When someone’s injured due to another party’s negligence, they often have the right to pursue a personal injury claim.
Settling such claims out of court is common, and the settlement amount reflects compensation for the victim’s physical, emotional, and financial losses. But how exactly is this amount determined?
Various factors influence personal injury settlement calculations, and understanding these can help claimants navigate the process with confidence.
Damages and Personal Injury Settlements
The basis of any personal injury claim is dependent on the concept of damages. These are the injuries and losses that the victim has suffered as a direct result of the incident. Damages typically fall into two primary categories: economic and non-economic.
Each category contributes to the overall settlement value, often with significant variability depending on the case.
Economic Damages
Economic damages are those tangible, measurable costs or losses that you’ve suffered due to your injury.
These can include:
- Medical Expenses: These are all past, current, and potential future medical costs relating to your injury. These expenses can range from things like emergency room visits and surgery to physical therapy treatments and the cost of prescription medications.
- Lost Wages: If your injury has prevented you from working or reduced the hours you’re able to work, you can also seek compensation for lost income. This may also include loss of future earning capacity if the injury causes long-term or permanent disability.
- Property Damage: In incidents like car crashes, the costs of repairing or replacing your damaged property can also be sought.
- Other Out-of-Pocket Expenses: This could include expenses like transportation costs for medical visits or hiring in-home assistance for household tasks you can no longer perform.
Non-Economic Damages
Non-economic damages are usually more subjective or intangible losses.
These can include:
- Pain and Suffering: This reflects the physical pain endured due to the injury.
- Emotional Distress: Anxiety, depression, or trauma resulting from the incident may be compensated.
- Loss of Enjoyment of Life: If the injury prevents someone from enjoying hobbies or daily activities, this factor may apply.
- Loss of Consortium: When the injury impacts relationships, such as a spouse’s companionship or support, this can also influence the settlement.
Liability
Liability plays a critical role in determining settlement amounts. For your claim to succeed, you (or your attorney) will have to prove that the other party’s negligence caused your injury. If liability is clear, the settlement is likely to be higher.
However, if there’s shared fault, the settlement amount may be reduced.
In states that follow pure comparative negligence laws, like Kentucky’s Statute 411.182, the injured party’s compensation may be reduced by their percentage of fault. For example, if it’s deemed that you’re 20% at fault for a car accident, your settlement amount will decrease by that same percentage.
Understanding how liability is determined and applying state-specific laws is vital.
Severity and Impact of the Injury
Settlement amounts are typically affected by the extent and severity of the injuries and losses suffered.
Severe injuries resulting in long-term or permanent consequences, like paralysis or traumatic brain injuries, will often result in higher settlements. The reasoning is simple: more severe injuries typically involve greater medical costs, longer recovery times, and a larger impact on the victim’s quality of life.
For instance, someone with a broken leg from a slip and fall accident may receive a lower settlement than someone who suffers a spinal cord injury that leads to permanent disability. Insurance companies and their adjusters and attorneys will examine your medical records and seek expert opinions to assess the injury’s impact on your life.
Your attorney will do the same.
Insurance Coverage
Insurance policies play a pivotal role in settlement amounts, as the at-fault party’s insurance coverage will often have a cap on how much can be recovered.
For instance, if a driver responsible for your car accident has a policy limit of $50,000, it may be difficult to recover more than that amount, even if your damages exceed it. In a case like this, you might need to explore other options, like suing the individual personally or using their underinsured motorist coverage.
Evidence and Documentation
A well-documented claim typically results in a higher settlement offer.
Evidence like medical records, police reports, photographs, eyewitness statements, and expert testimony strengthens your case. The more compelling the evidence, the harder it becomes for the at-fault party to dispute your claim, often leading to a settlement in your favor.
Negotiations
Settlement amounts are rarely determined in a single step. Negotiation plays a key role in the process.
Both parties—the injured party (you and your attorney) and the at-fault party’s insurance company—participate in a discussion in an attempt to reach a fair compensation amount.
The initial offer from insurers may be lower than the value of your losses, as they often try to minimize payouts. This is another reason why having experienced legal representation can make a major difference in ensuring that you get appropriate compensation.
The Importance of Legal Representation
Finally, the expertise of a personal injury attorney can greatly impact the settlement amount.
Attorneys understand the subtleties of personal injury law and how to calculate your total damages precisely. They’ll handle all negotiations, making sure that your rights are protected. Victims who hire legal representation often recover higher settlements than those who try to navigate the process on their own.
Personal injury settlement amounts are determined by several factors, including the type and extent of damages, liability, insurance coverage, and the strength of evidence. Understanding these elements can help you and your family get through the settlement process more effectively.
By working with an experienced attorney and ensuring thorough documentation, you can seek compensation that reflects the true impact of your injuries.
At McCoy & Hiestand, PLC, we call that justice.
