Every Case Is Unique, But The Value of a Personal Injury Claim Is Based On Several Basic Elements
Determining the value of a personal injury claim can be just as complicated, if not more so, than establishing fault for the accident that led to the injuries. Many factors contribute to the amount a Colorado Springs personal injury plaintiff can reasonably expect to receive either through a settlement or after a trial.
While every case is unique, and there is (unfortunately) no magic formula for calculating the value of a personal injury claim, the same essential elements are in play for every injury case.
Overview Of Personal Injury Damages
To understand the value of a personal injury claim, you first need to understand what types of damages are available in a personal injury lawsuit. Two broad categories of damages form the basis of a settlement or judgment amount: economic and non-economic damages.
Economic damages consist of those amounts that a judge or jury can usually calculate by looking at receipts, bills, and pay stubs – money that the plaintiff has lost and will lose or spend in the future because of the defendant’s negligence. This includes items such as:
- Medical bills
- Rehabilitation costs
- Past and future lost wages
- Property damage
But other losses are more challenging to put a price on. How much is it worth when you can’t play catch with your kids? What is the dollar value of never-ending pain? What is the cost of the loss of intimacy with a spouse or the psychological impact of not being able to support your family?
These non-economic damages, commonly known as “pain and suffering,” are just as real as economic ones and are a significant factor in settlement negotiations, especially in cases involving catastrophic injuries. Insurance companies often use a “multiplier” in a settlement offer to take these damages into account, taking the actual economic damages and multiplying them 1.5 to 4 times to determine a figure.
Breaking things down even further, here are six factors that will all affect the value of a personal injury claim:
Severity of Injuries
Simply put, the value of a broken spinal cord is more than the value of a broken finger. The more severe and debilitating the injuries sustained, the higher the potential compensation will be available. Typically, any injuries that result in long-term disabilities, chronic pain, or a significant impact on the victim’s quality of life increase the value of a personal injury claim.
Related: Getting Compensation For Spinal Injuries From a Car Accident
Medical Expenses
Relatedly, the costs you have incurred and will incur in the future for medical treatment, including hospital bills, surgeries, medications, rehabilitation, and ongoing care, will directly impact the level of compensation you will receive for these economic damages. The injured party is entitled to compensation that covers both current and anticipated future medical expenses related to the injury.
Lost Wages and Future Earning Capacity
Many personal injuries keep victims out of work. Sometimes, the time spent without a paycheck may only be a few weeks or months while the person recovers from their injuries. In other cases, however, a severe injury may make it difficult, if not impossible, for the victim to ever return to their old career or profession. The amount the plaintiff has lost in wages, in addition to any diminished earning capacity in the future, due to the injuries will all factor into the value of a claim.
Property Damage
In personal injury cases involving car accidents or other incidents causing property damage, the cost of repairing or replacing damaged property is a factor in the overall value of a personal injury claim. This includes damage to vehicles, personal belongings, or any other property affected by the incident.
Insurance Policy Limits
You could have a personal injury claim worth $1 million, but if the defendant only has $1,000 to their name and does not have insurance covering your losses, your claim is worth pennies on the dollar. That is why Colorado law requires all drivers to carry liability insurance – to ensure that anyone injured by the driver has a pool of money available to pay for their losses, at least in part. Even if the defendant has insurance, their policy may cap the maximum amount of liability in an amount far less than the actual value of a personal injury claim.
Statute of Limitations
There is one way to quickly and permanently drop the value of a personal injury claim to $0.00: missing the statute of limitations for filing a personal injury lawsuit. Colorado law places strict time limits for filing lawsuits seeking damages for personal injuries. If the statute of limitations expires and you have yet to file suit, you lose any right to recover any compensation whatsoever.
Help to Determine the Value of a Personal Injury Claim in Colorado Springs
Many different factors can affect the value of a personal injury claim in Colorado Springs, and victims cannot always rely on insurance companies to be their “good neighbor,” looking out for their best interests. These companies have their own priorities, centering around paying out as little as possible in claims to keep stockholders happy,
At King & Beaty, the mission of our personal injury and accident attorneys is to help accident victims get the compensation they need and deserve to move on from a serious accident. And you pay nothing in attorneys’ fees unless we recover money for you. Please contact us today to arrange for your free initial consultation.
