How Much Is My Car Wreck Case Worth?
Managing Attorney, Parker Webb
This is one of the most difficult questions that clients ask me. Frankly, there’s no simple or reliable way to calculate the exact value of an injury case; there’re just too many intangible factors to take into account.
Car insurance companies have spent millions of dollars developing computer programs designed to calculate the value of a case.
More often than not, however, their evaluation is wildly inaccurate; computers can’t account for the human elements (like, the credibility of a witness) that affect each case.
Generally speaking, the value of a car wreck case is the amount of money an insurance company would pay to settle it, as the vast majority settle without a trial. The settlement amount is typically less than what the client wants to receive but more than what the insurance company wants to pay. The parties are willing to compromise so that they avoid the uncertainties of a jury trial.
When lawyers evaluate a case for settlement, they consider a number of factors—some more important than others—to guess at the amount the client would be awarded by a jury.
Here’s a short list of questions for you to consider.
1. Was the other driver at fault?
In Texas, your damages are reduced by however much you were at-fault for the accident. If the jury awards you $10,000 but finds you 20% at-fault for the accident, then you can only recover $8,000 of the $10,000. If the jury finds you 50% at-fault, then you can only recover $5,000 of the $10,000. But there’s a twist: If the jury finds you 51% at-fault, then you can’t recover anything.
2. How much car insurance is available?
There are two types of car insurance: Liability insurance and under-insured/uninsured insurance. In Texas, every driver is required to have at least $30,000 of liability insurance; under-insured/uninsured insurance is optional. Liability insurance covers the at-fault driver. Under-insured/uninsured insurance covers the innocent driver in the event that the at-fault driver does not have insurance or does not enough insurance to cover the innocent driver’s damages.
Generally speaking, the value of your case is capped at the total amount of available car insurance. Even if you have $100,000 in medical bills, if there’s only $30,000 of available insurance, your recovery would be limited to $30,000.
3. What’s the total amount of your paid medical bills and outstanding medical bills?
For most cases where liability is clear, the total amount of paid and outstanding medical bills is a good measuring-stick for the settlement-value of a case. Decades ago, clients could expect to settle their case for three times the cost of medical. Due to recent changes in the law, however, most cases are settled near or even under the cost of the paid and outstanding medical bills.
4. Did you break any bones, undergo surgery, or suffer injuries greater than mild whiplash?
The severity of injuries significantly affects the value of a case. Some insurance companies and lawyers group cases into three or more informal categories of injury severity: (1) whiplash; (2) injuries beyond whiplash like broken bones, muscle and tendon tears, and injuries requiring surgery; (3) death and catastrophic injuries that cause permanent and severe disfigurement or disability.
The value of category (2) cases is somewhat tied to the total cost of medical treatment. For these cases, juries are likely to award damages for things like future medical costs, pain and suffering, mental anguish, and lost wage-earning capacity. Insurance companies know this and thus offer higher settlements. Clients can expect settlements for multiple times the medical costs.
The value of category (3) cases is loosely tied or not tied at all to the cost of medical. Category (3) cases involve death or injuries like third degree burns, paralysis, or severe brain injury where the pain and suffering and mental anguish in the past and future are extreme. Jury awards in these types of cases vary wildly depending on many more factors than just the cost of medical.
5. Are there any “mad factors”?
“Mad factors” are the kinds of evidence that anger juries and lead to higher jury awards. For example, if the at-fault driver was arrested for driving while intoxicated, was cited for texting and driving, or was caught lying during a deposition, your case has significantly higher value. A mad factor might increase the value of a case by 3 times the total amount of medical bills. It’s important to know, however, that simple acts of negligence (like accidentally running a stop sign or turning in front of another car) are not mad factors.
Please keep in mind that the above list is an extreme oversimplification of how lawyers and insurance companies evaluate cases; case value cannot be determined by answering this short list of questions. These questions are designed to give you a very broad and basic overview of some of the important factors that affect case-value.