If you ask a Colorado Springs injury attorney to estimate the average car accident settlement in Colorado you’ll probably be disappointed in the answer. Not because the average settlement is less than you think, but because “it depends” is rarely a satisfying response.
But that is the truth – the value of a car accident settlement depends on several factors and the unique circumstances of each case. Given that injury and car accident lawsuits can involve everything from broken bones that will soon heal to catastrophic injuries that will forever change the lives of the victim and their family, “average car accident settlement” is hard to come by.
That said, we can look at the general elements that go into damage awards in Colorado injury cases as well as how insurance companies approach car accident settlement discussions to get a sense of what a specific accident or injury lawsuit may be worth.
What is a Car Accident Settlement?
First, it is important to understand what it means to settle a vehicle injury lawsuit, especially since over 90% of all injury lawsuits end in a negotiated settlement rather than a trial and jury verdict.
A settlement is an agreement between the plaintiff (the injury victim) and the defendant (the party responsible for the accident and injury) in which the defendant pays an agreed-upon amount to the plaintiff in exchange for dismissing the lawsuit. But in most injury cases, particularly in car accident lawsuits, it isn’t the defendant who will pay the settlement. That money will come from the defendant’s insurance company.
Learn more: Who are the plaintiff and defendant in an injury lawsuit?
The parties, their lawyers, and any insurance companies involved will be the ones attempting to settle. During negotiations, each side will try to convince the other that their view of the facts and value of a case is correct.
These negotiations also include compensation for loss of future earnings. Even when the parties are far apart and each believes that they have a strong case, a claim may settle because of the costs and risks involved in going to trial.
No matter how solid each side thinks their case is, a Colorado judge or 12 jurors may see things differently. A defendant may be looking at a massive judgment for an amount much larger than they could have settled for. On the other hand, a plaintiff could get nothing at a trial after turning down a lot of money during settlement talks.
While plaintiffs don’t have to pay their car accident attorney any fees unless they recover the money, insurers must pay their lawyers no matter what the result. Even if the insurance company feels that it has a rock-solid case that will result in a ruling in their favor, it can cost them hundreds of thousands of dollars in lawyer’s fees to get there.
Related: Beginners Guide to Injury Lawsuits & Insurance
What Factors Determine The Amount of an Average Car Accident Settlement in Colorado?
The risks and uncertainty of trial notwithstanding, the dollars and cents of an injury settlement involve looking at the kinds of damages that an injury victim could recover if the case went to trial and a jury found in the victim’s favor.
In Colorado, there are two main categories of damages available in a personal injury or car accident lawsuit: economic damages and non-economic damages.
Economic Damages
Economic damages consist of those amounts that a judge or jury can usually calculate by looking at receipts, bills, and pay stubs – money that the plaintiff has lost and will lose or spend in the future because of the defendant’s negligence.
Economic damages include items such as:
- Medical bills
- Rehabilitation costs
- Past and future lost wages
- Property damage
Non-Economic Damages
But other losses aren’t as easy to put a price on. How much is it worth when you can’t play with your kids? What is the dollar value of never-ending pain or embarrassment? What is the cost of the loss of intimacy with a spouse or the psychological impact of not being able to support your family?
These non-economic damages, including what is commonly known as “pain and suffering,” are just as real as economic damages, and are a significant factor in settlement negotiations, especially in cases involving catastrophic injuries.
Often, insurance companies will use a “multiplier” in a settlement offer to take non-economic damages into account, taking the economic damages and multiplying them 1.5 to 4 times to come up with a figure.
Why a Car Accident Lawyer Can Make All the Difference in the Amount of Your Injury Settlement
Never forget that in almost every Colorado auto accident injury lawsuit, any settlement money will come out of the pockets of a car insurance company. Despite their famous claims of being “on your side” or that you are in “good hands” with them, insurance companies are in the business of making money.
Every dollar an insurer pays out in car accident settlement claims to an injury victim is a dollar that cuts into their profits. That’s why the insurance company wants to pay you as little as possible or nothing at all. Car insurers will manipulate and pressure you and use other tactics to take advantage of your difficult financial situation after an accident. That is why you should never negotiate a settlement with an insurance company on your own.
Simply put, people who hire a car accident attorney to negotiate insurance settlements collect significantly more in compensation on average than do individuals who negotiate without a lawyer. The statistics bear out this truth:
- According to the Insurance Research Council (IRC), the average auto accident settlement for injury victims who had an attorney were 40 percent higher than the settlements negotiated by the victims themselves.
- In a separate study, the IRC found that people represented by an attorney receive 85% of all settlement money that car insurance companies pay out in claims.
You could leave thousands of dollars on the table if you don’t hire an experienced Colorado Springs car accident attorney to negotiate a settlement on your behalf. Your attorney won’t let the insurance company nickel-and-dime you and will work to ensure that you receive the maximum amount of compensation available for your losses.
Consultations with an Accident Injury Attorney are Free
The good news is that, if you want a consultation from a personal injury lawyer, you’ll pay nothing in fees until you get compensation. This is called a contingency fee, and you will only pay the contingency fee from money received from the at-fault party in the personal injury lawsuit. This is a normal pay structure for Colorado personal injury lawyers.
King & Beaty specializes in personal injury lawsuits in Colorado Springs. Contact us to schedule your free personal injury consultation in Colorado Springs to determine if you have a case.
