At HHJ Trial Attorneys, we have secured compensation for countless car accident victims. By working closely with your insurance provider and negotiating with opposing counsel, we can help you recoup your losses and move forward without financial burdens.
In this blog, we discuss the economic ins and outs of car accident claims to help you understand your rights so you can pursue the compensation you deserve.
Types of Insurance Coverage for Car Accidents
After being involved in a car accident, there are numerous insurance payouts that you may qualify for. Depending on your policy and the circumstances of the accident, you may be covered by any of the following:
Liability Insurance
In at-fault states, the liable party’s insurance is responsible for covering the damage their policyholder caused others. This coverage is mandatory for vehicle owners because it pays for the medical expenses of those injured in an accident you caused, so you do not have to cover these expenses out of pocket.
Liability coverage also pays for damaged property, such as cars that need repair or replacement, as well as any other personal property that was destroyed in an accident you are responsible for.
Personal Injury Protection
In no-fault states, Personal Injury Protection (PIP) coverage is typically mandatory and provides immediate coverage to the policyholder regardless of who caused the accident. The payouts provided by this coverage include:
- Medical expenses
- Lost wages
- Additional services like housekeepers and childcare
- Funeral expenses in fatal accidents
Collision Coverage
This coverage is usually optional unless your vehicle is financed, in which case lenders will typically require it. Collision coverage pays for the damages done to your car in an accident, regardless of who was at fault.
Uninsured/Underinsured Motorist Coverage
There are many scenarios in which the liable party doesn’t have insurance or their insurance is insufficient to cover your damages. In these cases, uninsured/underinsured motorist coverage will ensure that you can still get medical care and have your car repaired.
Factors That May Affect Compensation After a Car Accident
Your compensation is an amount offered to you to help you recover from the economic and non-economic impact of the accident. Each party’s legal representation typically negotiates this offer, and the adjuster chosen by their insurer. In these negotiations, evidence must be submitted that shows proof of each of the following factors.
The Severity of Your Injuries
Both the extent and permanence of your injuries will significantly influence the compensation you receive. The determining factors include:
- Immediate medical expenses
- Long-term treatment
- Rehabilitation costs
- Permanent disability
Your Financial Losses
These losses include the quantifiable economic losses that affect your financial stability, such as medical bills and any medical expenses you may incur in the future related to injuries sustained in the accident. Severe injuries may prevent you from working and earning an income, so lost wages are also considered when negotiating compensation.
If your injuries now prevent you from working in the same position or field, your lower earning capacity will factor into your compensation amount. Finally, the cost of any personal property damaged in the accident will be added to the total compensation offer.
The Non-Economic Impact of the Accident
The non-economic impact of an accident is more subjective and is often up to your attorney to prove and quantify. This proof can be complicated, but your attorney will use a variety of evidence to show:
- Pain and suffering
- Emotional distress
- Loss of enjoyment of life
- Loss of consortium
- Loss of agency/independence
Fault Determination
In states that use the comparative negligence system, the percentage of fault assigned to each party will dictate your compensation. If you are partly at fault for the accident, your compensation will be reduced by the percentage of liability you are deemed to have.
Types of Compensation That Can Be Awarded
Numerous types of compensation can be awarded to the injured party in a car accident case, and each relates directly to the effects of the accident on your life. You may be eligible for some and not others depending on the unique circumstances surrounding the accident and the factors discussed.
Medical Expenses
This compensation covers the cost of all medical treatment you received after the accident. Your attorney will present documentation, such as hospital bills, to show the necessity for this type of compensation. Expenses may include:
- Emergency room visits
- Hospitalization
- Surgeries
- Physical therapy
- Prescription medication
- Future medical expenses
Lost Income
Being unable to work can have a profound effect on you and your family’s financial stability, especially if your injuries permanently impact your ability to work. This type of compensation encompasses:
- Missed workdays beyond sick leave
- Reduced earning capacity
- Lost business opportunities
- Lost employment benefits and bonuses
Property Damage
There are countless expenses associated with the damage caused by an accident, in addition to the need for your vehicle to be repaired or written off entirely. Other property damage expenses can include:
- Personal property damage, such as laptops, phones, etc.
- Rental car expenses while your vehicle is being repaired
- Diminished vehicle resale value
- Modifications destroyed in the accident
Pain and Suffering
This type of compensation aims to make up for the physical and emotional impact of the accident. The impacts may include:
- Physical pain and discomfort
- Mental anguish
- Anxiety
- Depression
- PTSD
- Impact on relationships
Punitive Damages
In cases where the car accident was caused by gross negligence, recklessness, or illegal actions, the court may decide to award additional damages. Punitive damages are intended to punish the liable party for their egregious actions that led to considerable economic and non-economic losses.
Protect Your Financial Future After an Accident
Numerous factors are involved in discussing the economics of car accidents. Insurance providers play a significant role in helping their policyholders immediately after an accident. At the same time, compensation is awarded to help the injured party recover from the losses caused by the accident.
If you or someone you love has been in a car accident, seeking the help of a car accident attorney can give you the tools you need to secure adequate and fair compensation for your damages. Contact HHJ Trial Attorneys for a consultation to discuss your options and what your potential compensation could be.
