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How is a Car Accident Settlement Calculated in California? – Helpful Information 2022

How is a Car Accident Settlement Calculated in California? Call the best car accident lawyers near me today


Car crashes are horrifying and traumatic. Victims of car accidents may have severe injuries that need prolonged medical care and rehabilitation. Additionally, victims can have lengthy unemployment, which would mean a loss of income.

Therefore, victims of car accidents are given settlement amounts that account for their losses. The purpose of settlement payments is to aid victims in recovering financially from accident-related costs such as medical bills, lost wages, and other losses that may be incurred while recovering.

The value of your car accident compensation settlement may be something you’re interested in knowing. In California, determining compensation or calculated estimates for car accidents is a difficult task which will be discussed in this post.

Factors To Consider When Assessing Car Accident Settlement Compensation

Under California law (California Civil Code § 1431.2 (b)(1)), the term ‘economic damages’ is defined as “objectively verifiable monetary losses.” Economic damages form the basis of personal injury compensation in California.

You can generally get a calculated estimate for your economic losses by adding together all of the money you lost as a result of the accident before estimating your damages. You can also include the following things:

  • Lost income
  • The cost of medical care
  • Physical treatment costs
  • The cost of mental health care
  • The cost of replacing or repairing your car
  • Other related costs

The next step is to compile a list of all the non-financial losses (non-economic damages) incurred by the disaster.

In California, non-economic damages are the more serious losses to your person, which are typically left up to a jury to decide with guidance from the lawyers and the court. Some types of non-economic damages in a California include:

  • Pain and suffering
  • Mental anguish
  • Scarring or disfigurement
  • Long-term disability
  • Loss of life enjoyment

California Car Accident Compensation Calculation

In California, there is no precise formula for determining how much a vehicle accident claim is worth.

After being hurt, some people calculate an estimate using auto accident settlement calculators. In any case, you can’t count on these calculators to produce an exact estimate.

These estimates are skewed since calculators cannot gather all the necessary information to arrive at a precise monetary value. Likewise, it’s crucial to remember that no two situations are identical.

The amounts shown on all necessary bills and receipts must be added together to determine economic losses. It would help if you also considered factors like missed wages and earning potential.

Losses may be challenging to estimate in the case of non-economic damages. Therefore, the non-economic expenses are examined based on the effect of the accident on the victim’s quality of life and lifestyle to establish the amount of financial compensation to which the sufferer is entitled.

The multiplier formula and the per diem formula are two often utilized formulas when calculating general damages.

Calculated by Multiplier Method

An insurance adjuster or personal injury attorney will determine all of your economic damages using the multiplier technique. Your economic damages will then be multiplied by a figure that generally falls between 1.5 and 5.

The lowest multipliers are typically earned by those who have just experienced minor ailments with little financial impact.

Conversely, the most significant multiplier is available to those who have experienced severe injuries and financial ruin. This increase is because more serious injuries will likely permanently affect the person.

Calculated by Per Diem Method

You are given a compensation value for each day of your recovery under the per diem system. Generally speaking, your per diem pay will be close to your daily salary in the absence of the accident.


If you’re involved in a car accident in California, it’s crucial to hire an experienced car accident injuries lawyer to help you get the maximum compensation for your injuries. California car accident lawsuits should be taken seriously.

Our expert attorneys at ALL Trial Lawyers in  have represented many individuals who have been hurt in a car accident in Anaheim. We have handling personal injury cases in Orange County, Los Angeles County, San Bernardino County, Riverside County, Kern County and San Diego County.

Our law office knows the ins and outs of the legal system and will make sure that you are fairly compensated. With our distinguished, award winning law firm, you will not have to worry about the financial burden that an accident can bring.

Don’t risk calling the wrong lawyer.

We have an office located near you, and we’re ready to start working on your case.

Call us now to speak to a lawyer and for your free consultation. Call (866) 811-4255.

Car accident injuries can have a life-altering impact on the victim and their family. If you have been injured in a car accident in California, it is important to understand your legal rights.

The information in this blog post is general information only. It is not legal advice and should not be treated as such. No lawyer can promise you a calculated amount. 

An experienced car accident injuries lawyer will be able to protect your rights and ensure that you are fairly compensated for your injuries. So don’t wait. Contact an attorney today if you have a California car accident lawsuit.

It may be hard to find calculated estimates, but your strategy can be calculate. 

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