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During settlement negotiations with insurance companies and at-fault parties, your Phoenix car accident lawyer will calculate the amount of compensation you are entitled to for your economic and non-economic losses.
Economic damages are relatively easy to calculate by adding your expenses to date and your expected future expenses. These are tangible items, such as past and future medical expenses, lost wages, diminished earning potential, and repair or replacement of damaged property.
Non-economic damages (e.g., emotional distress, pain, suffering, etc.) are a little trickier to nail down. Usually, attorneys use one of the following methods to arrive at a number for non-economic damages:
In Arizona, there are no caps on the amount you can claim as part of a car accident claim. Punitive damages are less common, but may also be added to a claim if a driver was extremely reckless or exhibited complete disregard for anyone else’s safety.
| Factor | Description | Example / Notes |
|---|---|---|
| Economic Damages | Tangible financial losses from the accident | Medical bills (past & future), lost wages, diminished earning potential, property damage or repairs |
| Non-Economic Damages | Intangible losses affecting quality of life | Emotional distress, pain & suffering, loss of enjoyment, anxiety |
| Multiplier Method | Economic damages × factor (1–5) based on injury severity | $50,000 medical costs × 3 multiplier = $150,000 non-economic damages |
| Per Diem Method | Daily rate × number of days affected by injury | $150/day × 180 days = $27,000 compensation |
| Punitive Damages | Additional compensation for extremely reckless behavior | Rare, but may apply if driver showed complete disregard for safety |
| Adjustments for Comparative Negligence | Award reduced by the claimant’s % of fault | 20% responsible → $100,000 award reduced by 20% = $80,000 final payout |
| Other Influencing Factors | Case-specific elements considered by attorneys | Permanent injuries, ongoing medical needs, ability to return to work, credibility, policy limits, driving behavior at the time |
Other factors that can influence the calculation of a settlement amount are:
Arizona is a comparative negligence state. After the amounts for the types of damages in a car accident claim (economic vs non-economic) are agreed upon by all involved, the actual amount paid to each person with a legitimate claim is adjusted by the percentage fault they had in the accident. This means that if your actions were 20% responsible for the car accident, your award is reduced by 20%.
Most car accident claims are settled out of court after extensive negotiation. The process starts with insurance adjusters evaluating the damage and making recommendations that the insurance companies use to make an offer. Their first offer will likely be very low and often won’t be nearly enough to cover your losses.
Settlement discussions can take anywhere from a few weeks to years, depending on the complexity of the case and the willingness of each party to reach an agreement. After a claim is settled, none of the parties who sign off on it can later ask for more money. The deal is final.
This is why it is so important to hire an experienced personal injury lawyer from the Gage Mathers Law Group to handle your case. Your attorney can ensure you don’t settle for an unfair amount and receive the compensation you deserve.
Every personal injury case is different, and seemingly similar cases can have very different results. An attorney from Gage Mahers can review the circumstances of your car accident, explain your legal options, file your car accident injury claim locally, and help you maximize the amount you might receive from a settlement or by taking the case to court!
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