After a car accident, victims often face overwhelming medical bills, lost wages, and the stress of dealing with insurance companies. One of the most important decisions you'll make is whether to settle your car accident claim or take it to trial. In this guide, we’ll explore your car accident settlement options, how the process works in Texas, and how a skilled attorney can help you maximize your compensation.
What Is a Car Accident Settlement?
A car accident settlement is a legally binding agreement in which the at-fault party’s insurance company agrees to pay you a specific amount of money for your damages—without the case going to trial. Most personal injury claims in Texas are resolved through settlements rather than courtroom verdicts.
What Damages Can Be Included in a Settlement?
- Medical expenses: Past, current, and future treatment costs
- Lost wages: Time missed from work due to the injury
- Pain and suffering: Physical pain, mental anguish, PTSD, etc.
- Property damage: Vehicle repair or replacement
- Loss of earning capacity: If the injury affects future income
Types of Settlement Options in Texas
Depending on the facts of your case, here are several car accident settlement options available in Texas:
- Lump-Sum Settlement: A one-time payment covering all damages, commonly used for straightforward cases.
- Structured Settlement: Payments made over time, which may be beneficial in cases involving catastrophic injuries.
- Pre-litigation Settlement: Settling the claim before filing a lawsuit, often faster and less expensive.
- Post-litigation Settlement: Settling after a lawsuit is filed but before trial—usually after discovery or mediation.
How the Settlement Process Works
The settlement process generally includes the following steps:
- Investigation: Your attorney gathers police reports, medical records, and witness statements.
- Demand Letter: A formal letter sent to the insurer outlining your damages and the compensation requested.
- Negotiation: Both sides exchange offers and counteroffers to reach an agreement.
- Settlement Agreement: Once both sides agree, a release form is signed, and payment is issued.
Should You Accept the First Settlement Offer?
Never accept the first offer without consulting a personal injury lawyer. Insurance companies often start with lowball offers hoping you’ll settle quickly. A lawyer can assess the true value of your case and push for a fair settlement that accounts for all your losses—both current and future.
What If a Fair Settlement Can’t Be Reached?
If negotiations fail, your attorney may recommend filing a lawsuit and taking the case to trial. While this process takes longer, it may lead to higher compensation, especially when the other side is acting in bad faith or undervaluing your injuries.
Factors That Affect Car Accident Settlements
- Severity of injuries
- Clear evidence of fault (e.g., police report, dashcam footage)
- Insurance policy limits
- Whether the victim shares fault under Texas’s modified comparative fault law
- Strength of your legal representation
Why You Need a Fort Worth Car Accident Lawyer
At Francis Injury, we’ve helped clients across Texas secure millions in compensation through strategic, aggressive settlement negotiations. Attorney Michael Francis is a board-certified personal injury trial lawyer—an honor only 2% of Texas attorneys hold.
If you’re exploring your settlement options after a crash, let us fight for the full compensation you deserve. Call us today at (817) 329-9001 or use our online form for a free case evaluation.
FAQ: Car Accident Settlements in Texas
Q: How long does a car accident settlement take?
Some cases settle in weeks, others take months or over a year, especially if a lawsuit is needed.
Q: Will I have to go to court?
Not necessarily. Most cases settle out of court. However, your attorney should be ready for trial if necessary.
Q: What’s the average car accident settlement in Texas?
It varies based on injury severity, liability, and insurance limits, but many moderate cases range from $15,000 to $100,000 or more.
Q: What if I was partially at fault?
Texas uses modified comparative negligence. You can still recover damages if you are less than 51% at fault, but your compensation is reduced by your percentage of fault.
Q: Should I hire a lawyer for my settlement?
Yes. Studies show accident victims with legal representation receive significantly higher settlements than those who go it alone.
Drive safe, Fort Worth. If you’re hurt, we’ll help you settle the score.
A car accident is always an unexpected turn in anyone’s life. Hopefully it’s simply a bump in the road, but for many, their lives will never be the same again.
You start to think about things entirely differently after surviving a car crash. For example, money quickly becomes a massive concern for auto accident victims. Even if your injuries are minor, you still have to deal with medical bills, car repairs, and significant disruptions to your personal and professional lives.
While it’s natural to be focused on your recovery after a car wreck, you might find that filing a lawsuit and exploring car accident settlement options are the only ways to set things straight financially after your life was turned upside down in a crash that should never have happened.
The negligent driver, their attorney, and the insurance company may reach out with a settlement offer, but should you accept it? Is it enough to cover my accident-related expenses? As medical bills continue piling up and aspects of your life become affected, you may start to wonder, “Is a car accident settlement the best option for my situation?”
Understanding car accident settlement options can help collision victims make informed choices when a crash happens. Francis Injury can guide you throughout this entire process while you rest and recover.
What Are the Basics Involved in a Car Accident Settlement in Texas?
Before looking at car accident settlement examples, it’s essential to understand the basics involved in auto accident settlements.
A car settlement basically means resolving an injury case without going to trial. It’s important to note that most auto accident cases in Texas don’t end up in a civil trial. Most often, these cases end in settlements.
Why? Because a jury trial can take years and does not guarantee a favorable outcome, even in the most airtight car accident cases. With a settlement, not only does the process take a few weeks or months, but your settlement, once accepted, is guaranteed.
When a crash happens in Texas, the person responsible for causing the wreck is expected to cover your damages through their liability auto insurance.
But before you file a claim with the other driver's insurance company, you must get the photos, police reports, witness statements, and medical records you need to support your claim. Next, you can have your Texas car accident lawyer write a formal demand letter explaining your claim, detailing the accident, describing your injuries, and outlining the damages you want to recover, including:
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- Medical expenses
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- Property damage, including vehicle repairs and replacement costs
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- Lost wages and benefits
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- Pain and suffering
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- Disability
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- Disfigurement and scarring
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- Loss of enjoyment of life
After receiving the demand letter, the insurance company will launch an investigation to determine whether to accept or deny your claim. Suppose your claim is accepted; in that case, the insurance company will make a settlement offer. At this point, you engage in back-and-forth negotiations in an attempt to come to an agreement.
What happens when settlement negotiations don’t work out? Here, both parties can choose mediation or alternative dispute resolution. However, you can appeal the decision if the insurance provider still denies your claim. If you want to sue the at-fault driver, your personal injury lawyer will help you write a complaint and send it to a district or county court in Texas.
What Is the Average Amount For Car Accident Settlements in Texas?
There’s no formula for calculating car accident settlement amounts. After all, every time a crash occurs, unique factors come into play for each victim. Truthfully, even a personal injury lawyer specializing in auto accidents can only give you a rough estimate. Car accident settlement amounts depend on the damages suffered and other relevant factors, such as:
Insurance Coverage
Texas is a “fault” state, which means auto accident victims can file an insurance claim or sue the offending driver. That means any driver responsible for causing a crash can be held liable for the resulting damages and injuries. Drivers in Texas cover this by purchasing the state’s minimum liability coverage:
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- $60,000 total for injuries per incident
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- $30,000 for each injured person
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- $25,000 for property damage
The policy limits set a cap on the settlement amount an insurance company will pay. If your damages exceed the policy limits, the insurance company won't pay the extra amount.
Liability
You can expect a large settlement when the offending driver’s liability is evident in your car accident case. The at-fault driver’s insurance company will accept your claim and provide a reasonable offer to avoid a lawsuit.
However, if fault for the crash is uncertain, no settlement may be forthcoming, and any settlement offer made may be lower. If you share responsibility for the wreck, under Texas’ comparative negligence rule, you cannot collect compensation if you are 50% or more responsible. Still, the settlement amounts you recover would be reduced based on your share of fault.
Severity of Injury
Obviously, a severe injury such as a traumatic brain injury merit more compensation than a sprained wrist. Your settlement amount will be higher for catastrophic injuries and can reach thousands or even millions of dollars.
How Does a Lawyer Assist With a Car Accident Settlement?
Experienced car accident lawyers such as those at Francis Injury pursue maximum compensation by taking measures to gather vital evidence and build strong cases. To maximize compensation in your case, we will:
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- Help you get the medical care and attention you need
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- Document your injuries
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- Calculate all the damages
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- Collect all evidence
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- Get witness statements and depositions
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- Aggressively negotiate with opposing counsel and the insurance company
Review Your Case With an Experienced Texas Car Accident Lawyer
If you or a loved one was hurt in a collision in Texas and you are considering car accident settlement options, Francis Injury can help. Our car accident attorneys have offices in Dallas, Southlake, and Fort Worth and offer free consultations to injury victims. Call us at 817-329-9001 to learn about your options. We are here to help.