Ontario Personal Injury Law Firm

How Much Can Someone Sue for a Car Accident?

by | Dec 23, 2024 | Personal Injury Posts

Thousands of car accidents occur every year. Many of them result in personal injury claims being filed. Obtaining financial compensation after a car accident is not easy, even with serious injuries.

How much can someone sue for a car accident is a question only a personal injury lawyer can assist with. There is no average car accident settlement though there are maximums that the law will adhere to when rewarding damages for a car accident claim.

Compensation in a Car Accident Lawsuit

There are various ways that one can sue an insurance party or another party for an automobile accident. In addition to filing an insurance claim for accident benefits, many opt to pursue a lawsuit for negligence to secure the full extent of compensation they are rightfully owed.

How civil lawsuits in Canada are designed is to be compensatory, meaning that the injured person is effectively put back into the position they were in prior to the car accident. When you sue someone for an auto accident, such a lawsuit does not proceed under the guise of creating a windfall.

That said, there is no upper limit on how much you can sue for in relation to a car accident. There are minimum thresholds, deductibles, and caps placed on specific damages, such as pain and suffering, to consider.

Types of Compensation and Claims

There are many types of compensation and claims, including loss of income, medical bills and care costs, pain and suffering, and out-of-pocket expenses.

In Ontario, the province uses a no-fault accident benefits system wherein an insurance company will offer Statutory Accident benefits for compensation if you are injured in a car accident. It does not matter who is to blame in an accident. Every standard auto insurance policy protects injured persons. With this, car accident lawyers can assist in filing your claim for compensation.

This article, however, is about making a claim against another driver if you believe they caused the car accident that caused your injuries.

What type of compensation you can receive from a car accident claim and the amount that you are eligible for varies. It relies on if there was negligence or liability for the accident, and the nature and scope of your damages.

Car Accident Benefits Claim

Every car insurance company provides car accident benefits, ensuring all car accident victims receive financial support regardless of who is responsible. These benefits are not paid automatically, however, and a victim must file a claim within the recommended timeline, preferably with the expert guidance of experienced car accident lawyers at their side.

To determine how much can someone sue for a car accident, it’s important to consider the minimum benefits available under each category.

Medical and Rehabilitation Benefits

A severe injury may mean high treatment costs. This is no more evident than when someone walks away from a motor vehicle accident with spinal cord injuries, traumatic brain injuries, and or similar catastrophic injuries. Even minor injuries – such as sprains, abrasions, whiplash, and lacerations – are eligible for compensation from an insurance company.

  • Minor injuries are eligible for up to $3,500 in compensation for medical treatment and rehabilitation care.
  • For non-minor injuries, you are eligible for maximum compensation for medical and rehabilitation care up to $65,000. This is payable up to five years after the incident that caused your injuries.
  • For catastrophic impairments and severe injuries, medical benefits and rehabilitation care are offered up to a maximum of $1 million. These benefits are payable for life.

Income Replacement Benefits

Injuries caused in a car accident may prevent you from carrying on your regular employment duties and interfere with earning an income.

You may be eligible for income replacement benefits if you were employed for a minimum of 26 weeks within the previous 52 weeks prior to the collision. To receive these benefits, you must face significant restrictions on the ability to perform the essential duties of your prior employment.

If eligible for income replacement benefits, you can receive up to 70 percent of your gross income, however, weekly payouts are capped at $400.

Non-Earner Benefits

If you were unemployed at the time of the car accident, you may not be eligible for income replacement benefits.

Non-earner benefits are offered to students or if you have completed an academic program within the previous year and were or have been seeking employment.

Non-earner benefits are capped at $185 per week payable for up to two years and are only provided to those who can demonstrate that they’ve suffered personal injuries that have led to an inability to live a normal life.

Caregiver Benefits

When the accident occurred, if you were a caregiver and are no longer able to perform your duties, you may be eligible for caregiver benefits. This compensation is assumed to be for hiring a professional caregiver to help care for you and your loved ones.

Caregiver benefits are capped at $250 per week and an additional $50 for every dependent under your care.

Death and Funeral Benefits

If a person has died in an auto accident, the surviving loved ones may be entitled to wrongful death and funeral benefits.

  • Spouses receive up to $25,000.
  • Dependents receive up to $10,000 each.
  • Up to $6,000 is provided to cover funeral expenses.
  • If there is a contractual obligation to a former spouse, the deceased pays out a maximum of $10,000.

Tort Claim: Sue for a Car Accident

With car accidents, a tort claim is when the at-fault party is held accountable for the damages from a vehicle accident via a personal injury lawsuit.

To successfully pursue a tort claim, you must prove several things under personal injury law.

  • The accused had a duty to act with reasonable care and failed to act reasonably.
  • As a result of their failure to act, an accident occurred that resulted in your injuries.
  • Prove the injuries you suffered caused compensable damages.

The threshold to sue someone for a car accident is high. The injured person must be able to demonstrate the other party was responsible and that the injuries sustained are permanent and serious. A severe injury, permanent disfigurement, or impairment that impacts your ability to function physically all applies.

Factors Affecting Settlements

The value of a lawsuit is based on the severity and circumstances surrounding the injuries.

With car accidents, there are two categories of damages that will determine a claim’s value as well – general damages and special damages.

General damages refer to pain, suffering, loss of enjoyment of life, mental anguish, loss of companionship, and physical disfigurement. This must be supported by medical records and doctor testimony.

Special damages refer to specific losses resulting from the defendant’s negligence, such as the cost to replace or repair property damage, lost income, loss of future earning capacity or income due to injuries, medical expenses, and housekeeping or home maintenance.

An insurance company settlement or compensation relating to a lawsuit can be severely impacted if you were driving without insurance, committing a crime at the time of the accident, did not have a valid driver’s license, or were driving the vehicle without the owner’s consent.

How to Calculate Car Accident Damages

When you meet with a car accident lawyer for the first time, you do not need to present knowing the full extent of your injuries. A lawyer will help you calculate car accident damages, with consideration given to the severity of your injuries and medical bills, their impact on your life, and any general damage caps at play.

Severity of Your Injuries

A major factor in how car accident damages are calculated is the severity of the injuries. This also relates to the prognosis for recovery and treatment.

A doctor should perform a detailed examination of the injured person to assess the extent of the injuries. As the victim, it is imperative to follow through with the treatment plan given. Keep up with all recommended appointments. Keep your own detailed records as well of all medical appointments and hang on to receipts for all out-of-pocket expenses, including parking or any assisted devices you require.

The Impact of Injuries on Your Life

Consider how your injuries are impacting your daily life. Take into account the following.

  • If you need help with daily living, such as eating, bathing, dressing, or using the bathroom.
  • If your ability to see or hear has changed or been impaired following the car accident.
  • If you have difficulty walking or are partially or completely paralyzed as a result of the accident.
  • How the accident has impacted the life of your loved ones.
  • If you are unable to care for your children in the same way as prior to the accident.
  • If you have needed assistance or have had to hire someone for help with housekeeping and home maintenance.
  • How the accident has impacted the relationship with your spouse or partner and how it’s impacted the intimate relationship between you and your partner.

A car accident lawyer will also assist in reviewing similar cases to determine how much a person in your circumstances has been awarded in the past for general damages.

Cap on General Damages

There is a cap on general damages in Canada of approximately $400,000 – adjusted for inflation.

Even if you have the most severe injuries from a car accident, the maximum for pain and suffering is $400,000.

In addition, any amount awarded for general damages under $147,000 is subject to a $46,000 deductible, reducing what you would collect.

Furthermore, if you are found partially liable for your injuries – such as if you were not wearing your seat belt or were distracted and texting at the time of the accident – this means you will not collect as much in general damages.

The Role of a Lawyer

A car accident lawyer has the experience and expertise to assist you in pursuing compensation from an insurance company for injuries, property damage, and lost income as a result of an accident. When you reach out to our legal team, we start with gathering evidence. From there, we can submit claims, negotiate with insurance companies, and provide critical guidance to help you build the strongest case possible for maximum compensation.

If necessary, your lawyer will represent you in court. That said, these types of cases do not always go to trial and many are resolved in mediated negotiations.

Gathering Evidence

Evidence must be gathered to support your case and your car accident lawyer is there to ensure that’s done correctly.

They will engage a network of experts – such as medical professionals, accident reconstruction specialists, and financial experts – to support your car accident lawsuit. Medical experts can provide insights on your injuries. Accident reconstruction specialists can analyze the crash and establish liability and causation. Financial specialists assess the financial impact of a crash on future earnings.

Quantifying Economic and Non-Economic Damages

For any car accident lawyer or insurance company, economic damages are far easier to quantify than non-economic damages. A skilled lawyer will assist in digging into the full extent of economic damages, beyond the initial medical bills and repair costs. Other things to factor in are potential future medical treatments, therapies, and potential loss of earning capacity.

When it comes to non-economic damages – such as pain and suffering or loss of enjoyment of life – these are subjective and lack clear monetary value. A personal injury lawyer can assist in assigning a reasonable value to intangible losses, taking into the account the long-term consequences to one’s overall well-being and the psychological impact of the accident.

Maximizing Settlement Value

The amount for economic and non-economic damages should be backed with credible evidence, maximizing the compensation you may receive.

There is a multitude of factors that go into maximizing the value of car accident settlements. A car accident attorney can outline in more detail what those are and how they pertain to your unique circumstances.

Wrongful Death Claims

Though thankfully rare, every year in Ontario, there are more than 400 fatal traffic collisions. The unexpected loss of a loved one and the prospect of moving forward in life without their love and companionship is incredibly difficult.

A wrongful death claim can be brought forth against a driver and their insurance company under the Family Law Act. To move forward with a wrongful deal case, the plaintiffs must have proven the following:

  • They are related to the deceased person either as a spouse, children, grandchildren, parent, grandparent, or sibling.
  • The deceased person must have been filled by the fault or neglect of another person.
  • The deceased’s death must be under circumstances where they would be entitled to recover damages had they lived.
  • The family member plaintiffs must have suffered some form of damages of their own as a direct result of the death.

Next Steps After an Accident

After you have been in a car accident, focus on your safety. Move to a secure area and call emergency services so that you can be assessed and so that documentation can start to occur, detailing any injuries sustained in the incident. Document the scene as best as you can with photos and gather witness information.

From there, contact a car accident lawyer to assess if further legal action is needed and assist with any next steps.

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