As a personal injury attorney, I am regularly asked, “What is my personal injury case worth?” According to various self-help websites, the answer should be based on a formula: three times the medical bills plus lost wages. That answer is entirely misleading and should not be used as a barometer.
Whether making a demand for settlement from an insurance company or asking for money from a jury, a reasonable and responsible request must be made. If you make a request higher, you will be compensated. If you make a request that is too high, the insurance company will refuse to pay, or the jury will misread the victim’s intentions.
When requesting compensation, it is essential not to pull a number out of thin air. Various self-help books and websites suggest that a fair value for settling a personal injury case is to add up all medical bills, multiply by three, and then increase it by lost wages. For example, if you had $15,000 in medical bills, those sources suggest you should hope to settle your case for $45,000 plus lost wages. This answer could not be any further from the truth.
The flaws in this formula are apparent. It is not uncommon for someone in a truck accident to be taken by ambulance to a hospital emergency room such as UC Davis and undergo expensive diagnostic testing such as MRIs and CT Scans, only to find out that they only have minor neck strains and are medically cleared a few hours later. It is not uncommon for medical bills from this quick hospital stay to run well over $25,000.
In contrast, it is not uncommon for someone who suffers a herniated disc that restricts their activities for the rest of their life to opt not to have surgery because of the high risk of failure. This person with a lifelong injury who did not go to an emergency room may only have $5,000 in medical bills.
Following the formula, the individual with a three-hour hospital stay and no problems should settle for $75,000. Likewise, a person with lifelong problems should settle for $15,000. This result needs to be revised.
Determining what a personal injury case is worth requires carefully examining many factors. While those factors include the costs of medical bills, there are many other important factors, such as the extent of actual treatment compared to just diagnostics; the duration of the treatment, the invasiveness and pain associated with the treatment; the likelihood of pain or discomfort not only the near term future but in the later stages of life; potential earnings losses; and how the injuries impact a particular person enjoyment of life.
Besides calculating the extent of damages, a case’s valuation must also be adjusted based on the likelihood of establishing fault on the other person’s part, as well as the economics of insurance policy limits and collectability.
Just as it is not best to perform your dental work, it is generally best to try and handle your personal injury claim. Three times, medical bills might be a significant settlement in one case and a horrific deal in another. Rather than guess the case’s value, please contact me or another personal injury attorney in our office for a free consultation.
