If you suffered an injury in an accident that wasn’t your fault, you may wonder how much your injury claim can be worth. The best way to find out is to consult a personal injury lawyer near you. A knowledgeable attorney can evaluate your unique situation.
Let’s review the key factors affecting your potential settlement amount that a lawyer will evaluate.
What Affects the Value of Your Personal Injury Case?
Numerous factors go into calculating the potential value of an accident injury claim, including:
The Severity of Your Injuries
One of the biggest things that influences claim value is the extent and seriousness of your injuries. The more severe the injury, the higher the case value.
Catastrophic injuries like traumatic brain injuries, paralysis, and loss of limb typically require extensive medical treatment, long recovery times, inability to work, and major effects on quality of life.
More minor soft tissue injuries like whiplash and simple fractures usually mean a lower settlement amount.
However, even a less severe injury can result in a significant claim if it substantially impacts your life.
For instance, a back injury that causes chronic pain and limitations can lead to a larger settlement than a broken bone that heals relatively quickly. The full scope of your injuries and impairments plays a big role in valuing your case.
Your Medical Treatment
Another major factor is the type and amount of treatment needed for your injuries. Usually, the more medical care required, the more the case is worth.
Hospitalizations, surgeries, physical therapy, medications, assistive devices, and other healthcare needs add to larger medical bills. Future treatment and care costs are also included.
Keeping thorough documentation of your medical expenses is very important for your claim. Follow your doctor’s treatment plan closely. If you skip appointments or ignore medical advice, the insurance company may argue that you aren’t that badly hurt or aren’t trying to get better. This can decrease your settlement amount.
Your personal injury attorney will gather your medical records and bills to demonstrate the extent of treatment needed.
How Have Your Injuries Impacted Your Life?
Your injuries’ effects on your daily life and abilities can form a significant component of your injury claim value.
Some of the things considered include:
- Physical pain and suffering
- Emotional distress and mental health impacts
- Disability and physical limitations
- Inability to do hobbies, sports, or activities you used to enjoy
- Negative effects on personal relationships
Severe injuries often lead to major life changes and challenges that deserve compensation.
Discuss how your injuries have affected your quality of life with your personal injury lawyer. They may advise keeping a journal to document the difficulties and impacts on your daily life. This can be used as strong evidence to support a higher case value.
Lost Income and Reduced Earning Potential
If your injuries have caused you to miss work, include your lost income in your accident claim. Provide your attorney with proof of the income you have lost due to your injuries, such as past pay stubs or tax returns.
The insurance company will use your average pay rate and time off work to calculate the lost earnings portion of your settlement demand.
In addition to actual lost income, your personal injury lawyer will also consider your future reduced earning potential.
Suppose your injuries have left you disabled, and you cannot earn the same amount as before the accident. In that case, you can pursue compensation for the income you will have earned over your lifetime if you hadn’t suffered an injury. Professional analysis may be needed to determine this amount.
Permanent Injuries and Long-Term Effects
If your injuries have left you with permanent impairments, disfigurement, or long-term symptoms, your claim will likely hold more value than a case involving only temporary injuries.
Permanent injury claims should include compensation for future medical expenses, lost earning potential, ongoing pain and suffering, loss of enjoyment of life, and emotional distress. Scars and disfigurement also affect the valuation of your case.
These life-changing effects add up to higher potential settlement amounts.
Policy Limits of the At-Fault Party’s Insurance
Another factor that impacts your case’s value is the policy limits of the liable party’s insurance coverage. Even if your claim is worth a lot based on the factors we’ve discussed, you may be limited in the amount you can recover by the other side’s insurance policy maximums.
For example, if your injuries are worth $500,000 but the other driver only has $300,000 in liability coverage, the most their insurance will pay out is $300,000. You can still sue the driver personally for the rest, but face long odds of collecting if they have limited assets.
Occasionally, other policies may be in play, such as your underinsured motorist coverage or an excess liability policy. Your personal injury lawyer will identify all possible avenues of recovery to maximize your compensation.
Your Personal Injury Lawyer’s Valuation and Negotiations
The personal injury attorney you hire can make a big difference in the outcome of your case, too. More experienced attorneys generally secure higher settlements for their clients than less knowledgeable lawyers.
They understand what it takes to build a strong claim and have the negotiation skills to deal with the insurance company.
It’s unwise to handle your injury claim. The insurers take advantage of unrepresented people and get them to settle quickly for low amounts. The first offer from the insurance adjuster is almost always a lowball offer that doesn’t fairly compensate you. The adjuster’s goal is to settle cases for as little as possible.
That’s why it’s so important to have a skilled personal injury attorney on your side. Your lawyer’s job is to accurately value your claim based on all the factors we’ve discussed and then advocate aggressively for the full amount you deserve.
The higher your lawyer’s initial settlement demand, the more negotiating room they have.
An experienced lawyer isn’t afraid to push back hard on a lowball offer and fight for fair compensation. With a proven attorney in your corner, you’re much more likely to end up with a settlement that properly compensates you.
The Multiplier Method for Valuing a Claim
One common approach to estimating the value of a personal injury claim is using a multiplier. To do this, you add the total economic damages (medical bills, lost earnings, etc.) and multiply that by a number between one and a half to five.
The multiplier used depends on the severity of the injuries. The more serious the injury and the larger the impact on your life, the higher the multiplier.
This gives you a rough ballpark to start with. The multiplier method doesn’t consider liability issues, insurance policy limits, quality of evidence, or skill of the lawyers involved in your case. It’s simply a tool for making a general estimate.
The Per Diem Method for Valuing Pain and Suffering
Another approach for calculating pain and suffering damages is the per diem method. Using this method, you assign a dollar amount to each day you experience pain and limitations from your injury. The daily rate is then multiplied by the days your injury affects you.
The daily rate varies depending on how significantly the injuries impact your life.
An injury that causes disabling pain and prevents you from working, caring for your family, sleeping, and doing things you enjoy might have a much higher daily value than a moderate injury that allows you to still function somewhat normally.
Your personal injury attorney can determine an appropriate per diem amount based on the specifics of your case.
How Much is My Specific Injury Claim Worth?
As you can see, creating an accurate value for your particular case takes experienced legal counsel. There are many variables involved, and every situation is different.
Beware of personal injury settlement calculators you may find online. These rarely account for all the relevant factors and can give you an inaccurate idea of what your claim is worth.
The best way to determine your claim’s worth is to consult an experienced personal injury lawyer. Most injury law firms offer free consultations, so speaking with an attorney about your situation costs nothing.
A lawyer can review your case’s strengths and weaknesses, give you a ballpark of your claim’s potential value, and discuss the best strategy for maximizing your financial recovery.
What’s the Process for Getting a Personal Injury Settlement?
The first step is to seek medical attention right away. Your health and well-being should be the top priority after an accident. Follow your doctor’s treatment recommendations and attend all medical appointments. This will allow you to recover and demonstrate the extent of your injuries for your claim.
Consult a personal injury lawyer early on so they can start building your case while the evidence is fresh. Look for an attorney who focuses on personal injury and has experience with cases like yours. Hire a lawyer you feel comfortable with and believe will fight for your best interests.
Your lawyer will investigate the accident, gather evidence such as medical records and bills, interview witnesses, consult professionals, and build the strongest case possible.
When your medical condition stabilizes, your attorney will assemble a settlement demand package that summarizes your injuries, damages, and case worth. The package is then sent to the insurance company, demanding a specific amount to settle your case.
The next step is negotiation between your lawyer and the insurer.
The initial offer from the insurance company is almost always too low, so your attorney will counter with a higher amount and provide information to justify that figure.
This negotiation process may go back and forth until a settlement amount you believe is fair and want to accept is reached. The vast majority of cases reach settlements without needing to file a lawsuit.
You can file a personal injury lawsuit if you can’t negotiate a fair settlement. The litigation process involves additional discovery, depositions, motions, and preparation for trial. A trial is typically the last resort. Negotiations continue even after you file a lawsuit, and many cases settle before reaching the courthouse.
The right personal injury lawyer will know how to present your case in the best light and fight for every dollar you deserve.
It’s hard to battle the big insurance companies and get a good outcome. Let an experienced professional handle it and take the burden off you so you can focus on recovering and getting life back on track.
Don’t Settle for Less than What You’re Owed, Hire An Injury Attorney
If you’ve suffered an injury in an accident, don’t settle for less than you deserve; don’t go it alone against the insurance company.
Call an experienced personal injury lawyer today for a free consultation. Get the legal advice and advocacy to protect your rights and financial future. The sooner you have a skilled attorney on your side, the better your chances of a successful outcome.