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Call for Consultation (337) 366-8994
Personal injury claim values are determined by combining economic damages (quantifiable costs) and non-economic damages (subjective losses). Most attorneys and insurers use a multiplier formula as a starting point for settlement negotiations.
If an accident has injured you, you might wonder: how much is my case worth?
It is important to know the value of your personal injury claim before negotiating with an insurance company. Without this knowledge, you cannot determine if an offer is fair or if someone is shortchanging you.
Insurance companies use complex formulas and programs to determine settlement offers. Their adjusters receive training to cut payouts. If you do not understand how the system values your claim, you’re at a significant disadvantage.
Personal injury damages fall into two main categories: economic damages and non-economic damages. You need to understand both to know what your claim is worth.
Economic damages are financial losses that you can prove with records. These include medical bills, lost wages, property damage, and other costs from your injury. Courts often refer to these as “special damages” because they can be calculated precisely (think: you could show “receipts” to prove the costs).
Non-economic damages cover losses that do not have a clear price tag. This includes pain, suffering, emotional distress, loss of enjoyment in life, and effects on relationships. These are referred to as “general damages” because they apply to many situations but differ among individuals.
To value your claim completely, consider both categories. Insurance companies often focus on economic damages while minimizing non-economic losses. This is why their initial offers often fall short.
Medical expenses are a key part of any personal injury claim. This covers costs for the ambulance ride, emergency room visits, follow-up appointments, surgeries, physical therapy, medications, and necessary medical equipment.
When calculating medical expenses, consider both past and future costs. If your injuries need ongoing treatment, you deserve compensation for those future needs. For example, a back injury requiring years of therapy should be valued to include all anticipated treatment costs.
Keep copies of all medical bills, receipts, and records. Insurance companies will review your expenses closely. Good documentation strengthens your claim. If you lack records, they may use that to undermine your case.
Your injuries may have caused you to miss work, leading to lost income. You should get paid for the wages you lost while recovering from your injuries caused by the fault of someone else. This includes salary, hourly wages, bonuses, retirement contributions, and commissions.
If your injuries prevent you from returning to work or reduce your earning capacity, you can claim diminished earning capacity. For instance, a construction worker with a permanent back injury may no longer be able to perform physical tasks. While they may be able to do another job, the job they are now physically capable of doing may pay significantly less. The difference in potential earnings represents a loss they should be compensated for by the negligent actor.
Calculating future lost earnings requires careful analysis. Factors like age, career path, education, and the nature of the injury play a role. An economist and vocational expert may need to make precise projections of these losses.
Compensation for pain and suffering recognizes that injuries cause more than financial losses. Compensation is justified for physical pain, emotional distress, anxiety, depression, and a lower quality of life.
Insurance companies usually calculate pain and suffering using two methods. The multiplier method takes your economic damages and multiplies them by a factor of 1.5 to 5. This factor depends on the severity of the injury. More serious injuries warrant higher multipliers.
The per diem method gives you a daily dollar amount for pain and suffering. It then multiplies that amount by the number of affected days. This is often used for injuries with a defined recovery period. Some experienced personal injury attorneys can use this method to increase your recovery if you have “forever injuries” (i.e., $10/hr x 16 hrs/day awake x 30 yrs of life expectancy).
Neither method provides a complete representation of the human impact of serious injuries. An experienced attorney can help present these losses to maximize their value.
In car and truck collisions, property damage forms a separate part of your claim. Include the cost to fix or replace your vehicle and any damaged personal items in your total damages.
Property damage claims usually reach a settlement in a short time. But the damage level can affect how adjusters see your injury claim. Significant vehicle damage suggests a high-impact collision, supporting claims of serious injury. Insurance adjusters like to use “low impact” and “minimal property damage” as proof that the human in the vehicle was not catastrophically injured. But, as we all know, your car is made of metal; you are not.
Adjusters and juries also consider how your injuries have affected your daily life. Can you still enjoy hobbies and activities you loved before the accident? Has your injury affected family relationships? Do you need help with tasks you once managed alone?
Louisiana law permits spouses to file loss-of-consortium claims. These claims compensate for the loss of companionship and support due to an injury. These damages are real, and you should include them in your claim’s value.
Insurance companies focus on profits over your needs. After all, they are in the business of making money. The more they pay out to you, the less they get to keep. Their adjusters aim to settle claims for the lowest amount possible. The first offer you receive is rarely the best—it is a starting point to see if you will accept less than what your claim is worth.
Here’s why first offers often fall short:
Accident victims with attorneys recover much more than those who negotiate on their own. This holds true, even after factoring in attorney fees. Insurers are aware of this, so they may rush to settle before you consult a lawyer.
Louisiana is transitioning from a pure comparative fault system to a modified comparative fault system. Effective January 1, 2026, Louisiana Civil Code Article 2323 will bar recovery if you are found to be 51% or more at fault for the accident.
For accidents occurring before January 1, 2026, the pure comparative fault system still applies, allowing you to recover damages even if you are more than 50% responsible. However, your recovery will be reduced by your percentage of fault.
For accidents occurring on or after January 1, 2026, the modified comparative fault rule applies. If you are found to be 51% or more at fault, you cannot recover any damages. If you are less than 51% at fault, your recovery will be reduced by your percentage of fault.
For example, if your accident occurred after January 1, 2026, and you incur total damages of $100,000 but are found 20% at fault, your recovery will be reduced to $80,000. However, if you are found 51% or more at fault, you cannot recover any damages.
Insurance companies often argue that victims share fault to reduce settlement amounts. Understanding comparative fault helps assess how accurately an offer reflects liability and the applicable law based on when your accident occurred.
Louisiana law allows a two-year period for most personal injury claims filed after July 1, 2024. While this is longer than the previous one-year deadline, do not wait to pursue your claim.
Evidence can disappear quickly. Witnesses forget, surveillance footage gets deleted, and physical evidence is lost. The sooner you start building your case, the stronger it will be. Finish your medical treatment before settling. This way, you will know the full extent of your damages.
To find the true value of your personal injury claim, you need experience, resources, and knowledge of insurance companies. Online calculators and rough estimates miss the unique details of your case. They also cannot show the full impact of your injuries.
The Ikerd Law Firm has helped many clients in Louisiana and Texas recover the compensation they deserve. Attorney Chad Ikerd has over 14 years of experience. He handles car accidents, medical malpractice, 18-wheeler collisions, wrongful death cases, and more.
Call today at (337) 366-8994 for a free consultation.
Past client experiences do not guarantee future results.
Insurance companies typically use factors like injury severity, treatment duration, permanence of injury, and the type of accident to determine the multiplier between 1.5 and 5. More serious injuries with longer recovery periods generally receive higher multipliers.
Your claim’s theoretical value may be higher than the defendant’s insurance policy limit, which becomes the practical ceiling for recovery. If your damages exceed the policy limit, you may pursue the at-fault party’s personal assets, though this is often difficult and time-consuming.
Future medical expenses are projected based on your injury’s severity, prognosis, and expected treatment needs. An economist or medical expert typically calculates these projections, considering factors like inflation, life expectancy, and the cost of ongoing care.
A lump sum is paid all at once, while a structured settlement provides periodic payments over time. Although the total amount in a structured settlement may be higher due to interest, the present-day value is typically lower than a lump sum of the same total amount.
Under Louisiana’s eggshell plaintiff rule, you can recover full damages for any aggravation or worsening of a pre-existing condition caused by the accident. The defendant cannot reduce your claim’s value simply because you had a prior condition.
Adjusters typically consider medical expenses, lost wages, injury severity, liability strength, comparable case values, and your attorney’s experience. They often make low initial offers to test if you’ll settle quickly without understanding your claim’s true value.
Punitive damages are rarely available in Louisiana and only awarded for specific wrongful acts like drunk driving. When available, they can significantly increase your claim’s value beyond compensatory damages.
Under the new rule effective January 1, 2026, if you’re found 51% or more at fault, you cannot recover any damages. If you’re less than 51% at fault, your recovery is reduced by your percentage of fault, directly reducing your claim’s value.
Medical liens allow healthcare providers to claim payment from your settlement, and health insurance companies may have subrogation rights to recover what they paid. These claims are paid from your settlement proceeds, reducing your net recovery.
Yes. Permanent disabilities and catastrophic injuries typically receive higher valuations than soft tissue injuries. Insurers use injury type, permanence, and functional impact to determine multipliers and settlement ranges, with permanent injuries commanding higher multiples.
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