What is the Average Settlement for a Car Accident in Texas? 

car accident in texas

If you want to know what compensation you are liable to receive after a car accident in Texas, in this post we will extensively discuss what you stand to get after an unforeseen incident like this. So, what is the average settlement for a car accident in Texas?

First off, it’s important to consider how to calculate car accident settlement. Each case is very unique and putting up a figure to represent the average may not really show you an expected payment. Some car accident victims might receive as low as $15,000 while some receive as much as $2,000,000. Isn’t that gap too wide?

So, telling you an average settlement is around $1,000,000 might precondition you to a notion of plus or minus, making you expect not less than $500,000 whereas, after the concerned parastatals consider all factors, what you might get is just $1500. 

Understanding the factors responsible for the sum you might receive will help to know what actually you should expect when you find yourself in such a situation. 

What’s the formula for calculating car accident settlement in Texas? 

Maybe it’s better to rephrase the question above to something like “Is there a formula for calculating car accident settlement in Texas?” 

If you are wondering why don’t worry, I will explain. 

In the real scheme of things, there’s no actual formula for calculating car accident settlement. This might be contrary to the belief of an insurance company but there’s no one cap fits all. 

An insurance adjuster might use a basic formula called the multiplier to instantly predict what the authorities may award for your compensation. An adjuster will calculate your financial loss and multiply it by more or less 2. In this case, the second multiplication covers your physical pains and emotional trauma. 

In most cases, if you spent a low amount, say $1000 in the hospital, the multiplier effect will be low (around multiples of 1.5 or 2) but if you spent much higher the multiplier could be in multiples of 3 or 4. 

And this somewhat appeals to the logical senses because the belief is that the amount you incur on medical bills shows how much pain and discomfort you went through and should be compensated for.  

However, that’s just an estimate. There are other factors responsible for the compensation sum. An insurance company cannot comprehensively determine the extent of damage and what amount would be covered, but a personal injury attorney will dive in deeper to know what should make up the sum.

An attorney will not take a medical bill and multiply the figure to determine what the settlement should be because a bruise (warranting a low-cost medical bill) may not represent lifelong trauma. 

See also: Should I Get A Lawyer For A Car Accident That Wasn’t My Fault In California?

How Car Accident Settlements are Calculated in Texas

The last section already gave an insight into what variables are considered when calculating car accident settlements. But in this section, we will break them down into three simple categories for better comprehension. These categories represent the damages a victim can experience in the course of a car accident. They include:

1. Economic Damages

The calculation of these damages determines what covers the financial loss. Economic damages include lost wages, earning capacity loss, medical bills (including future bills e.g. surgical appointments), property damage repairs or replacement, etc. 

2. Non-Economic Damages 

They are quite hard to evaluate in monetary terms. They include loss of life enjoyment, suffering, pain, humiliation, and other traumatic experience.

3. Punitive Damages 

A driver responsible for an accident will most likely pay punitive damages if the accident was a result of drunk driving or overspeeding. It is unlike the economic and non-economic damages in the sense that it’s only a corrective measure. Paying this would serve as a reminder for the driver to be more cautious. 

How to Know if You are Entitled to Car Settlement

What if you are not entitled to car accident compensation? You are only entitled to a number of reasons.

First, you can pursue settlement if you sustained injury due to the action of another driver. If a driver disregards road signs, drove under influence of alcohol and other intoxicating substances, drove beyond speed limits, or had distractions while driving, you have every reason to claim your car accident settlement. 

In addition, if a poor road condition (e.g. design, maintenance, etc.) facilitated the accident, the local or federal government will be responsible for such. 

Also, if the malfunctioning of a part of your was responsible, then you might hold your car or part manufacturer accountable. 

A car accident attorney helps to review what’s responsible and who should shoulder the financial obligations. 

Who’s Responsible For The Payment Of Settlement?

This is quite straightforward. 

Texas is an at-fault state, so the person responsible for the accident takes up the responsibility. 

If you are at fault, your insurance company will take up the damage responsibilities. But be aware that the full weight of your medical expenses will be on you. 

On the other hand, if the fault comes from the other driver, such a person either pays from their pocket or their insurance company steps in on their behalf. 

Therefore, a settlement will either come from your insurance, the other driver’s personal cash or their insurance company. 

Insurance Company Vs Car Accident Attorney 

When it comes to who can help you get the best car accident settlement, which option is better? 

As mentioned above, the better alternative is clear. An insurance company is strictly a business entity and they will always do everything to ensure they maximize their profit. So, they go all out to find a way of reducing the amount they have to pay you and this will apparently not be favorable to you. 

However, a car accident attorney specializes in making sure the at-fault party pays your compensation in full. They will critically review the accident and ensure they bring out every bit they need to pay for. Your satisfaction eventually adds to their portfolio of successes and obviously, a means to make more money. 

If you find yourself in a situation like this, the urge to invite the insurance company will come to visit but a car accident attorney is your best option for optimal settlement. 

How long does it take to settle a car accident in Texas?

It varies on the complexity of the car accident case. A simple case can take a few weeks once you have your health back to normal and you’ve estimated the liability. A complex case however can take as long as one to three years.


No one desires to be a car accident victim but at times, the unforeseen comes into play. When it happens, the response is much more germane and one of the best things to go for is the car accident compensation. What is the average settlement for a car accident in Texas? In this article, we have addressed this question and many more important matters of consideration.  

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