How Personal Injury Law Firms Calculate Fair Compensation

Do you desire to discover the true value of your personal injury case?

Everybody who suffered an accident asks this question. "How much is my case worth?" The thing is, though, that personal injury compensation isn't decided by the toss of a coin.

On the contrary, there is a system behind it.

The issue is that:

The majority of people have no clue how personal injury law firms calculate your fair compensation. They take what the insurance company offers without even blinking and assume that is the best they can do.

But the thing is that:

Data suggests that 70% of claimants who patiently awaited a more generous proposal were granted settlements that surpassed those who accepted the initial insurance offer by $30,700.

Here is the list of the things you are going to read about:

• How Law Firms Calculate Your Case Value

• The 2 Kinds of Damages That Play a Role

• The Insurer Lowballing Your Case

• The Real Formula Behind Fair Compensation

How Law Firms Calculate Your Case Value

Personal injury law firms don't take your case value and pull a figure from the sky. They use a methodology that accounts for every aspect of your case.

Here is how:

If you are injured as a result of someone else's negligence, you are entitled to be made "whole" again. It means that you have a right to receive compensation for every penny that you have lost and every penny you are going to lose in the future.

But the calculation is more complicated than summing up your medical bills…

The law firm will take into account dozens of factors in order to determine what fair compensation looks like for you. They will work it out so that you end up in the same financial position as you would be if the accident had not occurred.

The 2 Kinds of Damages That Play a Role

In every personal injury case, there are 2 kinds of damages that play a role. You should get familiar with the system to get adequate compensation.

Economic Damages (The Easy Stuff)

Economic damages are damages that can be proved with invoices and receipts:

• Medical bills (past and future)

• Lost wages due to time taken off work

• Property damage to your car and belongings

• Rehabilitation costs e.g. physical therapy

• Medical equipment you have to purchase

All of these are easy to calculate since there are specific figures for them.

Non-Economic Damages (The Tricky Stuff)

Non-economic damages can be harder to put a price tag on, but they can often be worth more than the economic ones:

• Pain and suffering caused by your injuries

• Emotional distress and mental trauma

• Loss of enjoyment of life activities

• Permanent disability and disfigurement

• Loss of companionship with your spouse

The thing is:

Insurance companies would like to limit their liability and compensate only your medical bills. However, the anguish and hardship you must bear due to their client's neglect often constitute the predominant portion of your reparation.

The Insurer Lowballing Your Claim

Insurance companies are a business, and as such, their main objective is to pay the lowest possible on every claim.

They use several tricks to lower your compensation.

For instance, they will try to get you to settle quickly before you know the full extent of your injuries. They will question whether your injuries are a result of the accident. Or that you are partially to blame for the accident. They will present their own doctors that will downplay your injuries, saying you received "excessive" or "unnecessary" treatment.

The truth is:

According to statistics, 67% of all personal injury cases are settled rather than going to court. Insurers are aware that most victims prefer to avoid trials. That is why they know they can push and pressure the victim and get him to take less than what the case is worth.

It is for this reason that you need to have someone at your side who knows how to fight back.

If you are a victim of a serious injury case, it is prudent that you choose to hire an experienced personal injury lawyer in Little Rock, AR, who is fully aware of the game the insurance company will play and knows how to counteract that.

The Real Formula Behind Fair Compensation

Law firms use several methods to figure out fair compensation in personal injury claims. The most common approach is known as the "multiplier method."

Here is how it goes:

1. Sum up all the economic damages (medical bills, lost wages, etc.)

2. Multiply that by a factor of 1.5 to 5 depending on the severity of the case

3. Add the result to your economic damages to reach the total compensation amount

The multiplier will depend on the following factors:

• Severity of your injuries

• Length of the recovery time

• If you have permanent disability

• How the accident affects your life

• Quality of evidence showing fault

For example:

If you have $20,000 of medical bills and lost wages and your case is eligible for a multiplier of 3, your total compensation would be calculated like this:

$20,000 (economic) + ($20,000 x 3) = $80,000 total

However, this is not the only method. Complex cases require different approaches.

Cases Worth More Than Average

Certain personal injury cases are worth considerably more than others.

Recent statistics have found that the average personal injury settlement is $113,391.

However, there are certain factors that may push your case to much higher numbers:

• Cases with permanent disabilities or disfigurement

• Cases that involve traumatic brain injuries

• Cases that involve spinal cord injuries

• Cases that have clear evidence of negligence

• Cases involving a young victim that has a longer life expectancy

• Cases involving a high-income earner with lost wages to consider

• Cases related to medical malpractice

On average, these cases have the highest payouts in all of personal injury with an average settlement around $1 million.

Reasons Which Can Decrease Your Compensation

A couple of factors can decrease what you can end up with:

Comparative fault (you had some share of responsibility for the incident) can reduce your compensation. For example, if you carry 20% of the blame in a scenario valued at $50,000, your entitlement decreases to $40,000.

Insurance policy limits can also have a major impact on your compensation. If the insurance coverage is low, your ability to receive compensation in case of serious injury is limited.

Neglecting or delaying medical treatment for your injuries.

Why Documentation Is Important

Documentation is one of the keys to your case value. The insurance companies will look into every little detail. They will try to make the most out of everything in order to deny the damages or lower the amount.

Here is a checklist of all the documents you will need to provide for your law firm to start with:

• Medical records and bills

• Photos of your injuries

• Photos of the property damage

• Police reports and statements

• Employment records (which will show the amount of money you have lost due to absence at work)

Settlement vs Trial Facts

Approx. 95-96% of all personal injury claims settle and never make it to trial.

Settlement means faster resolution and a guaranteed outcome.

Trial can result in higher awards, but it is more time-consuming.

Achieving Maximum Compensation

If you want to achieve maximum compensation, here is a list of things you should consider:

Act immediately: Don't wait. Seek medical care as soon as possible, document everything, and don't provide statements to insurance companies.

Build your case: Follow the doctor's recommendations and keep records on the treatment of your injuries, document your injuries as best you can, keep records of witnesses.

Negotiate: Do not accept the first offer that you receive. Do not agree to settle a case unless you know for sure that your injuries will not get worse. Patience is the key in such situations.

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