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How Much Money Can I Get From a Car Accident Settlement?

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A fireman examines the damage to the front of a black sedan. A red sedan lies overturned in the foreground.

The Short Answer

The amount of money you can get from a car accident settlement in Alabama can range from thousands of dollars to millions. Car wreck settlements vary widely based on factors such as the damages you suffered, who was liable for the accident, and whether both parties had insurance. An attorney can help you estimate how much your case could be worth.

Key Takeaways

  • There is no reliable average car accident settlement in Alabama since every case is different.
  • You can increase your chances of a bigger settlement by taking the right steps immediately after an accident.

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What Is the Average Car Accident Settlement in Alabama?

There is no fixed average for car accident settlements in Alabama, as every case is unique. However, there are common factors that influence how much compensation you could be entitled to:

  • Severity of injuries (e.g., minor whiplash vs. traumatic brain injury)
  • Medical expenses (current and future)
  • Lost wages and loss of earning capacity
  • Pain and suffering
  • Property damage
  • Policy limits of the at-fault party
  • Degree of negligence exhibited by the defendant

How to Get More Money From a Car Accident Settlement

Once your settlement amount is decided, you cannot get more money. However, there are steps you can take after the initial accident to increase your chances of getting maximum compensation. These steps include:

  • Seek medical treatment immediately. This allows your injuries or potential injuries to be recorded by a medical provider. These records can serve as evidence to support your case.
  • Document everything. Keeping your own records of medical bills, lost wages, and accident reports can help your attorney when gathering evidence to build your case.
  • Avoid accepting the first settlement offer. Insurance companies often offer less than you deserve. Do not agree to the first settlement they offer – in fact, it’s best to leave all negotiations to your attorney.
  • Hire a skilled car accident attorney. Contacting a lawyer immediately after your accident allows them to begin the investigation process and collect evidence that could otherwise disappear quickly. The stronger the case they can build, the bigger the settlement they can negotiate.

Long & Long Injury Attorneys has a strong reputation of winning big settlements for our clients. We won’t let the insurance company bully you into accepting less than you deserve. All you have to do is discuss your case with a member of our team; we’ll take it from there.

Get Your Free Case Review 24/7

Who Pays for Compensation in Car Wreck Cases?

After a car wreck in Alabama, the at-fault driver’s insurance typically covers damages. If they lack insurance or have insufficient coverage, your UM/UIM coverage can compensate for your losses. However, Alabama follows an at-fault rule, which means that if you are even 1% responsible for the accident, you are not eligible to seek compensation.

Are Car Accident Settlements Taxable?

Generally, car accident settlements are not taxable according to IRS regulations. However, there are some exceptions:

  • Punitive damages (awarded to punish the at-fault party) are taxable.
  • Interest earned on settlements is also taxable.
  • Compensation for lost wages may be subject to income tax.

Consult with a tax professional to understand the tax implications of your specific settlement.

FAQs

Why is my car accident settlement taking so long?

Several factors can delay your settlement, including:

  • Disputes over liability (contributory negligence issues)
  • Severe injuries requiring long-term medical treatment
  • Insurance company tactics to delay payments
  • Court backlogs if the case goes to trial
Will my case go to trial?

Most car accident cases settle out of court. However, your case may go to trial if:

  • A fair settlement cannot be reached through negotiations.
  • There are disputes over who is responsible for the accident.
  • Your damages exceed insurance policy limits.

If your case does go to trial, your attorney is prepared to represent you in court and present a strong case for compensation.

Can I still get compensation if I didn’t have insurance?

Yes. If you were uninsured, you may still pursue a claim against the at-fault driver. A car accident attorney can tell you whether you’re entitled to compensation based on the specifics of your case.

Can working with a lawyer get me a bigger settlement?

Potentially. Those who hire lawyers could receive 3 to 5 times more than those who negotiate alone. An attorney can determine what you are legally entitled to, and fight to get you the maximum compensation.

Find Out What Your Car Wreck Settlement Could Be Worth 

Every case is different, so having a skilled legal advocate to build a compelling case on your behalf can significantly improve your chances of receiving a bigger settlement. Our firm handles car accident cases in Mobile, Orange Beach, Gulf Shores, Foley, and throughout Alabama. We are intimately familiar with Alabama’s legal landscape and have a proven record of success, securing millions of dollars in compensation for our clients. If you’ve been injured in a car wreck, contact us today for a free case review.

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