A Guide to The Average Car Accident Settlement in Texas

Luke Krolak

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Luke Krolak

Client Operations Lead

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Published On

October 18, 2022

Published On

October 18, 2022

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In 2021, the Texas Department of Transportation reported that there were 15,764 serious injury automobile crashes in the state. In total, 19,448 people suffered serious injuries as a result of vehicle collisions

If you or a loved one has been injured and are wondering what to do after a car accident in Texas, you can work with a Texas car accident lawyer to sign a car accident settlement, settle a personal injury claim, and obtain compensation. That said, the amount of compensation paid will depend on the individual car accident 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.It is important to know that if you are to take legal action, you must do so within a certain time frame. Learn more about the statute of limitations for Texas car accidents before filing a claim. 

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. 

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. 

Helping Accident Victims Navigate Personal Injury Law

When you’ve been injured in a car accident that isn’t your fault, you’re entitled to car accident compensation to help you pay your medical expenses, recoup your financial losses, and help you get back on your feet. But navigating the complicated world of personal injury law can stand between you and the money you deserve.

Injured in an accident? Head over to Mighty's Attorney Car Accident Directory to find a trusted attorney in your area today.



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/#

Luke Krolak

Written By

Luke Krolak

Client Operations Lead

About the author

Luke is a warm-hearted and highly skilled legal operations expert with an impressive 8-year track record in the personal injury field. As the Client Operations Lead at Mighty, he is dedicated to providing exceptional support, transparent communication, and genuine empathy to clients during their challenging journey. His expertise in streamlining processes and implementing cutting-edge technology makes him an indispensable ally for clients, case managers, and attorneys in their pursuit of justice.

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