Are you worried the insurance company won’t pay you enough to cover your medical bills and missed paychecks after an injury? You shouldn’t have to guess whether a settlement offer makes sense. A personal injury lawyer can review your records, add up your losses, and push for a number that reflects the full impact of your injury.
Understanding Injury Settlements
An injury settlement is a payment agreement between an injured person and the party responsible for their injury. Settlements allow both parties to resolve a personal injury claim without going to court. The person who got hurt agrees to accept a specific amount of money in exchange for dropping the case.
Settlement payments can cover things like medical bills, lost wages, and pain caused by the injury. Both sides review the facts and often work through lawyers or insurance companies to reach a fair number for the settlement payment. Once both sides agree, the case ends, and the injured person cannot ask for more money later for the same injury.
Types of Damages in Personal Injury Settlements
In a personal injury claim, damages are the money or other remedies a person receives to make up for what they lost due to the injury. The purpose of damages in court or settlement awards is to help the injured person fix the harm they suffered as a result of someone else’s wrongdoing.
Most personal injury settlements include two main types of damages: economic and non-economic. Some cases also involve punitive damages. Below is an overview of these different types of damages.
Economic Damages
Economic damages are direct payments for things that cost money. These damages cover measurable losses you can quantify with bills, receipts, or records. They can compensate you for things like:
- Medical Expenses: The costs of doctor’s visits, hospital stays, medications, surgeries, rehab, and any other medical care related to the injury
- Lost Income: Any income a person cannot earn, now or in the future, if they are forced to miss work or give up their career because of their injury
- Other Costs: Out-of-pocket expenses for things like transportation to medical appointments, help with household tasks, or equipment like crutches or wheelchairs
Non-Economic Damages
Non-economic damages cover losses that you can’t measure with receipts or bills. These damages make up for the personal impact of an injury. They include compensation for:
- Pain and Suffering: Physical pain and emotional distress caused by the injury
- Lost Quality of Life: Loss of the ability to participate in hobbies, sports, or time with family
- Emotional Distress: The mental strain or trauma caused by the injury
Punitive Damages
Punitive damages are not intended to compensate the injured person for anything they lost. Instead, courts award these damages to punish the party that caused the injury. Punitive damage awards are rare—courts only order them in cases involving at-fault parties who acted on purpose or with extreme carelessness. For example, a court might award punitive damages in a case involving a drunk driver or dangerous conduct that showed complete disregard for others’ safety.
Note that punitive damages are not part of settlements. Only a court may impose punitive damages.
Factors Influencing Injury Settlement Amounts
Every personal injury case is different, and several factors can affect how much money you can get for your claim, including:
- Injury Severity: More serious injuries often lead to larger settlements because they require more treatment and affect your life in a bigger way.
- Medical Expenses: Doctors’ visits, surgeries, therapy, and prescriptions add up. Higher medical bills usually lead to larger settlement amounts.
- Income Losses: If your injury causes you to miss work for a long time, you could be entitled to more money for lost wages.
- Long-Term Effects: Injuries that cause lasting pain or reduce your ability to work or enjoy life often result in higher payments.
- Evidence Quality: If you can present evidence that clearly shows the other party caused you harm, it usually leads to a better settlement offer.
- Insurance Limits: Sometimes, the most you can recover depends on how much insurance coverage the other party has, even if your losses exceed their policy limits.
Methods Used to Calculate Settlement Values
When you’re determining how much to ask for in a settlement, you can usually calculate economic damages simply by adding up your actual expenses. This includes medical bills, lost income, and any out-of-pocket costs related to the injury.
Calculating non-economic damages is trickier because there’s no easy way to quantify the cost of things like pain and suffering. People often use one of two methods to reach a fair amount:
- The multiplier method involves adding up all your economic damages, then multiplying that total by a number (usually between 1.5 and 5) based on how serious your injury is. The more pain and disruption your injury causes, the higher the multiplier.
- The per diem method involves assigning a dollar amount to each day you live with the pain or discomfort of your injuries. This dollar amount is often based on how much you would earn per day at your job. Then, you multiply that amount by the number of days it takes you to recover.
Each method works better in different situations. A personal injury attorney can look at your case and decide which one makes the most sense.
The Role of Insurance Companies in Settlements
Insurance companies handle most personal injury settlements because many injury accidents are covered by some type of insurance policy. For example, car crashes, slip-and-falls, and other common injury cases often fall under auto, homeowners, or business insurance policies.
After someone files a claim, the insurance company reviews the facts and decides how much to offer. Insurance adjusters try to settle for the lowest amount they think the injured person will accept because that’s better for the insurance company’s bottom line.
This is why it’s so important to work with a lawyer for your injury claim, even if you don’t plan to go to court. An attorney can identify and push back against low settlement offers, present strong evidence, and demand a fair payout on your behalf.
Contact Dr Ted Injury Law Today
Still need help figuring out what your injury claim might be worth? Dr Ted Injury Law can walk you through your options and give you the clear answers you need to make informed decisions. Our team will look at your case, explain your rights, and help you plan out your next steps. Contact us now to get started with your free consultation session.
