How to Calculate Your Car Accident Settlement Amount

Understanding how settlements are calculated helps you evaluate whether an insurance offer is fair — or a lowball.

Economic damages include medical bills, lost wages, property damage, and out-of-pocket expenses. Non-economic damages — pain and suffering, emotional distress — are more subjective.

Insurers typically apply a multiplier of 1.5× to 5× to your economic damages to estimate non-economic losses.

The insurance company will also factor in liability. If you were partly at fault, your compensation is reduced proportionally.

Document every expense meticulously. Keep a pain journal. Follow all medical advice — gaps in treatment give insurers ammunition to argue your injuries were not serious.

An experienced attorney can often negotiate a settlement two to three times higher than the initial offer.