Your car accident settlement could range from a few thousand dollars to millions, depending on factors many people never consider. The difference between a minimal payout and substantial compensation often comes down to understanding how insurance companies calculate damages and having a Kansas City personal injury attorney who can ensure every aspect of your losses is properly valued.
Economic and Non-Economic Damages in Car Accident Settlements
Car accident settlements encompass two primary categories of damages: economic and non-economic damages. Economic damages are the concrete, quantifiable financial losses directly tied to your accident. These include medical expenses, lost wages, property damage, rehabilitation costs, and future medical care.
Non-economic damages, also known as pain and suffering, address the intangible losses that you have experienced. These encompass physical pain, emotional distress, loss of enjoyment of life, mental anguish, and the impact on your relationships and daily activities. While harder to quantify, these damages often represent a large portion of your final settlement.
How Are Economic Damages Calculated?
To calculate economic damages, you need to add up all of your financial losses from the accident. Your car accident attorney in Kansas City can help gather the necessary documentation and work with experts to determine your potential award:
- Medical Expenses: These damages are calculated by totaling all medical bills directly related to your accident, including emergency room visits, surgery costs, diagnostic tests, prescription medications, and rehabilitation expenses. Medical experts can help project the cost of future treatment.
- Lost Wages and Future Earnings: Lost wages are calculated by determining your pre-accident income and multiplying it by the time you’ve been unable to work. Experts may also analyze your career trajectory to determine how your injuries may permanently affect your ability to earn income.
- Property Damage: This is based on the fair market value of your vehicle or the total cost of repairs if the vehicle is repairable. For other items damaged in the crash, compensation is based on the replacement cost or current market value.
How Are Non-Economic Damages Determined?
Calculating pain and suffering is more complicated because this category is more subjective and not based on actual expenses. Insurance companies and courts use two main methods to put a dollar amount on your non-economic damages.
The multiplier method takes your total economic damages and multiplies them by a number between 1.5 and 5. More serious injuries get higher multipliers. For example, if your medical bills and lost wages total $50,000 and you have severe injuries, the insurance company might multiply that by 3 for $150,000 in pain and suffering damages.
The per diem method assigns a daily dollar amount to your pain and suffering, then multiplies that by the number of days you’ve been affected. If your daily pain and suffering is valued at $200 and you’ve dealt with symptoms for 300 days, that equals $60,000.
Discover the True Value of Your Claim with a Kansas City Car Accident Lawyer
Now that you know how economic and non-economic damages factor into your final settlement, the real challenge begins: getting the insurance company to pay the full amount you deserve. These companies will do everything in their power to reduce their payout—which is why you need an attorney on your side who will fight for your maximum compensation. If you were hurt in a Kansas City car accident, contact Dollar, Burns, Becker, and Hershewe at (816) 876-2600 and fight for the full compensation you deserve.