How Do You Calculate Damages in a Personal Injury Lawsuit?

Calculating damages in a personal injury claim requires evaluating multiple factors, including the severity of the injury, financial losses, and long-term effects on the victim’s life. Compensation varies significantly depending on tangible expenses, such as medical bills and lost wages, and intangible losses, like pain and suffering.

At Christie Farrell Lee & Bell, our attorneys have fought for injured victims in Indiana since 1993. During a free consultation, we can estimate your damages and the compensation amount you may pursue. In this article, we outline the types of damages available, the methods used to calculate them, and the factors that influence settlement amounts in personal injury cases.

Types of Damages in a Personal Injury Lawsuit

In a personal injury lawsuit, compensation is meant to cover both financial losses and the broader impact of an injury on a person’s life. The amount awarded depends on the circumstances of the case and how it affects the victim’s ability to work and live normally.

On the one hand, you can recover economic damages, which compensate you for financial losses directly resulting from an accident. These typically include:

• Medical expenses: Covers emergency treatment, hospital stays, rehabilitation, and ongoing care required due to the injury.
• Lost wages: Compensation for missed workdays and reduced future earning potential due to the inability to work.
• Property damage: Includes costs to repair or replace damaged personal property, such as a vehicle involved in an accident.

On the other hand, non-economic damages address the emotional and psychological impact of an injury, which can be just as debilitating as physical harm. They include:

• Pain and suffering: Compensation for emotional distress, physical pain, and loss of enjoyment of life.
• Loss of consortium: Covers the loss of companionship, affection, and support that an injured person’s spouse or close family members experience due to the injury. 

The best way to know if your injury qualifies for a personal injury claim is a free consultation with our team. During this meeting, an experienced attorney from Christie Farrell Lee & Bell can evaluate your case’s details, explain your legal options, and guide you through the steps toward seeking damages.

Methods Used to Calculate Damages in Personal Injury Cases

Determining compensation in a personal injury case requires evaluating economic and non-economic losses. On the one hand, economic damages are calculated based on verifiable financial losses, using medical bills, pay stubs, repair estimates, and expert assessments. 

However, non-economic damages are harder to calculate due to their intangible nature. Usually, attorneys and insurance companies use the following methods:

• Multiplier method: Calculates pain and suffering by multiplying economic damages by a factor, usually between 1.5 and 5, depending on the severity of the injury, the impact on your daily life, and the length of recovery.
• Per diem method: This approach assigns a daily monetary value to pain and suffering, then multiplies it by the number of days you experience hardship. The daily rate is often based on the injured person’s average daily earnings.

Under Indiana’s modified comparative fault rule, a victim’s compensation decreases by their percentage of fault. For example, if they’re 20% at fault, their damages drop by 20%, while those found 51% or more responsible cannot recover compensation. Having an experienced lawyer can make all the difference in maximizing your recovery.

Factors That Influence Settlement Amounts

Several factors impact the amount awarded in a personal injury settlement, as compensation is based not only on financial losses but also on how the injury affects the victim’s life. Insurance companies and attorneys consider these elements when negotiating settlements or presenting cases in court:

• Severity of injuries: More severe injuries typically result in higher compensation, especially when they cause permanent disability, or require surgery or long-term care.
• Medical documentation and treatment: Comprehensive medical records, consistent treatment, and physician evaluations help demonstrate the injury’s severity, making it harder for insurers to dispute the claim.
• Long-term impacts: Injuries leading to chronic pain, mobility issues, or reduced quality of life often result in higher settlements, especially if they affect your ability to work.
• Insurance policy limits: The at-fault party’s insurance coverage sets a maximum payout, meaning you may only recover up to the policy’s limit unless you take additional legal action.
• Legal representation: The experienced attorneys at Christie Farrell Lee & Bell increase the likelihood of securing full compensation by negotiating effectively, presenting strong evidence, and challenging low settlement offers from insurers.

How Insurance Companies Assess Personal Injury Claims

Insurance companies evaluate claims carefully to determine liability and settlement amounts, often looking for ways to reduce payouts, such as:

• Settlement negotiations: Insurers frequently offer low initial settlements to avoid larger payouts.
• Use of medical reviews: Insurance adjusters may challenge medical reports to argue the injury isn’t as severe as claimed.
• Pre-existing conditions: Insurers may argue the injuries weren’t caused by the accident to reduce or deny compensation.
• Legal leverage: Insurance companies are more likely to settle for higher amounts when facing experienced attorneys.

This is why representing yourself in a personal injury claim is rarely a good idea. Without legal representation, claimants face experienced adjusters and legal teams who work to minimize settlements. A skilled attorney levels the playing field and ensures fair compensation by countering these tactics.

Contact an Indiana Personal Injury Lawyer for a Free Consultation

Working with an experienced personal injury lawyer in Indiana can significantly impact the outcome of your case. Christie Farrell Lee & Bell has over 40 years of experience in Indiana and a track record of securing substantial settlements, such as:

• $60,000,000 – Truck accident case against Tesla (Severe motorcycle injury in Avon, Indiana)
• $30,500,000 – Premises liability (Man trapped by a defective garage door)
• $3,080,000 – Medical negligence (Failure to diagnose a tumor from an MRI)
• $2,400,000 – Truck accident (Settlement for a mother and her two daughters)
• $750,000 – Uber rideshare accident (Passenger injury in a crash caused by another driver)

We provide you with a free initial screening call to assess your case. If you need legal guidance, contact our team today to explore your legal options.