Published On: Thu, Oct 26th, 2023

How to Determine Personal Injury Settlement

The harm caused by somebody due to negligence to another can affect the relationship, personal and work life. No matter the level of damage done, everything needs to be compensated fairly.

However, the cost of filing a lawsuit might be too grave for some to bear. That is why it is advisable to settle without going to court. A personal injury lawyer values your claim and ensures you are duly compensated for the injury received.

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photo/ witwiccan

Calculating the Settlement

Calculating what you will be paid for the damage done to you can be done from two perspectives. These include the economic and non-economic.

  • Economic

Economic damages can easily be calculated because there are usually receipts to show for them. Also, these are more visible than any other type of injury. They include medical bills, loss of wages due to the accident, and money spent to replace or repair damaged property.

  • Non-Economic

This kind of damage is more tricky to calculate. This is because they are less visible and easily provable than the economic damages. Damages in this category include trauma and anxiety as a result of negligence.

Lawyers knowledgeable in personal injury law can calculate the damage through the per diem or multiplier methods. The gross economic damage is usually multiplied by numbers from 1 to 5 for the multiplier method. If the injury is more severe, a higher rate is used. For the per diem method, the victim is paid daily for the injuries suffered. This will depend too much on the wage of the victim before the accident.

Things That May Affect the Settlement Value

The insurance company of the person at fault may try to look for ways to reduce settlement. However, some factors could contribute to high or low compensation. These factors include:

Degree of Injury

How badly the victim is injured can determine what the compensation will look like. If the victim cannot return to work, they have to be compensated for their daily wages. In that case, the compensation will be high.

Part Responsibility

Sometimes, the victim may have a part in the injury sustained. In this case, the compensation paid might be low.

Limit of Insurance Policy

The party’s insurer who is at fault cannot pay more than what is paid as a premium. If the coverage is insufficient, it might be better for the victim to file a lawsuit to get just compensation.

The Best Time to Accept a Settlement Amount

Personal injury cases can be settled without a lawyer or a court case. If you choose this (which is, by the way, not advisable), then you should do it at the right time. Take your time accepting what is given to you.

“Victims should not be quick to accept a settlement amount. Knowing the full extent of their injuries short and long-term is essential to understanding what an appropriate settlement would be.” says attorney Charles Boyk of Charles E. Boyk Law Offices, LLC. You may need your doctor to give you medical clearance to ensure no need for further treatments. Also, ensure that the offer covers your medical expenses, travel, and wages lost.


Sometimes, victims of negligence find it practically impossible to return to normal life. Such victims must be given fair compensation to cover expenses incurred. It is necessary to ensure a critical assessment of the situation and ensure all damages incurred are accounted for.

Author: Anu T

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