If you’ve been injured in an accident because of someone else’s negligence, your best bet may be to file a personal injury claim. This could allow you to get a settlement that will help you get back on your feet. However, when it comes to settlements, what you’ll receive isn’t a set sum. Many factors determine a personal injury settlement. Knowing how a settlement is calculated gives you a rough idea of fair compensation. In addition, working with an experienced personal injury attorney helps ensure you get the settlement you deserve.

Types of Damages in Personal Injury Claims 

Understanding the types of damages is key to determining how much a settlement might be worth. An attorney looks at these damages to help calculate a fair settlement. So, which types of damages are considered? Take a look.

Economic Damages

Economic damages, also referred to as special damages, refer to the financial losses you can easily measure. These are the direct costs related to your injury. A good example is lost wages. If your injury caused you to miss work, your lost wages are part of your economic damages. This includes future income if you cannot work in the same capacity. Economic damages are easy to calculate because they involve specific numbers. You’ll need documentation like medical bills, receipts, and pay stubs to prove these expenses.

Non-Economic Damages 

Unlike economic damages, non-economic damages are more complicated to measure because they don’t have a set dollar amount. These damages are related to how the injury has affected your life in ways that aren’t financial. Some examples are pain and suffering, loss of enjoyment of life, and emotional distress. Non-economic damages are more difficult to calculate because they vary greatly from case to case. Lawyers and insurance companies use different methods to estimate how much should be awarded for these intangible losses.

Punitive Damages

Lastly, we have punitive damages. They’re different from economic and non-economic damages in that they punish the defendant if their behavior was especially reckless or intentional. Punitive damages are rare and only awarded in extreme cases, like when someone intentionally caused harm or acted with gross negligence. These damages are also meant to discourage others from engaging in similar behavior.

Factors That Affect How a Personal Injury Settlement Is Determined 

Now that you know the types of damages that can be included in a personal injury settlement, it’s essential to understand the factors that influence how these damages are calculated. These factors are as follows.

The severity of the injury plays a big role in determining a personal injury settlement. The more severe the injury, the higher the potential settlement. Minor injuries may lead to lower payouts compared to serious injuries such as traumatic brain injuries, spinal cord injuries, or permanent disabilities. In addition, if an injury leads to permanent physical impairments, the settlement is likely to be higher to cover ongoing medical bills or the loss of mobility.

Extent of the Injuries 

Medical Expenses 

The injuries you sustain will come with medical expenses, which can be costly. You may find you have current and future medical bills based on your injuries. Therefore, your attorney will factor in the cost of your immediate medical treatment, including hospital stays, surgeries, doctor visits, and prescription medications. The higher these bills, the higher the settlement. They will also factor in ongoing and future bills. It’s important to have detailed medical documentation of the cost of treating these injuries to justify compensation.

Pain and Suffering 

Pain and suffering compensation accounts for the physical pain experienced due to the injury. Although this can be harder to quantify than other losses, it plays a big role in personal injury settlements. It also accounts for the emotional suffering the accident caused, such as anxiety, depression, PTSD, and other psychological issues. Compensation for these intangible losses affects the overall settlement. Lastly, if the injury drastically reduces the victim’s quality of life, such as preventing them from enjoying hobbies, the settlement may be adjusted upwards to reflect these losses.

Loss of Wages 

If your injury caused you to miss work, you’re entitled to compensation for your lost income during that period. In cases where the injury affects your ability to work at the same level as before or prevents you from returning to your previous job, the settlement will factor in the loss of future earnings or diminished earning capacity. For those who are self-employed or work in gig economies, calculating lost wages can be more complex but will still be considered in the settlement amount.

Extent of Fault 

In some personal injury cases, more than one person may be responsible for the accident. When this happens, the concept of comparative negligence is used to determine how much each party is at fault. New York follows the pure comparative negligence rule, where the amount of compensation you can receive is reduced by your percentage of fault. For example, if you were found to be 20% at fault for an accident, your settlement would be reduced by 20%. Even if you are mostly at fault, you can still recover compensation, though it will be adjusted based on your level of responsibility.

How Long Do Personal Injury Settlements Take?

The time it takes to settle a personal injury case can vary greatly. Some cases might be settled in just a few months, while others can take several years. The duration depends on several factors, such as how serious the injuries are and how well both parties negotiate. Also, when an insurance company is involved, how much money they have to contribute to a settlement, also known as a policy limit, will impact how quickly the case settles. Cases with severe injuries usually require more documentation and time, while smooth negotiations can speed things up.

How an Attorney Can Help You Maximize Your Settlement Amount 

Getting fair compensation requires more than knowing how your settlement is calculated. Consider working with a personal injury attorney to increase the chances of getting a maximum settlement. An attorney can help you in several ways, including the following.

• Ensure all damages are accurately assessed
• Collect medical records and other key documents to strengthen your case
• Handle negotiations to avoid lowball offers
• Work with medical or accident reconstruction experts to strengthen your claim’s value
• Cut through the red tape so that you can focus on your medical treatment 

Are you thinking of taking legal action against someone who hurt you? Contact Almanzar-Paramio Law, LLC. We will assess your case and develop an aggressive legal strategy to maximize your settlement.