What Goes into The Valuation of a Personal Injury Claim?

It is not just about the medical bills you have piling up at the hospital. Insurance companies and the court evaluate the whole picture: the pain you have endured, the time you have lost at work, and the ways in which life has changed since the accident.

“Every detail matters. Two people can suffer the same injury, yet their cases can be worth totally different amounts because the impact on their lives is not the same,” says Colorado personal injury lawyer Amy Gaiennie of Amy G Law. 

Well, here is the lowdown on how Colorado calculates the value of a personal injury claim.

Damages That Matter

The value of your case will depend on economic and non-economic damages resulting from your accident. Economic damages are the ones you can easily quantify: medical bills, lost wages, car repairs, etc. These are the ones you can prove with documentation.

The non-economic ones, on the other hand, are the harder ones to quantify. These include the pain you have endured, the stress you have suffered, the enjoyment you have lost, and the relationships you have strained. Although the state of Colorado has set limits on non-economic damages, they often make up a big part of the claim.

Determining the True Value of Damages

To determine the true value of your personal injury claim, you begin by looking at the simple things: economic damages. That is just the basic addition of hospital bills, lost wages, and other easily quantifiable items. 

The non-economic ones are harder to determine. You cannot really put a price tag on pain or anxiety. attorneys and insurance companies will try one of two methods, the multiplier method and the per diem method, to determine the true value of non-economic damages.

The multiplier method involves multiplying the total amount of economic damages by a multiplier, usually between 1.5 and 5, depending on the severity of the case.

The per diem method is where you determine the amount of money you should receive per day for the pain and suffering you endured, then multiply that by the total number of days you might have to endure it.

Punitive Damages and Why They Are Rare

Punitive damages do not exist for the purpose of compensating you for the damages you have suffered. The goal here is usually to punish the defendant for their conduct and to deter others. In Colorado, they are used when someone has acted recklessly or intentionally. 

You do not often see punitive damages awarded. You have to prove that the defendant was not only negligent but also reckless. You need hard evidence of misconduct. It can be any amount, depending on the severity of the misconduct. It can be the same as the compensatory damages or double the compensatory damages. 

How Your Lawyer Influences Case Value 

The personal injury lawyer you pick really can make or break your case. A good personal injury lawyer will find evidence that really proves how much your injury has affected your life, not just what is documented. 

They will bring professionals into your case that you would never think to call yourself, such as doctors, accident analysts, and maybe even an economist, to explain what you are losing in the future. They will know how to present your case so that insurance companies or a jury will listen, and they will not settle for the first lowball offer. 

When it comes to finding a personal injury lawyer, it is important that you find one who has experience with cases similar to yours, has a good team of professionals, and has a good track record of winning good settlements or verdicts. This will go a long way in determining how much money can accumulate..