Calculating Damages: What Personal Injury Victims Should Know

Were you injured because of someone’s negligence? The bills are coming in, you’re out of work, and have no idea how much your case is worth? Let us set the record straight…

There is a lot of conflicting information out there about what victims are actually entitled to in a personal injury case. Most people aren’t even aware of how damages are calculated until after their case has settled. Insurance companies count on this.

About 95% of personal injury cases are settled before reaching court – which means the average victim has no idea what the going rate for injuries similar to theirs is.

What we will cover:

• Truth About Personal Injury Damages
• Economic Damages: Easy Math
• Non-Economic Damages: Let the Fun Begin
• Punitive Damages: The Nuclear Option

Truth About Personal Injury Damages

Personal injury damages are not as straightforward as you might think. It’s a highly complex system of calculation that accounts for dozens of different variables when it comes to assessing a case’s true value.

And most people think all damages boil down to are medical expenses plus a little extra for being inconvenienced.

WRONG.

The law recognizes that once a person gets injured due to another’s negligence, the impact goes far beyond medical bills. You have out-of-pocket expenses, lost wages, and the pain and suffering you’ve been enduring 24/7.

That’s where having a seasoned Chicago personal injury lawyer on your side comes into play. They know how to assess, calculate, and present your damages to argue for maximum compensation in your unique situation.

Economic Damages: Easy Math

Let’s start with the easy stuff. Economic damages are the cold, hard, numbers you can easily attach dollar amounts to. This includes:

• Medical bills (past and future medical treatment)
• Lost wages (time off work to recover)
• Property damage (vehicle repairs, damaged personal items)
• Rehabilitation costs (physical therapy, occupational therapy, etc.)

Here’s the thing – it’s not just the past expenses you’ve already incurred. Smart personal injury attorneys will project your future medical needs, ongoing care, and long-term complications when calculating economic damages.

The average personal injury settlement is $55,056.08 but you can easily enter six-figure territory when future care expenses are added to the equation.

Non-Economic Damages: Let the Fun Begin

Non-economic damages are where things get really juicy in personal injury law.

These damages cover the items you simply can’t put an exact price tag on – your pain and suffering, emotional distress, loss of enjoyment, and the overall impact on your quality of life.

Pain and suffering damages typically come from one of two methods of calculation:

• The multiplier method: Economic damages are multiplied by 1.5-5 based on injury severity.
• The per diem method: Assigning a daily rate for pain and suffering from date of injury until maximum medical improvement.

The multiplier method is more common. If your medical bills total $20,000 and you apply a multiplier of 3, then your pain and suffering damages would be $60,000.

But, and this is a BIG but…

Your multiplier number depends on all sorts of factors, including: injury severity, recovery timeline, permanent limitations, impact on daily activities, and your age at the time of the accident.

For example, younger victims often qualify for a higher multiplier, because they have more lifetime years to experience the impact of their injuries. Permanent disabilities that limit your ability to enjoy life, participate in hobbies, or physical activities will also increase non-economic damages.

Punitive Damages: The Nuclear Option

Punitive damages are rare in personal injury cases but when they apply they can significantly increase your overall award.

Punitive damages are not meant to compensate you, they are intended to punish defendants for their reckless or intentional actions, and deter others from similar conduct.

Punitive damages typically come into play with:

• Drunk driving accidents
• Intentional assaults
• Gross corporate negligence
• Cases where defendants tried to cover up their actions

Not all states allow punitive damages in personal injury cases, and many that do cap them. However, when they’re available they can multiply your total settlement by a significant amount.

Factors That Influence Your Settlement Amount

Settlement amounts vary wildly depending on a number of key factors, understanding these can help you maximize your compensation.

The biggest factors that determine your payout include:

• Injury Severity: Soft tissue injuries may settle for $2,000-$25,000, while catastrophic injuries like spinal cord damage often exceed $1 million
• Clear Liability: Easy to prove fault cases settle for more money. Clear liability means the other party was clearly at fault (running a red light, for example). Questions about shared fault will reduce offers.
• Attorney vs. Self-Represented: Attorneys consistently receive higher compensation for their clients than those who go it alone. Insurance companies respect experienced lawyers who know how to fight for the full value of a claim
• Available Insurance Coverage: If the at-fault party has minimal insurance, it caps your possible payout. This is why it’s important to also sue high-net-worth individuals in certain situations
• Comparative Negligence: If you share fault for the accident, your compensation is reduced by your percentage of fault in most states

The Real Numbers: Actual Settlement Ranges

Now let’s dive into actual settlement data. The average personal injury case settlement is $37,248, with most simple cases falling between $3,000 and $25,000.

Motor vehicle accidents make up 52% of all personal injury claims, so let’s start there.

• Car Accidents: $37,248
• Pedestrian Accidents: $63,218
• Trucking Accidents: $140,688
• Motorcycle Accidents: $52,296
• Bicyclist Accidents: $46,485

Here’s the real numbers you need to know based on injury type:

• Soft tissue injuries: $2,000 to $25,000
• Bone fractures: $15,000 to $500,000 (with surgery or disfigurement)
• Brain injuries: $300,000 to millions
• Spinal cord injuries: >$1 million lifetime care

The market for personal injury law services is worth $57 billion, which should tell you there’s some very big money on the line in these cases and insurance companies have armies of lawyers dedicated to minimizing payouts.

Getting What You Deserve

Maximizing your compensation is not about luck, it’s about strategy.

• Document Everything: Keep a record of all medical treatment, lost wages, and daily impacts of your injuries. Take photos of injuries, keep a pain journal.
• Don’t Rush to Settle: Insurance companies will often make lowball quick offers to you to settle before you fully understand your damages.
• Get Appropriate Medical Treatment: Gaps in medical treatment are the biggest reason insurance companies argue your injuries aren’t severe. Follow all treatment recommendations and go to every appointment.
• Research your State’s Laws: Some states have damage caps, comparative negligence, and varying statutes of limitations. Know the rules in your jurisdiction.

Act Now or Lose Your Chance

Time is not on your side. Every state has a statute of limitations for personal injury claims – usually 2-3 years from the date of injury.

But the longer you wait the other ways your case is weakened:

• Evidence: Missing, lost, or destroyed
• Witnesses: Memories fade, people disappear
• Medical records: Harder to obtain

The sooner you realize the true value of your damages and get legal representation the better your chances at full compensation.

Final Word

Calculating personal injury damages is not a simple math equation – it is a finely tuned art form that requires an in-depth knowledge of the law, medical issues, and negotiation strategies.

Insurance companies will try to talk you into accepting quick lowball settlement offers because they know most people have no idea how high their damages can really go. Don’t fall into their trap.

Your damages are much more than just immediate medical bills. You deserve to be made whole again, and that takes significant compensation.