Personal Injury Lawsuits: How to Determine the Value of Your Damages and Not Leave Money on the Table

When you’ve been injured due to someone else’s negligence, you have the right to seek compensation for your damages. However, determining the value of your personal injury lawsuit is not always straightforward. 

Many people settle for less than they deserve, either due to a lack of understanding or pressure from insurance companies who won’t make good on their commitment to you. 

Below we will explore how lawyers and insurance companies can assess the value of your damages and ensure you don’t leave money on the table. 

What to Do After an Accident and When a Personal Injury Claim Makes Sense

If you've been involved in an accident, from a car accident on the road to a slip-and-fall in a store, knowing what steps to take can make a significant difference in your health, well-being, and ability to seek compensation. 

Steps to Take After an Accident

1. Prioritize Safety and Seek Medical Attention

If you're in a car accident, move to a safe location if possible. Call 911 immediately to report the accident and request medical assistance if anyone is injured. Even if you feel fine, see a doctor as some injuries (like concussions or internal damage) may not show symptoms right away.

2. Contact Law Enforcement and File a Police Report

A police report provides an official record of the accident, which can support your claim. Provide accurate details, but avoid admitting fault or speculating about the cause of the accident.

3. Gather Evidence at the Scene

Take photos and videos of the accident scene, vehicle damage (if applicable), your injuries, and road conditions, traffic signs, or hazards. You will also want to get witness statements and their contact information.

If in a workplace or premises accident, report the incident to the property owner or employer and request a written incident report.
 

4. Keep Detailed Records

Maintain a journal documenting your physical pain, emotional distress, and impact on daily life. Save all medical bills, prescriptions, therapy costs, and other expenses related to your injury. Track any lost wages due to missed work.

5. Notify Insurance Companies

If the accident involves a vehicle, notify your insurer but avoid giving recorded statements without consulting a lawyer. If injured at a business or private property, report the injury to the appropriate party.

When Does a Personal Injury Claim Make Sense?

Filing a personal injury claim is not always necessary for minor accidents. However, a claim may be justified if:

You Suffered Significant Injuries

If your injuries required medical treatment, hospitalization, physical therapy, or long-term care, you may have grounds for a claim. Severe injuries often lead to high medical expenses and lasting physical or emotional trauma.

The Accident Was Caused by Someone Else’s Negligence

If another party’s recklessness, carelessness, or failure to act responsibly led to your injury, you may be entitled to compensation.

Common examples of negligence:

• A distracted or drunk driver causing a car accident
• A store failing to clean up a spill, leading to a slip and fall
• A defective product causing injury

Your Injury Results in Financial Losses

If you’ve lost wages due to time off work or your injury has affected your ability to earn in the future, you may have a strong case. Other financial damages include medical bills, rehabilitation costs, transportation expenses, and home modifications (if disabled).

The Insurance Offer is Too Low

If the at-fault party’s insurance company offers a low settlement that does not cover your full damages, filing a claim may help maximize your compensation.

The Key Factors in Determining the Value of Your Claim

Several factors contribute to the value of a personal injury claim. Understanding these will help you maximize your compensation:

Medical Expenses

The cost of your medical treatment, including hospital bills, surgeries, physical therapy, and prescription medications, plays an important role in your claim. Future medical expenses should also be factored in, especially for long-term or permanent injuries.

Lost Wages and Earning Capacity

If your injury caused you to miss work, you are entitled to recover lost wages. If your injury impacts your ability to work in the future, you can also claim diminished earning capacity.

Pain and Suffering

Compensation for physical pain and emotional distress is a significant component of many personal injury claims. Factors like severity, duration, and the impact of the injury on your daily life influence this amount.

While emotional pain is often tied to physical injuries, some states allow claims for purely emotional distress, such as in cases of harassment, wrongful death of a loved one, or extreme trauma.

Property Damage

If your personal property (such as a vehicle) was damaged in the accident, you can recover repair or replacement costs.

Loss of Consortium

If your injury has negatively affected your relationship with your spouse or family, you may be entitled to damages for loss of companionship and support.

Punitive Damages

Punitive damages differ from compensatory damages, which are meant to cover medical expenses, lost wages, and pain and suffering. Instead, punitive damages are designed to punish the defendant for particularly reckless or egregious behavior and to deter similar misconduct in the future.

Punitive damages are not awarded in every personal injury case. They are typically reserved for cases where the defendant’s actions were:

• Grossly Negligent: The defendant showed a reckless disregard for the safety of others (a company knowingly selling defective products).
• Intentional: The defendant deliberately caused harm (an assault or fraudulent medical malpractice).
• Malicious: The defendant acted with extreme disregard for human life (a drunk driver causing a fatal accident).

How Insurance Companies Calculate Compensation

Insurance companies often use various methods to calculate settlement amounts. The two most common are:

The Multiplier Method

• This method multiplies actual damages (medical expenses and lost wages) by a factor (typically 1.5 to 5) based on the severity of the injury.
• Example: If your economic damages are $50,000 and a multiplier of 3 is applied, your total compensation would be $150,000.

The Per Diem Method

• This method assigns a daily dollar amount to your pain and suffering and multiplies it by the number of days you’ve been affected.
• Example: If you are awarded $200 per day and have suffered for 180 days, your compensation would be $36,000.

How to Avoid Leaving Money on the Table

Document Everything

Keep detailed records of medical bills, lost wages, property damage, and other expenses. Maintain a journal to document your pain, emotional distress, and the impact of the injury on your life.

Don’t Accept the First Offer

Insurance companies often start with a lowball offer in hopes that you will accept less than you deserve. Consult with an attorney before accepting any settlement.

Get a Professional Evaluation

Work with medical experts, vocational rehabilitation specialists, and economists to assess future damages. Obtain expert opinions on long-term treatment needs and earning capacity reduction.

Consider Future Expenses

Don’t settle without considering future medical treatments, rehabilitation costs, and potential loss of earnings. You will also want to ensure your settlement accounts for ongoing and future needs.

Hire an Experienced Personal Injury Attorney at Morgan & Morgan

A skilled attorney at Morgan & Morgan can negotiate with insurance companies and present a strong case for maximum compensation. Our attorneys have access to expert witnesses and resources to build a compelling argument.

Common Mistakes That Reduce Compensation

There are several common pitfalls that personal injury victims can make when pursuing a claim, but an experienced personal injury lawyer at Morgan & Morgan can help you to avoid these mistakes.

Some of these include:

Failing to Seek Immediate Medical Attention

Delaying medical treatment can weaken your claim, as insurance companies may argue that your injuries aren’t serious.

Providing Recorded Statements to Insurers

Insurance adjusters may use your statements against you to minimize your claim. Always consult with an attorney before giving a recorded statement.

Not Factoring Future Medical Needs

Many injuries require long-term care, and settlements should reflect this.

Posting on Social Media

Avoid posting updates about your injury or activities on social media, as insurers may use them to dispute your claim.

Settling Too Quickly

Rushing into a settlement without knowing the full extent of your injuries can result in lost compensation.

Does a Preexisting Condition Affect the Value of a Personal Injury Claim?

Yes, a preexisting condition can affect the value of a personal injury claim, but it does not necessarily prevent you from receiving compensation. Here’s how it plays a role:

The "Eggshell Plaintiff" Rule

Legally, defendants must take victims as they find them. This means that if you have a preexisting condition that makes you more susceptible to injury, the at-fault party is still responsible for the full extent of the harm caused by their negligence. This is known as the eggshell plaintiff rule.

Proving Aggravation of a Preexisting Condition

If the accident worsened your condition, you may be entitled to compensation for the increased severity of your injury. However, you must provide medical evidence—such as doctor’s reports, imaging scans, and expert testimony—to show that the accident made your condition worse.

Insurance Company Tactics

Insurers often try to minimize claims by arguing that your injuries are solely due to your preexisting condition rather than the accident. To counter this, having a skilled personal injury attorney and comprehensive medical records can make the difference.

Impact on Compensation Amount

If you can prove the accident aggravated your condition, you can seek compensation for additional medical treatment, pain and suffering, and lost wages. However, if the insurance company successfully argues that your injuries were not worsened by the accident, your claim’s value may be reduced.

Importance of Medical Records

Your past and current medical records will play a vital role in demonstrating how your condition changed due to the accident. A doctor’s testimony explaining the difference between your previous condition and your post-accident condition can strengthen your case.

A preexisting condition does not bar you from compensation, but it can make the claims process more complex. If you’re in this situation, working with a personal injury attorney can help ensure you receive the full amount you deserve.

How Do You Prove Pain and Suffering?

Proving pain and suffering in a personal injury claim requires substantial evidence that demonstrates the physical and emotional toll of your injuries. Since pain and suffering are non-economic damages (meaning they don’t have a direct monetary value like medical bills or lost wages), you must present compelling proof to justify your claim.

Here are the key ways to prove pain and suffering:

Medical Records

Detailed records from your physician describing the severity of your injuries, treatment, and long-term prognosis can be great assets to prove pain and suffering in a personal injury claim, as well as documentation of pain medications and other treatments prescribed to manage discomfort. Additionally, any physical therapy records can provide evidence of ongoing rehabilitation efforts, demonstrating the lasting effects of your injuries.

Testimony From Medical Experts

A doctor or specialist can testify about the severity of your injury and its expected long-term effects. Psychologists or therapists can provide insight into emotional distress, anxiety, PTSD, or depression caused by the accident.

Personal Journal or Pain Diary

Keeping a daily record of your pain levels, emotional struggles, and physical limitations can serve as compelling evidence. Entries should include details about how the injury impacts your daily life, relationships, and ability to work.

Witness Testimonies

Statements from family members, friends, or coworkers can provide insight into how the injury has changed your mood, behavior, and daily activities. A spouse or close relative may describe changes in your ability to engage in hobbies, social events, or even household tasks.

Photos and Videos

Before-and-after photos showing the contrast in your physical condition can be powerful. Videos demonstrating how the injury has affected your mobility and quality of life can make an impact in court.

Employment Records

If your injury has affected your ability to work, pay stubs, performance reviews, or HR reports can help demonstrate how your professional life has suffered.

Objective Medical Tests

X-rays, MRIs, and CT scans can provide physical evidence of pain-causing injuries. Nerve conduction studies may help prove chronic pain conditions like nerve damage.

Testimony From a Vocational Expert

If your injury affects your ability to perform your job, a vocational rehabilitation expert can explain how your career prospects and earning potential have diminished.

Pain and suffering are subjective but can be proven with a combination of medical evidence, expert testimony, and personal documentation. The more evidence you provide, the stronger your claim.

How Do I Know What Is a Fair Settlement for Pain and Suffering?

To determine whether an insurance company’s offer for pain and suffering damages is reasonable, you could use the multiplier or per diem methods explained above. However, your best course of action is to seek advice from a seasoned personal injury attorney who can provide you with an estimate of your pain and suffering damages after evaluating your case. 

Do not be tempted to accept an insurance settlement without discussing the offer with a personal injury lawyer. While it is understandable that accident victims are hoping for a quick settlement, the first offer from an insurance company is usually inadequate. Insurers are focused on preserving their profits and, without professional advice, you could accept an offer that later leaves you out of pocket. An attorney can protect you from making a mistake and losing out on what you deserve.

How Are Punitive Damages Calculated?

Unlike compensatory damages, which are based on actual losses, punitive damages are determined by factors such as:

• The severity of the defendant’s misconduct.
• The amount necessary to deter future wrongdoing.
• The defendant’s financial status (wealthier defendants may face higher punitive damages).
• Legal limits set by state laws (some states cap punitive damages).

State Limitations on Punitive Damages

Not all states allow punitive damages in personal injury cases, and those that do may impose caps on the amount that can be awarded. Some states set punitive damages at a specific multiple of compensatory damages.

How Morgan & Morgan Can Help

Determining the value of your personal injury damages requires careful consideration of medical expenses, lost wages, pain and suffering, and more. By documenting your damages, rejecting lowball offers, and working with an experienced attorney, you can ensure you don’t leave money on the table.

For over 35 years, Morgan & Morgan has stood For the People, fighting for the maximum compensation personal injury victims need and deserve to move forward with their lives—and we’ve recovered over $25 billion in the process. 

With a dedicated team of over 1,000 attorneys, we are the largest personal injury law firm in the country with offices in every state across the nation, providing expert legal assistance wherever you are.

At Morgan & Morgan, we believe that everyone should have access to justice, which is why we charge no upfront fees to get started. That’s right—the Fee Is Free®, and you only pay if we win your case.

If you’ve been injured, contact Morgan & Morgan today for a free consultation. Hiring one of our lawyers is easy, and you can get started in minutes with a free case evaluation.