How to Determine Non-Economic Damages in a Car Accident Case
If you’re filing case in court or making a claim with an insurance company after a car accident, you will need to know how much your claim should be. Typically figuring out the economic damages is usually pretty easy as they are the items that have exact monetary value, such as medical bills, car repair costs, and lost wages. However, non-economic damages, such as pain and suffering, don’t have an exact calculation. Read on to find out how much your non-economic damages may be.
The Multiplier Method
The easiest way to estimate your non-economic damages is by multiplying your economic damages by a certain number. Typically, attorneys will multiply the actual damages by three to come up with a reasonable amount. For example, if your economic damages were $1,000 then you would multiply that by three for a total of $3,000 in damages.
Insurance companies have strayed from automatically conceding to this figure and now use complex software programs to determine what the total damages should be. The software factors in the severity of your damage, property damage, and the length of your recovery. However, this software usually undervalues your claim. It is important to remember that even if the software is not used, three is not the set multiplier. Sometimes the multiplier can be as low as one if the injury is not severe.
The Day Rate Method
The Day Rate Method or “per diem” calculation is calculated by taking an amount of money that is assigned to your injury daily and then multiplying it by the amount of time it takes you to recover. To determine the daily rate you can use the amount of income you might make in a day or an amount that reflects your jurisdiction’s case law. You cannot choose an arbitrary number because you will need to offer an explanation to the court why you chose that particular number.
Calculating the Final Value
Trying to determine a final value is tricky, but usually the most efficient way to value your claim is to use both methods to develop an estimate. From there you will be able to adjust the figure based on your circumstances and the circumstances of the accident. For example, if the multiplier method gives you a value of $25,000 and the day rate gives you a value of $35,000 then choosing an estimate of $30,000 would be a safe bet. Hiring an experienced attorney to help you with your claim will make your estimation process much easier and much more accurate. After you determine a value you will be able to file your claim in court. Source: Chad Jones Law
Website: http://waco.chadjoneslaw.com/
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