Calculating Damages in an Automobile Crash Injury Suit

calculating car accident damages after a car accident

A car crash can be a terrifying experience. It can do great physical and emotional injury to you and others who were in the car, which may entitle these individuals to significant damages like medical bills, lost income and pain and suffering.

Calculating damages in a car crash is a complicated process. The value of your damages award depends on many factors, including whether those damages are economic or non-economic in nature.

Economic damages are “objectively verifiable monetary losses,” which mean losses that can be measured as a monetary amount based upon the available evidence. Economic damages are primarily calculated based on the actual losses you faced due to the crash. For example, medical costs are determined by your medical bills, costs to purchase medical equipment and other direct costs you incurred for medical treatment. Economic damages typically are proven by documentary evidence.

Non-economic damages are those that cannot be defined by out-of-pocket costs. Despite that fact, these damages can be substantial and often constitute a significant part of a car crash damages award. Non-economic damages typically include compensation for pain and suffering, loss of companionship and support, disfigurement or scarring and loss of enjoyment of life.

In determining non-economic damages, insurance companies and other claims adjusters use these common methods:

Multiplier method — Your medical expenses are multiplied by a certain factor to determine the total value of your pain and suffering. The multiplier is based on such aspects of your case as the extent of your injuries, the pain you suffered, the recovery time of your injuries and how they affected your daily life. The more severe the harm, the higher the multiplier will likely be.
Per diem method — Insurance companies typically measure how much you earn for a day of work to set the daily rate. Other factors may be considered as well. The settlement offer is then based on the number of days of pain times the daily value of your suffering as determined by the method.

Calculating damages is an important part of your automobile crash lawsuit. A qualified car crash attorney can help you predict the amount of economic and non-economic damages that may be available to you in your claim.

If you were in a car crash in southern California, the law firm of Pulverman & Pulverman, LLP in Santa Barbara is ready to provide legal assistance. Contact us online or call {PHONE} for a free initial consultation.

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