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How are Personal Injury Settlements Calculated?

Posted in Blog on July 30, 2021

Personal injury law is a blanket term that involves getting compensated for the effects of any of several different types of accidents. These can include car accidents, slips and falls, product liability, and even medical malpractice. Victims often seek monetary compensation for their injuries, which is intended to cover lost wages, medical bills, and pain and suffering.

Since these issues can cause severe anxiety and stress, recovery is even more difficult than just dealing with physical pain and limited mobility. That is why settlements are offered to victims. They are meant to cover medical expenses and get a person back on his or her feet after an unpredictable tragedy has taken everything away through no fault of his or her own.

Where Does the Compensation Come From?

Personal injury settlements provide compensation to cover the injured person’s costs. A settlement materializes after such an individual sues the party that has been found to be responsible for the former’s accident, and it is provided by the latter’s insurance company. Property or car insurance will cover the cost depending upon where the injury took place and how it occurred.

Others are expected, by duty, to reasonably protect others in a civilized society. For example, by driving safely, or wiping up spills on one’s property, you are keeping others safe. By acting negligent (without intent), or malicious (with intent), one is not acting responsibly, and if the victim can prove such, he or she will be properly compensated in the event of an accident.

That is why insurance is required for vehicles and strongly suggested for all other property. The at-fault insurance provider is paid monthly so they can compensate a victim if an accident was to occur.

How Long Does a Settlement Take?

When you are injured and drowning in debt, it is reasonable that you may want, or better yet, need, your money immediately. Losing a steady stream of income while also racking up medical debt certainly is a nerve-wracking, trying situation. But, that said, personal injury settlements do take a particular amount of time.

That is due to the amount of work that it will take to prove your case to the other party’s insurance company. Your attorney will ask you for photos and information so he or she can get the accident report from the police along with your medical records. These include treatment records and records from the ambulance (if applicable) and the emergency room. He or she also needs to take the time to interview witnesses and build a solid case against the other party.

Armed with iron-clad evidence, your personal injury lawyer will then try to negotiate for a fair settlement with the other party’s insurance company. This usually takes a bit of time with each party suggesting offers back and forth until a number is agreed upon mutually. At that point, documents will be processed, signed, and notarized. Once everything is completed, the attorney will cash the check from the insurer, take his or her cut, and cut a check to you for the balance, which is all yours.

How Are Settlements Calculated?

It can be hard to give an exact formula for how settlements are calculated because there are so many mitigating factors that go into the process of coming up with an amount. Put simply, the worse off you are, and the more serious your injuries are, the more compensation you will receive.

Here are a few factors that influence the amount that you may get:

Medical Expenses

This can include both past expenses, that may or may not have already been paid for, and any anticipated future expenses for long term care. This also includes ambulance rides, hospital stays, and equipment, such as crutches, or wheelchairs.

Property Repair or Replacement

This covers vehicle replacement or repair or compensation to repair or replace any other property damaged due to the fault of another individual or entity.

Lost Wages

This means the amount of money that you were unable to earn because of either missing work or becoming unable to perform your job to the best of your abilities due the accident. This compensation can also reimburse workers that were forced to depend on their other employer-provided benefits, such as paid time off and vacation time. If you are unfortunate enough to become injured to the point where there is a high probability of losing future income, you may be compensated for that as well.

Pain and Suffering

Pain and suffering, depending upon who serious an injury is, may also be considered when a settlement amount is being agreed upon. Pain and suffering can also include emotional suffering, as well, since accidents can bring about feelings of anxiety and depression that you may never have had before. This money can be used to pay for professional help, if needed, or it can be used to reasonably compensate for the trauma in the only way that a lawsuit can.

In conclusion, personal injury settlements work wonders aiding victims of accidents with getting back to the life that they had prior to the occurrence. Now that you know how personal injury compensation works, you can rest assured knowing that hiring a competent attorney is the first step in getting the money you deserve.

If you have been the victim of a motor vehicle accident or any other type of mishap that wasn’t your fault, call us today for a consultation. As your local Denver, Colorado personal injury law firm, learn what we can do for you.

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