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Average Settlement for Hit-and-Run Car Accident

Average Settlement for Hit-and-Run Car Accidents

The impact of a hit-and-run car accident can be huge, often leaving you to deal with injuries and property damage. Consequently, you are often faced with the challenge of pursuing compensation from an unidentified or uninsured driver. But with the right steps toward a car accident settlement, you can get the compensation you deserve if your car accident claim is successful.

The average settlement for hit-and-run car accidents ranges from $10,000 to $30,000. The exact amount is usually influenced by the severity of the accident and the expenses incurred.

However, it often takes quite some time before the settlement check eventually gets to your account and this may mean additional financial stress for you. But with a car accident lawsuit loan, you can get the financial assistance you need to cover your bills as you wait for your settlement money to arrive.

At Stonewood Funding, our pre-settlement funding offers a cash advance to ease your financial stress as you await your car accident settlement. Our application procedure is just 3 simple steps. We also provide post-settlement funding in California if you’ve already been awarded a settlement but are still waiting for your money to come in. Take a moment to apply now to get the financial assistance you need.

In this blog we will cover the implications of a hit-and-run car accident, how to maximize its settlement as well as the role of pre-settlement loans for car accidents.

What is a Hit-and-Run Accident?

What is a Hit-and-Run Accident?

A hit-and-run car accident happens when a driver collides with another vehicle, a human being, a fixed object, property, or an animal and flees the scene without providing assistance or contact information.

Ideally, there are certain necessary actions you should take if you’re involved in an accident. Such actions may include alerting emergency services, reporting to authorities, or identifying with the other party. Failing to take any of these actions makes the incident a hit-and-run, which is considered a criminal offense in most jurisdictions.

Below are some examples of hit-and-run car accident scenarios:

  • A driver runs a red light, collides with another vehicle, and then speeds away without stopping to check on the other driver or exchange insurance information.
  • A truck driver accidentally hits another car while trying to park in a crowded parking lot and breaks the side mirror. The driver notices that no one is in sight, and instead of reporting the incident or leaving his contact information, he zooms off.
  • Driving late at night, a driver mistakenly veers off the road and hits the fence of a nearby garden. Without taking responsibility for the incident, the driver flees the scene before the residents could get to the scene.

The Car Accident Settlement Process

The Car Accident Settlement Process

Calculating a typical car accident settlement involves a series of negotiations between the insurance company of the driver at fault and the victim or their attorney.

Both sides present their assessment of the car accident claim and specify the settlement amount they consider fair based on the extent of damages incurred. They may also provide relevant evidence to back up their claims. The goal of the settlement is to compensate the victims for the measurable losses and even pain and suffering.

In a case where both parties cannot reach a settlement agreement, they may take the case to court where a judge or jury will determine the amount of compensation. The settlement amount set by the judge depends on various factors such as the nature of the case, the clarity of the fault, the extent of the injuries sustained, the level of damage to the vehicle, etc. Accident settlements involving injuries usually have higher amounts.

According to a 2024 report by Gitnux, the average car accident settlement amount for car accident claims involving bodily injuries is about $15,785. On the other hand, the average car accident settlement for property damage is $3,841. The highest-ever awarded settlement in a car accident case was around $4.9 billion in the case of General Motors and Anderson’s family, but such high amounts are rare and usually involve severe injuries or fatalities.

Whiplash settlements can range from a few thousand dollars to tens of thousands, depending on the severity of the injury and its impact on the victim’s life.

Pain and suffering damages can be calculated using the multiplier method, where the total economic damages are multiplied by a factor often between 1.5 and 5, based on the severity of the pain and suffering.

To calculate the damages in car accident cases, you’ll need to add up the economic damages such as medical treatment, lost wages, and property damage, and the non-economic damages such as pain and suffering, and emotional distress. For example, a car accident settlement calculator might settle a rear-end collision or other minor car accidents resulting in minor injuries for $10,000-$20,000, while a multi-vehicle crash causing serious injuries could settle for $100,000-$500,000 or more.

How to Maximize Your Car Accident Settlement

How to Maximize Your Car Accident Settlement

To maximize your car accident settlement, you should document your case and injuries, seek legal representation, and negotiate with the insurance company handling your case.

To properly document your case and injuries, you will need to collect as much evidence as possible, like photographs of the accident scene, damage to vehicles, and any visible serious injuries. Keep detailed records of all your medical treatments, including doctor’s reports, prescriptions, and any recommended future treatments. Also, document any lost income as a result of the accident, including time off work and any impact on future earning potential. Get contact information from any witnesses to the accident and their statements if possible. Then, file an official police report as it provides an official account of the accident.

To improve your chances of receiving fair compensation, you should work with a qualified personal injury attorney. Hiring an attorney to represent you is a way of telling the other party that you mean business. With experienced car accident attorneys, you strengthen your position when negotiating with insurance companies as they have better formal negotiation and presentation skills.

Also, you need to know the insurance policy limits of the at-fault party so you can negotiate a fair settlement that fully covers your damages. It’s important to remain firm and not accept a settlement offer that does not adequately cover your damages.

The Impact of Hit-and-Run Accidents on Victims

Hit-and-run accidents can have significant physical, emotional, and financial impacts on the victims. Depending on how severe the accident is, neglecting the victims may lead to loss or damage of valuables or serious body injuries such as fractured bones, spinal cord injuries, deep cuts and bruises, or even death. For example, in a news published by CBS News, a man lost his life after he was struck by a hit-and-run driver in a pedestrian accident in East San Jose in early January 2024. According to the police, the driver fled the scene before the officers arrived, while the victim later died in the hospital due to fatal injuries.

Apart from physical injuries, victims of hit-and-run accidents also experience severe psychological and emotional distress. The accident often leaves them with shock and trauma, causing anxiety, post-traumatic stress disorder (PTSD), depression, and other related mental health issues. Also, remembering that the culprits escaped without regard may cause persistent anger, feelings of injustice, and even revenge.

Moreover, hit-and-run car accidents can cause significant financial stress for the victims and their loved ones. Common costs incurred by victims include medical bills for treatments, costs for repair or replacement of vehicles or valuables, lost wages in cases where the victim cannot work due to the impact, rehabilitation expenses, and potential long-term treatment costs. In cases where the defaulting driver is not found, the victim may need to rely on their own car insurance company to cover the costs.

How are Car Accident Settlements Calculated?

How are Car Accident Settlements Calculated?

There are several factors that combine to determine the settlement amount for a California car accident settlement. Both parties consider these factors to ascertain that the victim gets appropriate compensation for their losses and damages.

Factors that influence the settlement amount include:

  • Medical bills incurred for treatment,
  • Lost income and earning capacity, especially for a wrongful death settlement,
  • Extent of loss or damage of properties,
  • Non-economic damages such as pain or emotional anguish,
  • Punitive damages due to the recklessness of the party at fault,
  • Out-of-pocket expenses such as travel costs, hiring assistance during the injury period, etc.

Benefits of Pre-Settlement Loans for Car Accidents

Benefits of Pre-Settlement Loans for Car Accidents

A pre-settlement loan, also known as pre-settlement funding, lawsuit loan, or legal funding, is a cash advance that legal funding companies provide to victims of personal injury or car accident cases while they await their settlement. The idea is that you can borrow money against your settlement to cater to your immediate financial needs such as medical bills, legal costs, and living expenses.

Lawsuit loan companies usually offer pre-settlement loans to you only if you have a high chance of winning the settlement. Note that a pre-settlement loan is different from post-settlement funding, which is a cash advance you can get only when you’ve been awarded a settlement but are still waiting for your settlement check.

There are many benefits that pre-settlement funding offers if you’re a car accident or personal injury victim. First, the cash advance gives immediate financial relief to lift financial pressure while you wait to settle your case. Without the financial pressure, you have the stamina and mental stability to wait until you reach a fair settlement and compensation for your loss.

Secondly, pre-settlement loans are non-recourse loans, meaning that you don’t have to pay if you lose the case. Also, you pay it back from your settlement amount, so there’s no need to worry about repaying the loan during the legal process.

Moreover, the application process for pre-settlement funding is usually easy and straightforward. At Stonewood Funding, you can obtain the cash advance in just three easy steps:

  1. Apply online by providing a few necessary details.
  2. The funding company reviews and evaluates your case with your attorney.
  3. The company approves your application and you get the funding immediately after approval. You can even get your funding within 24 hours if you qualify for our same-day pre-settlement loans.

Although pre-settlement funding offers these benefits, you need to carefully consider the terms and conditions of the loan agreement. Review the fees, interest rates, and terms of repayment to be sure they align with your goals.

You should also ask your potential loan provider certain questions to ascertain you’re making the right choice. What happens if your settlement is not successful? Find out if there are any hidden charges or upfront costs. Ask about the interest rates and the maximum loan amount you can receive. After they approve your application, how long do you have to wait to get funded? Also, confirm their data security and confidentiality policies to be sure your financial details are safe. You can ask for references or testimonials from former clients or check their website for reviews.

Get a Hit-and-Run Car Accident Settlement

Getting involved in a personal injury case can be physically, emotionally, and mentally stressful. It is even more difficult to manage with accumulating medical expenses and potential loss of income. While waiting for your settlement, you can apply for a pre-settlement loan to ease the financial burden till your settlement check arrives.

At Stonewood Funding, we offer pre-settlement loans with competitive rates and clear terms, ensuring that you can access the financial assistance you need without falling into financial traps. You can book a free consultation with us to review your case and apply for settlement funding today.

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