This is the beginner's guide to calculating personal injury compensation determining the exact amount of money that fairly represents your losses can be tough there's no special formula to calculate the perfect amount your settlement depends on your unique circumstances however there are a few steps you can take to assure your settlement negotiations progress smoothly and you get fair compensation here are the steps to a successful claim
1- Give the claims adjuster enough evidence proving his insured caused your injuries.
2- Get the adjuster to accept liability for his insured.
3- Submit documentation of your damages.
4- Negotiate in good faith towards a fair settlement amount gathering photographs witness statements medical records and more you'll assemble all the supporting documentation you need to begin settlement negotiations but before negotiations begin you have to calculate your demand for compensation there are special and general damages special damages also referred to as specials are the
Measurable amounts of money you lost and will continue to lose due to the at-fault party's negligence these include things like
Medical bills and lost wages general damages are trickier there are
Intangible losses you've endured and will continue to endure in the future they're more challenging to calculate and are often a point of contention they include things like
Pain and emotional trauma calculating special damages is straightforward you add together the bills and the other tangible losses you incurred and will continue to incur due to the accident and your resulting injuries special damages include the actual dollar amount of
1- Past and future lost wages
2- Medical bills including therapy and nursing care
3- Out-of-pocket expenses such as medications crutches hospital parking fees etc.
4- lost or damaged personal items general damages are more difficult to assess because they're subjective and personal this is why a good personal injury calculator program can't exist,
Only humans can be subjective general damages come under the heading of pain and suffering they can include
Emotional distress
Physical aches and pains
Anxiety and depression
Loss of consortium
inability to concentrate
persistent sleep loss
your pain and suffering can never be the same as another's two people can sustain exactly the same injury but one person may experience greater pain than the other one may develop depression while the other does not the same type of injury may prevent one person from doing her job well it has no effect on another's assigning a value for any type of general damage is entirely personal only you can assess the depth of your pain and suffering when calculating an amount for your general damages give a lot of thought to how you feel once that demand letter goes out you can't take it back you're committed to that figure even if you develop additional symptoms a few weeks or months later if you're not sure about the type and severity of your damages stop and wait each state has a statute of limitations for personal injury lawsuits usually between one and five years as long as you're not close to the limitation state don't commit not until you sure about how you feel now it's very useful to know how insurance companies may calculate injury settlements insurance companies often calculate injury settlement amounts using computer programs the most common is called Colossus the
Colossus program uses a point system which assigns values to special and general damages by analyzing various factors in the claim those values can include whether or not the victim is represented by an attorney and the success rate of the attorney another value is based on average jury verdicts in the area where the injury occurred a personal injury calculator like colossus can't measure the depth of your pain and suffering software programs can't calculate the negative effects injuries have on your life they can only generalize compensation amounts based on statistics and statistics will never be able to measure true human suffering without automated tools to calculate an amount for pain and suffering victims must rely on the multiple factor a traditional method for calculating general damages the multiple factor uses a flexible formula to come up with an optional demand amount a claims adjuster will be assigned to your case the claims adjuster will review your demand very carefully he'll closely examine the amounts are requesting for compensation he wants to see how you arrived at those figures and if they're realistic based on the evidence the adjuster will first determine if his insured is actually liable for your injuries he'll then verify that each item that you've listed under special damages is supported by legitimate documented evidence for general damages pain and suffering the adjuster will compare the amount you're demanding to what he thinks is appropriate his assessment of your pain and suffering will always be different than yours especially because it's often based on computer program statistics you'll have to convince the adjuster your calculations are realistic and fully supported by the evidence this is the nitty-gritty of settlement negotiations now there can be a pretty significant difference between insurance calculations versus jury calculations insurance company claims adjusters are paid to reach settlements the last thing an adjuster wants is to fail to settle a personal injury claim when a claim turns into a trial and a jury is left to deliberate there's always a chance the verdict will be thousands of dollars more than the victim asked for in the first place in most states juries are not bound by a maximum compensation limit they can award a personal injury plaintiff any amount they believe is fair not only can injuries award be high but a jury may also charge punitive damages against a defendant punitive damages like pain and suffering are intangible they're meant to punish a wrongdoer for grossly negligent behavior if a victim convinces a jury to award punitive damages against the defendant the victim will receive even more compensation punitive damages are often capped by state law and some states don't allow them this may seem like a lot to digest and sometimes you need a good professional on your side when do you need an attorney most personal injury claims result from car accidents and slip and falls injuries can also result from defective products dog attacks and other negligent acts if your injuries are minor you should be able to negotiate your own claim if your injuries are more serious or you're not sure about the claims process consult with a personal injury attorney an attorney can answer your questions and provide valuable information most reputable injury attorneys offer a free initial consultation to review your case so this wraps up the beginner's guide to calculating Personal Injury Compensation now may just be a starting point for you to learn more and get a free case study.
