how-personal-injury-compensation-calculated

If you’ve been injured in an accident and are considering filing a claim, you may be wondering how personal injury compensation is calculated. The amount of compensation you can receive for your injuries depends on several factors, ranging from the severity of your injuries to the impact on your daily life.

Let’s break down the process of how personal injury compensation is determined, what influences the calculation, and what you can expect from your injury claim.

What’s an Injury Claim?

Before we answer the question of how is personal injury calculated, let’s first understand the meaning of the phrase injury claim. An injury claim is a legal process through which a person seeks compensation for injuries caused by the negligence or wrongdoing of another party. This claim may be pursued through an insurance company or, if necessary, through a personal injury lawsuit.

When you file a personal injury claim, the compensation you receive is intended to cover the physical, emotional, and financial toll that the injury has taken on your life. The goal is to restore you, as much as possible, to the position you were in before the accident. In most personal injury claims, compensation is based on both economic and non-economic factors.

Factors Influencing Personal Injury Compensation

The calculation of personal injury compensation varies based on several key factors. These elements help determine the severity of the injury, its impact on your life, and the financial losses you’ve suffered. Below are the main factors that are considered in the process of calculating your compensation.

Medical Expenses

One of the primary components of personal injury compensation is medical expenses. These costs can be both current and future, depending on the nature of the injury. This category includes:

  • Emergency Room Visits: Costs associated with the immediate treatment you received after the accident.
  • Hospital Stays: If you require overnight or extended care, these expenses are included in the total compensation.
  • Surgeries and Medical Procedures: The cost of any surgeries, physical therapy, or medical treatments that are necessary for your recovery.
  • Prescription Medications: Ongoing medications to manage pain or other conditions resulting from the injury.
  • Rehabilitation and Therapy: Physical, occupational, or psychological therapy may be required for long-term recovery, especially for severe injuries.

The more significant the injury, the higher the medical costs will be. If your injury requires long-term care or rehabilitation, this will significantly increase the compensation amount needed to cover these expenses.

Lost Wages and Future Earnings

Another important factor in calculating personal injury compensation is the loss of income due to the injury. If your injury prevents you from working, you are entitled to compensation for the wages you lost during your recovery period. In addition to lost wages, your compensation may also account for future earnings if the injury has resulted in a permanent disability that prevents you from returning to work in the same capacity.

Pain and Suffering

While medical bills and lost wages are straightforward to calculate, pain and suffering can be more subjective. Pain and suffering refers to the physical and emotional distress caused by your injury. This can include:

  • Physical Pain: The ongoing pain you endure from your injury, such as chronic back pain or the pain from a broken bone.
  • Emotional Distress: Anxiety, depression, or PTSD resulting from the accident and the life-altering effects of your injury.
  • Loss of Enjoyment of Life: If your injury affects your ability to participate in everyday activities, hobbies, or social interactions, you may be compensated for the reduction in quality of life.

Unlike medical expenses and lost wages, which can be quantified, pain and suffering is often calculated based on a multiplier method. This involves multiplying the total of your medical bills and lost wages by a certain factor, typically ranging from 1.5 to 5, depending on the severity of the injury. The more severe the injury, the higher the multiplier.

Property Damage

If your car or other property was damaged in the accident, the cost of repairing or replacing that property is also factored into your compensation. In car accidents, property damage typically includes the cost to repair or replace your vehicle, as well as any personal property (such as electronics, clothing, or personal items) that may have been damaged in the crash.

In the event your vehicle is totaled, compensation will cover the cost of replacing the car with a similar model. In cases of partial damage, the compensation will cover the repairs necessary to restore the vehicle to its pre-accident condition.

Degree of Fault

In many cases, how personal injury compensation is calculated also depends on the degree of fault each party shares in the accident. In some states, comparative negligence laws are used, which means that your compensation may be reduced based on the percentage of fault you hold in the accident. For example, if you were found to be 20% at fault for the accident, your compensation would be reduced by 20%.

In contrast, states with contributory negligence laws may prevent you from receiving compensation altogether if you are found to be even partially at fault. This is why it’s essential to work with a skilled Wesley Chapel personal injury lawyer who can help establish liability and ensure that you receive fair compensation.

Insurance Coverage

The insurance coverage available to both you and the at-fault party also plays a significant role in determining your compensation. If the other party has liability insurance, their insurer will typically cover your damages. However, the amount of compensation you can receive will be limited by the policy’s coverage limits.

In cases where the at-fault driver is underinsured or uninsured, you may need to turn to your own insurance policy, if it includes coverage for underinsured or uninsured motorists. This highlights the importance of reviewing your insurance coverage and ensuring you are adequately protected in case of an accident.

The Insurance Claims Process

After an accident, most personal injury compensation is pursued through insurance claims, either with the at-fault party’s insurer or your own. The process of filing a claim and negotiating a settlement can be complex, and understanding how it works is important to ensure you receive fair compensation.

Filing the Claim

Once the accident occurs, the first step in securing compensation is to file a claim with the insurance company. If the other party is at fault, you would generally file the claim with their insurance provider. If they are underinsured or uninsured, you may need to file a claim with your own insurance company under your uninsured/underinsured motorist coverage.

The insurer will review the details of the accident, including police reports, witness statements, and medical records, to assess the validity of your claim and determine the amount of compensation you are entitled to receive. It is imperative to keep detailed records of all medical treatments, lost wages, and other expenses related to your injury.

The Role of the Insurance Adjuster

An insurance adjuster is responsible for evaluating the facts of the case, estimating the value of the claim, and negotiating a settlement. The adjuster’s goal is typically to minimize the amount of money the insurance company will pay out. This is why many insurance companies will offer a low initial settlement amount in the hopes that the injured party will accept it quickly.

While the adjuster is focused on minimizing costs for the insurance company, your focus should be on securing compensation that truly reflects your losses. At this stage, having an experienced personal injury lawyer can significantly improve your chances of obtaining a fair settlement. Our team at The Law Offices of Matthew J. Jowanna, P.A. can work alongside you to ensure that the insurance company doesn’t undervalue your claim.

Negotiating a Fair Settlement

The process of negotiating a settlement can be lengthy, and it is not uncommon for initial offers to be much lower than the actual value of your claim. Negotiation typically involves presenting a detailed breakdown of your medical expenses, lost wages, pain and suffering, and any other related costs. If the insurance company refuses to offer an acceptable settlement, your lawyer can take steps to escalate the matter, including filing a lawsuit if necessary.

What Happens If the Insurance Settlement Is Insufficient?

If the insurance company is unwilling to offer a fair settlement, or if you are unable to reach a mutually acceptable agreement, the next step may involve litigation. This means that the case will be taken to court where a judge or jury will determine the amount of compensation you are entitled to receive.

The litigation process can be time-consuming and costly, but it is sometimes the only way to secure fair compensation for your injuries. However, many cases are resolved before they reach trial, as both parties typically prefer to settle out of court to avoid the expenses and uncertainties of litigation.

How a Personal Injury Lawyer Maximizes Compensation

One of the most important ways a personal injury lawyer helps is by ensuring that all aspects of your injury are considered in the compensation calculation. Experienced attorneys understand how to assess the full extent of damages and negotiate effectively with insurance companies.

Evaluating the Full Extent of Your Damages

At The Law Offices of Matthew J. Jowanna, P.A., we understand that compensation isn’t just about covering medical bills and lost wages. We ensure that all areas of your life affected by the injury are included in the claim.

Maximizing the Settlement Offer

A personal injury lawyer is also skilled at negotiating higher settlements. By presenting a comprehensive case that includes all damages, an attorney can pressure the insurance company to offer a higher payout. Additionally, a lawyer can advise you when to accept an offer and when to hold out for more.

It’s important to note that once you accept a settlement, you waive your right to seek further compensation. Therefore, it’s essential to ensure that the settlement adequately covers your current and future needs before agreeing to any offer.

Your Path to Justice Starts Here

If you’ve been injured in an accident and are seeking compensation, it’s important to understand how personal injury compensation is calculated and the steps involved in securing a fair settlement. The process can be complicated, and insurance companies often aim to settle for the lowest amount possible. With the help of a knowledgeable attorney, you can ensure that your compensation reflects the full extent of your injuries.

Contact The Law Offices of Matthew J. Jowanna, P.A. for a free consultation. Our experienced team of lawyers is here to guide you through the claims process and fight for the compensation you deserve. Let us help you get back on your feet and recover what you’re owed.