How the Value of a Personal Injury Claim is Calculated Denver Trial Laywers Apr 6, 2017
Personal injury cases generally have two main categories of damages available to an injured party – economic and non-economic. Economic damages are typically easier to value since they include calculable losses that stem from the accident or injury, such as medical bills, lost income, property damage, and other out-of-pocket expenses. Non-economic damages include pain and suffering, such as discomfort, emotional distress, and anxiety linked to the accident and injuries sustained.
In a personal injury case, compensation awarded to the injured party is based on these two categories of damages. Quantifying economic damages is somewhat straightforward, but how does one begin to put a value on pain and suffering?
QUANTIFYING NON-ECONOMIC DAMAGES
Insurance companies use a number of methods to calculate pain and suffering when crafting an offer for a personal injury settlement. However, the most common methods are the multiplier method and the per diem method.
This approach involves adding up one’s economic damages and multiplying the sum by a number between 1.5 and 5. The second number depends on the circumstances of the case, including injury severity, the likelihood of a quick and full recovery, the impact of the injuries on day-to-day life, and whether or not the other party was clearly at fault for the accident. For example, if the injury was catastrophic and the individual is unlikely to recover, the multiplier will be on the higher end.
Per Diem Method
This method requires a dollar amount for every day an injury victim has lived with pain caused by the accident. To use the per diem method, the daily earnings of the victim are used as the baseline. For example, if someone earns $180 per day and suffered 150 days of pain, non-economic damages would amount to $27,000. While this might work for less severe injuries, it is not practical for long-term or permanent injuries.
DENVER PERSONAL INJURY ATTORNEYS
Founded in 2003, the Denver Trial Lawyers have represented thousands of clients seeking just compensation for their injuries. Several of our Denver personal injury attorneys hold records for largest verdicts obtained in certain practice areas and have been awarded and recognized for their excellence. You can rest assured that, in our hands, your case will receive the attention and devotion it deserves.
Those who come to us are often enduring one of the most difficult moments in their lives, having experienced either tremendous loss or serious injuries as a result of the negligence of another. We are here to provide compassionate guidance backed by more than a century of collective experience.
Call us today at 303-571-5302 to begin a free case evaluation with our Denver personal injury attorneys.