“AV-Preeminent” Rated Lawyer by Martindale-Hubbell & Personal Injury Lawyer for over 35 Years
Video transcript:
Ever wonder how they come up with those big settlement numbers? Let me explain how personal injury claims are calculated. Personal injury claims basically follow the same pattern no matter what the injury is, what causes the injury, whether it's a car accident, a slip and fall, a trip and fall, any other type of product defect case causing an injury, the evaluation and calculation of damages is always the same.
Let's take a car accident case, the most typical type of personal injury case. In a car accident case, the first thing we're going to do is look at who caused the accident. Is it extremely 100% clear that the other person was the sole cause of the accident or are we dealing with a situation where our client is partly at fault also? or in some cases we have multiple defendants that contributed to the cause of the accident.
First we're dealing with fault. Oftentimes it's 100% the fault of the other driver. Let's say in a car accident case in Florida we follow something called a contributory fault which means that even if the driver admits that they're at fault they can also claim that our client was partly at fault themselves. So that gets taken into account.
The second thing that is put into the evaluation and calculation of a personal injury claim is the amount of your damages. And your damages are essentially broken down into economic damages and non-economic damages. And the economic damages are generally medical bills up to the date of a settlement. We call those past medical bills and then a calculation of what your future medical bills are going to be as a result of your injuries.
So, we're taking all of that past and future medical bills into account. We're also taking into account the extent of your lost wages. And when we go to resolve your claim or settle your claim, anything from that day in the past is called past lost wages. Anything in the future that you haven't yet lost but are expected to lose is called loss of earning capacity.
A perfect example would be a client who works a manual labor job. Let's say they build homes. They're a brick layer. And as a result of the accident, they can no longer be a brick layer making $50,000 a year and they don't have the other educational background to go out there and do a job making the similar amount of money. So those clients sometimes have a loss of earning capacity. They're not going to be unable to work for the rest of their lives. They're just going to be unable to make as much as they did prior to the accident.
We calculate that loss of earning capacity. We use experts such as vocational rehabilitation experts to help us determine what the loss of earning capacity is. And then to calculate those damages, we also bring in an economist which is required under the law to bring all of that future loss of earning capacity back to present value.
Those are the economic damages, the medical bills and lost wages, past and future. Then we have the non-economic damages that are broken down into what is generally referred to as pain and suffering. But in Florida, pain and suffering is really seven different elements. You’ve got compensation for your pain, your suffering, your mental anguish, your inconvenience, your loss of enjoyment of life, and your disability and scarring. Pain and suffering is the term we commonly use, but it’s really seven different elements.
We then also figure out what your past pain and suffering is worth. We also work with your doctors and other experts, we figure out what type of non-economic pain and suffering damages you're going to have in the future. So that goes into the evaluation of your future pain and suffering.
So all of those things start with how the accident happened. One of the things that are really important in car accident cases is what does the damage look like to the cars? Is it just a tiny dent on the bumper or is your car total? All of those factors go into the evaluation and calculation of damages in a personal injury claim.
If you have any other questions regarding the calculation or worth of your personal injury claim, please give me a call at 813-915-1110. I'll be happy to discuss it with you. The consultation's always free. We can do it over the phone. I'll be happy to answer any questions you might have.
How personal injury settlements are calculated in florida
If you’ve ever wondered how personal injury settlements are calculated, you’re not alone. Many accident victims are unsure how insurance companies and attorneys arrive at a final number. While the process can seem complicated, there is a structured framework used to determine the value of a personal injury claim. Understanding these factors can help you feel more confident and informed as your case moves forward.
Determining Fault in Personal Injury Claims
One of the first steps in calculating personal injury claims is determining fault. Before compensation is discussed, it must be established who caused the accident and to what extent. Liability plays a major role in the value of personal injury settlements, especially in Florida.
Florida follows a modified comparative negligence system. This means your compensation can be reduced by your percentage of fault. For example, if you are found 20% responsible for an accident, your recovery in a personal injury settlement would be reduced by 20%. If you are more than 50% at fault, you may be barred from recovering damages altogether.
In some cases, multiple parties share responsibility. A car accident could involve another driver, an employer, or even a manufacturer if defective equipment played a role. Establishing clear liability strengthens your position during negotiations and often leads to stronger personal injury settlements. Attorneys rely on police reports, witness statements, medical records, surveillance footage, and sometimes accident reconstruction experts to prove fault.
Calculating Economic Damages
A major component of personal injury settlements involves economic damages. These are the measurable financial losses directly tied to your injury. Properly calculating these damages is critical to ensuring that personal injury settlements reflect the true cost of the accident.
Economic damages typically include:
- Past medical bills
- Future medical treatment and rehabilitation
- Prescription medication costs
- Lost wages from missed work
- Loss of earning capacity if you cannot return to your prior employment
For serious injuries, future expenses can be significant. Doctors may outline long-term treatment plans, while vocational experts and economists help project lost income over time. These future losses are reduced to present value to ensure personal injury settlements fairly account for both current and long-term financial harm.
Insurance companies often scrutinize medical expenses and wage claims closely. They may argue that certain treatments were unnecessary or unrelated to the accident. An experienced attorney works to ensure that all legitimate accident-related expenses are included when negotiating personal injury settlements.
Calculating Non-Economic Damages
Beyond financial losses, personal injury settlements also compensate victims for non-economic damages. These damages address the physical and emotional toll of an accident.
In Florida, non-economic damages included in personal injury settlements may cover:
- Physical pain
- Mental anguish
- Emotional distress
- Loss of enjoyment of life
- Disability
- Scarring and disfigurement
- Inconvenience
Unlike medical bills, non-economic damages do not have a fixed dollar amount. The value depends on the severity of your injuries, the length of your recovery, and whether you face permanent limitations. More severe or permanent injuries typically result in higher personal injury settlements because of their long-term impact on daily life.
Attorneys use medical documentation, photographs, expert opinions, and personal testimony to demonstrate how your injuries have affected your life. This evidence is essential in maximizing non-economic damages within personal injury settlements.
Other Factors That Affect Personal Injury Settlements
Several additional factors can influence the outcome of personal injury settlements. Insurance policy limits may cap how much compensation is available. The strength of the evidence, the credibility of witnesses, and whether the case is prepared for trial can also impact negotiations.
Insurance companies are more likely to offer fair personal injury settlements when they know the injured party has strong legal representation and is prepared to take the case to court if necessary.
Call Hancock Injury Attorneys at 813-915-1110 Today
Understanding how personal injury settlements are calculated is important, but having experienced legal guidance is essential. Mike Hancock, Tampa Personal Injury Attorney, has more than 35 years of experience helping clients pursue fair and full personal injury settlements after serious accidents.
He is committed to providing personal attention, clear explanations, and dedicated representation for every client. If you or a loved one has been injured due to someone else’s negligence, do not navigate the claims process alone.
Call Hancock Injury Attorneys today at 813-915-1110 to schedule a free consultation and learn how an experienced Tampa personal injury lawyer can help you pursue the personal injury settlements you deserve.