Typical Car Accident Settlement Amounts in Texas

After a car crash involving negligence, one of the first questions that often comes up is what kind of settlement might follow. Medical bills, repair costs, and insurance demands pile up quickly, and knowing what compensation may be available can help you plan your next steps.

In Texas, settlements can range from as little as $500 to over $1M, depending on the circumstances.

In this post, the knowledgeable car accident legal team at Applewhite Law Firm PLLC will explain how car accident settlements work in Texas, what factors can impact your payout, and what you need to know to protect yourself.

Overview of Car Accident Payouts in Texas

Settlement amounts can vary widely based on the severity of the injuries and the insurance coverage involved. For example, a minor crash resulting in a few doctor visits won’t be worth the same amount as a collision that results in surgery and permanent disability.

Texas car accident settlements range from $500 on the low end for fender-benders to $500,000 or more for catastrophic injuries or deaths. Why such a vast range? Because no two crashes are identical.

That bumper tap at a stoplight has different implications than a high-speed collision with a commercial vehicle on I-35. Your medical history, the insurance policies involved, even the county where your crash happened — all of these factors can influence settlement figures.

Unfortunately, many Texans accept the first offer they’re extended and move on, often leaving money on the table in the process. It’s important to remember that insurance adjusters have a job to do, and that job includes minimizing the company's financial exposure.

Key Factors Affecting Texas Car Accident Settlement Amounts

Every car accident claim is shaped by the following factors and conditions:

Severity of Injuries

Common injuries stemming from car accidents include:

• Soft tissue injuries
• Broken bones
• Shoulder injuries
• Spinal cord injuries
• Traumatic brain injuries (TBIs)

Generally, the worse the injury, the higher the settlement value.

Medical Expenses

Settlements should cover both current and future medical bills, including hospital visits, follow-ups, medications, and therapy. Permanent disabilities can increase the value significantly.

Lost Wages and Future Earnings

If you’ve missed work or can’t return to your previous job, the settlement offer should reflect that lost income and your reduced ability to earn in the future.

Non-Economic Damages

Non-economic damages can include pain and suffering, emotional distress, and loss of enjoyment of life. These impacts don’t come with a receipt, but they still affect your well-being.

Property Damage

Any damage to your vehicle or other property sustained in an accident that wasn’t your fault should be fully compensated as part of your claim.

Insurance Coverage

Available insurance coverage often sets the ceiling for how much compensation can realistically be recovered. If the at-fault driver is underinsured, you may need to explore other options.

Estimated Car Crash Settlement Amounts by Injury Severity

After dealing with insurance companies for years, here's what we’ve seen cases actually settle for:

• Minor injuries: $5,000–$20,000
• Moderate injuries: $25,000–$75,000
• Severe injuries: $80,000–$250,000
• Catastrophic injuries: $500,000–$1 million-plus
• Wrongful death: Can exceed $1 million, depending on circumstances

It’s important to keep in mind that these are general benchmarks, not guarantees. Working with an attorney can give you a better idea of what your case might be worth.

How Car Accident Settlements Work in Texas

Car accident settlements in Texas follow a particular legal process. Here are the key steps you should expect:

• Medical evaluation: Get medical treatment right away. Delaying care can weaken both your recovery and your case.
• Investigation: Collect police reports, photographs, witness statements, and expert opinions to establish liability and support your claim.
• Demand letter: You and your lawyer will send a detailed summary of your losses, including medical bills, lost wages, and emotional harm, to the insurance company.
• Negotiation: Most insurers will offer far less than what’s fair, especially early on. The goal of negotiation is to arrive at an amount that will fully cover your various losses.
• Litigation (if necessary): If the insurer won’t negotiate in good faith, filing a lawsuit can put pressure on them and signal that you’re prepared to pursue full compensation.

Why Insurance Adjusters Offer Low Settlements

Insurance adjusters are notorious for undervaluing claims. Some of the tactics they may use to do this include:

• Pointing to pre-existing injuries and conditions
• Downplaying the severity of the injury
• Making quick, inadequate offers before treatment is complete

You don’t have to accept the first offer you receive — and in most cases, you shouldn't. Attorney Ashley Applewhite has spent years helping clients work out settlements that reflect the true costs of their injuries.

What Is Considered a Fair Settlement?

A fair car accident settlement should cover:

• All medical expenses (past and future)
• Hospital bills
• Physical therapy
• Lost wages and future income
• Property damage
• Pain and suffering
• Emotional distress

For more serious injuries, it’s crucial to calculate long-term costs — not just what you’ve already paid — to ensure you’re getting the support you need.

Commercial Vehicle Accidents

Accidents involving commercial trucks or company cars can potentially lead to higher settlements. These drivers usually have more insurance coverage, and the injuries caused by semis and other large commercial vehicles are often more severe.

What If the At-Fault Driver Has Minimal Coverage?

Texas law only requires drivers to carry $30,000 per person in liability insurance, an amount that often falls far short when serious injuries are an issue. Fortunately, there are other potential sources of compensation available if your medical expenses, lost wages, and long-term care exceed the other driver’s policy limits:

Underinsured Motorist Coverage (UIM)

Uninsured or underinsured motorist coverage (UM/UIM) can help make up the difference when the at-fault driver's policy isn’t enough.

Personal Injury Protection (PIP)

PIP benefits are intended to cover medical expenses and a portion of lost wages, regardless of who caused the crash. It’s included by default in most Texas auto policies unless you reject it in writing.

Med-Pay Coverage

Med-Pay is another option policy add-on that can help cover medical bills after a crash. Note that it only extends to healthcare treatment and funeral costs, not lost wages or other losses.

Third-Party Liability

If a company vehicle, borrowed car, or outside service issue played a role in the accident, other parties may also share liability.

The Driver’s Personal Assets

In some cases, it may be possible to pursue compensation directly from the at-fault driver if they lack adequate insurance protection.

Do You Need a Car Accident Attorney?

Yes, especially when your accident is characterized by serious injuries, hefty medical bills, or disputed liability. Many prospective clients have unfortunately only come to us after accepting a settlement offer that was too low. By then, it’s too late to fix it.

How Long Does Obtaining a Settlement Take?

Some Texas car accident cases resolve in a few months. Others take considerably longer, particularly if they require litigation. As eager as you may be to wash your hands of the whole mess, keep in mind that quick settlements aren’t always in your best interests. Compiling strong documentation and pursuing comprehensive compensation takes time.

Don’t Let the Insurance Companies Dictate Your Worth

Your car crash settlement should reflect everything you’ve lost, not just physically, but emotionally and financially. You deserve a resolution that honors what you’ve been through.

Ashley Applewhite, founder and lead attorney at Applewhite Law Firm PLLC, started the firm to give injured Texans a stronger voice in the fight against big insurance companies. They deal in spreadsheets. We deal in people.

If you've been hurt in a car accident in Austin or elsewhere in the state, you don’t have to face this difficult time alone. Contact our team today to set up a free, no-obligation consultation. We can help you understand your options and find the best path forward.