How is the Amount of a Personal Injury Settlement Determined?

If you have ever dealt with a personal injury settlement, you may have questions about how the amount of compensation is determined. Below are several factors that influence the amount of compensation awarded in a personal injury case:

Medical special damages: This includes all of the medical expenses required to treat any injury suffered during the accident in question.

General damages: This includes any pain and suffering, resulting anxiety, or other claims that are not of a monetary nature.

Mild injuries: If the injuries in a given case are not found to be severe, an insurance adjuster will usually compensate the injured party by multiplying the special damages by a factor of 1.5 and adding in the amount of income that was lost by the injured party as a result of their injuries.

Severe injuries: If the injuries in a given case are found to be severe, including a large amount of general damages, an insurance adjuster will usually compensate the injured party by multiplying the special damages by a factor of 5 and adding in the amount of income that was lost by the injured party as a result of their injuries.

Extremely severe injuries: If the injuries in a given case are found to be extremely severe, including a very large amount of general damages, an insurance adjuster will usually compensate the injured party by multiplying the special damages by a factor of 10 and adding in the amount of income that was lost by the injured party as a result of their injuries.

Fault: Depending on the percentage of fault assigned to the injured party, the final amount of offered compensation may be reduced by a corresponding percentage.

In addition to the factors above, the compensation offered in a settlement may also be influenced by the following medical details:

Length of treatment: Treatment that lasted over a long period of time generally means that the injured party was seriously affected by the injuries they received. Therefore, the length of treatment that the injured party endured may affect the amount of compensation offered to them through a personal injury settlement.

Medication: If the accident resulted in the prescription of long-term medication for the inured party to function regularly, it may affect the settlement details. This includes payment for the long-term medication needs of the patient (including physical rehabilitation, if necessary).

Mental and Emotional Effects: It is not uncommon for the victim of an accident to be severely traumatized by the experience. If this can be proven to be true in a personal injury claim, the victim may be entitled to receive compensation for pain and suffering as well as the subsequent treatment.

Lost Income: If the victim in an accident was unable to work during their treatment, lost their job, or lost the ability to work as a result of their injuries, the settlement offered should reflect the lost income or lost opportunity to gain future income.

Permanent Injury: In some cases, an accident may result in a loss of life or dismemberment. If this is the case, it can drastically affect the settlement offered.

It is important to remember that a variety of factors, including the liability for the accident and the local restrictions regarding personal injury lawsuits, can affect the value of the settlement that you are entitled to receive. To learn more about what kind of settlement you can expect to receive from your personal injury claim, meet with a qualified legal professional that is familiar with personal injury laws within your jurisdiction.