Determining the Value of Your Economic Damages After an Accident

When you sustain injuries and property damage after an accident, the bills can quickly add up. Even minor car crashes can result in unexpected and significant expenses. You have auto insurance and know it will cover some or all of your damages. However, calculating your economic damages can be harder than you expect. 

So, how do you determine the value of your economic damages? Are you limited to totaling up your bills and receipts? While this is a start, there’s a little more to the process. If you skip a step, it can affect the overall value of your personal injury claim. This means you may be left with outstanding expenses after your claim is finally settled.

What are Economic Damages

If you’re not sure what economic damages are, the explanation is fairly simple. Economic damages are tangible. They have a precise or estimated dollar amount. In other words, economic damages come with a price tag, making it easier for you to calculate their value.

Some examples of economic damages include medical expenses. These can be short-term, long-term, or a lifelong expense. Property damage should also be included in your claim. This typically includes repairing any damage your vehicle sustained in the accident. 

You can also claim vehicle replacement costs but don’t get too excited over potentially owning a new car since this economic damage typically only applies when the cost of repairs exceeds the vehicle’s value. In this instance, the insurance company usually totals the damaged vehicle, and you receive a check for its Blue Book Value.

Other types of economic damages include lost current earnings and potentially the loss of future wages. If your injuries are lifelong and your home needs remodeling to accommodate to improve accessibility, this can be another economic damage. Now that you have an idea of what economic damages are, it’s time to start calculating their value.

Tips on Calculating Economic Damages

Okay, you’re staring at a pile of bills and receipts. You also have a calculator handy. You’re ready to determine the value of your economic damages, but where do you start? A good tip is to divide your bills and receipts into a few piles. 

You know, place items relating to medical expenses in a pile and vehicle damage in another one. Once you’ve separated the paperwork, determining the value is a little less daunting.

Medical Expenses

Okay, the value of your medical expenses is limited to injuries sustained in the accident. This means that if you have an outstanding doctor’s bill from a year or so ago, you can’t add it to your injury claim.

Go ahead and find the total of your medical bills. If you’re already making payments, add up your receipts. Don’t throw any bills or receipts away. You’ll need to present these to the insurance company as proof of your damages. Prescriptions can also be included. However, the prescription must apply to injuries sustained in the accident.

If your injuries require long-term treatment like rehabilitation, this expense is also covered. Even lifetime medical care can be part of your claim.

Property Damage

We’ve already discussed vehicle repairs. These are part of your economic damages. You also know if repair costs are more than the vehicle’s value, the insurance company is probably going to send you a check for replacement costs.

Your property damage claim can extend beyond your vehicle to personal items. For example, if your laptop is damaged in the accident, you can include the repair or replacement costs.

A good tip is to get ready to have several repair or replacement estimates. Your insurance adjuster is going to want a few options. Before you ask, your insurance provider is probably only going to cover the lowest estimated costs.

Lost Current and Potentially Future Earnings

Before you get too far ahead and start planning a vacation instead of returning to work, there are limits on the value you can place on lost wages. Your injuries must be the underlying reason you can’t return to work, which means you can’t claim lost wages because you decided to go on a trip.

If your injuries are a lifetime condition, you may not be able to return to work. In this instance, you can claim lost future earnings, and this can also apply if your accident injuries make it impossible to return to your previous position. Whether you’re unable to continue working or must take a lower-paying position, the value of your lost income can be part of your economic damages.

You will need to present paycheck stubs and financial statements. However, don’t expect to receive the total value of your lost current and future earnings. From the total value of your lost wages, you’ll probably only receive a percentage—this is a normal part of the negotiation process during a personal injury claim. 

However, knowing your total lost earnings will make it easier for you to know if the insurance settlement offer is fair or well below the value of your claim.

Remodeling Your Living Space

This type of economic damage thankfully doesn’t appear on every personal injury claim. When you’re including remodeling costs, it typically means you experienced a life-altering injury like paralysis. If your living space requires remodeling to make it handicap accessible, you can claim these costs as economic damages.

You’ll probably need to get a few estimates, and remember that insurance adjusters like options and they prefer to pay lower claim values whenever possible. If you’ve already started the remodeling work, save all receipts and bills. You can add the total and present it to the insurance company as part of your economic damages.

Let an Experienced Attorney Help Determine the Value of Your Claim

While it might seem straightforward to calculate the value of your personal injury claim by simply totaling your bills and receipts, this figure may not be the final amount you'll receive. This total gives you a starting point, but it's not the definitive value of your claim. 

The negotiation process that follows is crucial to your case’s success, and this is where having a lawyer becomes beneficial. Your attorney can engage with the insurance company on your behalf to strive for a settlement that fully and fairly compensates you for your economic losses.