses.

Age at the time of the accident and injuries, the severity of the injuries, and the importance of the resultant effect are all factors to examine when determining the magnitude of a person’s non-economic damages.

Keep in mind that the likelihood of a large sum of money being awarded for non-economic damages in a case, particularly if it goes to trial, serves as a powerful bargaining tool that your attorney will almost certainly use as part of their negotiation strategy to ensure you receive the highest possible financial recovery.

Your Injuries’ Seriousness

Your settlement amount will almost certainly be larger if your injuries are severe, lifelong, and/or permanent. The primary purpose of a car accident settlement is to guarantee that you get fair and reasonable compensation for your losses, damages, and injuries as a consequence of the collision. The amount of the compensation should be appropriate to the severity of the injuries.

Damages for Punishment

Punitive damages may be recoverable in circumstances of severe irresponsibility. Exemplary damages are another term for certain types of losses. Their overarching goal is to hold the at-fault, irresponsible motorist responsible for the car accident. They are not intended to reimburse victims directly. Punitive damages are more likely to be granted in situations when the at-fault motorist was performing a criminal at the time of the accident.

Patience with the process is essential if you want to get the best settlement possible.

The more severe the car accident, the longer it will take for the case to be settled. To injure or lessen the value of your claim, insurance companies will perform a comprehensive, protracted case investigation to uncover any possibly unfavourable facts.

Furthermore, the negotiating process between your attorney and the insurance company to get the highest possible compensation frequently takes a long time before the insurance company makes any counter-proposal or agrees to pay out the settlement. Another advantage to hiring a personal injury lawyer to handle your case is that they are highly knowledgeable with the methods employed by insurance companies and will be managing any conversations with them on your behalf.

The Number of Parties at Fault

If you were in an car accident with another motorist who was driving their car, the at-fault driver’s insurance company will most likely be your only source of reimbursement. Multi-vehicle accidents or car accidents involving commercial vehicles or ridesharing companies like Uber and Lyft, on the other hand, often have umbrella policies and various forms of coverage with large policy limits, resulting in many avenues of compensation and a greater settlement. Your car accident lawyer will conduct a comprehensive investigation into all available avenues of compensation and track down every responsible party to guarantee you obtain the highest possible settlement.

Your State’s Regulations

Each state has its own set of rules governing automobile accidents and insurance, which may influence the amount of your financial car accident compensation.

As previously stated, Colorado is a no-fault insurance state, which means that regardless of blame, each person involved in the car accident must turn to their PIP coverage via their insurance provider, which will pay their medical bills and lost income up to the $5,000 maximum limit. In comparison to other states, Colorado’s PIP coverage is quite low, which means that any further medical costs or lost income must be recovered via a bodily injury liability claim with the at-fault party’s insurance company.

The only way to get around Colorado’s no-fault system and get the most money is to file a bodily injury liability claim, which enables you to full reimbursement for any extra medical bills and lost income, as well as any other economic and non-economic losses up to the policy limit amount.

Individuals in Colorado are also not required to have uninsured/underinsured motorist coverage, which means that if the at-fault driver is uninsured or does not have enough insurance coverage to fully compensate you, you are left with no recourse unless you have uninsured/underinsured motorist coverage, in which case you can seek additional compensation by filing a claim.

Colorado also has a four-year statute of limitations in which you must submit your claim. You will lose your ability to pursue legal remedies and collect financial compensation for your losses and injuries if you do not do so within the statute of limitations.

Medical Treatment Duration

The more serious your injuries are, the more likely you may need many procedures and a lengthy period of medical therapy. Months of physical rehabilitation are often necessary, even in situations involving relatively mild car accidents.

Typically, a car accident lawsuit cannot be resolved until you have finished the required course of therapy and all damages have been evaluated appropriately. It is never a good idea to try to speed through your medical treatment plan to secure a quicker settlement since this nearly always hurts and badly impacts your case, lowering the value of your claim.

Average Lawsuit Settlements for Car Accidents in Colorado and Average Settlements for Rear-End Collisions in Colorado – Auto Crash Settlement Calculator

In terms of the typical case payout for vehicle accidents in Colorado, the average case settlement runs between $25,000.00 and $50,000.00.

However, this is not indicative of what you should anticipate since each case has its own set of circumstances and is also influenced by other considerations such as insurance restrictions. As a result, the best approach to determine the worth of your claim is to include all of the elements outlined in the preceding section when calculating your final settlement figure. The best approach to determine the worth of your case is to speak with a car accident lawyer who will do a full investigation and is in the greatest position to appropriately assess the case since they have extensive expertise with it.

A standard formula is used to provide a general guide to how settlement amounts are calculated and determined. This auto-crash settlement calculator provides the following formula:

You must include out-of-pocket medical costs and associated expenditures, as well as health insurance liens, lost earnings, and non-economic losses such as pain and suffering when calculating the worth of your vehicle collision.

If your case involves contributory negligence, reduce the total value by your percentage of fault. For example, if you were 50% at blame, your compensation would be decreased by 50%.

Reduce the overall settlement sum if you were not at fault. For example, if you are involved in a rear-end accident, you will nearly always be found not at fault. This does not mean it will be easy to make a car accident case, let alone obtain a good or even average car accident settlement.

Again, this is a very broad summary of how settlement value is computed, but, as stated in the preceding section, the final value is determined by a variety of different criteria and specifics unique to your case.

Warrior Car Accident Attorneys | Free Consultation

A firm dedicated to providing exceptional client service and fighting for the highest possible compensation for you. We will make a car accident claim, have a personal injury lawyer handle your injury claim start to finish, and get an amazing car accident settlement for you.

We hope you will consider the Warrior Car Accident Lawyers when it comes time to pick an attorney. We take pleasure in knowing all there is about vehicle accidents and are experts in Colorado law.

We handle all types of personal injury claims, including those involving motor vehicles. All of our prospective customers are encouraged to do their research.

We’ve established our whole company on word-of-mouth and reputation. Unlike many other legal companies, we don’t depend on big-budget TV advertising or pay-for-clients referral services to keep unsuspecting customers coming in.

Instead, we trust our previous customers will suggest us via internet evaluations, word of mouth, and social media support. It isn’t always simple, but it is how a trustworthy company runs, and we like it that way.

We also take satisfaction in achieving the greatest possible outcomes for our clients, having regularly won countless million and multi-million dollar settlements on their behalf. Working with an experienced personal injury lawyer at Warrior Car Accident Lawyers can help those who have been in a car accident and want to ensure that they obtain the full compensation to which they are legally entitled.

If you or someone you care about has been wounded due to someone else’s carelessness, don’t accept anything less than the full compensation you deserve. During a free consultation with Warrior Car Accident Lawyers, one of our expert personal injury lawyers will sit down with you and go through your case, including case details based on the kind of claim and answer any concerns you may have. Don’t put off taking the initial step toward financial recovery. Please contact us at 719-300-1100.

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