How Personal Injury Settlements Are Calculated in Iowa: A Clear Guide

The value of a personal injury case often comes down to more than just the cost of medical treatment and lost wages.

Often, settlement negotiations consider a broad range of factors that help determine what can be considered fair compensation for the injured party.

When trying to reach an Iowa personal injury settlement agreement, it is important to seek compensation for monetary losses, justice for the victim, and accountability from the at-fault party.

This is why calculating damages in a personal injury claim can be very difficult, especially when going against insurance companies that try to downplay the severe injuries and other losses suffered by the victim. Our team can also explain how car accident settlements are calculated in Iowa.

Having a good law firm, such as Tom Fowler Law, can be the difference between getting fair compensation and walking away with just the bare minimum after the settlement process.

In an Iowa personal injury case, potential compensation is determined mostly by calculating the damages that the injured person suffered. These can be divided into economic and non-economic damages, with the possibility of including punitive damages in some cases.

The following is a brief look at what these damages entail, factors that influence the settlement amount, and how an injured person can calculate the value of their personal injury settlement.

Economic Damages

Monetary costs suffered by the victim due to someone else's negligence are calculated as economic damages.

These often include easy-to-determine losses, such as medical expenses, property damage, lost income, and the cost of ongoing medical treatment.

Other out-of-pocket expenses are also related to the injury, such as the cost of child care or hiring people to clean and cook while the victim is recovering.

When insurance companies offer a lump sum payment to victims, the lion's share of the settlement is usually to address these types of losses.

Non-economic Damages

Without considering the suffering caused by the defendant's negligence, it is not possible to reach a fair settlement offer that will satisfy the injured party.

In Iowa, personal injury laws allow the victims to seek compensation for pain and suffering as well as the emotional distress that often follows, for example, car accidents.

These non-economic damages are determined by the judge, and it is up to the victim's Des Moines personal injury lawyer to show the court why their client deserves additional compensation.

Reference can be made to other personal injury cases when trying to determine how much the victim should be awarded.

Punitive Damages

In some cases involving particularly negligent or dishonest actions by the at-fault party, the judge may decide that general damages are not enough. Here, punitive damages can be imposed in addition to what the victim has already been awarded.

These special damages are meant to punish offenders and discourage others from repeating the same offenses in the future.

There is usually no cap set on punitive damages in some states, including Iowa, meaning the amount that is awarded can vary from one case to the next.

Factors That Influence the Personal Injury Settlement Amount

Settlement talks between victims, at-fault parties, and their insurance companies are usually influenced by the following factors:

Severity of Injuries - The Multiplier

The more severe the injuries suffered by the victim, the higher the cost of medical expenses and lost wages.

After hospital records and receipts have been used to calculate the total cost of medical bills, the multiplier will be applied to reach the final settlement amount.

The multiplier is a number between 1.5 - 5 that is used by insurance companies to adjust settlement amounts based on how badly the victim was injured.

However, in some cases, ongoing medical treatment and physical therapy, as well as potential future lost earnings, may be difficult to calculate using just the multiplier method, so these may have to be determined in other ways by the victim's lawyer.

Fault and Liability

In Iowa, the victim's contribution to the accident that caused their injuries is also considered and will affect the final settlement amount.

This is because the state uses comparative negligence laws that only allow the victim to seek compensation if they are less than 51% at fault.

However, any liability that is placed on the victim's shoulders will reduce the value of their settlement amount.

Insurance Policy Limitations

Insurance companies may have a limit regarding how much they are going to cover the cost of damages to the victim. This can limit the total amount that can be awarded by the court.

How to Calculate the Value of a Personal Injury Claim

In Iowa, determining how much to expect from a personal injury claim can be an easy three-step process that involves the following:

Step 1 - Consider Medical Expenses and Other Monetary Loses

The first step is always to look at the obvious monetary losses that are easy to determine and prove in court. With the help of employment and medical records, the victim can show how much they incurred in terms of medical bills, lost wages, and other economic damages.

Step 2 - Apply the Multiplier

Depending on whether the victim suffered mild, moderate, or severe injuries, the multiplier can be applied to come up with the final estimate.

Step 3 - Talk to a Personal Injury Attorney

A good lawyer plays a pivotal role in determining the final settlement amount awarded to the victim.

Besides having to go against insurance companies seeking to avoid liability, it is the lawyer's job to make a case for non-economic damages to address the pain and suffering of their client.

As such, before accepting an initial offer from insurance companies or taking the matter to court, it is best to seek proper legal advice and a good attorney to oversee settlement negotiations.

Struggling With Medical Bills? Claim Compensatory Damages Today

In Des Moines, victims who have suffered injuries and other damages as a result of negligent parties can seek fair settlement in court.

With the help of an experienced personal injury attorney, they can walk away with a huge settlement offer to cover medical expenses, lost income, and other damages.

Tom Fowler Law has made a name for itself as a champion for the rights of victims in Iowa. The law firm can be reached for a free consultation.