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How Does an Attorney Calculate Damages in a Car Accident?

 Car accidents are very common in the US. In the year 2021, 42,915 people died in car accidents. Around 5 million people suffered injuries as a result of car accidents in the same year. 

Photo by Clark Van Der Beken on Unsplash

A car accident can completely ruin a person’s life. The victim will experience physical, emotional, and financial losses as a result of the accident. Luckily, victims can recover their losses by filing a personal injury claim. 

In most cases, the claim will be settled outside the court. However, there is a chance your case could go to court. A car accident lawsuit is a very complex process that requires the expertise of experienced lawyers.  

Why Car Accidents Happen 

There are many reasons for accidents. Negligence is the most common cause of car accidents. Negligence is when a person breaches the duty of care they owe to other drivers. The following are some of the common reasons for car accidents: 



Negligence is the root cause of all the above reasons. If everyone upholds their duty of care, the number of accidents will be close to zero.  


What to Do in the Event of a Car Accident 



There are many things you need to do in the event of a car accident. The two most important things you need to do are seek medical attention and consult a lawyer. 


Seeking medical attention is important because it helps you heal and prove your case. 


A lawyer can help you understand the total worth of your case and file a lawsuit. 

They will get you the compensation you deserve. 


How Lawyers Will Calculate Your Losses 


Understanding the full extent of your losses is important to obtaining fair compensation. Insurance companies will take advantage of you if you don’t know your losses. Let’s take a look at how lawyers will calculate your losses. 


Economic Losses 


Economic losses are the financial expenses you incur as a result of the accident. The expenses could be medical bills or property repair bills.  


Calculating economic damages is kind of easy, especially when compared to non-economic losses. Economic losses are straightforward.  


The lawyer will collect all your bills and add them together to arrive at a value. 


In addition to the bills, they will also calculate your lost wages. To calculate lost wages, they will multiply your daily wage by the number of days you have missed work. 


When you lose the ability to earn, they will add the money you would have earned in the remaining years of your career to the other losses. 


Non-Economic Losses 

As said, non-economic losses are kind of hard to compute. You cannot put a definitive value on non-economic losses because these losses are personal to the victim. 


Lawyers usually consider the following two methods to calculate non-economic losses: 


  1. Multiplier method 
  1. Per-diem method 


Multiplier Method: You will be allotted a number between 1.5 and 5. The number allotted to you is called the multiplier. Your total compensation will be multiplied by this multiplier to determine your non-economic losses. The multiplier varies depending on the seriousness of your case. 


Per Diem Method: The per-diem method allocates a value to your day. You will receive this amount until you recover completely. For example, if your daily rate is $100 and it takes 10 days for you to recover fully, you will receive $1000 as non-economic losses. 


Final Thoughts 


Incorrect calculations of losses can result in lower compensation. Let your lawyer do the hard work while you focus on your recovery. All you need to think about after a car accident is your recovery. Your lawyer will get you the compensation you deserve. 

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