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How is Compensation Calculated in a Personal Injury Claim?
If you are hurt in an accident, you will have to decide how much money you believe you are owed. This usually occurs right after your injury, when an insurance company attempts to negotiate a settlement with you.
If no insurance is involved or if you can’t settle out of court, you’ll have to make this determination before filing your lawsuit, so you know what type of case to file.
Factors Affecting the Amount of a Personal Injury Claim
A personal injury compensation amount is way more than the total amount of your property damages, lost wages, and medical expenses. When computing how much your claim is worth, the insurance company must consider an assortment of factors to determine a fair value:
- The total price of your surgeries, hospital bills, medical treatment, physical therapy, rehabilitation, out-of-pocket expenses, and anything else associated with examining. treating, and recuperating from your injuries
- Replacing and repairing your damaged property
- If your vehicle is damaged, it’s crucial to assess the value of your vehicle and its condition when the collision occurred, the mileage, and other significant factors
- The number of days or weeks you missed from work due to your injuries
- How your injuries affected your ability to work
- The extent of daily life disruptions
- Whether the accident or injury caused any emotional or mental distress
- The recovery timeline
- Whether the expectancy is a full recovery
- The potency of your legal arguments and the availability of evidence to support your injury claim.
Liability
Typically, the person responsible for the injury (or the insurance company of the at-fault party) is liable for compensating the injured party for all costs related to their injury, as well as reimbursing the injured person for any suffering, emotional damage, or pain they faced because of the accident.
You will probably need to know how personal injury claim compensation is calculated when you have a legitimate accident compensation claim. Normally, an injury compensation payment is the financial support that a person with an accident injury gets to rebuild their life where they were if the accident hadn’t occurred.
When there is a personal injury lawsuit filed, there isn’t a set method for calculating personal injury compensation because of the distinct nature of every case. The structure of every case will differ, and the compensation may vary extensively based on several factors. To help you argue your case accurately and optimize any compensation due to pain and suffering, you should always speak with an experienced Denver personal injury attorney.
Injuries
The seriousness of your injuries will establish how much money you can claim. For instance, an injury that involves amputation will necessitate higher compensation than just a scratch.
Permanent Injuries
Permanent injuries lead to long-term disabilities. They include:
- Brain tumors
- Vision loss
- Paralysis
- Amputation
- Spinal cord damage
If your permanent injury is due to someone’s neglect, the court may not use a regular multiplier since it won’t be enough. Instead, you’ll get compensation based on the amount associated with the particular injury. However, a skilled personal injury lawyer will also factor in the financial wellness of the party at fault to come to a practical and fair payment.
Temporary Injuries
Temporary injuries last just a couple of weeks or months. A common temporary injury is whiplash. Whiplash is a sharp whipping of the neck or head that usually happens when vehicles crash.
The sum you can get for a temporary injury claim is contingent on a few factors such as:
- Whether there is an old injury at work or not
- Your occupation
- Your age
- How long your symptoms last
The per diem method is typically used in cases where the extent of your pain and suffering may be correctly determined, such as in cases of temporary injuries.
The per diem method entails giving a daily rate to your pain and suffering and multiplying it by the number of days you’ve suffered because of your injuries.
Lost Wages
Lost wages signify the sum of money you would have earned if you hadn’t gotten hurt. For instance, if you were off from work for seven days, your lost wages would equal one week’s pay. Lost wages could also include tips, bonuses, and overtime missed because of your injuries.
Your lawyer will calculate the time off from work and estimate your payment based on your preceding earning history to compute lost wages. For a permanent disability that could possibly keep you off work forever, a lawyer will look to get you compensated for your condition.
Medical Damages
Estimating your claim begins with computing your medical damages which are your charges for receiving medical care for your personal injury.
You are entitled to total compensation for medical damages. This includes:
- Doctor visits
- Ambulances
- Medications
- X-rays
When determining the total of your medical damages for negotiation purposes, insurance companies and lawyers will use the amount charged even if some medical bills were covered by insurance. Sometimes the insurance company and medical provider agree on a lower amount.
The medical damages amount is being used to decide the seriousness of the injury, so it makes sense to use the billed amounts for medical treatment. You must be very accurate when deciding the amount of medical damages for compensation in a lawsuit.
Besides emergency room treatment, it is vital to factor in follow-up appointments or treatments with your doctor, physical therapy, and the costs of equipment to assist you with movement like braces, crutches, and wheelchairs. If you get mental health therapy, you may include those amounts as well.
Punitive Damages
In some cases, you can get punitive damages. Punitive damages are to penalize individuals for highly negligent behavior. For instance, if the at-fault person did a specific action knowing that it was probably going to cause injuries, you could get awarded punitive damages.
The objective of punitive damages is to penalize bad individuals and encourage people and organizations to think twice before they perform actions that will possibly harm others. If you feel they may apply in your personal injury case, you should ask a knowledgeable lawyer to assess your claim and make the request.
Special Damages
Special damages are usually simple to calculate. These include:
- The price to replace or repair damaged property
- Vacation or sick time used to recover from your injuries
- Lost wages
- Out-of-pocket costs you incurred because of the accident
You could also get compensated for future earnings if your injuries stop you from advancing to a higher position or make you get demoted to a lower-paying position. You are entitled to complete reimbursement for your actual expenses. Therefore, be sure to record every expenditure.
General Damages
Once you’ve computed these amounts, you are prepared to determine the amount of your general damages. General damages, also known as pain and suffering, are supposed to reimburse you for non-monetary injuries.
For many types of cases, there isn’t a law that controls the amount of general damages you may receive in a personal injury case. Instead, this sum is based on an array of factors including:
- The seriousness and nature of your injury
- The length of recovery
- The pain level you’re living with
- The interruption of your life
Many of these are rather subjective, which could make it hard to come up with a compensation amount.
Collecting Evidence
To better your case for getting the total value of your personal injury claim, you should begin by recording your expenses. Even if a detail is fresh in your mind today, it may be difficult to remember a few months from now. As medical bills are coming in rapidly, they could start to stress you. Using a spreadsheet is an excellent way to keep all the much-needed information in one spot.
Lump Sum vs. Structured Settlements
If your case goes to court, personal injury cases pay plaintiffs in a lump sum payment or a structured settlement plan.
Lump Sum
A lump sum means getting the whole compensation amount all at one time. This choice offers fast access to the total amount of money awarded in the settlement, which could be mostly beneficial if you have pressing financial needs.
Structured Settlements
Structured settlements offer compensation in regular payments over a scheduled period. These payments could be modified to fulfill ongoing needs, offering a steady income stream to assist with budgeting and life-long financial planning. Additionally, structured settlements have possible tax benefits since payments received over time keep their tax-exempt status on personal injury compensation.
Structured settlements might involve postponing getting the full amount of your settlement, which could be an issue if you need your money right away.
An Experienced Attorney Can Help Calculate Your Personal Injury Claim
For these reasons, it’s critical to partner with a skilled Denver personal injury attorney. At Lampert and Walsh, our legal team will help compute your personal injury claim completely and accurately to make sure you get the compensation you deserve. Contact us today for a free consultation.
If you are hurt in an accident, you will have to decide how much money you believe you are owed. This usually occurs right after your injury, when an insurance company attempts to negotiate a settlement with you.
If no insurance is involved or if you can’t settle out of court, you’ll have to make this determination before filing your lawsuit, so you know what type of case to file.
Factors Affecting the Amount of a Personal Injury Claim
A personal injury compensation amount is way more than the total amount of your property damages, lost wages, and medical expenses. When computing how much your claim is worth, the insurance company must consider an assortment of factors to determine a fair value:
- The total price of your surgeries, hospital bills, medical treatment, physical therapy, rehabilitation, out-of-pocket expenses, and anything else associated with examining. treating, and recuperating from your injuries
- Replacing and repairing your damaged property
- If your vehicle is damaged, it’s crucial to assess the value of your vehicle and its condition when the collision occurred, the mileage, and other significant factors
- The number of days or weeks you missed from work due to your injuries
- How your injuries affected your ability to work
- The extent of daily life disruptions
- Whether the accident or injury caused any emotional or mental distress
- The recovery timeline
- Whether the expectancy is a full recovery
- The potency of your legal arguments and the availability of evidence to support your injury claim.
Liability
Typically, the person responsible for the injury (or the insurance company of the at-fault party) is liable for compensating the injured party for all costs related to their injury, as well as reimbursing the injured person for any suffering, emotional damage, or pain they faced because of the accident.
You will probably need to know how personal injury claim compensation is calculated when you have a legitimate accident compensation claim. Normally, an injury compensation payment is the financial support that a person with an accident injury gets to rebuild their life where they were if the accident hadn’t occurred.
When there is a personal injury lawsuit filed, there isn’t a set method for calculating personal injury compensation because of the distinct nature of every case. The structure of every case will differ, and the compensation may vary extensively based on several factors. To help you argue your case accurately and optimize any compensation due to pain and suffering, you should always speak with an experienced Denver personal injury attorney.
Injuries
The seriousness of your injuries will establish how much money you can claim. For instance, an injury that involves amputation will necessitate higher compensation than just a scratch.
Permanent Injuries
Permanent injuries lead to long-term disabilities. They include:
- Brain tumors
- Vision loss
- Paralysis
- Amputation
- Spinal cord damage
If your permanent injury is due to someone’s neglect, the court may not use a regular multiplier since it won’t be enough. Instead, you’ll get compensation based on the amount associated with the particular injury. However, a skilled personal injury lawyer will also factor in the financial wellness of the party at fault to come to a practical and fair payment.
Temporary Injuries
Temporary injuries last just a couple of weeks or months. A common temporary injury is whiplash. Whiplash is a sharp whipping of the neck or head that usually happens when vehicles crash.
The sum you can get for a temporary injury claim is contingent on a few factors such as:
- Whether there is an old injury at work or not
- Your occupation
- Your age
- How long your symptoms last
The per diem method is typically used in cases where the extent of your pain and suffering may be correctly determined, such as in cases of temporary injuries.
The per diem method entails giving a daily rate to your pain and suffering and multiplying it by the number of days you’ve suffered because of your injuries.
Lost Wages
Lost wages signify the sum of money you would have earned if you hadn’t gotten hurt. For instance, if you were off from work for seven days, your lost wages would equal one week’s pay. Lost wages could also include tips, bonuses, and overtime missed because of your injuries.
Your lawyer will calculate the time off from work and estimate your payment based on your preceding earning history to compute lost wages. For a permanent disability that could possibly keep you off work forever, a lawyer will look to get you compensated for your condition.
Medical Damages
Estimating your claim begins with computing your medical damages which are your charges for receiving medical care for your personal injury.
You are entitled to total compensation for medical damages. This includes:
- Doctor visits
- Ambulances
- Medications
- X-rays
When determining the total of your medical damages for negotiation purposes, insurance companies and lawyers will use the amount charged even if some medical bills were covered by insurance. Sometimes the insurance company and medical provider agree on a lower amount.
The medical damages amount is being used to decide the seriousness of the injury, so it makes sense to use the billed amounts for medical treatment. You must be very accurate when deciding the amount of medical damages for compensation in a lawsuit.
Besides emergency room treatment, it is vital to factor in follow-up appointments or treatments with your doctor, physical therapy, and the costs of equipment to assist you with movement like braces, crutches, and wheelchairs. If you get mental health therapy, you may include those amounts as well.
Punitive Damages
In some cases, you can get punitive damages. Punitive damages are to penalize individuals for highly negligent behavior. For instance, if the at-fault person did a specific action knowing that it was probably going to cause injuries, you could get awarded punitive damages.
The objective of punitive damages is to penalize bad individuals and encourage people and organizations to think twice before they perform actions that will possibly harm others. If you feel they may apply in your personal injury case, you should ask a knowledgeable lawyer to assess your claim and make the request.
Special Damages
Special damages are usually simple to calculate. These include:
- The price to replace or repair damaged property
- Vacation or sick time used to recover from your injuries
- Lost wages
- Out-of-pocket costs you incurred because of the accident
You could also get compensated for future earnings if your injuries stop you from advancing to a higher position or make you get demoted to a lower-paying position. You are entitled to complete reimbursement for your actual expenses. Therefore, be sure to record every expenditure.
General Damages
Once you’ve computed these amounts, you are prepared to determine the amount of your general damages. General damages, also known as pain and suffering, are supposed to reimburse you for non-monetary injuries.
For many types of cases, there isn’t a law that controls the amount of general damages you may receive in a personal injury case. Instead, this sum is based on an array of factors including:
- The seriousness and nature of your injury
- The length of recovery
- The pain level you’re living with
- The interruption of your life
Many of these are rather subjective, which could make it hard to come up with a compensation amount.
Collecting Evidence
To better your case for getting the total value of your personal injury claim, you should begin by recording your expenses. Even if a detail is fresh in your mind today, it may be difficult to remember a few months from now. As medical bills are coming in rapidly, they could start to stress you. Using a spreadsheet is an excellent way to keep all the much-needed information in one spot.
Lump Sum vs. Structured Settlements
If your case goes to court, personal injury cases pay plaintiffs in a lump sum payment or a structured settlement plan.
Lump Sum
A lump sum means getting the whole compensation amount all at one time. This choice offers fast access to the total amount of money awarded in the settlement, which could be mostly beneficial if you have pressing financial needs.
Structured Settlements
Structured settlements offer compensation in regular payments over a scheduled period. These payments could be modified to fulfill ongoing needs, offering a steady income stream to assist with budgeting and life-long financial planning. Additionally, structured settlements have possible tax benefits since payments received over time keep their tax-exempt status on personal injury compensation.
Structured settlements might involve postponing getting the full amount of your settlement, which could be an issue if you need your money right away.
An Experienced Attorney Can Help Calculate Your Personal Injury Claim
For these reasons, it’s critical to partner with a skilled Denver personal injury attorney. At Lampert and Walsh, our legal team will help compute your personal injury claim completely and accurately to make sure you get the compensation you deserve. Contact us today for a free consultation.