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How Are Personal Injury Settlements Calculated?
Your attorney will determine the estimated value of your personal injury settlement by calculating the monetary value of the damages you suffered. Then, they will consider things like insurance limits and medical liens. Finally, they’ll determine whether punitive damages apply.
Types of Damages You Could Be Compensated For
Depending on the specifics of your case, you could be eligible to receive any of the following types of damages:
- Economic: These are financial losses you suffered due to the accident. Economic damages often include past and future medical bills, lost wages, diminished earning capacity, out-of-pocket costs, and property loss.
- Non-Economic: These cover damages that don’t have tangible monetary value, such as pain and suffering, mental anguish, and loss of enjoyment of life.
- Punitive: Punitive damages are intended to punish the wrongdoer in cases of extreme negligence. In Alabama wrongful death cases, punitive damages are the only damages the deceased’s family can seek.
The total settlement amount you receive may be different from what your attorney estimates, depending on whether you settle out of court or end up going to trial. A good personal injury lawyer will keep you informed every step of the way.
At Long & Long Injury Attorneys, we’re known for our client communication. We’ll keep you updated as your case progresses and will handle every aspect of your case, so you don’t have to worry about anything but getting better. We offer free case reviews, and you don’t owe us anything unless we win compensation for you. Contact us today to learn what your personal injury case could be worth.
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Factors That Influence Your Settlement Amount
When determining the value of your case, your lawyer will evaluate these specific factors:
- Fault & Alabama’s contributory negligence law. Alabama is one of the few states where if you’re even 1% at fault, you lose your right to recover compensation. This is called contributory negligence, which is a court-made rule reaffirmed by the Alabama Supreme Court.
- Insurance coverage. Your policy limits for liability, UM/UIM, and med-pay can determine how much compensation you can seek.
- Documentation of damages. Medical records, diagnoses, prognoses, wage documentation, and expert opinions can help prove you suffered the damages you are claiming.
- Deadlines & special notice rules. The statute of limitations for personal injury in Alabama is typically 2 years from the date of the accident; for tort claims against municipalities, the statute of limitations is 6 months.
Other more specific factors could also play a part in determining the value of your case, depending on the circumstances. Our attorneys can advise you on what damages apply to your case and how much it could be worth. Contact us today to get a free case review.
What Is the Average Personal Injury Settlement in Alabama?
There isn’t a standard average personal injury settlement in Alabama as cases vary too much. Any number you see online is usually a small or skewed sample and does not indicate what your case is, or could be, worth.
Do I Have to Report My Personal Injury Settlement to the IRS?
You typically do not have to report your personal injury settlement to the IRS. However, some exceptions may apply. For example, punitive damages and any interest accrued on your settlement amount could be taxable. It’s important to consult with your attorney or accountant to learn whether you need to pay taxes on your personal injury settlement.
How Are Personal Injury Settlements Paid Out?
Most personal injury settlements are paid as a one-time lump-sum payment. The amount you receive will likely be less than the total amount awarded because your attorney’s legal fees will be deducted.
In some cases, a structured settlement is paid out. This is a settlement that it paid in multiple payments over a period of time. Structured settlements usually apply to cases involving minors or individuals with specific needs. Your lawyer will be able to advise you on whether this type of payout applies to your case.
Discuss Your Case With Our Team for Free
Want a precise estimate for your personal injury claim? Long & Long Injury Attorneys offers free case reviews, so you can discuss the details of your case with our team and get a reliable estimate of how much compensation you could receive. We serve injured individuals in Mobile, Orange Beach, Gulf Shores, Foley, Daphne, Fairhope, Robertsdale, Loxley, Spanish Fort, Bay Minette, Malbis, and surrounding areas. To learn what your Alabama personal injury case could be worth, contact us today.