The National Highway Traffic Safety Administration (NHTSA) estimates that traffic fatalities declined in the first quarter of 2024. Their data reveal that 8,650 people died in traffic crashes in the first three months of the year. Car accident statistics show that traffic accidents are common on US roads.
In car accidents, Encinitas personal injury attorney Liam Perry says that the term “personal injury” applies to almost any circumstance in which one party causes physical harm or economic damage to another party. You may have grounds to file a personal injury claim against the other party to seek compensation for your losses if you or your loved one suffered injuries.
This article will take a closer look at how car accident settlements are calculated and what factors are assessed to determine your settlement amounts.
Understanding Medical Expenses in Settlement Calculations
Car accident settlements are determined by several factors and your specific situation, which include the scope of injuries, who’s at fault, details of an insurance policy, and amount of evidence.
Medical expenses include the costs from all your injuries, such as your hospital and rehabilitation fees and future treatment expenditures. You need to compile all the documentation that supports your claims, like receipts and medical records, to strengthen them.
Insurance companies always consider these types of expenses in deciding what is fair in settling your compensation. You need to assess your future medical expenses since some injuries may require prolonged treatment before a full recovery. By doing so, you can even estimate your settlement amount ahead of time.
Evaluating Lost Wages and Future Earnings
After a car accident, lost wages and future earnings are some of the primary aspects that can impact your settlement.
Find out how much income you lost during the recovery period after your injuries. Don’t forget to include the payment checks or pay stubs, tax returns, and any other documents related to income earned prior to the accident.
Consider possible future earnings. If your injuries hinder your working capacity or career advancement, it would be necessary to include them in the calculation of long-term losses.
Assessing Property Damage and Repair Costs
Determining the property damage and repair costs estimate is an integral step in the overall settlement. Document the damage done to your vehicle and any other property involved. Take clear pictures from all angles.
Get repair estimates from authorized and reliable auto shops so that you may understand the related costs. Point out any damages, including those that are not clearly visible, as it can affect your vehicle performance.
If the car is declared a total loss, identify its pre-accident market value, which the insurance companies often calculate through resources like Kelley Blue Book. Keep receipts and documents for everything related to the repair to strengthen your claim and help you receive an equitable settlement for your property damage.
Calculating Pain and Suffering Damages
How do you exactly compute damages for pain and suffering after the accident?
You will first assess the severity of the injury, including physical pain and emotional distress. See to it that you maintain a very detailed log of your experiences by taking note of your degree of daily pain level, attending treatment sessions, and how injuries are affecting your day-to-day life.
Consider using the multiplier method, multiplying your economic damages, such as medical bills or lost wages, by a factor generally between 1.5 and 5, according to your situation.
You can choose the per diem method by providing a daily value for your suffering and multiplying it by the number of days during which you’ve been in pain.
Both methods measure the actual effects of the accident on your life.
The Role of Insurance Companies in Settlement Offers
Insurance companies evaluate the damages caused by accidents and estimate compensation. They also examine medical bills, damages to property, and lost earnings. Estimators usually use a formula that leads to an initial offer.
The initial offer could be lower than what you are entitled to. Keep in mind that the insurance adjusters are trained to protect the financial interests of their companies rather than yours.
Meticulously examine all of your documents if you feel that the offer is not enough. Think about negotiating if the offer clearly cannot meet your needs and expenses. Hiring a personal injury lawyer can lead to a larger settlement. Their presence will help you be treated fairly throughout the process.
Understand how car settlements work to empower you during negotiations. Keep on educating yourself on all aspects needed so you can receive the compensation you deserve.
