An unexpected personal injury can have short-term and long-term consequences. Many of the consequences of a personal injury are financial. When you’re hurt, you want to know how much you can expect to recover for your injuries. Knowing how much your personal injury claim is worth can give you peace of mind. It can also help you plan as you bring your claim for recovery and wait for your case to move through the courts. Here are the basics of how personal injury compensation is calculated.
How Is Compensation Calculated in a Personal Injury Accident?
Compensation in a personal injury accident is calculated by determining your financial losses and adding an extra amount for physical and emotional suffering. Personal injury accident compensation is calculated by totaling what you’ve lost in out-of-pocket expenses because of your injuries. Then, you determine the appropriate amount to add for emotional suffering and mental anguish. The total of these amounts is the calculation of your compensation for your personal injury accident.
Start With Your Financial Losses
A calculation of personal injury accident compensation begins by looking at your financial losses. Your financial losses are called economic damages. Economic damages include every way that you’ve personally lost financially because of your injuries. For example, if you have $5,000 in medical bills for treatment for your losses, you include $5,000 in your claim for compensation. If you’re unable to work, you can include the amount of your lost earnings. The goal of economic damages is to make you financially whole for what occurred. Because it’s most fair for the person who causes the accident to bear the financial brunt of it, your financial losses are passed on to the person who is responsible for what happened.
You may be surprised by all of the different financial losses that you can include in your claim. There may be types of financial losses that you hadn’t considered. For example, the expenses associated with traveling to medical appointments can be part of your claim. The cost of medical supplies like a wheelchair can be included. Even missed opportunities like a promotion or professional advancements can be a part of your claim. An experienced personal injury lawyer can help you make sure that you explore all of the categories of financial losses to include in your claim.
Calculating Non-Economic Damages in a Personal Injury Claim
Once you determine your economic damages, the next step is calculating your non-economic damages. Non-economic damages attempt to compensate you for the physical and emotional suffering that you’ve been through because of the accident. Mental injuries like PTSD, survivor’s guilt and flashbacks are very real psychological injuries. You may be struggling with not being able to do things that you used to enjoy or things that your family depends on. Money alone can’t restore you to good health, but it can place a dollar value on what you’ve been through and pay you accordingly.
To calculate your non-economic damages, there are a number of methods that you can use. One way to calculate your non-economic damages is called the multiplier method. Using the multiplier method, you multiply your economic damages by an amount that represents the severity of your accident. For example, if your injuries are minor and you recover quickly, you might use a multiplier of 1 or 1.5. On the other hand, if your injuries are lifelong and you will never fully recover, your multiplier might be as high as 5. The severity of your injuries matter as well as the permanency of your injuries. The more severe and long-lasting your injuries, the higher you can expect your compensation to be in your personal injury case.
Another way to calculate non-economic damages is to use a dollar amount for every day that you have to spend to recover from your injuries. For example, if it takes you 250 days to recover from your injuries, you might claim $100 per day in pain and suffering damages, or $2500 total. Some insurance companies use a complex formula to determine what to offer as pain and suffering compensation.
Calculating Compensation for a Fair Recovery
The total of your economic damages and your non-economic damages is how personal injury compensation is calculated. Some of a personal injury compensation calculation is as simple as adding up your financial losses. It’s important to know what your economic losses are and what categories count. Another big part of calculating your personal injury compensation is determining what you deserve in pain and suffering damages. A personal injury attorney can rely on their training and experience to help you understand what a fair recovery should be in your case.
Proving Your Case for Financial Compensation
An essential part of calculating your financial compensation when you’re hurt in a personal injury accident is proving it. It’s important to have the evidence to present to the insurance company and the court if your case goes through formal legal proceedings. An experienced attorney can help you gather the records that you need to prove your case. They can help you understand what records you should keep and how you should document your expenses. These records can be vital to ensuring that you get the compensation that you deserve. In addition, an experienced attorney can help you understand whether the compensation that you receive is fair. They can evaluate your entire situation and help you create a plan for success.
Work With Our Nevada Attorneys for Personal Injury Compensation
Getting the compensation that you deserve in a personal injury accident begins with determining total damages. Calculating damages is a complex process of reviewing categories of damages and reviewing the complexity of your case. At Adam S. Kutner & Associates, we have years of experience helping deserving accident victims understand what their claim might be worth. It’s our goal to help each and every client work toward the best possible outcome in their case. Call us today for a free consultation.