In short, many. Being involved in a personal injury accident can be a traumatic and life-altering experience. When pursuing a personal injury settlement in Texas, understanding the factors that influence the settlement amount is crucial to ensuring you receive the compensation you deserve. Assessing elements such as property damage, hospital bills, emotional and mental impact, and the accident’s long-term effects on your future is essential. This process can be complex, but knowing what to expect can help you navigate the legal landscape more effectively.

Securing the appropriate compensation is essential for covering your losses and aiding your recovery. From the immediate costs of medical treatment to the long-term impacts on your ability to work and enjoy life, each factor influencing your potential settlement must be thoroughly evaluated. Reach out to the Law Office of Shane McClelland, PLLC through our contact form to learn more about how we can help you navigate the lawsuit process.

Factors That Influence Your Personal Injury Settlements

When it comes to the calculation of your personal injury settlement, the following factors will be considered:

Hospital Bills and Medical Treatment in the Past and Future

Hospital bills and medical expenses are critical components of your settlement. The costs associated with emergency care, hospital stays, treatment, diagnostic films (ex-rays and MRIs), surgeries, medications, necessary medical devices and equipment to help after an injury, and follow-up appointments and future treatment can quickly escalate. Thoroughly documenting all medical expenses, including future medical needs related to the injury, will help in obtaining a settlement that fully covers these costs. Unfortunately, insurance adjusters, through their adjusters and computer algorithms, closely examine your medical bills and “anchor” settlement offers to their untrained and non-medical evaluation opinions of the compensation required for your recovery. Anchoring means the insurance company makes its assessment of your pain and suffering by tieing (anchoring) it to a low assessment of the amount of your past and future medical bills. This is a tactic insurance companies use to unreasonably attempt to lower settlements for someone who is enduring pain and suffering because of someone else’s carelessness. 

To add insult to injury, insurance companies, through their adjusters and computer algorithms, uniformly challenge the cost of your medical treatment or they often go so far as to question or dispute whether a particular medical procedure was necessary. Insurance companies think that they know more about what treatment injured people need than the doctors and medical practitioners who actually evaluate, diagnose, and treat the patient. Additionally, insurance companies question the amount of your doctors’ past and recommended future care. 

Health Insurance companies have the freedom and advantage of negotiating contracted rates with hospitals and medical providers. And each health insurance company negotiates different rates for the same procedures with different providers. 

For example, you and your identical twin are in the same car wreck and you both go to the same hospital, see the same doctor and medical professionals, receive identical treatment—down to the same number of band aids—and will need the exact same future treatment. But if you and your twin have different health insurance companies or different health insurance plans, the costs could be radically different for receiving the identical medical evaluation, diagnosis, prognosis, treatments, hospital care, surgeries, diagnostic imaging, and future care. That is because each health insurance company negotiates a different reimbursement amounts for particular procedures the insurance policy covers.

Businesses should be able to negotiate for different costs and amounts paid for services. But you would not think it was fair if you and your best friend walked into the exact same fast food restaurant and ordered the exact same sandwich, but you were charged significantly more than your best friend only because your best friend had the advantage of negotiating a better contract rate for that particular sandwich. That is what health insurance companies do with hospitals and medical providers. And the contracted rates and reimbursed amounts change continually. Remember, insurance companies of all varieties (auto, health, life, etc.) do not make money by paying on your claim as they are obligated to do and as the insured pays them to do. Insurance companies make money by collecting premiums. And insurance companies are in the business of making money, not paying on claims.

This becomes significant when trying to negotiate a settlement with an insurance company or defense attorney because they anchor their low initial settlement offer based on their evaluation of your pain and suffering and non-economic damages based on the amount of your paid or incurred medical bills. And depending on how much, or how little, your health insurance pays alters the insurance company’s perspective of your pain and suffering.

Let’s revisit the hypothetical crash with you and your identical twin. In this scenario, if your identical twin’s health insurance company pays less than your insurance company (remember this is for the same procedures and same medical providers), then the insurance company would offer your identical twin more to settle her pain and suffering damages because the amount of her paid or incurred medical bills would hypothetically be more because her insurance company didn’t pay all of her bills, leaving her with an outstanding bill that is larger than yours. Insurance companies should not be allowed to get away with these tactics. Call an experience attorney who can negotiate the settlement you deserve.

Emotional and Mental Impact

The emotional and mental impact of an accident can be profound and lasting, affecting your overall quality of life. Anxiety, depression, and loss of enjoyment of life are all considered non-economic damages that can significantly influence your settlement amount. Although these impacts are harder to quantify than physical injuries, providing detailed accounts from your mental health professionals and personal testimonies can substantiate the settlement you deserve for emotional or mental pain and suffering damages.

Property Damage

The extent of property damage includes not only damage to your vehicle but also any other personal property affected. Insurance companies will assess the cost of repairs or replacement to determine the compensation amount. Do not just accept an amount that an insurance company offers you for your property damages. Remember, insurance companies want to pay you as little as they can get away with. Detailed documentation, such as repair estimates and photographs of the damage, and appraisals, can help ensure you receive a fair settlement for your property losses. And in Texas you can recover for the diminished value of your car from damage caused by someone else’s negligence.

Your Percentage of Fault

In Texas, the concept of comparative negligence plays a crucial role in determining personal injury settlements. If you are found partially at fault for the accident, your settlement amount may be reduced by your percentage of fault. Understanding how your actions may have contributed to the accident is essential, as it directly affects the amount you can recover.

How the Accident Will Impact Your Future

The long-term impact of the accident on your life and future earning potential is another significant factor in determining your settlement. If your injuries lead to permanent disability or hinder your ability to work, the settlement should reflect the loss of future income and the ongoing care you may require. 

Comprehensive evaluations by medical and financial experts can help accurately predict these future impacts, ensuring your settlement adequately addresses your needs.

Why Choose the Law Office of Shane McClelland, PLLC?

At the Law Office of Shane McClelland, we are committed to helping you navigate the complexities of personal injury cases and settlements. With 20 years of experience, our team offers the personalized representation you need to secure the compensation you deserve. We prioritize open communication and will keep you informed at every step, ensuring you make well-informed decisions about your case.

Our dedication to our clients sets us apart. We take the time to understand your unique circumstances and provide comprehensive support throughout the legal process. Our positive client experiences and active community involvement reflect our commitment to making a difference. If you are ready to take the next step, call us at (713) 987-7107 or visit our contact form.