Getting hurt in an accident is overwhelming enough on its own, but figuring out what a fair settlement should look like can feel just as stressful. You might be asking yourself, “How much should I even ask for?” The truth is, there’s no one-size-fits-all number. The right amount depends on things like your medical bills, how much work you’ve missed, the pain you’re dealing with, and how the injury might affect your future.
If you ask for too little, you risk being stuck with expenses down the road. If you ask for too much, the other side may push back strongly or prolong the process. Knowing what goes into calculating a settlement can give you the confidence to ask for a fair amount, and that actually covers what you need.
That’s why having the right legal guidance makes all the difference. At Recovery Law Center, our Honolulu personal injury attorney team is here to help you understand what your case is truly worth and to fight for the compensation you deserve. Knowing what goes into calculating a settlement can give you the confidence to ask for a fair amount, and that actually covers what you need to move forward.
What You Need to Know About Personal Injury Settlements
A personal injury settlement is money paid to resolve a personal injury claim without going to trial. In most personal injury cases, insurance companies pay the settlement amount on behalf of the at-fault party. These payments help injured individuals cover medical expenses, lost income, out-of-pocket expenses, and non-economic damages, such as pain and suffering or emotional distress.
Most personal injury settlements are negotiated between your personal injury attorney and the insurance providers. The goal is to reach a fair settlement amount that reflects both economic damages and non-economic damages. An experienced personal injury lawyer can explain what you can reasonably expect based on the injury severity, available insurance coverage, and the actual value of your case.
Calculating a Personal Injury Settlement
Hawaii Revised Statutes § 663-1 states that residents and those present in Hawaii shall be personally responsible in damages for injury to others. That just means if someone hurts you, they should pay for it.
At the heart of any personal injury settlement is the harm to the victim. That is, in what ways have you lost or suffered because of your personal injury? These are the damages that you need to calculate first to determine what to ask for in a settlement.
Economic damages
Part of the calculation is a relatively straightforward math problem. These are you economic damages. Your economic damages are financial losses because of your injury. Medical bills, lost income, property damages, replacement household services, and other direct, financial losses are added up.
Future damages may be included, and you rely on evidence and experts to project the costs you expect to have in the future.
Non-economic damages
A personal injury settlement would be incomplete if it didn’t also account for your non-economic damages. Your non-economic damages are intangible losses, including:
- Pain and suffering
- Mental anguish
- Disfigurement
- Loss of enjoyment of life
- Loss of consortium
See H.R.S. § 663-8.5. Pain and suffering is the actual pain and suffering that is the proximate result of physical injury. There are two ways to calculate non-economic damages, the multiplier method and the per diem method.
Multiplier Method
The multiplier method starts with the total of economic damages and then applies a multiplier based on the severity of the injury. A mild injury may have a multiplier of 1.5 while a severe, life-changing injury may have a multiplier of 4 or 5. Economic damages are applied to the multiplier to arrive at damages.
For example, a victim sustains economic damages of $100,000. Injuries are moderate, so it’s appropriate to use a multiplier of 2.
$100,000 economic damages X 2 multiplier = $200,000 total compensation
For this victim, it’s appropriate to ask for $200,000 in settlement, subject to other factors that may impact the value of the case.
Per Diem Method
The per diem method uses a set amount of compensation for each day a person suffers from their injuries. For example, a victim has a recovery period of one year, or 365 days. They have economic damages of $100,000. Their damages are moderate, so it’s appropriate to use $200 per day.
$200 per day X 365 recovery days = $73,000 non-economic damages
$73,000 non-economic damages + $100,000 economic damages = $173,000
It’s not always better to use one method or the other. The two methods often produce similar results. The appropriate method to use may depend on several factors that are specific to your case.
Hawaii economic damages cap
Note: Hawaii law places a $375,000 cap on non-economic damages in many types of personal injury claims, excluding those listed in H.R.S. § 663-10.9(2).
Amount to Plead vs. Amount to Claim
How much you should ask for in a personal injury settlement refers to how much you should ask for in a settlement. That’s different than the amount that you should ask for in your initial pleadings. The two amounts may or may not be the same.
The settlement is the amount that you agree upon to receive in compensation to fully resolve the case. Effectively, it’s like having a final judgment after a trial.
There are things in addition to your damages that may impact the amount that you should ask for in a settlement. There may be issues that, if you were to take the case to trial, it would be uncertain how the jury would handle them.
For example, the defense may dispute whether they acted negligently. Alternatively, they may challenge the amount of your damages as speculative. You can’t know for sure what a jury would do unless you go to trial. In addition, maybe the defense has limited insurance and resources to pay a claim.
Any of these factors — and others — may impact how much you should ask for in a settlement. Even your personal risk tolerance and your desire to go to trial should influence how much you ask for in a settlement.
Average Personal Injury Settlements and Ranges
There is no single average personal injury settlement that applies to all cases. Average settlement amounts vary depending on state laws, the type of injury, and the availability of insurance coverage.
- Minor injuries from car accidents may result in an average settlement of a few thousand dollars, mainly covering medical expenses and some lost income.
- Severe injuries such as traumatic brain injuries or permanent disability may lead to settlements in the hundreds of thousands or even millions, depending on medical expenses and future lost income.
- The average personal injury payout across all cases is often reported in the tens of thousands, but those numbers are misleading because every case is different.
Most personal injury cases do not go to trial. Instead, personal injury settlements paid by insurance companies resolve the claim. Your experienced personal injury attorney can compare your facts with similar injury settlements to provide guidance on a fair settlement amount.
How Personal Injury Lawyers Help
Handling a personal injury claim on your own is risky. Insurance companies have their own lawyers, and their primary goal is to pay as little as possible. Having an experienced personal injury lawyer on your side can make a significant difference.
- A personal injury lawyer can explain the average settlement for injuries similar to yours.
- They negotiate directly with insurance companies to pursue a fair settlement.
- They manage medical liens and legal fees to maximize your take-home recovery.
- They can file a personal injury lawsuit if settlement talks stall.
At Recovery Law Center, we work with accident victims on a contingency fee basis. This means you do not pay attorney fees unless we recover damages on your behalf. Our legal process includes a free consultation, gathering evidence, negotiating with insurance providers, and preparing for trial if needed.
Common Types of Personal Injury Cases
Many types of accidents give rise to personal injury claims, which often result in settlements.
- Car accidents are one of the most common causes. Injury severity ranges from minor injuries to catastrophic injuries.
- Slip and fall accidents often involve premises liability and medical treatment for broken bones or traumatic brain injuries.
- Workplace accidents may involve third-party personal injury law claims in addition to workers’ compensation.
- Medical malpractice cases involve complex medical expenses and long-term physical therapy.
Most personal injury cases are resolved through settlement negotiations. Having an experienced attorney ensures that your legal rights are protected during this process.
How Settlement Payments Are Distributed
Once a settlement is reached, the insurance companies send payment to your lawyer. From there:
- Attorney fees and legal costs, such as filing fees, are deducted.
- Medical liens and outstanding medical bills are paid.
- The remaining funds are released to you.
This process ensures medical expenses are covered and legal fees are accounted for. Your lawyer may also negotiate reductions on medical liens to increase your share of the settlement.
When to Consider Filing a Lawsuit
If settlement talks do not result in a fair settlement amount, filing a personal injury lawsuit may be the next step. This does not always mean a trial. Often, filing pressures insurance providers to increase their offers. Your legal team can advise on whether litigation is necessary to recover maximum compensation.
Move Forward With Your Personal Injury Claim with Recovery Law Center
Knowing how much to ask for in a personal injury settlement takes more than guessing a number. Average settlement amounts are only starting points. The actual value of your personal injury compensation depends on your unique situation, the available insurance coverage, and the strength of your evidence.
At Recovery Law Center, we help accident victims understand their settlement value and protect their legal rights. Our experienced personal injury attorneys work on a contingency fee basis and offer a complimentary consultation to discuss your options.
If you want to know how much you should ask for in your injury settlement, call us at (808) 515-2107 to schedule a free consultation with our personal injury attorney in Hawaii to help you pursue a fair settlement amount.
