Car accidents can leave you with a lot of expenses, and in many instances, the responsible party’s insurance policy may not be large enough to cover your costs. That’s when filing a lawsuit with help from an experienced Chicago car accident attorney can be a good choice. They can help you recover compensation for your injuries and damages. But the amount you’ll receive will depend on the nuances of your case. Here’s what you need to know about how damages are calculated.
How Economic Damages Are Calculated
Economic damages cover your direct and measurable financial losses from your car accident. Calculating these is generally the most straightforward part of the process. It involves adding up all the documented costs and losses you’ve incurred and are expected to incur in the future.
Think of it as creating a detailed invoice of the accident’s financial impact. You may be able to recover costs for:
- Medical bills: All costs for treatment related to the accident, including ambulance rides, emergency room care, hospital stays, surgeries, doctor visits, physical therapy, medications, assistive devices, and estimated future medical care.
- Lost wages: Income lost because you were unable to work during your recovery documented through pay stubs or employer statements.
- Loss of future earning capacity: Income you can’t earn in the future as a result of the car accident. Calculating this often requires expert analysis.
- Property damage: The cost to repair or replace your vehicle and any other personal property damaged in the crash.
Evidence like bills, receipts, invoices, repair estimates, and proof of income are crucial for accurately calculating these damages. Your attorney will ask you to provide these before you file.
How Non-Economic Damages Are Calculated
Non-economic damages compensate you for the non-financial consequences of the accident. This covers the ways it has affected your life and well-being and includes pain, suffering, emotional distress, inconvenience, and loss of enjoyment of life that you experience after the accident.
There isn’t one single formula mandated by Illinois law. Instead, attorneys, insurance adjusters, and sometimes juries use certain methods as guidelines to arrive at a figure that reflects the severity and impact of these non-tangible harms. Two common approaches are the multiplier method and the per diem method.
The Multiplier Method
Here’s how the multiplier method works:
- Your total calculated economic damages (especially medical bills and lost wages) are used as a base figure.
- This figure is multiplied by a number, known as the “multiplier.”
The multiplier typically ranges from 1.5 to 5, but it can be higher or lower depending on the specifics of the case. Higher numbers correspond to more serious injuries and accidents.
The Per Diem Method
The “per diem” method assigns a specific dollar amount per day for the suffering you experience, starting on the date of the accident until you reach “maximum medical improvement” (the point where your condition is stable).
How Punitive Damages Are Calculated
Punitive damages are different from economic and non-economic damages. They are not intended to compensate the victim for losses, but rather to punish the defendant for particularly reckless or intentional misconduct and deter similar behavior in the future.
There’s no set formula for calculating punitive damages. If awarded, the amount factors in the severity of the defendant’s actions, the harm caused, and the defendant’s financial resources.
Speak With a Chicago Car Accident Attorney
If you’ve been in a car accident and are concerned about the insurance settlement not covering the full cost of your recovery, suing for additional damages may be a good choice. Contact us today to speak with a Chicago car accident attorney and to learn more about your options.