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How Are Car Accident Settlements Calculated in Florida?

Most car accident claims in Florida are settled through the insurance claim process. However, before you negotiate a settlement, it’s crucial to determine the potential value of your claim. Please continue reading to learn what methods are employed to calculate car accident settlements in Florida and how our adept Bradenton Personal Injury Lawyers can help you get the justice you deserve. 

How Are Florida Car Accident Settlements Determined?

To better understand how car accident settlements are determined in Florida, you must first understand what damages may be available in a personal injury claim. The following include the damages you may be entitled to receive:

  • Economic damages: These are tangible losses that represent your out-of-pocket expenses. Essentially, they are objectively verifiable monetary losses. These include past and future medical expenses, lost wages, property damage, household services, etc.
  • Non-economic damages: In contrast, these damages represent subjective losses. They are more challenging to quantity because they are intangible, non-monetary losses. This may include pain and suffering, emotional distress, disfigurement, inconvenience, loss of consortium, loss of enjoyment of life, etc.
  • Punitive damages: This award does not reimburse injured parties for their losses. Instead, it punishes defendants for their egregious conduct and deters others from engaging in similar actions in the future. These damages are rarely awarded. However, they may be added to compensatory damages if a defendant is deemed grossly negligent.

What’s the Difference Between the Muliplier and Per Diem Method?

When calculating a car accident settlement, it’s essential to understand that no universal formula exists. However, insurers often use a “multiplier” method to estimate the value of a claim. This formula totals the plaintiff’s medical bills from the accident and multiplies that number by a specific factor between 1 and 5 to quantify economic damages. The multiplier will depend on the severity of the damages suffered. Typically, a higher factor, like 4 or 5, is used when a plaintiff suffers catastrophic injuries with long-term effects.

The per diem method, on the other hand, is often utilized for non-economic damages. This alternative calculates an injured party’s damages when their prognosis involves a complete recovery. It calculates your pain and suffering by assigning a fixed dollar amount for every day you had to live with your injuries. The daily rate will be based on the severity of the injury, the duration of the recovery, and the impact on quality of life.

While both these methods can help you get a ballpark estimate of your claim’s worth, it’s crucial to work with a skilled personal injury attorney who can negotiate the rationale behind the multiplier or daily rate used in these formulas to ensure fair compensation for your pain and suffering. At Becker & Lindauer, LLC, we are prepared to help you fight for the compensation you need to get your life back on track. Contact the dedicated Bradenton personal injury lawyers to learn how we can assist you today.