13 Crucial Factors That Affect Personal Injury Settlement Amounts

Sustaining a personal injury can be challenging as it comes with physical and emotional burdens. Personal injuries are not only about body injuries, but they are also about mental health that are being affected over a long period.

While no compensation can undo the damage, you have the legal right to get compensated for the financial recovery if caused by someone’s negligence. 

However, negotiating a personal injury settlement is challenging. Several factors affect the settlement, but there is a twist: By knowing the factors, you can influence the success of the settlement.

Here, we will discuss the 13 factors that affect the settlement amount and how you can maximize the compensation amount with the help of a personal injury lawyer.

1. Injury Severity

The severity of the injury plays an important role in determining the settlement amount. Most severe injuries result in higher compensation due to the recovery costs and their long-term impact on an individual’s daily life. 

2. Emotional and Mental Distress

Physical injuries are just one part of a personal injury claim. Emotional and mental distress, such as post-traumatic stress disorder (PTSD) and mental health conditions caused by the injury, can also affect compensation. 

3. Medical Treatment and Recovery

Another factor is the cost and duration of medical treatment. They are important in settlement negotiations. Long-term treatments, surgeries, or rehabilitation results in higher settlement amounts due to increasing medical expenses.

If you have an injury requiring ongoing treatment or resulting in permanent disability, the settlement will surely cover those future costs as well.

4. Liability Certainty

Certainty of Liability means how clear it is that the other party was responsible for the injury. If the fault of the other party is obvious and proven, compensation tends to be higher. 

However, there is a catch: If there is a dispute over who was at fault, it could affect the settlement amount.

5. Media Appeal

This factor can tremendously increase your chances of getting the compensation you deserve. Cases that attract media attention can lead to an increase in the settlement amount. Various insurers fear the negative publicity, which they always want to avoid. So, they try to settle the case quickly.

6. Cost of Litigation

Litigation is expensive. Most parties want to avoid it. If the cost of going to trial is high, defendants may settle the case quickly to avoid lengthy and costly legal proceedings.

7. De-Risking the Case

Both plaintiffs and defendants aim to reduce the risk of a trial. If the case is strong, the defendant may offer a higher settlement to avoid the risk of losing in court. This is especially true when there’s a high probability of a significant jury verdict, which could be even more costly.

8. Strength of Evidence

Evidence matters, especially the strong ones in a personal injury claim. This can include medical records, witness statements, and many more. The stronger the evidence proving negligence and severity of injury, the stronger the case. 

9. Law and Regulations

The laws and regulations in your jurisdiction play a significant role in the settlement amount. So, it is important to know your state’s laws and how they affect personal injury claims, thus impacting the settlement amount.

10. Insurance Coverage

The at-fault party’s insurance coverage limits can significantly affect your settlement. If their policy has low coverage limits, the settlement amount may be capped regardless of the injury severity. Conversely, if the at-fault party has a higher insurance coverage, you may receive a more substantial payout that reflects the actual costs.

11. Quality of Legal Representation

Your attorney’s skill and experience can greatly affect your settlement. A knowledgeable personal damage lawyer knows how to negotiate effectively, gather strong evidence, and anticipate defense strategies. The better the representation, the more likely you are to secure a favorable settlement, especially in complex or high-stakes cases.

12. Severity of Property Damage

In cases involving vehicular accidents, the extent of property damage, such as damage to your car, can indicate how severe the accident was. If the property damage is extensive, it can help bolster your injury claim. Severe damage adds weight to the argument that the accident was significant and thus justifies higher compensation.

13. Future Losses and Expenses

Injuries often have long-term consequences that extend beyond the initial treatment. 

In a personal injury lawsuit, several factors must be included in the settlement, such as:

• Lost future wages
• Ongoing medical Care
• Reduced quality of life

If the injury impacts your work or your life, the settlement should also consider the compensation for future losses and lifestyle changes.

Maximize Your Compensation with Personal Injury Lawyers at Swartz & Swartz, P.C.

We are dedicated to empowering personal injury victims. Our experienced attorneys navigate the complexities of your case, ensuring you receive the compensation you deserve for injuries, lost wages, medical expenses, and emotional trauma. 

We understand your challenges, and our compassionate team of lawyers for personal injury is here to help you every step of the way. You just focus on your recovery while we handle the legal intricacies. 

Let us fight for your rights and maximize your compensation.