If you are injured in an accident due to someone else’s negligence, you may be eligible for financial compensation through a settlement. But the number you ultimately agree to settle on is rarely a fixed number since it’s a result of several factors that can affect how your case is assessed and negotiated.
Knowing what these are can help you manage your expectations and prepare yourself to communicate about your claim when meeting with insurers or an attorney.
1. The Severity of Your Injuries
Among the determining factors of a personal injury settlement, one of the most significant is the degree and severity of your injuries. As a rule of thumb, the more serious the injury, the greater your payout. Cases that include long-term disabilities, surgeries, or permanent injuries result in larger settlements because they change your way of life.
Minor injuries like a sprain or a bruise tend to trigger smaller payouts because they typically heal faster and demand less medical treatment. Hence, understanding how these factors influence bodily injury settlement amounts can help you set realistic expectations and strengthen your claim for fair compensation.
2. Medical Bills and Treatment Plan Estimates
Your medical expenses are a big part of any personal injury claim, after all. This includes medical bills, physical therapy, prescription medication, rehabilitation, and any other treatment necessary to recover from the injury. Insurance companies also factor in your future medical requirements when they are calculating what is a fair settlement.
3. Lost Income and Reduced Earning Capacity
You have the right to collect lost wages if you have been unable to work as a result of your injuries. But the financial hit doesn’t end there. If your injuries leave you unable to work the same job or make the same amount of money in future employment, this loss of earning capacity can significantly boost a settlement amount.
Below are some of the income losses that can be included:
- Wages lost during recovery.
- Bonuses or commissions, or overtime pay, are not earned due to the injury.
- Projected loss of earnings if you’re not able to work in the same capacity.
- Missed job or professional advancement opportunities.
Precise record-keeping—like paystubs, employment history, and affidavits from your employer—can bolster this argument.
4. Pain and Suffering
You may already be familiar with medical bills or lost wages, which are economic damages, but pain and suffering fall under the category of non-economic damages that document your physical pain and mental anguish because of the incident.
These injuries include chronic pain, mental anguish, withdrawal from life’s activities, and loss of enjoyment in life. Since they’re more nebulous, insurers tend to calculate them with a formula: multiplying your total economic damages by a number that reflects the severity of your injuries (typically between 1.5 and 5).
5. Liability and Evidence of Negligence
The extent of your proof and the visibility of fault play a massive role in what you can recover. If the other party’s fault is relatively obvious, such as in a rear-end or right-of-way collision with witnesses, videos, or clearly admitting to the fact, settlement talks tend to skew more favorably toward the injured.
But if there is any dispute about who was responsible, you may end up collecting less money or not as soon.
Take Away
The ultimate compensation in a personal injury settlement is the result of a variety of financial, physical, and legal considerations. Keep these key points in mind:
- Severe injuries and lasting disability add to the value of a settlement.
- Valid medical records guarantee that all costs are reimbursed.
- Lost wages and diminished earning power are key financial concerns.
- Pain and suffering compensation is based on the effect on your life.
- Clear evidence of fault and negligence will bolster your case.
When you understand what impacts your settlement, you and your attorney can work together to build a strong case and negotiate a favorable outcome for the compensation that is owed to you.
