Curious about how much your injury settlement is worth?
Each injury claim is different, which makes it easy to assume that every personal injury settlement is calculated differently. However, when you understand the basic factors that affect settlement value, you’ll discover some surprising truths.
Here’s the deal.
Many people don’t understand how insurance companies and attorneys calculate the true value of a personal injury claim. This misunderstanding can cause injury victims to settle for far less than they deserve.
Here’s what you’ll learn:
- What is Personal Injury Compensation?
- Factors That Determine Injury Claim Value
- How Working With An Attorney Helps
- How to Lose Your Injury Settlement
What is Personal Injury Compensation?
Put simply, personal injury compensation is the money awarded to someone who suffered harm as a result of someone else’s negligence. Personal injury compensation can include payments for current and future medical bills, lost wages, pain and suffering and more.
However…
Not all claims are valued the same. Certain variables can have a significant impact on your settlement value.
Knowing all of the factors that influence injury compensation is critical to getting the best settlement possible. Partnering with a dedicated Dallas personal injury attorney can ensure you receive maximum and fair compensation for your injuries.
Simple enough, right?
Now, let’s dive into the 5 factors that can increase or decrease your injury settlement.
Factors That Determine Injury Claim Value
Insurance companies and legal professionals look at several different factors when calculating how much a personal injury claim is worth. Miss one, and your settlement could be greatly reduced.
Severity of Injury
When it comes to injury settlements, this is the biggest factor of them all.
Severe injuries typically result in higher injury compensation payouts. Things like spinal cord injuries, traumatic brain injuries and other serious conditions will value significantly higher than soft tissue injuries and other minor conditions.
Why?
Severe injuries require more money. More medical bills, longer recovery times and certain injuries can drastically impact your earning capacity.
A fractured bone will heal in a few months. Paralysis is something you live with for life. Insurance companies understand this.
Medical Bills
Medical expenses are the foundation for any personal injury settlement. This includes current and future expenses such as:
- Hospital stays
- Surgeries
- Recovery
- Ongoing medication
If you don’t have bills, you don’t have a case.
For this reason, it’s important to keep records of every medical expense you receive.
Doctor visits, prescriptions, therapies… you name it. Make sure you’re keeping records and maintain communication with your medical providers. Missing documentation can cause your settlement value to plummet.
Lost Wages and Ability to Earn
Let’s say you hurt your back lifting boxes at work. If your injury prevents you from going to work, you lose income. That lost income translates to more money out of pocket for you.
In the event that you can’t return to work, your injury settlement needs to account for your ability to earn a living in the future. Lost wages can include future income.
For example, if a warehouse worker is no longer able to perform manual labor due to their injury, their settlement needs to account for their ability to earn a substantial income for the rest of their life. That’s a lot of money!
Pain and Suffering
Pain and suffering damages are no joke.
Pain and suffering accounts for the obvious injury-related pain you experience. It also takes your emotional turmoil into consideration. This can include depression, mental anguish and other negative effects caused by your injury.
With that being said…
Insurance companies often use a multiplier system for determining your pain and suffering damages. Typically, they’ll take your total economic damages and multiply them by a number somewhere between 1.5 and 5.
Contributory Negligence
Wait, what?
Did you do something to partially cause the accident? Or, are you partially at fault? If so, that can decrease your settlement.
In some states, your injury compensation can be lessened if you share any of the fault. For example, if you are deemed 20% responsible for your injury, your injury settlement will be reduced by 20%.
This concept is known as comparative negligence.
Evidence
You wouldn’t believe how many cases are ruined by the lack of proper evidence.
Police reports, medical bills, witness testimony, photographs and more can paint a clear picture of negligence and damage.
However, if you don’t have that evidence your case becomes harder to prove.
Insurance companies love arguing against injury claims that lack proper evidence.
How Working With An Attorney Helps
An attorney doesn’t determine your injury compensation. But having a skilled personal injury lawyer on your side can make all the difference.
Negotiating with insurance companies is a battle. Just know this…
Approximately 95% of personal injury cases settle before they ever see trial. Because of this fact, the negotiation phase is the most important phase of your case.
Having an attorney fight for you vs going solo will always benefit you in the long run.
Insurance companies have teams of experts working for them. You shouldn’t have to face them alone.
A knowledgeable personal injury attorney knows how to:
- Calculate your injury compensation based on all factors
- Negotiate with insurance companies
- Collect and prepare evidence
- Fight against low settlement offers
According to the NHTSA, it’s estimated that there were 39,345 traffic fatalities in 2024. Accidents aren’t going away anytime soon, which is why having legal representation is necessary.
Avoid These Mistakes That Ruin Injury Settlements
Filing a lawsuit is never easy, but there are certain things you should avoid if you want to receive maximum and fair compensation.
Here are the most common things that can ruin your injury settlement:
- Accepting the first offer: Insurance companies ALWAYS lowball their first offer. It’s how they operate.
- Poor documentation: Everything you do should be recorded. Medical visits, expenses, communication with insurance companies.
- Missing deadlines: Did you know every state has a time limit for filing injury claims? If you miss the deadline, your case can be dismissed.
- Posting on social media: Insurance companies will use anything you post on social media to reduce your settlement value.
Bottom Line
Personal injury compensation isn’t something that should be left up to chance. Although every injury case has different factors affecting its worth, there are common things that influence injury compensation.
From severity of injury to medical bills, pain and suffering and your ability to prove negligence…
There are things you can do to ensure you’re receiving maximum compensation.
