The short version
No official formula, and why
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- Left pan: what the law lets you be compensated for. Economic: bills, wages, property. Noneconomic: pain and suffering
- Right side, the modifiers: your share of fault, and caps (Tennessee noneconomic cap)
You will find calculators and "multiplier" rules online. None of them is an official method. What the law and the courts describe is what can be compensated, who is at fault and by how much, and, in some states, limits on part of the claim. Insurers and attorneys apply judgment to those, and results differ from case to case.
State regulators do not set the number. Alabama's Department of Insurance lists, among things it cannot do, "Determine who was negligent or at fault" and "Determine the value of a claim or the amount of money owed to you." [9] Oklahoma's says it cannot "Decide who was at fault in an accident." [10]
What it is worth
And what does that add up to?
The factors above do not produce a number on their own. Published data on what claims have cost insurers shows the scale, and also why one headline verdict says little about the next claim.
About these numbers
- $28,278 Private passenger auto, excluding Massachusetts and most no-fault states; some claims are far larger and many are smaller. It includes insurers' claim-handling costs, so injured people received less than this on average.
- $2.00 After bills and legal fees, represented claimants netted $1.40 per $1; unrepresented $1.80 (IRC; the study does not say why).
- $15,000 Trials are a small share of claims, and these are 2005 figures. Forty percent of those winners were awarded $10,000 or less.
These are averages and totals across many claims. They describe what insurers and courts have done, not what any one claim is worth. Every case is different, and most claims end in a settlement, which is often far less than a headline verdict. CrashFirst is not a law firm and cannot tell you what your claim is worth.
The full numbers, with the four-state table and what goes into a claim, are on what is a car accident claim worth.
Factor 1
What can be compensated
Courts and encyclopedias group compensation into kinds:
- Property and out-of-pocket loss. In figuring compensatory damages, "courts will often look at the fair market value of destroyed/damaged property, lost wages/income, and necessarily incurred expenses." [1] These are the economic items.
- Pain and suffering and other noneconomic loss. "Pain and suffering refers to the physical discomfort and emotional distress that are compensable as noneconomic damages." [2] Loss of enjoyment of life is described as compensating "the frustration and anguish caused by the inability to participate in activities that once brought pleasure." [2]
- Punitive damages are separate from compensatory damages and "may be awarded when the defendant's actions are especially reckless or malicious." [1]
Compensatory damages are "based on the proven harm, loss, or injury suffered by the plaintiff." [1] That is why records matter: bills, wage records and repair estimates are how harm is proven.
Factor 2
Who is at fault, and by how much
Shared fault can reduce a recovery or bar it, and the four states differ.
| State | Rule as the source words it |
|---|---|
| Tennessee | "so long as a plaintiff's negligence remains less than the defendant's negligence the plaintiff may recover; in such a case, plaintiff's damages are to be reduced in proportion to the percentage of the total negligence attributable to the plaintiff." [4] |
| Alabama | "Contributory negligence is an affirmative and complete defense to a claim based on negligence." [5] The Alabama Supreme Court is quoting its earlier decision. |
| Oklahoma | "contributory negligence shall not bar a recovery, unless any negligence of the person so injured... is of greater degree than any negligence of the person... causing such damage." [6] The recovery is "diminished in proportion to such person's contributory negligence." [12] |
| South Carolina | "a plaintiff in a negligence action may recover damages if his or her negligence is not greater than that of the defendant. The amount of the plaintiffs recovery shall be reduced in proportion to the amount of his or her negligence." [7] |
The existing pages on Tennessee, Alabama, Oklahoma and South Carolina go deeper, including the different tests at exactly 50 percent. How fault is decided in a given crash is for the insurer, a judge or a jury, and we do not apply it to your facts.
Worked example
What shared fault does, by rule
Take a hypothetical in which a decision-maker assigns the injured person a share of the fault. These are the outcomes the rules above produce; they say nothing about the size of any claim.
| Injured person's share of fault | Tennessee | Alabama | Oklahoma | South Carolina |
|---|---|---|---|---|
| 20 percent | Recovery allowed, reduced in proportion | Barred if contributory negligence is established | Recovery allowed, reduced in proportion | Recovery allowed, reduced in proportion |
| 60 percent | Barred (the plaintiff's share exceeds the defendant's) | Barred if contributory negligence is established | Barred (greater than the defendant's) | Barred (greater than the defendant's) |
Where the plaintiff's share is exactly 50 percent the four states' wording differs; see the state fault pages linked above.
Factor 3
Limits on part of the claim
Tennessee is the only one of the four where we verified a cap on noneconomic damages. In a civil action each injured plaintiff may be awarded "compensation for any noneconomic damages suffered by each injured plaintiff not to exceed seven hundred fifty thousand dollars ($750,000)." [3] The statute raises that limit to $1,000,000 for a "catastrophic" loss or injury as it defines the term [3]. Economic damages are not limited by that section. A separate cap takes effect July 1, 2027. Public Chapter 1077 adds a subsection (o) to that section that limits noneconomic damages to $375,000, or $750,000 if there is a catastrophic loss or injury, but only if the plaintiff owned or leased the vehicle in the collision, that vehicle was "not covered or otherwise in compliance with" the financial responsibility requirements at the time, and the department of revenue or county clerk issued at least three separate written notices of noncompliance for it in the three years before the collision. The subsection does not apply to a driver who is not the owner or lessee, or to a passenger, and it applies to civil actions filed on or after July 1, 2027 [13].
The cap has exceptions. Subsection (h) says the limit "shall not apply to personal injury and wrongful death actions" in four situations [3].
- Intent to injure: "If the defendant had a specific intent to inflict serious physical injury, and the defendant's intentional conduct did, in fact, injure the plaintiff." [3]
- Destroyed or hid evidence: if the defendant "intentionally falsified, destroyed or concealed records containing material evidence with the purpose of wrongfully evading liability in the case at issue." The statute carves out good-faith withholding of records under legal privileges and normal records management [3].
- Impaired driving: "If the defendant was under the influence of alcohol, drugs or any other intoxicant or stimulant, resulting the defendant's judgment being substantially impaired, and causing the injuries or death." (The wording "resulting the defendant's" is the statute's own [3].) Lawfully prescribed drugs taken as prescribed, and over-the-counter drugs taken as the label directs, do not count.
- Felony conviction: if the defendant's act or omission "results in the defendant being convicted of a felony" in this state, another state or federal court, and caused the damages or injuries [3].
If the parties dispute whether an exception applies, the statute has the trier of fact decide it by special verdict [3].
For Alabama, Oklahoma and South Carolina we did not verify a general noneconomic cap on auto-injury claims, so we say nothing either way. Oklahoma's and South Carolina's rules on punitive damages are not covered here.
After the number
From a settlement figure to what you receive
Questions such as "how much of a $30,000 settlement will I get" ask about the gap between a gross figure and a net one. What narrows that gap is specific to each case: any attorney fee, costs, and amounts others may be owed back. Under the ABA's model rule, a contingent fee agreement "shall be in a writing signed by the client" and must state how the fee is determined, including percentages and the expenses to be deducted [11]. That is a model rule; each state adopts its own version, and we did not verify the four states' wording. We did not verify lien and reimbursement rules for medical bills in these states, so we describe none.
Limits of this page
What this page does not do
We do not estimate what your claim is worth or say whether an offer is fair. Published averages and what they mean are on what a car accident claim is worth. If an insurer's response seems wrong, see claim denied: where to complain. For the value lost on a repaired car, see diminished value. For the other driver's limits, see the insurance minimums lookup.
Want to talk it through? A person usually calls you back in about 15 minutes (8am to 8pm Central). You never pay CrashFirst. CrashFirst is not a law firm, does not evaluate your claim or its value and does not give legal advice. General information as of November 9, 2026.
Sources
- Cornell Law School Legal Information Institute, Wex: compensatory damages (checked November 9, 2026)Official source“courts will often look at the fair market value of destroyed/damaged property, lost wages/income, and necessarily incurred expenses”“may be awarded when the defendant's actions are especially reckless or malicious”“The amount awarded is based on the proven harm, loss, or injury suffered by the plaintiff”“damages awarded by a court equivalent to the loss a party suffered”
- Cornell Law School Legal Information Institute, Wex: pain and suffering (checked November 9, 2026)Official source“Pain and suffering refers to the physical discomfort and emotional distress that are compensable as noneconomic damages”“compensate for the frustration and anguish caused by the inability to participate in activities that once brought pleasure”“the physical discomfort and emotional distress that are compensable as noneconomic damages”
- Tenn. Code Ann. § 29-39-102, limits on noneconomic damages (FindLaw mirror) (checked November 9, 2026)Code text via FindLaw (unofficial copy)“not to exceed seven hundred fifty thousand dollars ($750,000) for all injuries and occurrences that were or could have been asserted”“the seven-hundred-fifty-thousand-dollar amount limiting noneconomic damages”“shall not apply to personal injury and wrongful death actions”“If the defendant had a specific intent to inflict serious physical injury, and the defendant's intentional conduct did, in fact, injure the plaintiff”“intentionally falsified, destroyed or concealed records containing material evidence with the purpose of wrongfully evading liability in the case at issue”“If the defendant was under the influence of alcohol, drugs or any other intoxicant or stimulant, resulting the defendant's judgment being substantially impaired, and causing the injuries or death”“results in the defendant being convicted of a felony under the laws of this state, another state, or under federal law”“the trier of fact, by special verdict, shall determine whether the exceptions set forth in subsection (h) apply to the defendant and the cause of action”“not to exceed seven hundred fifty thousand dollars ($750,000)”“If the defendant was under the influence of alcohol, drugs or any other intoxicant or stimulant”
- McIntyre v. Balentine, 833 S.W.2d 52 (Tenn. 1992) (Harvard Caselaw Access Project) (checked November 9, 2026)Court opinion via Harvard CAP“so long as a plaintiff's negligence remains less than the defendant's negligence the plaintiff may recover”
- Norfolk Southern Railway Co. v. Johnson, 75 So. 3d 624 (Ala. 2011) (Harvard Caselaw Access Project) (checked November 9, 2026)Court opinion via Harvard CAP“Contributory negligence is an affirmative and complete defense to a claim based on negligence”
- 23 O.S. § 13, comparative negligence, Oklahoma State Courts Network (official) (checked November 9, 2026)Official source“contributory negligence shall not bar a recovery, unless any negligence of the person so injured”
- Nelson v. Concrete Supply Co., 303 S.C. 243 (1991) (Harvard Caselaw Access Project) (checked November 9, 2026)Court opinion via Harvard CAP“a plaintiff in a negligence action may recover damages if his or her negligence is not greater than that of the defendant”
- S.C. Code § 15-38-15, South Carolina Legislature (official) (checked November 9, 2026)Official source“noneconomic loss such as mental distress, loss of enjoyment, pain, suffering, loss of reputation, or loss of companionship”
- Alabama Department of Insurance, File a Consumer Complaint (official) (checked November 9, 2026)Official source“Determine who was negligent or at fault”“Determine the value of a claim or the amount of money owed to you”
- Oklahoma Insurance Department, File an Online Complaint (official) (checked November 9, 2026)Official source“Decide who was at fault in an accident”“Order the company to pay your claim or refund premium”
- ABA Model Rule of Professional Conduct 1.5, Fees (American Bar Association) (checked November 9, 2026)Official source“shall state the method by which the fee is to be determined, including the percentage or percentages that shall accrue to the lawyer in the event of settlement”“A contingent fee agreement shall be in a writing signed by the client”
- 23 O.S. § 14, damages diminished in proportion, Oklahoma State Courts Network (official) (checked November 9, 2026)Official source“the amount of the recovery shall be diminished in proportion to such person's contributory negligence”
- Tennessee Public Chapter 1077 (2026), SB 1667, Tennessee Secretary of State (official) (checked November 9, 2026)Official sourceWhere: Section 13, new subsection (o) of § 29-39-102, p. 4
- Triple-I (Insurance Information Institute), Facts + Statistics: Auto insurance (data: ISO, a Verisk business) (checked November 10, 2026)Official source“the average auto liability claim for bodily injury was $28,278”
- Insurance Research Council, Auto Injury Insurance Claims: A Study of Increasing Claim Severity (news release, July 30, 2026) (checked November 10, 2026)Official source“BI claimants received $2.00 in total settlement, excluding any legal fees, for every dollar of medical bills paid”“netted less per dollar of medical bills ($1.40 versus $1.80) after accounting for medical costs and legal fees”
- Bureau of Justice Statistics, Civil Bench and Jury Trials in State Courts, 2005 (NCJ 223851, Oct. 2008) (checked November 10, 2026)Official source“The median award in motor vehicle accident cases was $15,000”
Unofficial copies come from a legal publisher, not the state. They can lag the current code, so check the official code before relying on a date or amount.
Page last updated November 10, 2026. Attorney review pending. General information, not legal advice. Fees, hours and rules change; confirm on the official page. How we source.
Questions
How do car accident settlements work?
A settlement is an agreement to resolve a claim, usually with a payment. What the claim is based on is usually damages: the loss the law treats as compensable. Cornell's legal encyclopedia describes compensatory damages as "damages awarded by a court equivalent to the loss a party suffered." [1] What a given claim settles for depends on its facts, and we do not estimate it.
How do you calculate a car accident settlement?
There is no official formula. Sources describe the pieces: the proven harm, and for property, lost wages and expenses, courts "will often look at the fair market value of destroyed/damaged property, lost wages/income, and necessarily incurred expenses." [1] Non-monetary harm such as pain is a separate category. Any multiplier or calculator you see online is not an official method.
How much of a $30,000 (or $100,000) settlement will I get?
No page can answer that for you, because the answer depends on things outside the settlement figure. Two that we can source: a contingent fee agreement, if you have an attorney, "shall be in a writing signed by the client" under the ABA's model rule [11], and the state's fault-sharing rules can reduce what is recoverable in the first place. We did not verify rules on medical liens and reimbursement in the four states, so we do not describe them.
What is a good settlement amount for a car accident?
We do not say what is good, fair or average. The Alabama Department of Insurance states it cannot "Determine the value of a claim or the amount of money owed to you." [9] The Oklahoma Insurance Department states it cannot "Order the company to pay your claim." [10]
What is pain and suffering?
Cornell's encyclopedia defines it as "the physical discomfort and emotional distress that are compensable as noneconomic damages." [2] South Carolina's apportionment statute names noneconomic loss as "mental distress, loss of enjoyment, pain, suffering, loss of reputation, or loss of companionship." [8]
Is there a cap on car accident damages?
Tennessee caps noneconomic damages at $750,000 per injured plaintiff, raised to $1,000,000 for catastrophic loss or injury as the statute defines it [3]. The cap has exceptions. Subsection (h) says it does not apply to personal injury and wrongful death actions in four situations, including when the defendant was under the influence of alcohol, drugs or another intoxicant that substantially impaired the defendant's judgment and caused the injuries or death [3]. A separate $375,000 cap ($750,000 if catastrophic) takes effect July 1, 2027, but only for a plaintiff who owned or leased the crash vehicle when that vehicle was "not covered or otherwise in compliance" with the financial responsibility law and at least three separate written noncompliance notices were issued for it in the three years before the crash. It does not apply to a non-owner driver or a passenger, and it applies only to suits filed on or after July 1, 2027 [13]. We did not verify a noneconomic cap for Alabama, Oklahoma or South Carolina, so we state none for them.
Does being partly at fault change a settlement?
Yes, in the states where partial fault reduces or bars recovery. Tennessee allows recovery "so long as a plaintiff's negligence remains less than the defendant's negligence." [4] Oklahoma and South Carolina allow recovery unless the plaintiff's negligence is greater than the defendant's. Alabama treats contributory negligence as "an affirmative and complete defense." [5]
Do settlements count as income?
We did not verify tax or benefit-program treatment of a settlement against an official source on this page, so we give no answer. A tax professional or the relevant agency can say.
CrashFirst is not a law firm and does not give legal advice. This checklist is general information. Every situation is different.
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