Colorado roads have seen their fair share of devastating car accidents. In 2024 alone, there were about 687 fatalities across the state. [1] [2]
A car accident can have ripple effects that hit your health, finances and daily life in ways you didn’t see coming.[3] [4] Beyond repairing your vehicle, you may be dealing with injuries, medical bills, lost income, and long-term pain. When you add it all up, the financial impact can reach tens of thousands of dollars—or more.
If the accident wasn’t your fault, you’re probably wondering how much money you can get to cover your losses.
There’s no one-size-fits-all formula for calculating a car accident claim. The final amount depends on the severity of your injuries, the strength of your case, and how well you handle negotiations with the insurance company. An Aurora car accident attorney will make sure you’re not lowballed during the claims process.
Below, we’ll break down the main factors that determine the value of your car accident compensation, so you can better understand what to expect.
1. Medical Expenses
Medical bills are usually the biggest part of a car accident claim. Depending on the type and extent of treatment you have needed, the costs can mount quickly.
Typical medical expenses include:
- Ambulance rides
- ER visits
- Surgeries and hospital stays
- Prescribed medications
- Physical therapy or rehab
- Counseling for anxiety or PTSD
- Future treatments if long-term care is needed
Insurance companies will often look for ways to reduce what they pay. If they believe a treatment was unnecessary or too expensive, they may try to deny or lower your claim.
The best way to protect yourself is by keeping detailed records. Save every bill, receipt, and doctor’s note—these can help prove your medical costs are legitimate.
The more serious and long-lasting your injuries, the higher your potential settlement will be. Spinal injuries, head trauma, and conditions requiring ongoing care can lead to larger payouts.
2. Lost Wages and Future Earnings
Another big piece of the puzzle is how the accident affected your ability to earn a living. If you’re stuck at home or in a hospital bed, you’re missing paychecks, as well as tips, bonuses, or commissions.
Even a week or two off can throw your finances into disarray. Your car accident claim should include lost income to cover the wages you missed while recovering.
This applies to both short-term losses (like missing a couple of pay periods) and long-term losses if your injuries keep you from returning to your job.
For instance, if you worked in construction and suffered a permanent back injury, it may be tough (or impossible) to handle the physical demands of that role. In that case, you could seek car accident compensation for lost future earnings and significantly raise your total payout.
3. Pain and Suffering
The physical and emotional toll of a car accident extends beyond medical bills and lost wages. Pain and suffering can have a lasting impact on your quality of life.
Most states, including Colorado, allow victims to pursue damages for pain and suffering. Yet, it’s harder to put a dollar amount on it because it isn’t tied to a hospital invoice.
Insurance companies typically use the “multiplier method,” where they take your medical expenses and multiply them by a number between 1.5 and 5 (sometimes higher). For example, if your medical bills total $30,000 and they use a multiplier of three, the pain and suffering portion might be $90,000.
Since the calculation is subjective, insurers may attempt to use a lower multiplier. Strong medical records and a doctor’s statement can help argue for a higher amount.
4. Property Damage
Your vehicle and anything inside it can also figure into the claim. Whether your car was fully totaled or just needed some repairs, you should keep evidence of what happened, including:
- Repair estimates from reputable shops
- Photos of the damage
- Receipts for any personal belongings (like a laptop) destroyed in the crash
If the repairs cost more than the car is worth, it’s considered a total loss, and you’d be entitled to the value of the car (based on its market price right before the crash). Note that for custom parts or special additions, you may need extra documentation to show why the car’s worth is higher than the stock model.
5. Fault and Shared Responsibility
Some crashes are obviously the other party’s fault—maybe they ran a red light or rear-ended you. In that situation, your claim is stronger.
But if there’s a chance you also did something wrong (like speeding or rolling through a stop sign), your degree of fault can lower your potential payout.
Colorado follows something called modified comparative negligence. If you’re found to be 20% at fault and your total damages are $100,000, you might only collect $80,000.
Essentially, your share of the blame reduces your settlement by that same percentage.
That’s why it’s imperative to prove that the other driver was fully or mostly responsible for the crash. Police reports, witness statements, and photos or videos from the scene can help show that you weren’t the one who caused the car accident.
6. Insurance Coverage Limits
You may qualify for a large payout, but the other driver’s insurance could have strict limits. Minimal liability coverage, for instance, may only cover a fraction of your overall losses.
When damages exceed what their policy will pay, you can explore other sources of compensation. Uninsured or underinsured motorist coverage may help bridge the gap when the at-fault driver’s insurance isn’t enough.
7. Negotiation Tactics
Insurance companies rarely open with their best offer. The first number they throw out is usually low, hoping you’ll take it without question. Unfortunately, many people do because they’re eager to put the ordeal behind them and move on.
However, if your damages are substantial, that quick payout might not begin to cover your expenses.
Think carefully before agreeing to any settlement. Once you accept, you can’t go back and ask for more money. Take your time and negotiate wisely.
A car accident lawyer can push for a bigger amount by highlighting your medical bills, pain and suffering, and other losses. They might also show they’re willing to go to court if the insurance company refuses to negotiate fairly.
Bringing It All Together
Every car accident claim is different, with varying injuries, damages, and evidence. But the factors outlined above give you a strong starting point for understanding what affects your payout.
Insurance companies will try to minimize what they pay, but knowing what goes into a claim puts you in a better position to fight for what you deserve.
Can we replace this with 2024 stats instead? Doesn’t have to be this source but there are stats out there.
Done!
I feel like this is kind of an obvious statement – can we say something about how it can have unexpected or long-term consequences instead?
Agreed. I’ve changed it a bit.
