After a car crash, one of the first questions that 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 helps you plan your next steps. In Texas, settlements can range from as little as $500 to a staggering $10+ million, depending on the circumstances.
I'm Ashley Applewhite, a car accident attorney based in Austin, and welcome to my blog! Today, I’ll walk you through how car accident settlements work in Texas, what factors impact your payout, and what you need to know to protect yourself.
Challenges
Average settlement amounts vary widely depending on the severity of the injuries and the insurance coverage involved. For example, a minor crash resulting in a few doctor visits will not generate the same settlement as a collision involving surgery, permanent disability, or a commercial vehicle.
Texas car accident settlements range from $500 for minor bumper taps to $20+ million for catastrophic injuries or deaths.
Why such a vast range? Because no two crashes are identical. That fender-bender at a stoplight has different implications than a high-speed collision on I-35. Your medical history, the insurance policies involved, even the county where your crash happened — all these factors influence settlement figures.
What many don't realize is that most Texans accept the first offer and move on, often leaving money on the table. Remember that insurance adjusters have a job to do — and that job includes minimizing the company's financial exposure.
Solutions
Car accident settlements in Texas follow a process that can take weeks or even months, depending on the complexity of the case.
- Medical evaluation: Get medical treatment immediately. Delaying care can weaken both your recovery and your case.
- Investigation: Collect police reports, photographs, witness statements, and expert input to establish liability and support your claim.
- Demand letter: A detailed summary of your damages — including medical bills, lost wages, and emotional harm — sent to the insurance company.
- Negotiation: Let me be blunt: insurance companies are not on your side. Their goal is to pay out as little as possible. Most will offer far less than what’s fair — especially early on.
- Litigation (if necessary): If the insurer won’t negotiate fairly, filing a lawsuit puts pressure on them and signals you’re prepared to pursue full compensation.
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