How to Calculate Compensation After an Accident in CA
Most personal injury claims are resolved out of court when the injured party and the insurance company agree on a settlement. One of the most frequent questions our law firm receives is, “How much is my case worth?” As much as we would love to input information into a car accident settlement calculator and give you an exact number, each case is different, so there’s no average settlement value we can give you. However, we can meet with you during a free consultation to discuss your particular case and what your personal injury claim might be worth.
Damages That Can Be Awarded in California Personal Injury Cases
The value of your car accident case or other personal injury case is tied directly to the damages you sustain. Damages are the real-life impacts that you suffer because of the accident. The types of damages that can be awarded in a California personal injury claim include:
Special Damages
Special damages are also known as economic damages. They refer to the economic losses someone suffers because of an accident, such as:
- Medical bills
- Lost earnings
- Reduced earning capacity and loss of future earnings
- Property damage
- Out-of-pocket expenses
Your bills, estimates, and receipts can help show the value of these losses.
General Damages
General damages are non-economic damages. They consider the intangible harm accident victims suffer because of the accident, such as:
- Pain and suffering
- Mental anguish
- Emotional distress
- Scarring and disfigurement
- Impairment and disability
- Loss of quality of life
- Loss of companionship
- Loss of consortium
California’s jury instruction, CACI 3905, directs jurors to determine the amount of general damages that is fair under the circumstances.
Collectively, special damages and general damages make up compensatory damages. As the name suggests, these damages are intended to compensate you for the damages you have sustained.
Punitive Damages
Unlike the other types of damages, punitive damages are not intended to compensate the victim. Instead, they are meant to punish the defendant and prevent similar conduct in the future. Insurance companies will not usually include payment for punitive damages, but jurors sometimes award them in cases involving egregious behavior. You will have to consider whether you want to take the chance of taking your case to court to recover maximum damages or to settle it for a known outcome with the insurance company.
Your personal injury settlement should cover all your damages in an ideal scenario. An experienced car accident attorney can evaluate your case and explain the damages that may be available for your claim.
Assigning a Value to Your Damages
After you and your personal injury lawyer have identified all your damages, you can begin to estimate the value of each. You can calculate your economic damages by adding up all your expenses tied to the accident. For example, your car repair bill will show the amount it will cost to repair your vehicle after an accident.
When calculating your medical expenses, California’s jury instructions explain that the amount you paid or are required to pay is the amount to use to calculate damages, not the actual bill. Many health insurance companies have contracts with medical providers for reduced rates, so you would use this rate to calculate your damages.
For some economic damages, hiring expert witnesses who can quantify losses or projected losses may be necessary. For example, a medical expert may need to testify about the medical treatment you will likely need in the future. An economic expert may be asked to testify about the difference in your projected earnings before and after the accident. The accident lawyers at Allen Law Firm can explain when expert testimony may be necessary to help establish the full value of your case.
Insurance companies may use various methods to estimate the value of general damages, such as:
- The multiplier method – This method multiplies a factor between one and five by the value of your economic damages to obtain a value for your general damages. An accident victim with a minor injury may receive a smaller factor than someone who suffered a severe injury. This considers the lifelong impact an injury may have on a victim.
- Per diem method – In this method, the insurance adjuster assigns a certain dollar amount for each day of your recovery. For example, the adjuster may assign a value of $100/day. If you suffered for 30 days, your compensation for pain and suffering would be $3,000.
An experienced attorney can evaluate your case and argue for the strategy most likely to yield maximum compensation.
Factors that Can Affect the Value of Your Potential Settlement
Various factors can increase or decrease the potential value of your claim, including:
Severity of Injuries
The type and severity of your injuries can dramatically impact your case’s settlement value. The type and extent of your injuries can affect how long your medical treatment is, what type of treatment you receive, and its cost. Additionally, spinal cord injuries, neck injuries, and other catastrophic injuries could take you out of work permanently or for an extended time, so you should be fairly compensated for these losses.
Cases involving lifelong injuries tend to have a higher settlement value than those that victims may more easily recover from, such as broken bones or soft tissue injuries.
Availability of Insurance Coverage
The insurance company will only settle cases up to the value of the applicable insurance policy. However, if more than one party is responsible for your accident injuries, a personal injury lawyer can file multiple claims on your behalf.
Whether Liability Is Disputed
Most personal injury claims are based on the legal concept of negligence, meaning that some other party acted carelessly in causing your accident. If the at-fault party denies responsibility or tries to blame you, the insurance company may deny your claim.
Whether You File a Personal Injury Lawsuit
In some cases, it may be necessary to file a personal injury case to show you are serious about your recovery. The insurance company may agree to a fair settlement after you take legal action. However, litigation can be long and expensive, so you will have to carefully weigh these risks with your personal injury attorney before proceeding.
Tips for Securing Larger Settlements
Fortunately, you can take steps to maximize the potential value of your claim, including:
- Reporting the accident to the police or authorities
- Collecting evidence at the accident scene, including witness statements
- Seeking medical attention immediately after the accident
- Monitoring for symptoms of delayed pain and responding quickly
- Familiarizing yourself with the do’s and don’ts after an accident so you don’t do anything that could jeopardize your case value
- Keeping your medical records and other documents related to your damages
- Hiring a lawyer knowledgeable of personal injury laws
Contact Us Today for a Free Case Evaluation
At Allen Law Firm, our goal is to recover a fair settlement on your behalf. We can explain your legal rights, guide you through the claims process, and manage interactions with insurance companies. Contact Allen Law Firm today to arrange a free, no-obligation consultation.
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