The Average Insurance Settlement for a Rear-End Collision

The Average Insurance Settlement for a Rear-End Collision
An average settlement for a rear-end collision usually includes only compensatory damages.

Average Compensatory Settlement

CarAccidentAttorneys.com estimates the average insurance settlement for a low-impact rear-end collision without severe injuries to be between $10,000 and $15,000. However, the average estimate only considers compensatory damages, such as medical expenses, lost income and car rentals during repairs, with the goal of restoring a victim to his pre-accident status.

Punitive Damage Awards

Settlements that include both compensatory and punitive damages can result in a settlement much higher than the average amount. CarAccidentAttorneys.com reports that although punitive awards -- which function to deter or punish the defendant -- account for less than 5 percent of all insurance settlements, amounts awarded for severe or fatal rear-end collisions can exceed $1 million.