How Much Can Someone Sue for a Car Accident?

This article explains how those numbers are calculated, what factors influence how much you can sue for, and what to expect during the legal process.

Whether you’re pursuing a claim through insurance or filing a lawsuit yourself with Mighty.com, understanding your rights and the potential value of your case is key to making informed decisions.

How Much Can You Sue an Insurance Company For?

If you’re injured in a car accident and the at-fault driver’s insurance company is refusing to pay what you’re owed, you may wonder how much you can sue the insurance company for.

The answer depends on several factors, including the type of claim, available policy limits, and whether the insurer acted in bad faith.

Liability Insurance Limits

In most cases, when you sue an insurance company after a car accident, you're really seeking to recover damages up to the limits of the at-fault driver’s liability insurance.

Every auto insurance policy has maximum coverage amounts¹, often expressed as a split limit (e.g., $50,000 per person / $100,000 per accident for bodily injury).

If your medical expenses and losses fall within that limit, the insurer is obligated to pay.

If your damages exceed the policy limits, the insurance company may not have to pay the difference unless they acted in bad faith.

Such as unreasonably delaying or denying your claim. In bad faith cases, you may sue for additional compensation, including punitive damages.

Those cases are more complex and may require legal support in addition to the Mighty.com AI claims helper.

Can I sue if the at-fault driver is uninsured?

Yes, but your options are limited. If the driver has no insurance, you can file a lawsuit against them directly.

However, many uninsured drivers have few assets, making it difficult to recover any meaningful compensation, even with a court judgment.

In these situations, suing may not result in actual payment, even if you technically win.

Uninsured Motorist Coverage

If you have uninsured motorist (UM) or underinsured motorist (UIM) coverage on your own policy, you can file a claim with your insurer when the at-fault driver lacks sufficient insurance.

UM coverage typically mirrors your liability limits, so if you carry $100,000 in bodily injury coverage, your UM claim may be capped at that amount.

If your insurer denies or undervalues your UM claim, you can sue them, often through arbitration, depending on your policy terms.

Unlike suing a third-party insurer, this is a first-party claim, and your legal rights may differ slightly.

In some states, you may also sue for bad faith if your insurer fails to honor its contractual obligation.

Can an At-Fault Driver Sue?

In most cases, an at-fault driver cannot sue for damages related to the accident they caused, especially if they are found to be fully responsible.

Personal injury law is based on the principle of negligence.

To successfully sue, a person must prove that someone else’s actions caused their injury.

If you are the one who caused the accident, you generally can’t turn around and file a claim against another party for your own losses.

However, there are a few important exceptions and nuances to understand:

1. Shared Fault in Comparative Negligence States

In states that follow comparative negligence rules, an at-fault driver can still sue another party if both drivers share responsibility.

For example, if you were 40% at fault and the other driver was 60% at fault, you may be able to recover 60% of your total damages from the other driver.

The exact threshold varies:

• Pure comparative negligence states allow you to recover even if you’re 99% at fault.
• Modified comparative negligence states usually bar recovery if you’re 50% or more at fault.

2. Suing for Unrelated Injuries or Conduct

An at-fault driver may sue for issues not directly related to causing the accident.

For instance, if the other driver committed assault after the crash, or if a car part manufacturer’s defect contributed to the injury, the at-fault driver could sue those parties for non-collision-related claims.

3. Bad Faith Insurance Lawsuits

If you’re at fault and your own insurance company unreasonably denies you coverage or fails to defend you in a liability claim, you may have grounds to sue your insurer for bad faith.

This is not a personal injury suit, but a legal action related to breach of contract or unfair claims handling.

While an at-fault driver can't typically sue the other driver for injury or damages from the accident itself, there are limited exceptions where a lawsuit may be possible depending on the facts, degree of fault, or conduct of third parties.

What Happens After a Car Accident?

A car accident can be chaotic and overwhelming, but what happens immediately afterward.

In the days and weeks to follow, it can significantly affect your safety, recovery, and legal rights.

Here's a step-by-step overview of what to expect and what you should do after a crash:

1. Ensure Safety and Check for Injuries

First, check yourself and others for injuries. If anyone is hurt, call 911 immediately.

Even if injuries seem minor, it's best to seek medical attention—some symptoms (like whiplash or internal injuries) may not appear right away.

2. Move to a Safe Location (if Possible)

If the vehicles are drivable and it's safe to do so, move them out of traffic. Turn on hazard lights and set up warning triangles or flares if available.

3. Call the Police

In most states, you're required to report accidents that cause injury, death, or significant property damage.

The police will file an official report, which is often essential for insurance claims and potential lawsuits.

4. Exchange Information

Get the other driver’s name, contact details, insurance company, policy number, and license plate number.

If there are witnesses, collect their contact information as well.

5. Document the Scene

Take photos of the vehicles, any visible injuries, road conditions, traffic signs, and damage from multiple angles. These images can serve as important evidence later.

6. Notify Your Insurance Company

Contact your insurer as soon as possible to report the accident. Provide accurate information but avoid admitting fault.

The insurance company will begin its own investigation to determine liability.

7. Seek Medical Evaluation

Even if you feel fine, get checked by a medical professional. Delayed symptoms are common, and medical records are key for personal injury claims.

8. Follow Up With Claims and Legal Help

Once insurance claims are underway, you may receive settlement offers.

If you’ve been injured, especially due to another driver’s negligence, consider speaking with a personal injury attorney or consulting the Mighty.com AI claims helper.

You need to understand your rights and evaluate whether the offer truly reflects the value of your damages.

How Do I Sue for Damages After a Car Accident?

If you’ve been injured or suffered financial losses in a car accident and insurance doesn't cover your full damages, or refuses to pay fairly, you have the right to file a lawsuit.

Suing for damages requires evidence, deadlines, and a clear legal argument².

Here's how it works:

1. Determine if a Lawsuit Is Necessary

Before filing suit, you typically file a claim with the at-fault driver’s insurance company.

If they deny liability, offer an unreasonably low settlement, or stall negotiations, you may decide to pursue legal action to recover compensation.

You can sue for:

• Medical bills
• Lost income
• Property damage
• Pain and suffering
• Future medical costs
• Loss of enjoyment of life

2. Identify the Responsible Party

You must know who to sue. This is usually the at-fault driver, but in some cases, it could be:

• A commercial vehicle operator or employer
• A government agency (for poor road conditions)
• A vehicle or parts manufacturer (in defective product cases)

If multiple parties are involved, you may file against more than one.

3. Hire a Personal Injury Attorney (Optional)

While you can represent yourself using the Mighty.com AI claims assistant there are times when you need an attorney.

In particularly complex claims, a car accident attorney can handle investigations, negotiate with insurance companies, build your case, and represent you in court.

Most personal injury attorneys work on a contingency fee, meaning they only get paid if you win.

4. File a Complaint Within the Statute of Limitations

Each state has a statute of limitations, typically ranging from 1 to 3 years, that sets the deadline for filing a lawsuit.

You will need to draft a formal complaint that outlines the facts, damages, and legal grounds for your claim.

5. Serve the Defendant

After filing, you must legally notify the defendant by serving them a copy of the complaint.

They then have a set amount of time (usually 20–30 days) to respond.

6. Go Through Pretrial Phases

The lawsuit proceeds through several stages:

• Discovery: Both sides exchange evidence (e.g., medical records, accident reports, witness statements)
• Depositions: Witnesses are questioned under oath
• Motions: Either side may request to dismiss parts of the case

7. Settlement Negotiations Continue

Most car accident lawsuits settle before trial. As your case builds strength, the defendant may offer a higher settlement.

You can settle at any point before the verdict.

8. Go to Trial (if Necessary)

If no settlement is reached, your case goes to court. A judge or jury will decide fault and award damages.

Trials can last days or weeks, and the outcome is legally binding, although it can be appealed.

What Types of Damages Can I Sue For After a Car Accident?

If you’ve been injured in a car accident caused by someone else’s negligence, you’re legally entitled to seek compensation through a personal injury claim or lawsuit.

The damages you can sue for are intended to make you financially whole and account for both your economic losses and the personal impact of the accident.

Here are the main types of damages you can pursue:

1. Medical Expenses

You can sue for all accident-related medical costs, including:

• Emergency room visits and ambulance fees
• Hospitalization and surgical procedures
• Physical therapy and rehabilitation
• Prescription medications
• Ongoing or future medical care
• Medical equipment (crutches, braces, wheelchairs)
• Mental health treatment related to the accident

If your injuries require long-term treatment, you can include projected future medical expenses in your lawsuit, often supported by expert medical testimony.

2. Lost Income

If your injuries caused you to miss work, you can sue for lost wages during your recovery period.

This includes regular pay, tips, commissions, and any other compensation you would have earned.

If the accident left you permanently disabled or reduced your ability to work, you can also claim loss of earning capacity, which reflects your diminished future income potential.

3. Pain and Suffering

This is a type of non-economic damage that compensates you for the physical pain, emotional distress, trauma, and disruption to your daily life.

Courts or insurers may use a multiplier method (multiplying your economic damages by a number based on severity) to estimate these damages.

Chronic pain, anxiety, depression, and sleep disruption all factor into this category.

4. Property Damage

You can sue for repair or replacement costs if your vehicle or personal belongings were damaged in the accident.

This includes:

• Vehicle repair or total loss value
• Damage to personal property (e.g., phones, laptops, car seats)
• Towing and storage fees

Even if you weren’t injured, you’re still entitled to recover property-related losses.

5. Out-of-Pocket Expenses

These are costs that don’t fall under medical or property damage but are directly tied to the accident.

Examples include:

• Transportation to medical appointments
• Rental car fees
• Home modifications (e.g., ramps, lifts)
• Childcare costs while you’re recovering

Keep detailed receipts and records, as these expenses can add up and are often overlooked.

In total, your compensation should reflect the full financial impact of the accident as well as the emotional and physical burden it placed on your life.

Calculating and documenting these damages thoroughly is essential to receiving a fair settlement or court award.

How Is Case Value Calculated?

The value of a car accident case is calculated by adding together different categories of damages you’re entitled to recover.

These generally fall into three main groups: economic damages, non-economic damages, and, in limited cases, punitive damages.

Each plays a specific role in determining the total worth of your claim or lawsuit.

1. Economic Damages (Tangible Financial Losses)

These are the most straightforward to calculate because they are based on actual expenses and losses.

They include:

• Medical expenses: All past and future costs for treatment, hospitalization, rehabilitation, surgery, medications, and follow-up care.
• Lost income: Wages lost due to missed work, plus bonuses, commissions, or freelance income. If your injuries prevent you from returning to work, loss of earning capacity is factored in.
• Property damage: Costs to repair or replace your vehicle and any personal belongings damaged in the crash.
• Out-of-pocket expenses: Transportation costs, home care, assistive devices, and any other direct costs tied to your injuries.

These damages are typically calculated using bills, receipts, wage statements, and professional evaluations (e.g., future care cost projections).

2. Non-Economic Damages (Subjective, Personal Impact)

These are more difficult to quantify because they represent the emotional and physical consequences of an injury.

Common types include:

• Pain and suffering
• Emotional distress or trauma
• Loss of enjoyment of life
• Loss of companionship or intimacy (in some cases)

Since these losses don’t come with a receipt, insurers and courts often use a multiplier method.

Economic damages are multiplied by a number (usually 1.5 to 5) based on injury severity, recovery time, and lasting effects.

For example, $50,000 in medical bills might result in $150,000 total if a multiplier of 3 is applied.

3. Punitive Damages (Rare, for Egregious Misconduct)

Punitive damages are not meant to compensate you, but to punish the at-fault party for reckless or malicious behavior, such as drunk driving, intentional harm, or gross negligence.

These are awarded in a small percentage of cases and typically require strong evidence of egregious conduct.

Some states cap punitive damages or require specific thresholds for eligibility.

The total case value is calculated by adding economic and non-economic damages, and in rare cases, punitive damages.

The stronger your documentation, medical evidence, and legal strategy, the more accurately, and favorably, your case value can be assessed.

What if A Family Member Was Killed in the Accident?

If a family member was killed in a car accident, you may have the right to file a wrongful death claim.

This type of lawsuit allows surviving family members, typically spouses, children, or parents, to seek compensation for both economic and emotional losses resulting from the death.

Recoverable damages may include:

• Funeral and burial expenses
• Medical bills related to the fatal injury
• Loss of financial support (the income the deceased would have provided)
• Loss of companionship, guidance, or consortium
• Emotional distress or mental anguish

Each state has specific rules about who can file and how damages are calculated.

Some states allow only the estate to file through a personal representative, while others allow direct family claims.

If the accident involved gross negligence or reckless behavior such as drunk driving, you may also be eligible for punitive damages.

Time is critical: wrongful death lawsuits must be filed within the statute of limitations, which is often two to three years depending on the state.

The Mighty.com AI claims helper or an experienced attorney can help you understand your rights and pursue the full compensation your family deserves.

Is there a limit on How Much Can Someone Sue For A Car Accident?

Yes, there can be limits on how much someone can sue for after a car accident, depending on several factors, but there's no universal cap.

In most personal injury cases, the value of your lawsuit is tied to the actual damages you've suffered, such as medical bills, lost wages, pain and suffering, and property damage.

However, there are a few scenarios where limits may apply:

• Insurance policy limits: The at-fault driver’s insurance coverage often sets a ceiling on what you can realistically collect. Even if you win a large verdict, you may not be able to recover the full amount if the driver has limited coverage and few assets.
• State laws: Some states place caps on non-economic damages like pain and suffering, particularly in cases involving government defendants or medical malpractice.
• Punitive damages: If awarded, punitive damages may also be capped by state law or subject to constitutional limits.

That said, if your damages are well-documented and liability is clear, there’s often no strict limit on what you can sue for, just practical constraints based on coverage and collectability.

How to Maximize the Value of a Car Accident Case

To maximize the value of a car accident case, you need to take the right steps from the start.

First, seek immediate medical attention, even if your injuries seem minor. Delays in treatment can weaken your claim.

Second, document everything. Take photos of the scene, your injuries, vehicle damage, and collect witness statements if possible.

Follow your doctor’s treatment plan carefully and keep detailed records of medical visits, expenses, and any time missed from work.

These serve as key evidence of your losses.

Avoid speaking to the other party’s insurance adjuster without legal advice. Insurers often aim to minimize payouts, and anything you say can be used to reduce your claim.

Also, preserve all receipts and records for out-of-pocket costs such as transportation, medications, assistive devices, and more.

Finally, be patient. While quick settlements may seem appealing, they often undervalue your claim.

Waiting until your treatment is complete gives a clearer picture of long-term costs, which helps increase your final settlement or court award.

Should I Get a Car Accident Lawyer to Help With My Claim?

Whether you need a lawyer after a car accident depends on the complexity of your case.

For straightforward claims involving minor injuries, clear liability, and limited damages, you may not need an attorney at all.

In fact, many people can now handle these claims more efficiently with the help of an AI-powered claims assistant.

An AI claims helper can guide you through key steps: collecting documentation, estimating your damages, organizing medical bills, and communicating with insurers.

It offers speed, accuracy, and cost-effectiveness, ideal for cases where the facts are clear and the injury is not severe.

However, if your case involves serious injuries, multiple vehicles, disputed liability, or insurance delays, you may need to escalate.

In those situations, hiring an experienced personal injury lawyer becomes essential. A lawyer can handle negotiations, protect your rights, and file a lawsuit if necessary.

Think of it this way: use AI to simplify and strengthen your claim upfront. Bring in a lawyer if the insurance company resists or the situation becomes too complex.

It’s a smart way to control costs without sacrificing results.

Sources

1. Progressive: What are insurance limits? https://www.progressive.com/answers/insurance-limits/

2. Uscourts.gov Civil Cases: https://www.uscourts.gov/about-federal-courts/types-cases/civil-cases

‍