Types of Damages in Personal Injury Cases

There are three main categories of personal injury damages: economic, non-economic, and punitive. 

Economic damages are quantifiable losses directly related to out-of-pocket money you have to spend due to the accident and your injuries. They include medical bills, lost wages, loss of earning capacity, and property damage. It’s important to know that you can get past, present, and future economic damages. 

Non-economic damages are less tangible losses that are not directly related to monetary loss. They include pain and suffering, emotional distress, loss of enjoyment of life, and loss of consortium. 

Punitive damages are awarded in limited circumstances to punish the wrongdoer for their harmful conduct and deter similar behavior in the future. 

Calculating Damages in Personal Injury Cases

The specific methods used to calculate damages vary depending on the type of damage and the specific facts of the case. Some general factors considered when valuing damages include the severity of the injury, the point of maximum medical improvement (including any permanent disability), the impact on the victim’s daily life, and the impact on current and future job prospects. 

Additionally, when making settlement offers, insurance companies typically use certain methods to calculate damages. Economic damages are typically paid at 100%. Common methods to calculate non-economic damages include: 

• Multiplier Method: This multiplies the sum of economic damages by a factor (typically between one and five) based on the injury's severity, pain duration, and impact on daily life.
• Per Diem Method: This assigns a daily dollar value to the pain and suffering based on the injury's severity and recovery time. The daily rate varies depending on factors like the claimant's profession and lifestyle.

These are just common methods used by insurance companies to evaluate how much they will offer in a personal injury settlement. Some insurance companies use a combination of these methods or they have a proprietary model. 

Other factors to consider when determining how much your claim is worth include policy limits and sharing of fault (often called “comparative negligence”). For example, if you have $300,000 in damages, but the at-fault individual only had an insurance policy worth $100,000, then you may not be able to get the full amount of your damages paid for by the insurance company. Instead, you may have to seek compensation from other at-fault individuals or your own insurance policy. 

Get the Maximum Personal Injury Compensation Possible

There are steps you can take to get the most amount of money possible after a personal injury accident. The most important action you can take is to hire a personal injury lawyer who will guide you through the process and protect your rights against the insurance companies that want to pay you as little as possible. Call Creed & Creed today at PHONE NUMBER for an initial consultation of your case.