Car accidents can be painful and nerve-wracking. From dealing with injuries to long hospital stays and then getting your vehicle repaired. Being involved in a car accident can get you exhausted and put you in a great mess.

Some injuries take longer to heal, and one might have to stay in the hospital for long. Such ailments make on worried about medical bills, and other financial losses. In these cases, accident settlements can be helpful as these carry away the financial burdens.

Accident settlement is money that a policyholder can get after being through an accident if they were insured. An average settlement amount can be anything depending on the loss one has suffered. Every case has a different background and so is the settlement. Anyone involved in a car accident may get a settlement for economic and non-economic damages.

Economic Damages

These are also called special damages that cover medical expenses, vehicle repair expenses, and the wages a person has lost at work due to the accident.

Non-Economic Damages

Non-economic damages are general damages that include pain, loss of a loved one, sufferings, mental stress and or trauma, etc.

Accident claim settlements are easy to figure out in a minor accident case. For major accidents involving serious injuries, several factors are involved. When you file for a settlement, you are entitled to receive an amount that totals the sum of your injuries, car repairs, and other losses. But how is the money calculated and what is the formula for it.

Well, there isn’t any set equation or formula for that. However, several factors are involved in these calculations. The first thing while calculating the value is to assess the damage to the vehicle. Every important detail is considered including the initial value of the car, depreciation value, condition at the time of the accident, and the mileage it has covered. Additionally, the cost of repairs and replaced parts are also included.

Injuries are more complicated to calculate in comparison to vehicle parts and repairs. There is no tag price for the treatment of human body parts or injury. Moreover, the type of injury differs from person to person. Similarly, the emotional stress and trauma one goes through cannot be compensated through money. Lost wages can however be calculated by counting the number of days a person has remained absent from work after the accident. Other factors involved in a road traffic accident compensation include:

1. The number of people involved in the accident.
2. Type, duration, and magnitude of injuries and harm to you.
3. Sum of total medical expenses (current and future) on your treatment.
4. The number of days you couldn’t go to work and when you can return to work.
5. The amount of insurance defaulter party has
6. What was your fault that led to the accident?

All these things, along with complete documentation, medical reports, photographs, police reports, witness statements, and complete evidence is required to calculate the accident settlement.