Accident Compensation Claims

Calculating your car accident compensation claims can be difficult. To help you understand how to evaluate your personal injury settlement case, it’s helpful to look at an example case.

Here is a summary of the car accident claim case we will be looking at:

Accident Compensation Claims Case Summary:

  • Name: Amy
  • Injuries Suffered: Back and neck strain.
  • Medical Expenses: $4,553.00
  • Final Settlement Received: $19,000.00

Let’s look into some of the details of this case to help you understand what goes into an auto accident settlement case….

Summary of the Car Accident

Amy was running errands one night when she was involved in a car accident. Amy had stopped for a red signal light at an intersection. However, the driver behind her, John, was following too close to her vehicle.

John failed to stop in time and had a rear end collision with Amy’s vehicle. John was charged with failure to reduce speed to avoid a collision. Both vehicles were towed to a local garage.


One of the biggest factors involved in auto accident compensation claims is the issue of liability. The less blame you can get for the wreck, the better your chances of getting a higher accident compensation claim.

In this case, the liability was determined by reviewing the car accident report made by the investigating officer. Witnesses also reported seeing John drive too close to the vehicle. Taking these two facts into consideration, it was found that the accident was caused by John’s negligence.

Personal Injuries

As a result of the accident, Amy suffered severe personal injuries. She was transported by the ambulance to the Emergency Room. There she complained of having sharp pain in her upper back and neck.

The X-rays for Amy’s neck and back came back with negative results. She was diagnosed with severe back and neck strain.

Amy was prescribed Percocet (5/325mg) to relieve her severe pain and discharged home with instructions to rest and use hot and cold packs.

Injury Treatments

For two months, Amy was treated by a chiropractor for a total of six treatments. Her treatments consisted of manual manipulation, using transcutaneous electrical nerve stimulation device to reduce her pain, and hot and cold pack therapy.

In addition, for six months Amy received physical therapy treatments consisting of strengthening exercises, massage therapy, and a home exercise program.

Medical Expenses

The following is a summary of the Amy’s medical expenses after her auto accident

  • Ambulance Bill $ 200.00
  • Emergency Room $ 433.00
  • Physician Bill $ 250.00
  • Radiology Bill $ 170.00
  • Chiropractor $1,000.00
  • Physical Therapy $2,500.00
  • Total: $4,553.00

Calculating Pain and Suffering

The most difficult part in auto accident compensation claims is figuring out the value of your pain and suffering. In order to receive a high personal injury settlement, you must demonstrate that your injuries were serious and had a severe impact on your life.

For approximately six months, Amy was in serious pain due to her car accident injuries. These injuries prevented her to complete normal daily tasks such as dressing, lifting, bending, twisting, and sitting or standing for long periods of time without experiencing pain.

Amy’s injuries had a serious and visible affect on her daily life.

According to the medical records, these problems were consistent with someone who was experiencing back and neck pain. In addition, causation statements obtained from Amy’s treating physicians showed that her injuries were likely caused by the accident.

They were not pre-existing injuries which had somehow resurfaced. All of these factors contributed to the final accident settlement amount that was demanded for her compensation claim.

In this auto accident compensation claim case, the amount demanded for pain and suffering was calculated as approximately five times her health care expenses (5 x $4,553.00 =$22,765).

Although, there is no scientific formula that can be used to determine your exact settlement amount, there are personal injury settlements calculator that can help aid in the process.

It’s important to note that Amy’s injuries were backed up by her medical report and physician’s statements. Otherwise it would have been difficult to clearly prove the car accident and her personal injuries were linked.

It may be obvious that the injuries occurred after the accident. But you never want to take any chances when going against the insurance companies. So keep a copy of your medical report and doctor’s statements.

Lost Wages

At the time of the accident Amy was also employed and making $10.00 per hour. As a result of the car accident, she lost 16 hours of wages. Therefore she would be entitled to receive a total amount of $160.00 in lost wages. ($10.00 x 16 = $160.00)

Final Accident Compensation Settlement

  • Health Care Expenses $ 2,053.00
  • Lost Wages $ 160.00
  • Pain and Suffering $ 22,765.00
  • Total: $24,978.00

For Amy’s case, a claim demand of $24,978.00 was made in her demand letter. After negotiating the accident settlement with the insurance company, the figure was brought down to $19,000.00.

You may notice that the final settlement is below what Amy demanded. This is typical in insurance claim negotiations. You make an offer and the insurance company makes a counter (lower) offer. You go back and forth until both parties agree to a settlement amount.

Final Thoughts

The important thing to understand is the process that goes into determining your accident compensation claims. The final value always depends on the specifics of your case. How serious were your injuries, how clearly can you prove fault, demonstrate pain and suffering, the repuation of your attorney etc.

All of these factors decide on how much leverage you have versus the insurance companies. The better you understand these factors, the better your chances of getting a high personal injury settlement.

Want to know How Much Your Injury Claim is Worth? Get a free settlement estimate right now.

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