A Guide to The Average Car Accident Settlement in Texas

In 2023, the Texas Department of Transportation reported that there were over 15,000 car accidents in the state that resulted in serious injuries.

If you or a loved one has been injured in a Texas car accident, Mighty's AI handles your claim from the start — building your case file, opening your claim, and negotiating a settlement on your behalf. For free. The amount of compensation depends on the specifics of your case.

Buckle up—we’re exploring the must-knows surrounding car accident settlements in Texas.

Texas Car Accident Settlements: What You Need To Know 

Car accident settlements can range from a few thousand dollars to a couple of million, depending on the nature of the accident and the claims that are filed. If you're considering legal action, you must take it within a certain time frame. Mighty's AI tracks the Texas statute of limitations automatically as part of your case work.

Generally, these claims are known as damages. There are two kinds of damages involved in car accident settlements. They are:

• Economic damages – Economic damages are tied to the financial strain that car accidents can cause. Damages of this sort include compensation for lost wages or earning capacity as well as for associated medical bills, ongoing rehabilitation, and treatments the car accident victim might need in the future.
• Noneconomic damages – The second type of damages are less easy to calculate. Noneconomic damages are awarded to compensate for losses like pain and suffering, which may include emotional suffering, disability, or loss of enjoyment of life. In some cases, damages are awarded for loss of consortium.

In accidents caused by drunk driving, a third category of damages known as punitive damages also comes into play. Punitive damages require a court trial and are not included in insurance settlements.

How Are Settlements Calculated?

Determining the exact average car accident settlement Texas residents are awarded is difficult. However, understanding the logic behind how car settlements are calculated is somewhat easier. 

Settlement amounts are calculated by the insurance companies. Often, companies use computer programs to make determinations about how much to pay out for certain damages. These programs generally produce a settlement range instead of an exact number, so its hard to come up with an average car settlement amount. 

That range will be based on factors like:

• Cost of medical bills
• Injury type 
• Injury severity

Additionally, where you’re located in the state may also factor into the amount that an insurance company determines in a settlement.

As an alternative to computer programs, some insurance companies will use what’s known as the multiplier approach. In that scenario, the company will assign a number based on some of the same factors a computer program would use, such as lost wages or cost of medical care, and multiply it by the total amount of economic loss caused by the auto accident. The result is the amount of the settlement.

For example, suppose that the total damages are valued at $20,000. Depending on the severity of the injuries and the recovery period, suppose the insurance company assigns the number three as a multiplier. The $20,000 would be multiplied by three, bringing the settlement value to $60,000.

What Other Factors Can Affect the Settlement Amount?

When assessing a settlement amount, insurance companies will consider things like the injuries you’ve sustained, property damage, and the extent to which the accident affects your earning potential. But there are also a number of factors that can decrease the settlement value you receive. 

Your settlement could be in jeopardy based on things like:

• Prior injuries – If you have any pre-existing injuries or conditions, they could affect your settlement if they overlap with injuries that you sustained in the auto accident. 
• Negligence – Is Texas a no-fault state for car accidents? The answer is no, meaning that if 50% or more of the accident is your fault, you may not be able to collect from the other driver. 
• Medical treatment – Failing to get treatment for the injuries you sustain in an accident or not following medical advice can decrease your settlement amount. Likewise, exaggerating your injuries can also play a role in a lower settlement. 

Additional factors, like your own testimony or those of witnesses and other drivers involved, can also affect the average car accident settlement Texas is prepared to reward you. 

Should You Hire a Lawyer for Your Texas Car Accident Claim?

Open the claim — but use Mighty to do it. Mighty's AI builds your case file, opens your claim with the insurance company, negotiates a settlement for you to approve, and routes you your payment if the offer is fair. For most accident claims, that's all you need — and you keep 100% of your settlement.

Only hire a lawyer when you need one, which is rarely in the first month or two after an accident. Waiting has two big advantages. First, you may not need one at all, in which case avoiding their fees leaves you with 33% to 40% more of your settlement. Even if you do need one, waiting until you have more information about your case — including an offer from insurance — gives you leverage to negotiate the lawyer's fee down from the standard rate.

A lawyer is genuinely necessary when injuries are serious, liability is disputed, multiple parties are involved, or the insurance company refuses to engage. For those cases, Mighty's marketplace helps to match you with a vetted lawyer who only gets paid on the increase to your existing offer.

Sources

Texas Department of Transportation. Texas Motor Vehicle Traffic Crash Facts Calendar Year 2021. https://ftp.txdot.gov/pub/txdot-info/trf/crash_statistics/2021/01.pdf 

CAM Law LLP. What is the Average Car Accident Settlement in Texas? https://camlawllp.com/car-accidents/what-is-the-average-car-accident-settlement-in-texas/