Whenever someone is involved in an accident, there are what attorneys
refer to as damages. Simply put, damages are losses that the at-fault
party (could be a person or an entity) must compensate the injured
party for. The purpose of damages is to put the injured party back in
the same position he or she would have been in had the accident never
occurred. Some refer to this as making the injured party “whole.” Not
surprisingly, the name given to damages meant to compensate the
injured party are called compensatory damages. Compensatory damages
are further broken down into two subcategories. Depending on the type
of accident, the specific damages will vary, but all will fall into
one of the two following categories.
Special (Economic) Damages
The first category of damages is called special or economic damages.
Damages that make up this category are those that reimburse the victim
for out-of-pocket expenses. Examples of expenses that belong in this
category include lost wages, medical bills, costs of therapy or
rehabilitation, costs to replace or repair property damage, and car
rental costs. Special damages are easy to calculate, as there are
receipts, bills, or some other easy way to calculate the amount.
General (Non-economic) Damages
The second category is what is known as general or non-economic
damages. Damages that fall into this category are to compensate the
victim for non-out-of-pocket losses. Examples of general damages
include pain and suffering, future lost wages, loss of companionship
or consortium, and emotional distress. General damages, by their very
nature, are challenging to calculate.
Insurance companies have developed a few methods to determine a dollar
figure to compensate someone for damage like “pain and suffering.” The
first method is called the multiplier method. To calculate an award
using this method, the insurance company combines the amount of the
victim’s medical bills and the amount of his or her lost wages and
multiplies it by a number from 1-5. The multiplier number maybe 1 or 2
if the accident was not very serious, whereas a more serious accident,
would be given a multiplier of 3 or 4. An insurance company could use
a 5 or even higher if there are special circumstances, such as the
at-fault party was drunk or the victim had to go through an extensive
recovery or multiple surgeries. If the victim was partially to blame,
the insurance company could also lower the multiplier. As you can see,
the award that this method would create has its problems.
A second method is called the per diem or daily rate. To calculate an
award using the daily rate method, the insurance company would assign
a dollar amount and multiplies it by the number of days that the
injured party was in recovery. There are also computer programs that
help insurance companies come up with an award.
Also to note, in some special cases a victim may be entitled to
receive punitive damages. The purpose of punitive damages is to punish
the at-fault party for wrongdoing.
Now with a better understanding of damages, it is easier to understand
that the question of “how much is my case worth”— is not as simple as
punching a list of numbers into a calculator. General damages are very
complex to calculate and another great reason why an injured party
should always consult with an attorney before speaking with the
insurance company. A qualified personal injury attorney will
thoroughly review a person’s case to make sure that he or she receives
all the compensation that he or she is entitled to under the law.
Remember, the insurance company’s goal is to offer a victim the least
amount possible to settle a claim. Only a seasoned attorney will have
your best interests at heart.
If you or a loved one suffered a serious injury due to the fault of
another, it is important to know that you have legal options. The
Kansas City Personal Injury Attorneys at Hubbard & Kurtz, L.L.P. have
helped countless injury victims, in both Kansas and Missouri, obtain
compensation for their injuries. Our caring team of attorneys will
take the time to listen to you and carefully review the facts of your
case. To schedule an initial consultation with one of our experienced
Kansas City Attorneys, contact Hubbard & Kurtz, L.L.P. today at (816)
472-4673. At Hubbard & Kurtz, L.L.P we are dedicated to helping injury
victims!
