Car accidents in Iowa vary in complexity a lot. Many factors can influence how severe the victims' injuries are, so they play a big role in insurance claims.
Some of the most common factors involved in calculating settlements include lost wages and the severity of the injuries. However, this list is much more extensive.
While most accidents will involve similar factors, that doesn't mean that everyone will get the same payout. The circumstances surrounding the accident, as well as the entities involved, will affect the amount the victim ends up receiving. Tom Fowler Law can explain how personal injury settlements are calculated in Iowa.
It's hard to come up with an exact sum of how much car accident victims can get from an accident, but it's possible to calculate an estimate. Based on all the factors outlined on this page, car accident victims will have enough information to determine how much they can expect to make under the right circumstances. Some of these factors are also used to determine how truck accident settlements are calculated in Iowa.
What's the Average Car Accident Settlement in Iowa?
As mentioned, it's not possible to say a single figure that represents what people can receive as a settlement. This is because there are many factors involved in car accidents that will influence the outcome of the cases.
The average payout for a car accident, however, can go from $6,100 to hundreds of thousands of dollars. Generally speaking, the more severe the injuries are, the more likely the victim is to get more money from their legal claim.
What Types of Damages Can a Person Recover from a Car Accident Claim in Iowa?
Car accident victims can recover certain damages if they can build a solid case. By calling a Des Moines car accident lawyer, victims have a much better chance of negotiating with the other party's insurance company, leading to a more favorable outcome.
There are two types of damages a person can expect to recover after an accident:
Economic Damages
They are easier to calculate, as they involve amounts that the victim incurs because of their accident. Damages that fall into this category include emergency care, physical therapy, surgery, medications, and other related costs.
The most efficient way to prove economic damages is to provide receipts or invoices to the other driver's insurance company. These documents should clearly show how much the victim has paid in medical care and other relevant areas.
Non-economic Damages
Non-economic damages are often harder to calculate, even with the help of an Iowa car accident lawyer. They represent indirect damages that arise from the person's injuries.
Most car accidents go beyond physical consequences. Victims often get traumatized and have to endure hardship for a long time because of those events.
Some common non-economic damages include:
Pain and suffering
Emotional distress
Post-traumatic stress disorder (PTSD)
Loss of quality of life
Disfigurement or scarring
In some cases, victims may not have receipts or invoices to prove how intense these damages are. Usually, getting enough medical records and expert testimony will help support the victim's case.
How do insurers calculate insurance coverage? It depends on the company. Some of them use the multiplier method, which involves multiplying the amount of economic damages by a factor of 1.5 to 5. The more severe the injuries were, the higher the number may be.
It's important to note that there's no set formula for everyone. This means that most cases are evaluated individually based on all the factors involved, as well as the evidence presented by the parties.
Below is a breakdown of the most common economic/non-economic damages that victims can recover after a personal injury case in Iowa:
Medical Bills
Medical expenses include all bills related to the accident. These bills will vary depending on the severity of the case. Some of the most common types of medical expenses include:
General bills
Ambulance services
Primary care bills
Imaging and diagnostic tests
Specialist consultations
Medications
Follow-up visits
Rehabilitation services
Assistive devices
All victims of a car accident should gather medical records related to their injuries, as they will help when negotiating a fair settlement with the other party.
Property Damage
As the name implies, this represents all expenses related to the victim's damaged property. Usually, this involves the cost of repairing or replacing a damaged vehicle, although it may also cover other property lost because of the accident.
Damage to the other driver's car is often considered property damage too, so that may affect the outcome of the case, depending on who was at fault.
Victims don't necessarily have to file a claim with another person's insurance company to cover property damage. If the victim was insured, they may get enough money from their insurer to fix or replace the vehicle.
In any case, it's recommended to talk to a personal injury attorney to evaluate all possible outcomes and follow the best one.
Pain and Suffering
"Pain and suffering" is a tough factor to calculate, yet it's such an important part of getting to a fair car accident settlement.
It's a legal term that represents both physical and emotional injuries related to the auto accident. More specifically, it refers to any anguish, inconvenience, discomfort, or emotional trauma that comes with the victim's injury.
In some cases, it's not as hard to calculate pain and suffering for certain elements, such as aches or temporary physical limitations. However, other accidents can lead to depression and other mental health concerns, which will also affect the victim. It's not uncommon for victims to seek compensation for all the physical and emotional stress associated with their injuries.
Lost Wages
Lost wages represent all the actual income the victim would have earned if they didn't get injured because of the accident. In most scenarios, lost wages may include salaries, bonuses, overtime, commissions, and other forms of compensation.
Some car accidents lead to severe injuries, which prevent the person from going to work for some time. During settlement negotiations, it's possible to include the days missed from work.
A few items will play a huge role in getting lost wages awarded in a settlement. They are explained below:
Pay Stubs: They show what the victim's regular income was before the accident, which will help when calculating how much they're losing for the time they can't spend working.
Tax Returns or W-2s: These documents may show insurers how much the victim is expected to make every year. If the victim's income varies throughout the year, it will affect how much they can earn from their car accident claim.
Journals: All victims are encouraged to keep a post-accident journal. There, they can note all the days they missed work due to the accident, as well as any relevant medical treatments they have undergone. Not only is this great proof to use, but it also helps when calculating lost wages.
Letters from Employers: These letters can help insurers verify the victim's current employment status, the amount of money they've lost, and the time they've had to take off work.
Documents with Proof of the Victim's Inability to Work: Many documents can support the victim's claims of not being able to work. A common one is a disability slip, which is a doctor's note that states the victim couldn't work for a specific period. Talking to an experienced personal injury attorney may help victims evaluate all potential documents that could influence their case.
Loss of Earning Capacity
Loss of earning capacity may seem similar to lost wages, but it has a considerable difference.
Unlike lost wages, this legal term represents the reduction of the victim's ability to earn income because of the accident. Some accidents lead to temporary or permanent disability, for example, and this can impact their future employment prospects and earning potential.
A loss of earning capacity can be triggered because of many factors, such as physical injuries that limit a person's capabilities, mental impairments that affect performance, or disabilities that prevent the victim from even accessing certain employment types.
When filing a lawsuit, the victim may recover damages for all the potential future income they may lose.
An example of this factor is when an office worker suffers a severe hand injury that prevents them from performing their regular work duties in the future. Even if they recover and are able to perform lighter duties later, their earning capacity would still be affected. In these cases, they can talk to an attorney to file a case.
To summarize, lost wages focus on the person's actual income lost during a specific period. Loss of earning capacity, on the other hand, considers the potential income the person could have earned if they weren't injured.
Rental Car Bills
Some accidents lead to a considerable amount of vehicle damage, preventing the victim from driving while it gets fixed or replaced. This may affect the victim's life to some degree, as they would have to rely on other transportation methods, such as rental cars.
In some cases, it may be possible to negotiate settlement money to cover the expense that comes with renting a car.
Some auto insurance policies provide rental car coverage, so victims may want to look into that first.
Wrongful Death Damages
Wrongful death happens when the accident results in the victim's death. In these cases, surviving family members can file a lawsuit against the at-fault party.
These claims can compensate the victim's family for lost financial support, emotional pain, funeral expenses, and more.
Which Factors Are Considered When Calculating a Settlement?
In Iowa, there were 354 fatalities from crash-related incidents in 2024, an amount that is about 6.35% lower compared to 2023. The same report outlines that 127 of these fatalities involved urban vehicles, whereas 227 were because of rural ones.
While the number of fatalities is already worrying, it doesn't compare to the general crashes. In 2022, there were 53,644 total crashes.
Prevention is a must for all Iowa residents. Not only are car accidents traumatizing, but they also result in considerable expenses for all parties involved.
What happens if someone gets involved in an accident, though? Most insurance companies will jump in and offer settlement amounts that don't represent the full extent of pain and suffering the victim went through.
This is why it's important to understand how car accident settlements are calculated in Iowa. Below is a breakdown of all the factors that influence these decisions:
Who Was at Fault
One of the main deciding factors in calculating settlements is the amount of fault the parties have. Usually, liability is based upon negligence, meaning that victims have to prove the following if they want to get compensated:
The other driver owed them a "duty of care" to drive accordingly.
Said driver breached this duty, resulting in an accident where the victim got hurt.
The victim's injuries resulted in financial losses.
Unfortunately, not all car accident claims are straightforward. Some insurance companies will try to pin the blame on the victim, and if they're successful, that could affect their settlement.
Generally speaking, if the victim contributed in any way to the collision, their compensation will be reduced.
An example of shared fault is when the victim was speeding over the posted limit and got hit by someone who ran past a red light. Even if the accident was "technically" the other driver's fault, the victim still contributed to it by speeding.
Getting involved in car accidents usually leaves all parties involved confused. In other words, they may not recall the events in the way they actually happened. This is why it's so important to contact a professional attorney who can view the case objectively and come up with a plan to get the victim the most compensation possible based on what happened.
Type of Injury
All settlements are heavily influenced based on the type and severity of injury the victim gets. Mild and moderate injuries may result in lower compensation amounts, whereas serious ones could get the victim more money.
Does this mean that people with serious injuries are guaranteed a great settlement? Not necessarily. Insurance companies may still try to argue that the victim was at fault for what happened.
On average, however, major injury claims are valued higher compared to those with fewer damages. If the victim has enough evidence to back up their claims, they may have a better chance of fighting.
Insurance Company Policy Limits
Iowa drivers are required by law to carry auto insurance of at least $20,000 per person and $40,000 per accident for bodily injury liability. They're also required to carry $15,000 or more in property damage liability coverage.
What does this mean for victims? Essentially, not all insurers will have enough money to cover damages, as it mostly depends on the policy the drivers have. If the policy limits aren't enough to cover the damages, the victim should consult with an attorney to evaluate other potential avenues to pursue.
About Underinsured/Uninsured Motorist Coverage
In Iowa, all car insurance policies must include uninsured/underinsured motorist coverage. It covers bodily injuries, although it doesn't extend to property damage.
There's a difference between the two policies, though. Underinsured coverage is used when the at-fault driver's insurance isn't enough to cover the victim's damages. It helps to fill the gap between the victim's injuries and the other driver's policy limits.
Uninsured coverage, on the other hand, is used when the other driver doesn't have insurance at all.
Something important to note is that while insurers should include minimum uninsured/underinsured motorist coverage in their policies, this doesn't mean that these packages are required by law for drivers.
Drivers don't need to get underinsured/uninsured motorist coverage if they don't want to, although it's highly recommended. This will help them if they ever encounter uninsured drivers or people without enough insurance to cover all damages.
Location of the Court Venue
Some court venues may have a history of awarding big settlements to victims. In these cases, the insurance adjuster is more likely to offer a considerable sum in settlements to avoid getting the case to a jury.
While accepting certain settlement offers by insurers may be tempting, victims should always consult with an attorney first. This will give them a clearer idea of whether they're receiving a good offer or not.
Number of Claimants
Cases involving several victims are much trickier to handle. Even if the at-fault driver carries a considerable amount of liability coverage, it may not be enough to compensate everyone.
Punitive Damages
Punitive damages are awarded when a jury considers that the at-fault party acted with disregard for other people's safety and rights. They are meant to deter the defendant from acting in that way again.
In Iowa, there's no cap on punitive damages. This means that there's no legal limit to the amount of money the victim can get in these cases.
Is Iowa a "Fault" State for Car Insurance?
Iowa is a "tort" or "fault" state. This means that victims are legally allowed to seek compensation from the defendant's auto insurance company for their injuries. There are 38 "fault" states in the United States, and Iowa is one of them.
About Iowa's Modified Comparative Negligence Rule
The state works under a "modified comparative negligence" rule. It states that Iowa considers the fault of all parties involved in the accident when assigning liability.
What this means is that the victim's payout will be reduced if they are found partially at fault for what happened. On top of that, if they're found to be more than 51% at fault for the accident, they may not be able to recover damages.
How Long Do Victims Have to File an Iowa Car Accident Case?
People in Iowa generally have two years from the date of the accident to file their lawsuit. This period is called the "statute of limitations."
Once the two years pass, the victim may lose their ability to recover compensation through a lawsuit.
There are a few situations where the start date can change. As the "discovery rule" states, the statute of limitations doesn't start until the victim knows (or should have reasonably known) about their injury.
In property damage claims, on the other hand, victims usually have five years to file their lawsuit. However, it's recommended that victims address all aspects of their accident at once.
How Long Does the Average Car Accident Case Take to Settle?
It depends on the case. Some lawsuits take a few weeks to settle, whereas others don't get resolved until a few years have passed.
Some factors that affect the length of the case include its complexity, the severity of the injuries, and how fault was disputed.
Cases with minor injuries are more likely to get settled fast, whereas those with serious or even fatal consequences take longer.
Are People Legally Required to Report a Car Accident?
In Iowa, drivers must report car accidents to relevant law enforcement agencies if they result in a personal injury, death, or total property damage of $1,500 or more.
Drivers have 72 hours to report the accident. Otherwise, they may get their driving privileges suspended. They can go to the Iowa Department of Transportation to request a traffic crash document or file an accident report.
What Should People Do to Ensure Fair Compensation After an Accident?
Not many people know what to do after an accident. Staying calm and collected is often one of the toughest parts of the process, especially if there were serious injuries involved.
The most common steps to follow after getting involved in an accident include:
Seeking medical attention right away.
Remaining at the scene of the accident.
Calling the police and asking for a report.
Gathering as many details of the car accident as possible (witness statements, police reports, and contact information).
Documenting all expenses related to the accident.
Reporting the accident to the insurance companies.
Talking to an experienced car accident attorney who can create a plan to help the victim get fair compensation.
Bottom Line
Calculating settlement amounts doesn't sound so hard, but after taking all these potential factors into account, it makes sense that it's not possible to come up with an exact sum.
Navigating a car accident efficiently is one of the most important steps to ensure victims get the money they deserve for what happened. In these cases, talking to a professional will improve the odds.
At Tom Fowler Law, there's a team of experts ready to tackle personal injury cases in Des Moines, Iowa. Those interested in learning more can request a free consultation with the team today.
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