Have you ever tried getting around in Texas without a vehicle? It’s probably not the hardest thing you’ll ever do but it’s also not easy. Parts of the Lonestar State aren’t exactly known for their robust public transportation system.
Being involved in a car collision can leave you without a vehicle and worse. You may also sustain serious injuries that can upend your life. You want to recover compensation but you’re not sure if it’ll be enough. Sometimes, referring to the average car settlement amount in Texas can help. However, every accident claim is unique. A few factors go into determining an accident claim’s value.
Potential Claimable Damages in a Texas Accident Claim
On average, Texas car accident claims tend to settle for around $20,000. This is only the average so don’t get too upset if you’re dealing with significant damages.
Remember, every personal injury claim is unique so your case may be worth more or less than the state averages. Most Texas accident claims include two types of damages, economic and non-economic losses. Some accident victims are also awarded punitive damages and this can significantly increase your claim’s value.
Economic damages are your losses with a financial value. In other words, these items have an identifiable cost. Your medical expenses, property damage/repair costs, and lost income are common examples of economic damages.
Non-economic damages are a little different. These are losses that don’t have an intrinsic value. In other words, you can’t fall back on price stickers, bills, or receipts. Your non-economic losses are things like your pain, suffering, and mental anguish. Loss of consortium is another non-economic loss, along with loss of life enjoyment.
Your accident claim may also qualify for punitive damages. You can’t list punitive damages on an insurance claim. You need to file a personal injury lawsuit in civil court before punitive damages even enter the conversation. This type of damage is only awarded by a judge or jury in cases involving gross negligence. A commercial truck driver getting behind the wheel intoxicated can be an example of gross negligence.
Since punitive damages are intended to punish the defendant and persuade others from engaging in the same behavior, the amount awarded tends to be high. To keep punitive damage amounts from getting out of hand, think seven or eight figures, some states have caps in place. Texas does cap punitive damages at double the amount of the economic and non-economic losses up to $750,000. So, this is something to keep in mind if gross negligence is a factor in your accident claim.
Calculating the Value of Your Accident Claim
You probably have a pretty good idea of how to come up with the total of your economic damages. You’re probably going to need a calculator and possibly a pen and some paper. Yep, if you have a fondness for Excel sheets, go ahead and get one started.
Gather up all of your bills, receipts, and estimates. Even receipts for prescriptions to treat your injuries go in the pile. Now, start adding everything up. This gives you the value of your economic losses. Congratulations, you’re off to a great start. Now, it’s time to move on to your non-economic losses.
Since your non-economic losses don’t have an actual value, except for you, calculating the value takes a bit of creativity. Don’t worry, it’s perfectly legal and even accepted by the court and insurance companies.
You’re going to use either the per diem or multiplier method and both have pretty simple formulas. The multiplier method takes the total value of your economic losses and multiplies it by a number you assign your degree of pain and suffering. The number is usually between 1.5 and 5. A higher number represents a greater degree of pain and mental anguish.
The per diem method goes about it a little differently. You count up the number of days you felt pain from your injuries. Next, you figure out your average daily pay. You multiply your daily pay rate by the number of days you’re in pain.
Don’t be surprised if you come up with two completely different totals for your non-economic damages. This is normal. Keep both formulas, you never know which one the insurance company is going to accept. Since you can’t calculate punitive damages, you have a general idea of your accident claim’s overall value.
Factors Potentially Affecting Your Accident Settlement Amount
Several factors can impact your settlement amount. Claims tend to be higher when property damage and injuries are more severe. Your claim may have a higher value if your accident is caused by a commercial vehicle. More than one party may be liable and this can increase a claim’s value.
Something that can really upend the value of your accident claim is Texas’s modified comparative negligence law. Not sure what this is? Modified comparative negligence is an insurance rule that allows for more than one individual or entity to be liable for causing the same accident.
Here’s an example of how comparative negligence can work in a car accident. If you’re speeding and are hit by a driver running a red light, both of you are probably liable for causing the accident. Comparative negligence applies since both drivers are violating traffic laws.
Each driver is assessed a percentage of the blame. As long as you’re not assigned more than 50% of the fault, you shouldn’t have a problem recovering some compensation. However, your settlement amount will be impacted. Your settlement is reduced by the same percentage as your blame.
So, if your settlement is $100,000 and you’re assigned 50% of the blame, you’ll receive a check for $50,000. Yep, comparative negligence can dramatically reduce the value of a car settlement in Texas.
Protecting the Value of Your Car Settlement in Texas
After an accident, you want to receive compensation for your damages. However, a lot goes into figuring out your settlement amount. To help ensure your settlement is fair after your car accident, talk to a Texas personal injury attorney.