How Settlement Amounts Are Determined in Car Accidents
When a car accident leaves you with serious injuries and significant bills, it is important to know how to negotiate for a fair settlement from an insurance provider. Understanding how settlements are calculated can give you a better idea of the true value of your case. You may need assistance from a Los Angeles car accident attorney to optimize your settlement using this information.
Types of Damages Available in a California Car Accident Case
A car accident settlement can allot an amount for economic as well as non-economic damages. These are both compensatory types of damages, meaning they are meant to compensate a victim and make him or her whole again after an auto accident.
Economic damages refer to a victim’s monetary losses. Examples include:
- Medical bills (past and future)
- Lost wages
- Lost future capacity to earn
- Disability accommodations
- Property damage repairs
- Transportation or travel
- Out-of-pocket costs
Non-economic damages are the intangible effects of the collision, such as:
- Pain and suffering
- Emotional harm
- Psychological trauma or PTSD
- Permanent disfigurement or disability
- Depression or anxiety
- Loss of quality of life
- Loss of consortium
There are also punitive damages, which may be awarded in car accident cases involving a defendant who is guilty of gross negligence, recklessness or malicious intent to harm. Examples include car accidents caused by drunk driving or road rage.
How Are Damages Calculated?
Economic damages are typically calculated by adding together the values of medical bills, wage statements, vehicle repair estimates and other proof of financial losses. Consulting with a medical expert or life care planner may also be necessary to estimate future costs associated with a long-term injury.
Non-economic damages can be assigned any number that an insurance company or jury deems appropriate. However, there are two common types of calculation methods. The Multiplier Method takes the victim’s total amount of economic damages and multiplies it by a number chosen based on the severity of the injury (typically between 1.5 and 5).
The Per Diem Method assigns a daily value in non-economic damages and multiplies it by the total number of days the victim will likely experience pain and suffering. This method is more common in cases involving short-term injuries, while the Multiplier Method is more often used in catastrophic and permanent injury cases.
Factors Involved in Car Accident Settlement Determinations
A variety of factors can go into a settlement value determination in California. This includes injury severity, the length of the victim’s recovery time, the victim’s age and health, the number of liable parties, and the amount of insurance available. In general, car accident claims involving serious injuries and losses result in greater settlements due to the substantial damages suffered.
How an Attorney Can Help Maximize Your Car Accident Settlement
There are tips and tricks you can use to help maximize the settlement you receive for a car crash in Los Angeles. An experienced personal injury lawyer in LA can explain them to you and tailor his or her legal services to your unique situation to achieve the best results possible.
Your lawyer can hire experts to help you prove future damages, for example, and investigate your claim thoroughly to look for multiple at-fault parties for additional coverage. You can trust a lawyer to take over negotiations with an insurance company for you or go to trial, if necessary, to maximize your case outcome.