You won’t get the full personal injury settlement immediately when you file a claim. There are many factors that affect how much you’re finally paid after your personal injury case is settled.
How severe your injuries are, the degree of your fault for the accident, the efforts you took to mitigate damages, medical liens, the defendant’s insurance coverage, and litigation costs have an effect on your final personal injury settlement.
We’ll explain a complete settlement breakdown in this blog.
The Severity of Your Injuries
Here’s how it works. The harsher and more life-altering your injuries are, the higher the settlement you’re entitled to. The medical expenses to treat your permanent injuries also last a lifetime.
Permanent injuries like disfigurement, severe bone fractures, and brain injuries, or any form of injury from the accident that leads to disability, are awarded higher in personal injury settlements than minor injuries like bruises, muscle sprains, and soft tissue damage.
Besides just physical injuries, the victim can also be awarded more if an accident left a permanent psychological scar on their complete life, throwing them into depression and trauma, and not being able to function as the same person they once were.
Your Shared Fault in the Accident Plays a Role
Even if you’re a victim and have more severe injuries than the other party and you were found to have contributed to causing the accident in some way, it can entirely change the percentage of compensation you’ll be getting.
Depending upon the state you’re in, the way negligence is calculated changes. One is comparative negligence, and another is contributory negligence.
There are two types of comparative negligence that affect how much compensation you can secure.
Pure comparative negligence: This allows you to secure compensation even if you’re 99% at fault, with the amount reduced by the percentage of your fault.
Modified comparative negligence: Most states bar you from getting a settlement if you’re found to be at fault for over 50% or 51% of the accident.
Contributory negligence: If you are found to be at any fault, even a tiny share of it (even 1%), it completely bars you from being entitled to compensation.
The Effort You Took to Mitigate Damages
Victims have a legal obligation to take mitigatory measures to get rid of the avoidable damages. For example, your mistakes include aggravated injuries resulting from not getting immediate medical care or engaging in physical activities while you recover.
Insurance companies and courts will deny compensation if they find that there are damages in your claim that could have been easily avoided.
The Lawyer’s Fees
Your personal injury lawyer mostly takes a percentage of your settlement. This percentage generally ranges from 33% to 40% of the total settlement. The higher the risk your personal injury has, the higher this percentage will be.
Most lawyers work on contingency fees, meaning you’re allowed to pay only after you receive your settlement.
Litigation Costs
Beyond the legal fees you pay your lawyer, you are responsible for the expenses it takes to pursue your personal injury cases. These expenses will be deducted from your total settlement.
- These expenses include
- Court filing and services fees
- Expert witness fees
- Medical records and evidence-related costs
- Deposition costs
- Trial preparation costs
The Insurance Coverage of the Defendant
The compensation for your damages is paid from the at-fault driver’s insurance. If their insurance coverage, on the other hand, is limited and the total settlement you’re entitled to is higher than their insurance coverage, this will lower your overall settlement.
In this case, your personal injury lawyer can help you pay your expenses related to the accident under your own underinsured or uninsured motorist coverage.
Medical Liens
Healthcare providers sometimes place a lien on you for agreeing to treat your injuries. Think of this like a contingency fee, but you pay the doctors and other medical professionals who treated you instead of the lawyer.
If your lien is too high, your personal injury lawyer can negotiate with the hospital or doctors to lower it.
Why Is Hiring a Personal Injury Lawyer Important?
Negotiating with the insurers and the hospital by yourself while going through immeasurable pain is impossible. Hiring a lawyer doesn’t just make the process simple; your personal injury settlement will be maximized to its full potential with the help of the lawyer’s expertise.
Key Takeaways
- Severe and life-changing injuries lead to higher medical expenses and also higher personal injury settlements.
- Depending on the state you’re in and the percentage of fault you’re at, it could affect how much settlement you’re getting.
- The court or insurers may reduce your settlement if they find that your claim’s damages were easily avoidable.
- Your personal injury lawyer takes a portion of your final settlement on a contingency fee basis.
- The expenses it takes to pursue your full personal injury case will be deducted from the settlement.
- If the defendant is underinsured and cannot cover the full percentage, your damages also affect the settlement.
- The medical lien you owe to the doctors for your treatment affects the final settlement, and you will pay it after recovering the compensation.
