Car accidents can significantly disrupt your life, leaving you with mounting medical bills, lost wages, and other unexpected expenses. When faced with these challenges, many victims wonder about the average car accident settlement. While the answer varies based on individual circumstances, understanding the factors that influence your settlement is key to forming realistic expectations.
Consulting with a car accident lawyer can also provide valuable insight into how these factors apply to your case and what you might be entitled to. Let’s dive into the main elements that affect car accident settlements and the types of compensation you could receive.
Factors That Can Affect Your Final Settlement
The following factors can either increase or decrease your final settlement, depending on the specific circumstances of your case:

Type of Accident and Determining Liability
The type of accident you’re involved in can play a major role in determining your settlement. For example, rear-end collisions often result in different compensation compared to side-impact or head-on crashes.
Equally important is determining liability—or who is at fault for the accident. In Tennessee, your claim will only be successful if you are less than 50% responsible. If you are found to be 20% at fault, for instance, your settlement would be reduced by 20%. If you are found to hold equal or greater liability, you will recover no damages.
Insurance Coverage and Uninsured Drivers
Insurance coverage is key when it comes to how much compensation you can recover. If the other driver has sufficient insurance, it may cover both your property damage and bodily injury claims.
But what happens if the at-fault driver doesn’t have insurance? Tennessee requires drivers to carry uninsured/underinsured motorist coverage, which can help cover your losses when the responsible party doesn’t have enough coverage. However, the limits on these policies can vary, and it’s important to review your own policy to understand how much protection you have.
Caps on Damages
In Tennessee, there are certain limits, or caps, on how much you can recover in a car accident case. Specifically, there is a cap on non-economic damages, such as pain and suffering, which is typically limited to $750,000 in most cases and $1,000,000 in cases of catastrophic injury.
Statute of Limitations
The Tennessee statute of limitations gives you 1 year from the date of your car accident to file a claim. Missing this deadline means you will likely lose your right to recover any compensation at all. Because this is a relatively short window, it’s essential to take action as soon as possible to protect your rights.
Cost of Hiring an Attorney
Hiring an experienced attorney can help maximize your settlement. Most car accident lawyers, like those at The McMahan Law Firm, work on a contingency fee basis, meaning you don’t pay any fees upfront. Instead, they take a percentage of the final settlement. While this means a portion of your settlement will go to your attorney, having legal representation often results in a much larger payout, offsetting the cost of hiring them.
Common Types of Compensation in Car Accident Settlements
Medical Bills
The most significant factor in a car accident settlement is typically the cost of medical care. Car accident injuries can range from minor bruises to life-altering conditions like traumatic brain injuries or spinal cord damage. The more severe the injury, the higher the medical bills, and, in turn, the higher the potential settlement.
Medical costs include:
- Emergency room visits
- Surgeries
- Physical therapy
- Prescription medications
- Ongoing care for long-term injuries
Documenting every medical expense and following your doctor’s recommended treatment plan are essential steps to securing fair compensation.
Lost Wages and Reduced Earning Capacity
After an accident, you might be unable to work while you recover. In these cases, you can claim compensation for your lost wages as part of your settlement. If your injuries affect your ability to work in the long term, you may also be entitled to compensation for reduced earning capacity.
Property Damage and Rental Car Costs
The cost of vehicle repairs or replacement is another significant part of a settlement. You may also need a rental car while your vehicle is being repaired or replaced. Settlements often include compensation for these out-of-pocket expenses.
Pain and Suffering
In addition to financial losses, you may be entitled to compensation for the pain and suffering you’ve endured as a result of the accident. This type of compensation accounts for the physical pain, emotional distress, and reduced quality of life caused by the accident. Since these damages are subjective, they can vary greatly depending on the details of your case.
How To Maximize Your Car Accident Settlement
After a car accident, here are a few steps you can take to ensure you receive the compensation you may deserve:
- Document everything: After an accident, gather as much evidence as possible, including photos of the accident scene, witness statements, medical records, and repair bills.
- Seek medical attention immediately: Even if you don’t feel seriously injured, some conditions (like whiplash) can take time to manifest. A doctor’s visit helps document your injuries and proves they were caused by the accident.
- Don’t rush to settle: Insurance companies often offer quick, lowball settlements to avoid paying the full amount you’re owed. Consult with an attorney before accepting any offer.
- Hire an experienced attorney: A car accident lawyer can help you navigate complex insurance claims, negotiate a fair settlement, and take your case to court if necessary.
Call The McMahan Law Firm–No Win, No Fee
At The McMahan Law Firm, we know how quickly the costs of an accident add up. Hiring legal representation shouldn’t be another expense on the list. To find out what your car accident settlement could be worth, start with a free consultation. We serve Chattanooga, Dalton, GA, and the surrounding areas. You don’t pay until we win compensation for your injuries and losses!