How To Determine The Value Of Your Personal Injury Claim

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Shaaban & Biedgoly

When you or a loved one is involved in a motorcycle accident/car accident and suffers an injury due to another’s negligence, understanding how to value a personal injury claim is crucial. The process involves several factors that determine the amount of compensation you may receive, ranging from medical costs to intangible losses like pain and suffering. This guide will explain the critical components of personal injury claims, how they are calculated, and what factors affect the final compensation.

You can also use Shaaban & Biedgoly’s FREE Personal Injury Calculator to get a range of what your personal injury claim could potentially be worth.

Key Factors in Valuing Personal Injury Claims

The value of a personal injury claim is based on the tangible and intangible damages suffered by the victim. These damages are generally categorized as “economic” (things like current and future medical expenses and lost wages) and “non-economic” (such are emotional distress and pain and siffering).

1. Medical Expenses

Medical bills are one of the largest contributors to a claim’s value. They include expenses like hospitalization, surgeries, diagnostic tests, medications, physical therapy, and follow-up care. Even future medical costs can be claimed if you are expected to need ongoing treatment, such as rehabilitation or specialized care for permanent injuries.

In severe cases, victims may need to consult with medical experts who provide testimony on the extent and future implications of their injuries​. Detailed medical documentation is essential for accurately valuing these costs.

2. Lost Wages and Earning Capacity

Compensation for lost wages covers the income you lost while recovering from your injury. If the injury results in long-term or permanent disability, you can also claim for lost earning capacity, which calculates how much income you will lose over your working life because of the injury. This is especially true for injuries that limit your ability to work in the same capacity or force you to change careers​.

For example, if you’re unable to perform your job due to a spinal injury, your lawyer may seek expert opinions on your future earning potential, factoring in inflation and career growth you might have missed out on.

3. Pain and Suffering

Pain and suffering compensation accounts for the physical and emotional distress caused by the injury. These are non-economic damages that are difficult to quantify because they vary greatly depending on the individual and the nature of the injury. Factors like the type of injury, its severity, and the recovery period are considered. Courts may also evaluate how the injury has impacted your lifestyle, emotional well-being, and relationships​.

4. Property Damage

If your injury occurred in a car accident or any incident where your personal property was damaged, the cost of repair or replacement may be included in your claim. For instance, in a car accident case, repair bills for the vehicle would be calculated as part of your economic damages​.

5. Emotional Distress

In addition to physical pain, the emotional toll of an injury can be severe, especially in cases involving traumatic incidents or permanent disability. Emotional distress damages aim to compensate victims for conditions like anxiety, depression, post-traumatic stress disorder (PTSD), and the general loss of enjoyment of life. As these damages are highly subjective, they often require testimony from mental health professionals to demonstrate the psychological impact of the injury​.

6. Loss of Consortium

If your injury has negatively affected your relationships, particularly with your spouse, you may claim loss of consortium. This compensates for the loss of companionship, affection, and even sexual relations. While these damages are more common in severe injury or wrongful death cases, they can also apply in cases where injuries affect a victim’s daily interactions with loved ones​.

7. Punitive Damages

In some cases, if the defendant’s behavior was particularly egregious or reckless, punitive damages may be awarded. These damages are meant to punish the defendant and deter similar behavior in the future. However, they are difficult to proove and typically only apply in cases where the defendant’s conduct was found to be grossly negligent or malicious​.

How Is a Personal Injury Claim Calculated?

The process of calculating a claim involves adding up all economic damages and then estimating non-economic damages, which are typically more subjective. Attorneys often use different formulas or methods to calculate these non-economic damages. One common method is the “multiplier method,” where the economic damages are multiplied by a number between 1.5 and 5, depending on the severity of the injury, to estimate non-economic damages like pain and suffering​.

For instance, if your economic damages total $100,000 and you suffered severe emotional distress and long-term pain, a lawyer might apply a multiplier of 4, which would bring your total damages to $400,000.

Factors That Affect Personal Injury Claim Value

Several factors influence how much compensation you may receive:

1. Severity of the Injury

The more severe the injury, the higher the potential compensation. Permanent injuries, such as paralysis or traumatic brain injuries, significantly increase the value of a claim because of the lifelong implications​.

2. Fault and Comparative Negligence

If you were partly at fault for the incident, your compensation might be reduced. In states like California that apply comparative negligence laws, your compensation is decreased based on your percentage of fault. For instance, if you are found 20% responsible for a car accident, your final compensation would be reduced by 20%​.

3. Insurance Policy Limits

Sometimes, the amount of insurance available may cap the amount compensation you can obtain for your claim. While this does not mean your claim is not worth more, it just means there is a limited pot of money available from the at-fault party. In cases where the at-fault party’s insurance is insufficient to cover your damages, you may need to pursue compensation through other means, such as suing the defendant directly. However, if the at-fault party does not have significant assets, they could be “judgment proof,” meaning you might not be unable to recover any compensation from the at-fault party above the available insurance.

4. Statute of Limitations

Each state has a statute of limitations that determines how long you have to file a personal injury claim. If you miss this deadline, you may be barred from recovering any compensation. This time limit can vary, but in many cases, it’s around two to three years from the date of the accident.

Building a Strong Personal Injury Claim

A successful personal injury claim requires strong evidence to back up the damages being claimed. This includes:

  • Medical records, including documentation of treatments and prognosis​.
  • Bills and receipts to prove economic damages, such as medical expenses and lost wages​.
  • Expert testimonies, especially in cases involving long-term or permanent disabilities​.
  • Eyewitness accounts, police reports, and photographic or video evidence of the accident​.

Working with a skilled personal injury attorney is critical in gathering this evidence and building a strong case. Your lawyer can help evaluate the damages, negotiate with insurance companies, and, if necessary, represent you in court to secure the best possible compensation.

Conclusion

The value of a personal injury claim depends on various factors, including medical costs, lost income, and emotional suffering. Understanding how these elements are assessed can help you get the compensation you deserve. Whether you’ve suffered a minor injury or a life-changing event, working with Shaaban & Biedgoly can make all the difference in maximizing the value of your claim.

For those who’ve been injured due to someone else’s negligence, it’s important to act quickly and gather all necessary documentation to support your case. By understanding how personal injury claims are valued, you’ll be better prepared to navigate the legal process and seek fair compensation.

Use our free personal injury calculator today to get an estimated value of your personal injury claim. Also, contact Shaaban & Biedgoly today for your free consultation!