Average Personal Injury Settlement Amounts

What Is the Average Personal Injury Settlement Amount?

Average personal injury settlement amounts range greatly. On the low end, an injury case might settle for only a few thousand dollars. However, many personal injury lawsuit settlement claims are significantly higher.

An average personal injury lawsuit settlement amount is anywhere between $3,000 and $75,000. A personal injury settlement calculator may not accurately estimate your potential settlement because many variables affect how much you can seek from a personal injury lawsuit, and each case is unique. Discussing your case with a personal injury lawyer is the most effective way to gauge how much you could receive from a personal injury settlement. 

Most cases fall in between the very high and very low end of average settlements. There are also outliers — you’ve probably heard about people getting settlements that are millions of dollars. Some cases settle for that much, but they usually involve very unique circumstances with either punitive damages or other extraordinary damages. An experienced injury lawyer can help you determine what your case is worth, and where your case falls on the spectrum of typical settlements.

How Are Personal Injury Settlement Amounts Calculated? 

The at-fault party’s insurance company pays personal injury settlement amounts, including coverage for economic and non-economic damages. The insurance company may fight to limit the settlement to keep it within the maximum amount their client’s policy covers. Compelling proof of fault can help you get the maximum settlement amount possible. Demonstrating the at-fault party’s negligence is necessary to justify your claim.

Economic damages compensate individuals for costs stemming from the accident, such as the following:

• Childcare costs
• House cleaning and home maintenance expenses
• Lost wages 
• Medical expenses 
• Property damage
• Transportation costs

Accident victims can seek reimbursement for practical costs. Suppose your injuries prevent you from looking after your children or an elderly family member who lives with you. You can seek compensation to pay caregivers to look after those family members while you recover.

Your economic damages vary based on the severity of your injuries. Suppose you incurred spinal cord injuries or traumatic brain injuries. These injuries may prevent you from returning to your career or require long-term treatment. In this case, your bodily injury settlement amounts would be greater than the compensation awarded to someone who quickly recovered from their injuries. You may be able to seek compensation for the following:

• Future medical costs for anticipated future costs
• Job retraining expenses
• Lost earning capacity if you’re unable to work or have to change careers

Non-economic damages compensate individuals for the personal toll they incur because of their injuries. Grounds for non-economic damages include the following:

• Anxiety
• Depression
• Grief
• Loss of consortium
• Loss of quality of life
• Pain and suffering 
• Phobias
• Post-traumatic stress disorder

The average settlement you can receive for pain and suffering and other grounds for non-economic damages depends on the extent of the impact your accident has on your life, and whether it’s a long-term or permanent impact. 
Some accident victims can seek punitive damages if there’s evidence the accident occurred because of the at-fault party’s gross negligence. Nevada allows accident victims to seek punitive and exemplary damages when warranted by the at-fault party’s actions.

How Are Personal Injury Settlements Paid Out?

Typical injury claim payouts are either a lump sum or structured payments that follow a schedule. Depending on your situation, and how much you receive from your settlement, there are benefits to both payout options.

Lump Sum Payout

Some victims who file an injury case need the full amount of their settlement as soon as possible. Under these circumstances, a lump sum may be the more beneficial option. This means that they will receive the full settlement amount all at once. If you suffered minor injuries, receiving a lump sum payout resolves your personal injury case. If you suffered severe injuries, you may have significant medical bills to pay and need money to compensate for lost wages. Opting for a lump sum payout ensures you have the money you need for your expenses and allows you to invest your settlement.

However, it’s important to remember that lump sum payouts will generally take anywhere from six weeks to a few months to receive. Speak to your personal injury attorney to get a better understanding of what this means for your case.

Structured Settlement Payout

With a structured payout of your personal injury settlement, you’ll receive regularly scheduled payments. You can work with your injury lawyer to determine the best payment schedule for your financial needs to help supplement your regular income and cover costs associated with the accident.

Accident victims can choose between monthly, quarterly, or yearly payouts with a specified end date. This payout method is often preferred to lump sum payouts for several reasons, including:

• Helps to avoid mismanaging the money
• Offers long-term financial security
• More flexibility to set terms of the payout

How Do Personal Injury Settlements Work?

When an accident victim sustains losses due to another person’s negligence or reckless decisions, they may qualify to bring a personal injury claim for compensation. This means they legally file a claim against the responsible party to try to collect financial payment for their damages. Some common personal injury claims are based on:

• Car accidents
• Motorcycle accidents
• Slips and falls
• Medical malpractice
• Wrongful death

Not all personal injury cases go to trial. In fact, about 95% of personal injury cases in the United States are settled out of court. This means that the parties involved in the claim agree on a fair settlement amount before the case goes to trial. This helps to avoid an unfair jury verdict, and the time, cost, and complexities of taking the case to court.

How Long Do Personal Injury Settlements Take?

According to a recent survey, the average time it took for the polled accident victims to resolve their personal injury claim was 11.4 months. For 30% of victims, it took over a year to settle their claims.

A typical personal injury settlement will take several weeks to receive after you resolve your claim. However, depending on the type of payout you chose, insurance company policies, and other factors that could delay the process, it may take months before you receive your settlement amount.

The Process of Reaching a Personal Injury Claim Settlement

Most personal injury cases involve several steps before victims receive their final settlement. 

1. Initial Claim Filing

You or your lawyer must notify the at-fault party and their insurance company that you’re filing a personal injury claim. You must file a claim before you can file a personal injury lawsuit.

2. Investigation and Evidence Gathering

Your personal injury lawyer and insurance company will conduct an accident investigation. The investigation involves gathering witness statements, photos, video footage, police reports, medical records, and weather reports. The defendant’s insurance company and attorney will also investigate the accident.

Your insurance company and lawyer will use evidence to establish fault and justify fair compensation for the injuries you sustained. The defendant’s insurance company and lawyer will seek evidence that mitigates their liability. 

3. Demand Letter

Your lawyer will send a demand letter that outlines the damages justified by your injuries and the at-fault party’s negligence. Your demand letter indicates the proposed settlement amount for your personal injury claim. An experienced personal injury lawyer will establish the economic and non-economic damages you sustained, and help determine the personal injury settlement amount you can seek.

4. Negotiation

Your lawyer will meet with the at-fault party’s insurance company or lawyer and present evidence supporting your claim. Your lawyer engages in negotiations in an attempt to get the defendant’s representatives to agree to a reasonable settlement and avoid a personal injury lawsuit. 

5. Mediation (Optional)

A neutral mediator may meet with both parties to negotiate a settlement agreement if negotiations fail to produce a reasonable personal injury settlement for your claim.

6. Settlement Agreement

A legal contract that resolves your claim outlines your personal injury settlement terms. It indicates how much compensation you will receive in the payment terms. 

You can have your lawyer initiate a personal injury lawsuit if your claim cannot be resolved through negotiations.

How Do You Make Someone Pay Once You Win a Settlement?

After settling your personal injury claim, the next step is collecting the promised amount. Unfortunately, it can be more complicated than simply waiting for a check in the mail. It often involves following up and using legal procedures to ensure the defendant pays the compensation you deserve.

Working with an experienced attorney can help with structuring your payout and collecting payments after your case is settled. They can also offer legal advice on what to expect during the claims process.

Are Personal Injury Settlements Taxed?

No, your personal injury claim compensation is generally not taxable by the IRS or your state. Whether your case went to trial or not, your settlement is not taxable under the law. However, if you choose to invest a part or all of your settlement and gain interest on that investment, you may owe taxes on that amount.

Can the Loss of the Ability To Take Part in Favorite Activities Be Factored Into a Settlement?

One type of damage you can claim in your personal injury case is “loss of enjoyment.” When a serious injury permanently affects a victim’s ability to enjoy activities they did before the accident, the liable party may be legally required to pay compensation for this loss. Speak with an experienced personal injury attorney to see if you qualify to include loss of enjoyment in your claim.

How Can a Personal Injury Lawyer Help Maximize Your Settlement? 

Experienced personal injury attorneys fight for their clients to receive fair settlement after an accident. You need to find the right personal injury attorney to represent you because an experienced attorney can ensure you receive fair compensation. Your attorney will explain what happens before, during, and after a personal injury case, and prepare you for every step of the claims process.

Personal injury lawyers know the law and legal procedures. Your lawyer ensures you file the correct paperwork and meet court deadlines, so your claim can proceed. 

Your lawyer also protects your rights by handling all communication with the insurance companies about your insurance claim. Insurance companies may attempt to get you to accept partial fault or a lower settlement than you deserve. 

Additionally, your lawyer gathers evidence and uses it to justify your claim and establish fault. 

Your lawyer then reviews all grounds for economic and non-economic damages and ensures you seek damages that compensate you for all the damages you incurred because of your accident. They will reference average personal injury settlement for various personal injury cases, including the type of claim you’re filing, to ensure you seek the maximum personal injury settlement amount possible, and refer to examples to justify the compensation amounts. They will also use medical records to justify compensation for future medical expenses and reduced earning capacity when warranted. 

Lastly, your personal injury lawyer uses the evidence gathered to justify the personal injury case settlement amount you seek and attempts to negotiate a reasonable settlement. If needed, your lawyer will present your case in court if they cannot reach a settlement and your case goes to trial.

How Do You Determine the Average Value of a Personal Injury Settlement?

To determine the average value of a personal injury settlement, you must look at the components of each case. The total value of a settlement is made up of many different parts, including your economic damages, pain and suffering, and punitive damages.

It’s important to understand that when you search settlements in other cases, you’re looking at the total of those three parts. If the victim has high economic damages, that alone can significantly increase the value of a settlement claim. If the victim has a claim for punitive damages because of the bad actions of a defendant, the punitive damages can greatly skew the value of the claim. Again, it always comes down to the unique damages in a personal injury case.

Understanding Third-Party Lawsuit Settlement Amounts

Third-party lawsuits arise when a non-principal party is sued for damages. Suppose you were injured in a slip-and-fall accident at work. In addition to determining the average slip-and-fall settlement amounts and calculating the damages you can seek, your lawyer determines that your employer was not solely responsible for the factors that led to your accident. They determine that the negligence of a third party that came to your workplace contributed to the conditions that caused you to slip and fall. Your lawyer can pursue a personal injury settlement from this third party.

The same factors that affect how much compensation you can seek from a personal injury claim apply to third-party lawsuit settlement amounts. Your lawyer will calculate the compensation for lost wages and other accident-related expenses, such as medical costs, you can seek. When calculating the compensation you can seek, your lawyer will also include compensation for pain and suffering, and any non-economic factors that apply to your case. 

Your lawyer can also seek punitive damages through a third-party claim if they can establish the third party’s gross negligence contributed to the conditions that caused your accident. Gross negligence occurs when someone acts recklessly and does not act with concern for the safety of others. 

Suppose a third party came to your workplace to stock independently-owned vending machines. They decided to put water on the floor, so they could film videos of people slipping and falling. Since they acted deliberately without considering the safety risks of their actions, your lawyer can argue they’re guilty of gross negligence.

Injury Settlement Attorneys in Nevada

Are you wondering how your case compares to the average injury settlement in Nevada? The best way to figure it out is to speak with our team of experienced attorneys. We can help you compare the circumstances of your case to other cases. Once you understand the value of your personal injury damages, we can help you determine the best course of action.

Call our legal team today for an immediate consultation about your claim. The qualified Las Vegas personal injury lawyers with Adam S. Kutner, Injury Attorneys, use their legal expertise and decades of experience to help each client receive justice for their accident injuries. We’re committed to seeking the maximum compensation for our clients and protecting their legal rights. When you contact us, you can count on us to provide the client-centered legal services you deserve. We’ll listen to your concerns, answer your questions, and explain what to expect when we file your claim. We will get started on your case right away.