How Are Personal Injury Settlements Calculated?

Today, we’re diving into the details, including how to file a personal injury claim, how personal injury settlements are calculated, and what to expect from your Nevada personal injury settlement.

To learn more about the specifics of your case, get in touch to schedule your free case consultation today. You’ll speak with an experienced Las Vegas injury lawyer who can help you understand your legal rights and options.

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Core Components of a Personal Injury Settlement

Personal injury compensation is provided when an individual sues a responsible party for causing an accident, whether it is an indirect or direct cause. By suing the responsible individual, the victim is asserting that there was a duty or responsibility to protect their safety that was not fulfilled.

Understanding Damages

When suing a negligent party, victims like you can seek personal injury compensation in an injury settlement known as compensatory damages. These special damages can be broken down into economic damages (also known as special damages), and non-economic damages. These are damages designed to compensate or make you whole after an accident.

Economic damages compensate you for calculable losses you’ve endured after an accident. This might include medical bills, property damage, and other losses. Non-economic damages, on the other hand, refer to non-calculable, intangible losses, like pain and suffering or disfigurement.

Determining Negligence

Personal injury includes many different kinds of accidents. Victims may receive compensation for everything from slip-and-fall accidents to car accidents. Personal injury accidents can also include medical malpractice or product liability, and provide compensation for injuries, as well as pain and suffering damages.

To receive compensation for a personal injury case, the victim must prove that the responsible individual was negligent or malicious, and caused an unsafe environment or accident. They must also prove that the accident or unsafe environment directly led to the injuries.

If the victim successfully proves that the accident was the fault of the other individual, they can receive compensation from the at-fault individual’s insurance provider.

What Is the Average Settlement for a Personal Injury Case?

What is the average payout for a personal injury claim? Well, it varies from case to case. You must prove that the responsible party’s actions resulted in your damages, then claim those damages for compensation.

Overall, average personal injury cases settle anywhere from $3,000 to $75,000. As you can see, personal injury settlement amounts range greatly. The only way to ensure you include all qualifying damages in your claim is to work with an experienced personal injury attorney who will maximize your compensation.

The Personal Injury Settlement Process Timeline

If you’ve been injured, you probably want your money right away. Medical bills add up quickly, and if you’re forced to take time off work, you’re likely not getting a paycheck. Unfortunately, receiving a personal injury settlement can take time.

Initial Investigation and Gathering Evidence

The time before you receive your settlement depends on your unique circumstances. First, you must gather evidence against the individual you believe is responsible for your accident. This can include photos of the accident area and witness statements.

Calculating Damages 

Next, you and your personal injury attorney will need to calculate damages. Your legal team will assess economic and non-economic damages based on the evidence gathered. A personal injury settlement calculator may be used to determine non-economic damages, those difficult to calculate losses, like pain and suffering, emotional distress, or disfigurement. Economic damages are easier to calculate, as they consist of medical expenses, lost income, property loss, and other quantifiable losses.

Sending a Demand Letter 

The next step is typically sending a demand letter. This is a formal written request acknowledging the defendant’s obligation to provide compensation due to injuries sustained from their negligence. The demand letter is sent to the insurance company and usually initiates negotiations.

Negotiation Phase

The negotiation process can involve weeks of back and forth until an agreement is reached on the settlement amount. This can take longer if there are complicated requests or high monetary amounts being discussed. Once an amount is agreed upon, documents must still be signed and processes completed. After finalization, it can take about four more weeks to receive your compensation.

Litigation

If a settlement isn’t reached, your personal injury lawsuit will go to court. However, most cases result in a settlement because insurers prefer to avoid prolonged legal processes and additional court fees.

An experienced attorney, like our personal injury lawyers, is ready to represent you in court. We have detailed knowledge of the local court system and can defend your case before a judge or jury.

Key Factors That Influence Personal Injury Settlement Amounts

Certain factors can influence the amount you receive from a personal injury settlement. Generally, the more serious the injury, and the more types of damages, the higher the compensation. Let’s examine the key factors that can help secure a higher settlement.

1. Severity of Injuries 

The severity of your injuries is a major factor in your settlement payout. Minor injuries, like bruising, scarring, or broken bones that heal over time may not cause life altering consequences but still require medical attention and compensation for costs and lost wages.

On the other hand, catastrophic injuries typically yield higher settlements. These include irreversible harm, like spinal fractures causing paralysis, traumatic brain injuries impairing cognition, or disfigurement permanently altering your quality of life. The more severe your injury, the higher your injury claims and potential bodily injury settlement.

2. Medical Treatment and Prognosis 

If you need ongoing medical treatment, this will impact your settlement. For example, ongoing medical treatment, like physical therapy and accumulating medical expenses, can strengthen your claim. In extreme cases, catastrophic injuries may require lifelong assisted living support. The cost of ongoing and future medical treatment bolsters your legal claim. Because of this, it’s critical to seek consistent medical care immediately after an injury.

3. Clear Evidence and Documentation 

Clear evidence and documentation are critical to strengthening your personal injury lawsuit. Key evidence includes accident reports, photos, videos, witness statements, medical records, bills, and receipts highlighting your losses. This evidence can also prove that your injuries resulted from the defendant’s negligence.

4. Comparative Negligence 

A Nevada personal injury settlement considers comparative negligence. Under Nevada’s modified comparative negligence rule, a plaintiff can recover damages if they were less than 50% at fault. 

If partially at fault, your compensation is reduced by your percentage of fault. For example, if awarded $100,000 but found 10% at fault, you’d receive $90,000.

5. Insurance Policy Limits

Under Nevada law, the at fault party’s insurance policy limits can cap the maximum settlement amount. This may reduce what you can recover in your settlement. Having uninsured/underinsured motorist coverage can help if you’re in an accident with an underinsured driver.

6. Jurisdiction and Legal Precedent 

Where your accident occurred may impact your case. Nevada has specific laws, and local courts set different precedents as well. This is why it’s important to have an experienced personal injury attorney who understands your jurisdiction’s regulations.

What Are the Processes, and How Are Settlements Calculated?

The above factors are just part of determining your settlement amount. Compensation can be broken into economic and non-economic damages.

Economic Damages: Quantifiable Losses

Economic damages are calculable losses from the accident. They can include but are not limited to: 

• Medical expenses: This includes past and future medical costs, as well as medical accessories, like wheelchairs.
• Lost wages and earning capacity: This is compensation for missed work and future lost income if you can’t return to your job.
• Property damage: This covers repair or replacement of damaged property (e.g., vehicles).
• Other out-of-pocket expenses: Any additional costs result from the accident.

Non-Economic Damages: Subjective Losses

Non-economic damages are difficult to calculate, including intangible losses that you suffer after an accident. They may include: 

• Pain and suffering: Compensation for physical pain or emotional distress.
• Permanent disability or disfigurement: Monetary recovery for lasting disabilities or disfigurement.

Because non-economic damages are subjective, your attorney will help determine a fair amount.

Are Personal Injury Settlements Taxable in Nevada?

In most situations, you will not need to pay taxes on an average personal injury settlement. This means that you do not need to factor in a tax rate when determining the right amount of personal injury compensation for you.

However, there are some exceptions to taxation. If there are punitive damages involved in your settlement, they will need to be taxed in the state of Nevada. Punitive damages are forms of punishment for the responsible party, but they are not always involved in personal injury cases.

Your settlement may also be subject to taxation if you breached a contract and that led to your injuries. The breach of contract would need to be the foundation of the lawsuit in order for the settlement to be taxed.

A personal injury settlement can be extremely beneficial in getting back on your feet after you’ve been hurt. In understanding all the details of what a personal injury settlement can do, you can be sure you’re getting the most money available to you.

If you have experienced the pain of an unexpected accident, contact us at Adam S. Kutner immediately for a free consultation.

Why Choose Adam S. Kutner, Injury Attorneys, for Your Nevada Personal Injury Settlement?

The experienced personal injury attorneys at Adam S. Kutner are ready to support you with the guidance and representation you need if you’ve been in a car accident, or have suffered any other personal injury. Regardless of injury severity, if you’ve suffered losses due to someone else’s negligence, you have the right to recover compensation.

Our law firm brings nearly four decades of experience and a successful track record serving over 20,000 victims like you. With a background as an insurance defense attorney, Adam S. Kutner provides expert insight into navigating insurance claims to help you maximize your compensation.

Committed to serving Las Vegas and Nevada residents, our attorneys have in-depth knowledge of state and local laws to build a strong case.

If you’ve been injured in an accident, contact Adam S. Kutner immediately for a free consultation. We don’t charge a fee unless we win your case.

Schedule your free case evaluation today.