Suffering injuries and vehicle damage from a car accident is distressing enough without having to battle insurance companies for fair compensation. The economic losses stemming from an accident can spiral out of control quickly – racking up stacks of medical bills, draining your savings on repairs and replacements, and forcing you to miss work at the same time.
Getting properly compensated means documenting all accident-related out-of-pocket costs and lost income streams. These "economic damages" make up the crux of settlement negotiations and directly impact the amount insurers will pay.
Common Economic Damage Expenses
As an entrepreneurship consultant who has assisted small business owners following automobile accidents, I have seen first-hand how crashes disrupt both personal and commercial finances. Economic losses that factor into settlement calculations typically include:
Medical Costs
- Emergency response
- Hospitalization
- Surgeries
- Rehabilitation
- Prescriptions
- At-home nursing care
- Future treatment needs
Lost Income
- Missed work days
- Reduced hours
- Diminished earnings potential
Property Losses
- Vehicle repair or replacement
- Contents damage (computer, phone, tools)
- Rental car fees
Incidental Expenses
- Transportation for medical appointments
- Home accessibility modifications
- Childcare costs while recovering
These direct accident costs can skyrocket rapidly. One study found that the average economic damages amounted to over $12,000 for minor soft tissue injuries, over $36,000 for more serious injuries requiring hospitalization, and over $455,000 for permanent severe injuries like quadriplegia or brain damage.
why thorough documentation matters
Insurers won‘t just take your word regarding the extent of your economic losses. The more evidence and documentation you can provide, the higher your chance of recouping damages.
Track All Receipts & Bills
Create centralized files to store medical invoices, pharmacy printouts, auto shop estimates, pay stubs, and any other financial documentation tied to the accident.
Obtain Written Confirmations
Ask managers to detail lost hours or earnings in formal letters. Have physicians outline the necessity of treatments and expectations for recovery timelines.
Keep Detailed Records
Maintain calendars logging medical visits, shooting pains, reduced productivity, and days stuck at home. Capture expenses as they occur. Photograph property damage right away.
using documentation to maximize settlements
The initial settlement offer extended by insurers typically undervalues accident damages by 30-50%. They lowball hoping distressed claimants will jump at any money presented.
That‘s why submitting well-organized documentation showcasing the full extent of your losses is imperative to securing fairer reimbursements.
Example Settlement Demand Packet
Medical Costs
- $2,310 – Emergency response and ER bills
- $18,600 – Hospital stay for required surgery
- $3,125 – Orthopedist copays and physical therapy
- $13,000 – Estimated future physical therapy
Total: $37,035
Lost Income
- 63 missed days over 6 months
- $28/hour regular pay rate
- $13,464 in lost pay evidenced via employer letters
Property Losses
- $8,250 vehicle declared total loss
- $1,100 laptop and phone damaged
- $975 rental car costs
- Total: $10,325
Incidentals
- $345 rides to medical appointments
- $750 house cleaning help
- $125 parking and meals during treatments
- Total: $1,220
Overall Economic Damages: $58,044
Documented evidence transforms abstract pain, suffering and inconvenience into tangible monetary burdens. This makes denying fair compensation extremely difficult for insurers.
getting legal help
Even air-tight documentation may not be enough to prompt adequate settlements from insurers looking to mostly protect their own bottom lines.
An experienced personal injury attorney can assist by…
- Maximizing evidence gathering
- Valuing all current and future economic impacts
- Determining all viable sources of coverage
- Aggressively negotiating with insurers
- Taking the case to court if needed
Retaining counsel typically increases car accident settlements by over 164%, more than offsetting representation fees. They compel insurers to pay out closer to what claimants truly deserve.
don‘t settle for less than fair
Recovering from a car accident presents enough troubles without having your financial stability threatened further by injuries and losses. Comprehensively documenting economic damages shed light on the full impact and costs involved when pursuing fair settlements. Stand your ground with insurers and seek legal guidance if needed until you secure adequate compensation.
