How Personal Injury Settlements Are Calculated_ A Simple Breakdown

1. How Personal Injury Settlements Are Calculated: A Simple Breakdown If you’ve been injured in an accident, you may wonder how much your case is worth. The truth is, every case is different. But a skilled personal injury attorney in Phoenix knows how to calculate a fair settlement using clear steps. Understanding Damages Personal injury settlements are based on damages. These are the losses you suffer because of the injury. There are two main types: ● Economic damages: Costs you can prove with receipts or records. ● Non-economic damages: Losses that affect your quality of life. Let’s take a closer look at both.

2. 1. Economic Damages These are easy to track because they’re tied to actual numbers. Medical Bills This includes everything from your ER visit to rehab sessions. Ambulance fees, medication, surgeries, and follow-ups all count. Lost Wages If you miss work while recovering, you can claim those lost earnings. Future Medical Costs If your injury needs ongoing care, that future cost is added to the settlement. Loss of Earning Ability If your injury prevents you from doing the same job, your expected income loss is calculated too. Property Damage This includes damage to your vehicle or personal belongings in the accident. 2. Non-Economic Damages These don’t come with receipts, but they’re just as real. Pain and Suffering Serious injuries cause physical pain. The longer the recovery, the higher this part of the settlement may be. Emotional Stress An accident can lead to anxiety, depression, or trauma. That emotional toll is considered. Loss of Enjoyment If you can’t do things you once loved - sports, hobbies, or travel - that counts too. Impact on Daily Life This includes how the injury affects your sleep, energy, or ability to care for others. The Multiplier Method

3. To estimate non-economic damages, attorneys often use the multiplier method. Here’s how it works: 1. Total your economic damages. 2. Multiply that number by a figure (usually between 1.5 and 5), depending on how serious the injury is. Example: If your medical bills and lost wages total $25,000, and the injury was severe, a multiplier of 4 may be used. $25,000 × 4 = $100,000 settlement estimate This method gives a general idea of what your full settlement may look like. What Affects the Multiplier? Several factors help decide what multiplier applies: ● Length of recovery ● Permanent disability ● Impact on work and daily life ● Medical evidence ● Fault (if it’s clear or disputed) A skilled Phoenix personal injury attorney will make sure all these points are considered before any offer is accepted.