How Personal Injury Lawyers Calculate the Value of Your Claim

How Personal Injury Lawyers Calculate the Value of Your Claim

Navigating the aftermath of a personal injury can feel overwhelming. With mounting medical bills, lost wages, and the daunting task of dealing with insurance companies, you may wonder: How much is the claim really worth?

Whether you have been injured in a car accident or suffered from someone else’s negligence in some other way, getting the maximum compensation for your case can aid your physical and financial recovery.

In this post, we will explore how experienced personal injury attorneys assess claims. Understanding how personal injury lawyers may calculate the value of your claim can empower you during this challenging time.

Adding Up Factors Affecting the Value of Your Claim

The value of a personal injury claim hinges on several key factors. Each component plays a critical role in determining the compensation you may receive.

When determining the value of your personal injury claim, lawyers start by evaluating your damages. “Damages” in personal injury cases refer to the compensation awarded to victims for their losses.

Economic damages

Economic damages refer to the tangible, quantifiable losses a victim incurs due to an accident. These damages can include medical expenses, lost wages, and costs related to ongoing care. Each financial burden adds up quickly, making it essential for victims to account for every dollar spent.

Lost wages and income

Lost wages and income, such as the following, can significantly impact your financial stability after an accident:

• Lost raises: You might miss out on scheduled raises due to extended time off. Performance reviews tied to raises could even be postponed, affecting your salary growth.
• Missed promotions: Time off work might lead to missing out on promotion opportunities and being absent during crucial projects or decision-making periods, which can hinder your career progress.
• Income lost due to inability to work during recovery: You may need to take days, weeks, or months of missed work during initial recovery. You may also use all your paid leave, leading to unpaid time off and financial hardship.
• Reduced ability to earn in the future: During your recovery, you may be able to work. However, you may be forced to take on a lower-paying job due to your inability to perform previous duties. Working reduced hours because of ongoing medical issues or treatments can also hurt you financially.
• Long-term or permanent disability affecting employment: Once you have reached maximum medical recovery, you may still be left with long-term or permanent disabilities. You may need to adapt to new roles or responsibilities within your current job to accommodate your disabilities. In some cases, permanent disability might lead to unemployment or early retirement.

Calculating your lost income may require a review of your regular earnings. Pay stubs and tax returns are essential for establishing a baseline. If you are self-employed, it may be difficult to calculate your lost income. You would need to provide clear documentation of past income.

Your personal injury lawyer can assess the duration of your absence from work due to recovery. This time frame determines how much compensation you may claim for lost wages.

Medical treatment costs

Medical treatment costs can significantly impact the value of your personal injury claim.

Immediate medical expenses often include:

• Emergency room visits
• Hospital stays
• Surgeries
• Medication
• Medical equipment (e.g., wheelchairs, braces)

In cases of serious injury, you might face long-term medical needs that require specialized care or procedures, further escalating financial burdens. Therefore, future medical bills may be considered when calculating your total damages.

Future medical expenses may include:

• Consultations
• Diagnostic tests
• Physical therapy
• Rehabilitation to regain skills for daily living and work
• Costs for in-home care or nursing assistance
• Modifications to a home to accommodate disabilities (e.g., wheelchair ramps)

Travel costs

Ongoing medical care often requires multiple trips over many weeks or months, and travel costs can quickly accumulate after an injury. Whether it’s trips to medical appointments or visits for rehabilitation, these expenses add up.

Every mile you travel incurs costs that should be considered in your personal injury claim. Gas prices fluctuate and parking fees may surprise you. If public transportation is necessary, those fares also count.

Each dollar spent on travel can contribute significantly to the compensation awarded for your injuries and inconveniences endured during recovery. Therefore, you should keep meticulous records of every trip related to your recovery.

Save receipts and document the purpose of each journey. These details strengthen your case when negotiating with insurance companies or during settlement negotiations.

Of course, these are just a few examples of economic damages. Your personal injury attorney can help you calculate the total monetary expenses you may be entitled to recover.

Non-economic damages

Non-economic damages represent the intangible losses a person experiences after an injury. Unlike medical bills or lost wages, these damages quantify pain, mental anguish, suffering, and loss of enjoyment in life.

Pain and suffering damages encompass the emotional and physical distress that follows an injury. Victims often face anxiety, depression, or even post-traumatic stress disorder (PTSD) after serious accidents.

These conditions can appear soon after an accident and persist long after physical healing has occurred. Other mental or emotional illnesses may not develop until after physical healing is complete. For example, PTSD could take months or years to appear and may come and go throughout a victim’s life.

When calculating pain and suffering damages, lawyers assess the impact of the injuries on your daily life using medical records, therapy notes, and other methods. Diaries or testimonies reflecting your journey through pain can also strengthen your case.

Using the Right Method to Calculate the Value of Your Claim

Lawyers also employ one of two techniques, the per diem approach or multiplier method, to assign a dollar amount to pain and suffering and other damages.

The per diem method

The per diem method is one way to calculate compensation for pain and suffering. This strategy calls for a daily monetary value to be assigned to the victim’s discomfort, based on his or her life circumstances.

To determine this figure, attorneys often consider factors such as age, occupation, and lifestyle. For instance, a 30-year-old athlete may have a higher daily rate than someone retired.

Once established, this amount is multiplied by the number of days the individual experiences pain due to an injury. For example, if your per diem rate is $100 and you suffer for 60 days post-accident, that would total $6,000 in damages attributed solely to pain and suffering.

The multiplier method

The multiplier method is a widely used approach to estimate compensation for both tangible losses and intangible costs in personal injury claims. When using a multiplier, the attorney will take your damages and multiply these by a factor typically ranging from 1.5 to 5. Serious injuries that lead to significant lifestyle changes may warrant higher multipliers.

Before applying the multiplier, you need a clear picture of your economic damages, which are the direct financial losses from your injury. For instance, if you incurred $20,000 in medical expenses due to an accident, applying a multiplier of 3 could suggest a total claim value of $60,000.

Factors such as liability play a significant role in calculating your compensation. If another party was at fault, his or her degree of negligence would impact how much you might receive.

Considering Punitive Damages

Punitive damages are awarded by judges or juries in cases of particularly egregious conduct. These are meant to punish the defendant and deter similar behavior in the future. Unlike compensatory damages, which are based on tangible losses like medical bills and lost wages, punitive damages are intended to punish the defendant and deter future misconduct.

Suppose your claim goes so far as a lawsuit, and the misconduct involved was extreme. In such a case, it may be possible for you to seek punitive damages in addition to the economic and non-economic value of your claim.

The amount awarded is typically based on the severity of the defendant’s actions and the need to send a strong message that anyone’s such behavior will not be tolerated. Calculating punitive damages in personal injury cases thus involves a careful assessment of the defendant’s conduct, the severity of harm, proportionality, and state laws.

In seeking punitive damages for their clients, lawyers present their calculations and arguments in court, emphasizing the need for punitive damages to punish the defendant and deter future misconduct. They may use expert testimony, financial records, and evidence of the defendant’s conduct to support the case.

Determining Liability for Fair Compensation

Liability plays a pivotal role in determining your compensation after an accident. If another person is found at fault, he or she may be held responsible for covering your medical expenses, lost wages, and other damages. However, if you share some responsibility for the incident, determining fault can become complicated.

New York operates under comparative fault laws. This means that your compensation may be reduced by the percentage of fault attributed to you. For instance, if you are deemed 30 percent responsible for a car accident while the other driver is 70 percent liable, your recovery amount would reflect that difference.

Insurance companies often leverage this concept during settlement negotiations. Insurers may try to pin an unfair share of blame on you to reduce their payout.

On the other hand, your personal injury lawyer can use his or her negotiation skills and legal knowledge to counter lowball offers and push for a fair settlement that reflects the full value of your damages.

Seeking Maximum Compensation and Dealing With Counteroffers

Once the full value of your claim is determined, your lawyer can draft a detailed demand letter to the insurance company. This letter outlines the facts of the case, the extent of your injuries, and the amount of compensation you are seeking.

Your legal team can strategically create a demand letter that reflects the true value of your claim, aiming to maximize your potential settlement. A well-crafted demand letter can enable you to negotiate from a position of strength.

The negotiation phase is often the most challenging part of settling a claim. The insurance adjuster may respond to your demand with a counteroffer, which is likely to be significantly lower than your initial demand.

Starting With a Free Consultation

Don’t let mounting medical bills and lost wages add to your stress. Understanding how personal injury lawyers calculate the value of claims can be empowering, especially during such a challenging time.

At Hill & Moin LLP, we understand the emotional and financial toll an injury can take on you and your family. If we take on your case, our compassionate and experienced personal injury attorneys will fight for the full compensation you deserve.

We stand ready to help you navigate this difficult journey and secure the financial recovery you need to move forward with confidence. Are you ready to learn what our results-oriented lawyers can do to maximize the value of your claim?

It all starts with a free consultation where we can assess your claim and discuss your Personal Injury Recovery SolutionsⓇ. You can reach our representatives 24/7 at (212) 668-6000 or complete our online form. Let us stand by your side and help you reclaim your life.

Don’t wonder about your rights!