How Much Can You Expect to Receive in a Personal Injury Settlement?

For plaintiffs who have suffered a personal injury due to someone else’s negligence, you may be wondering how much you are going to receive in a settlement or what the average settlement is. While there is no one-size-fits-all answer, understanding the factors that determine settlement amounts can help you get a better idea of what you can expect. 

Read on to learn:

• How do personal injury settlements work?
• What factors can determine the amount of compensation you may receive?
• Understanding the typical compensation range for personal injury cases

How Do Personal Injury Settlements Work?

Personal injury settlements are agreements between you and the at-fault party (or their insurance company) to resolve a case without going to trial. It simply means that you are accepting a monetary sum in exchange for dropping your claim against those responsible.

The settlement process starts with a demand letter from your attorney outlining the details of your case, including the damages you have suffered and the amount of compensation you are seeking. The insurer will then review the demand and respond with a counteroffer or outright reject it. Negotiations will then take place until a reasonable settlement amount is agreed upon. If the negotiations are successful, you will receive compensation in exchange for signing a release of liability, which bars you from pursuing any further legal action related to your injury.

Depending on the complexity of your case and the willingness of both parties to negotiate, reaching a settlement can take weeks, months, or even years.

What Factors Can Determine the Amount of Compensation I May Receive?

Several factors can affect the amount of compensation you can receive in a personal injury settlement. These include:

1. The severity of the injury. Typically, the more severe the injury, the higher the compensation. Injuries that require surgery or other invasive medical procedures may result in larger settlements.
2. Effect on mental health. Lawsuits that result in the loss of a loved one or have a lifelong impact on your mental health may result in higher compensation.
3. Implications on your life. If your injury has caused permanent damage that impacts your ability to work or engage in other activities or has negative implications for the rest of your life, you may be entitled to higher compensation.
4. Damage to property. Personal injury claims can also include damage to property, such as in the case of a car accident that damages your vehicle.
5. Defendant’s financial means. The settlement amount may be limited by the defendant’s insurance coverage or financial means. You may have to negotiate a lower settlement if the defendant’s insurance is lower than what you are asking.
6. Liability. The degree to which the other party is liable for your injuries and the jurisdiction can also impact your settlement amount.
7. Time missed from work. If your injury has caused you to miss work, you may be entitled to compensation for lost wages.
8. Pain and suffering. In addition to compensation for medical bills and lost wages, you may likely receive compensation for the pain and suffering you experienced as a result of your accident.
9. Age and earning potential. Settlement amounts may be higher for younger people with a long career ahead of them, as the injury may have a more significant impact on their future earning potential.
10. Legal representation. Your lawyer can also play a role in determining your settlement amount. A skilled and experienced personal injury attorney may be able to negotiate a higher compensation on your behalf.

Understanding the Typical Compensation Range for Personal Injury Cases

When it comes to personal injury cases, the amount of compensation awarded can vary widely based on individual circumstances. According to NOLO, a legal information website, the average payout for personal injury cases in the US is $52,900. However, this number should be taken with a grain of salt, as settlements can range from a few thousand dollars to millions of dollars, depending on the case. In fact, more than half of NOLO’s readers received payouts ranging from $3,000 to $25,000, while 26% received over $25,000. Keep in mind, though, that the readers surveyed by NOLO were specifically seeking information about personal injury claims and may not represent the full spectrum of personal injury cases.

While every case is unique, knowing the severity of your injuries, the impact it has on your life, and the financial means of the person responsible for your accident can better prepare you for what to expect.

Apply for Lawsuit Funding Today

If you’re currently involved in a personal injury lawsuit and need financial support for medical bills and living expenses during the settlement process, consider personal injury settlement funding from Baker Street Funding. Unlike a loan, pre-settlement funding only needs repayment if your lawsuit is successful and you receive compensation. This provides a secure avenue to manage your immediate needs while awaiting a favorable resolution for your case.

See what Baker Street Funding has to offer and get pre-qualified for pre-settlement funding in as little as two minutes—no strings attached.