Suffering a personal injury can be a devastating experience. Beyond just the physical and emotional trauma, you may be faced with mounting medical bills, lost income, and general disruption to your life. If another party is at fault for your injury, you may choose to pursue a personal injury claim to recover compensation for your losses. But how much is your claim really worth?
There are many complex factors that influence the potential value of a personal injury claim. Understanding these key factors is essential to ensure you receive a fair settlement for your case. In this blog post, we will explore the top 11 factors that can impact the value of your personal injury claim.
1. Severity of the Injuries
The most obvious factor affecting your claim value is the severity of your injuries. More severe and permanent injuries warrant higher compensation. Even if your injuries are fairly mild, pain and suffering can still be calculated in the settlement.
Recent statistics show that in 2020 alone, personal injury filings in the U.S. surged 97% compared to the previous year, with many related to catastrophic injuries like brain damage or paralysis.
The type of injury also matters. Injuries that cause disfigurement or disability tend to result in higher settlements than soft tissue injuries like whiplash. Make sure that you hand over all the required medical reports and bills to the personal injury lawyers. Ongoing medical treatment and assumptions for future care also increase the claim value. Ultimately, the more severe your injuries, the higher the compensation you can expect.
2. Extent of Property Damage
While personal injuries take priority, the amount of property damage sustained can also influence a claim. If both you and your property are damaged simultaneously, then you can be compensated for that damaged property. This is especially true in motor vehicle accidents, which account for over 50% of personal injury filings annually.
If your car or other personal property was damaged in the incident, those repair or replacement costs get added to the overall value of your claim. You have the right to receive the value of the property so that it can be replaced or repaired. Extensive property damage indicates the severity of the incident itself, which means higher potential compensation.
3. Total Medical Bills
The central figure of your personal injury claim is the medical costs. These expenses include follow-up appointments, medical transport, physical therapy, medication, surgery, and more. It’s important to keep a record of all of your medical treatments and expenses.
As medical costs continue to rise, injured victims are faced with expensive hospital stays, procedures, and rehabilitation. The total amount of your medical bills related to the incident will directly impact your claim value, as these costs must be covered in your settlement.
Be sure to account for all past and estimated future medical expenses before agreeing to a settlement amount. In 2018 alone there were nearly 25 million physician visits for unintentional injuries in the U.S., indicating massive medical costs.
4. Insurance Policy Limits
Sometimes the insurance will be limited to a certain amount. The at-fault party’s insurance policy limits will play a major role in determining the upper threshold of your claim value. Most claims are settled within the policy limits.
So, if the at-fault party has a $100,000 liability limit, for example, your claim value cannot exceed $100,000 (barring special circumstances). Ask the insurance adjuster about policy limits early in your claim to properly set expectations for a settlement.
5. Comparative Negligence/Shared Fault
Even if you are partially found at fault it can affect your claim. But getting involved doesn’t kill your right to get the compensation. If you are found partially at fault for the incident, most states apply comparative negligence laws.
This means your claim value gets reduced by your percentage of fault. For example, if you are found 20% responsible for causing the accident, your final claim value decreases by 20%. Negotiating your settlement helps to estimate realistic percentages if a fault may be disputed.
6. Jurisdiction of the Lawsuit
The state where you file your personal injury lawsuit can also impact your claim value. Some states have caps on damages, while others are notoriously pro-plaintiff. Knowing the jurisdiction gives insight into potential verdict ranges. For example, Texas laws tend to favor defendants while California laws lean pro-plaintiff. Consulting with a local personal injury lawyer is the best way to understand how the jurisdiction might influence your claim value.
7. Legal Precedence in Similar Cases
Researching jury verdicts and settlements in comparable injury cases can provide a likely value range for your own claim. Your attorney has access to legal databases to look for cases in your jurisdiction involving similar:
- Injuries (e.g. traumatic brain injury, back injury, etc.)
- Causes (e.g. slip and fall, dog bite, car accident, etc.)
- Damages (e.g. medical bills, lost wages, etc.)
- Insurance companies
- Demographic factors (e.g. plaintiff’s age and occupation)
While no two cases are exactly alike, legal precedents build a framework for reasonable compensation based on what juries have historically awarded. Precedents are powerful negotiation tools for maximizing your settlement.
8. Insurance Adjuster Negotiations
How you communicate and negotiate with the insurance claims adjuster can significantly impact your settlement value. It’s important to take detailed notes of all conversations and correspondence, follow up on any verbal discussions in writing, and enlist your attorney’s help when needed. Here are some tips:
- Be firm but professional in your demands. Provide documentation to justify your ask.
- Don’t accept any initial lowball offers. Adjusters often start very low to see if you’ll take the bait.
- Point out precedents from similar cases that support a higher value.
- If you hit an impasse, suggest mediation before threatening to take the case to trial.
- Your attorney can negotiate on your behalf if talks stall. Their experience negotiating personal injury cases gives them leverage.
Skilled negotiations with the adjuster are key to maximizing your claim value in settlement talks. Don’t go it alone – an attorney levels the playing field.
9. Availability of Strong Evidence
The strength of evidence supporting liability is critical to proving and maximizing your claim value. Police reports, eyewitness statements, video footage, medical records, and other documentation build a solid case for full compensation. A lack of evidence makes it much harder to validate your damages.
Your attorney can help identify and obtain critical evidence through discovery and investigations. A lack of evidence makes your demands much less credible to insurance adjusters. Strong evidence builds leverage in settlement negotiations.
10. Lost Income and Diminished Work Capacity
Finally, when a personal injury keeps you from working your usual hours, or you simply lose income due to the injury, you are eligible to recoup that in your personal injury settlement. Perhaps you missed a bonus or a raise due to your unforeseen absence. Or maybe you had to take an unpaid sabbatical to tend to your medical situation.
It also includes time missed from work during recovery or ongoing loss of earning capacity if you cannot return to the same job. You must thoroughly document lost wages with pay stubs, tax returns, and medical evaluations of your ability to work. The settlement should cover both past and future lost income related to your injury. Assigning a value here will help you to be made whole.
11. Loss of Future Earning Potential
If the injury you have had is going to affect your ability to earn in the future, you are entitled to have compensation depending on that too. Sometimes injuries are so extensive, that continuing to work is impossible.
If you’re not going to be able to be independent because of your injuries, you are entitled to a fairly steep settlement. The amount is determined by considering the wages that you had at the time of the injury.
Frequently Asked Questions
How does shared fault affect my claim value?
With comparative negligence laws, your claim value decreases proportionately to your percentage of fault. So, 20% fault means your final settlement decreases by 20%. Shared fault makes it very difficult to maximize your claim value.
What role do medical bills play in my claim value?
Medical costs make up a significant portion of most personal injury settlements. Be sure to account for all past and estimated future medical expenses so these costs are adequately covered in your claim value. Ongoing treatment will increase your total medical bills and by extension, your overall claim value.
How can I maximize my personal injury claim value?
Retain an experienced personal injury attorney, document all losses and expenses, gather strong evidence of liability, negotiate firmly and professionally with the insurance adjuster, and be ready to take the case to trial if needed to maximize your claim value. The more prepared you are the better the settlement.
Conclusion
The value of your personal injury claim depends on many intricate factors. While every case is different, understanding these key elements provides the knowledge to seek fair compensation for your unique situation. With wise legal guidance, thorough documentation, and compelling evidence, you can feel empowered to maximize your claim and obtain the best possible settlement or court award. Consult with a qualified personal injury lawyer to discuss your options in depth.