How Settlements Are Calculated
Pedestrian accident settlements consider multiple factors to determine fair compensation.
Economic Damages
#Medical Expenses
- Emergency room costs
- Hospital stays
- Surgery costs
- Physical therapy
- Future medical needs
- Prescription medications
- Medical equipment
#Lost Wages
- Time missed from work
- Reduced earning capacity
- Future lost earnings
- Lost benefits and bonuses
#Property Damage
- Personal belongings damaged
- Electronics (phone, watch, etc.)
- Clothing
Non-Economic Damages
#Pain and Suffering
- Physical pain experienced
- Ongoing chronic pain
- Severity and duration of suffering
#Emotional Distress
- PTSD from the accident
- Anxiety and depression
- Fear of walking/crossing streets
#Loss of Enjoyment
- Inability to pursue hobbies
- Reduced quality of life
- Loss of consortium
Multiplier Method
Many settlements use a multiplier:
1. Add up all economic damages
2. Multiply by 1.5 to 5 based on severity
3. Add economic damages back
#Multiplier Factors
- 1.5-2x: Minor injuries, quick recovery
- 2-3x: Moderate injuries, some ongoing effects
- 3-4x: Serious injuries, significant impact
- 4-5x: Catastrophic injuries, permanent disability
Per Diem Method
Calculate daily compensation for pain:
1. Determine a reasonable daily rate
2. Multiply by days of recovery
3. Add economic damages
Factors That Increase Value
- Clear driver liability
- Multiple witnesses
- Dash cam or surveillance footage
- Severe or permanent injuries
- Impact on career
- Young victim with long-term needs
#
Medical Expenses
- Emergency room costs
- Hospital stays
- Surgery costs
- Physical therapy
- Future medical needs
- Prescription medications
- Medical equipment
#Lost Wages
- Time missed from work
- Reduced earning capacity
- Future lost earnings
- Lost benefits and bonuses
#Property Damage
- Personal belongings damaged
- Electronics (phone, watch, etc.)
- Clothing
Non-Economic Damages
#Pain and Suffering
- Physical pain experienced
- Ongoing chronic pain
- Severity and duration of suffering
#Emotional Distress
- PTSD from the accident
- Anxiety and depression
- Fear of walking/crossing streets
#Loss of Enjoyment
- Inability to pursue hobbies
- Reduced quality of life
- Loss of consortium
Multiplier Method
Many settlements use a multiplier:
1. Add up all economic damages
2. Multiply by 1.5 to 5 based on severity
3. Add economic damages back
#Multiplier Factors
- 1.5-2x: Minor injuries, quick recovery
- 2-3x: Moderate injuries, some ongoing effects
- 3-4x: Serious injuries, significant impact
- 4-5x: Catastrophic injuries, permanent disability
Per Diem Method
Calculate daily compensation for pain:
1. Determine a reasonable daily rate
2. Multiply by days of recovery
3. Add economic damages
Factors That Increase Value
- Clear driver liability
- Multiple witnesses
- Dash cam or surveillance footage
- Severe or permanent injuries
- Impact on career
- Young victim with long-term needs
- Time missed from work
- Reduced earning capacity
- Future lost earnings
- Lost benefits and bonuses
#
Property Damage
- Personal belongings damaged
- Electronics (phone, watch, etc.)
- Clothing
Non-Economic Damages
#Pain and Suffering
- Physical pain experienced
- Ongoing chronic pain
- Severity and duration of suffering
#Emotional Distress
- PTSD from the accident
- Anxiety and depression
- Fear of walking/crossing streets
#Loss of Enjoyment
- Inability to pursue hobbies
- Reduced quality of life
- Loss of consortium
Multiplier Method
Many settlements use a multiplier:
1. Add up all economic damages
2. Multiply by 1.5 to 5 based on severity
3. Add economic damages back
#Multiplier Factors
- 1.5-2x: Minor injuries, quick recovery
- 2-3x: Moderate injuries, some ongoing effects
- 3-4x: Serious injuries, significant impact
- 4-5x: Catastrophic injuries, permanent disability
Per Diem Method
Calculate daily compensation for pain:
1. Determine a reasonable daily rate
2. Multiply by days of recovery
3. Add economic damages
Factors That Increase Value
- Clear driver liability
- Multiple witnesses
- Dash cam or surveillance footage
- Severe or permanent injuries
- Impact on career
- Young victim with long-term needs
#
Pain and Suffering
- Physical pain experienced
- Ongoing chronic pain
- Severity and duration of suffering
#Emotional Distress
- PTSD from the accident
- Anxiety and depression
- Fear of walking/crossing streets
#Loss of Enjoyment
- Inability to pursue hobbies
- Reduced quality of life
- Loss of consortium
Multiplier Method
Many settlements use a multiplier:
1. Add up all economic damages
2. Multiply by 1.5 to 5 based on severity
3. Add economic damages back
#Multiplier Factors
- 1.5-2x: Minor injuries, quick recovery
- 2-3x: Moderate injuries, some ongoing effects
- 3-4x: Serious injuries, significant impact
- 4-5x: Catastrophic injuries, permanent disability
Per Diem Method
Calculate daily compensation for pain:
1. Determine a reasonable daily rate
2. Multiply by days of recovery
3. Add economic damages
Factors That Increase Value
- Clear driver liability
- Multiple witnesses
- Dash cam or surveillance footage
- Severe or permanent injuries
- Impact on career
- Young victim with long-term needs
- PTSD from the accident
- Anxiety and depression
- Fear of walking/crossing streets
#
Loss of Enjoyment
- Inability to pursue hobbies
- Reduced quality of life
- Loss of consortium
Multiplier Method
Many settlements use a multiplier:
1. Add up all economic damages
2. Multiply by 1.5 to 5 based on severity
3. Add economic damages back
#Multiplier Factors
- 1.5-2x: Minor injuries, quick recovery
- 2-3x: Moderate injuries, some ongoing effects
- 3-4x: Serious injuries, significant impact
- 4-5x: Catastrophic injuries, permanent disability
Per Diem Method
Calculate daily compensation for pain:
1. Determine a reasonable daily rate
2. Multiply by days of recovery
3. Add economic damages
Factors That Increase Value
- Clear driver liability
- Multiple witnesses
- Dash cam or surveillance footage
- Severe or permanent injuries
- Impact on career
- Young victim with long-term needs
Many settlements use a multiplier:
1. Add up all economic damages
2. Multiply by 1.5 to 5 based on severity
3. Add economic damages back
#
Multiplier Factors
- 1.5-2x: Minor injuries, quick recovery
- 2-3x: Moderate injuries, some ongoing effects
- 3-4x: Serious injuries, significant impact
- 4-5x: Catastrophic injuries, permanent disability
Per Diem Method
Calculate daily compensation for pain:
1. Determine a reasonable daily rate
2. Multiply by days of recovery
3. Add economic damages
Factors That Increase Value
- Clear driver liability
- Multiple witnesses
- Dash cam or surveillance footage
- Severe or permanent injuries
- Impact on career
- Young victim with long-term needs
Calculate daily compensation for pain:
1. Determine a reasonable daily rate
2. Multiply by days of recovery
3. Add economic damages
Factors That Increase Value
- Clear driver liability
- Multiple witnesses
- Dash cam or surveillance footage
- Severe or permanent injuries
- Impact on career
- Young victim with long-term needs
Key Takeaways
- Economic damages include all financial losses
- Non-economic damages cover pain and suffering
- Multiplier method commonly used for calculation
- Severity of injuries significantly impacts value
- Documentation is essential for maximum recovery
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