How Much Is The Average Settlement For A Car Accident?

Home > Blog > How Much Is The Average Settlement For A Car Accident?
car accident lawyers

If you have been injured in a car accident and you would like to seek compensation, you may be wondering if it is worth your while based on the effort of lodging a claim versus the compensation you could receive. There is no way of knowing exactly how much compensation you will be entitled to without pursuing the case, but it may be possible to establish a ballpark figure if you seek the assistance of a qualified personal injury lawyer.

What factors contribute to different settlement amounts?

Although every case is different, there are certain factors that will help determine how much compensation a person should receive after they’ve been injured in a car accident.

One of the most important factors is the impact the injuries have had on the injured party’s life. For example, if an injury causes a person whose work involves physical labour to be off work for six weeks, they are likely to receive a higher settlement figure than someone who can complete their job from home while they recover from their injuries. The reason for this is that it is likely that the former’s career has been impacted significantly, while the latter has been able to make adjustments in order to continue working.

Another factor which is proven to increase the amount of compensation the injured party receives is whether the injured has a personal injury lawyer representing them. The assistance of a personal injury lawyer can be beneficial for the purposes of running the matter, building a strong case, ensuring relevant documentation is completed thoroughly and accurately, and keeping to strict deadlines.

What difference does representation by a personal injury lawyer make to the amount of compensation awarded?

It is possible to use existing statistics as a general guide as to the average compensation amount someone injured in a motor vehicle accident receives.

In August 2019, the Australian Lawyers Alliance prepared a paper for the Motor Accident Insurance Commission in which the following findings were made in relation to legally represented claimants when they were compared to self-represented claimants.

Claimants who did not engage a lawyer and relied on the insurance company’s claim processing procedures received, on average, less than $8,000 in compensation and/or damages.

On the other hand, the average settlement amount received by an injured party who was represented by a personal injury lawyer was $78,000. Legal fees and other outlays came in at an average of just under $30,000. The findings show that after payment of all statutory refunds, legal costs and disbursements, a person who was legally represented in their compensation claim would personally receive approximately $42,000.

Other outlays, statutory refunds and disbursements include costs such as refunds payable to Medicare or Centrelink and payments for private health insurance, for example.

Is it essential to seek assistance from a lawyer for a claim for compensation after being injured in a motor vehicle accident?

The aforementioned statistics highlight that claimants who are represented by a lawyer are awarded far higher compensation payouts than those who simply make a claim through the insurer. Even accounting for costs such as legal fees and other outlays, represented parties received more than five times the compensation of those who chose not to seek professional legal assistance. Although it is not essential to engage a lawyer to help with your claim, the results speak for themselves.

If you have been injured in a motor vehicle accident and would like to engage a lawyer to help you manage your claim, contact Cairns Compensation Lawyers today.