When someone suffers harm in an accident, whether a car collision, slip and fall, or another incident caused by another party’s actions, they may have the right to recover compensation. These financial recoveries, known as personal injury damages, help restore the victim’s well-being and address the losses sustained. Understanding the types of personal injury damages available in a claim is crucial for anyone considering legal action after being injured.

At Craig Swapp & Associates, a respected personal injury law firm serving clients across Utah, Idaho, Washington, Montana, Oregon, Wyoming, Colorado, and Arizona, our focus is to help victims or seriously injured individuals recover fair and full personal injury compensation. 

Here’s an in-depth look at the categories of damages in personal injury cases, how they are calculated, and what to expect if you or someone you love has suffered harm due to another’s actions.

Different Types of Personal Injury Damages

The foundation of every successful claim is understanding what compensation you can pursue. 

There are three primary types of personal injury damages that may be available:

Economic Damages

Economic damages are the tangible, out-of-pocket expenses that result from an injury. These represent the financial losses a person directly experiences because of an incident. 

Examples include:

  • Medical Expenses
  • Lost Wages
  • Property Damage
  • Out-of-Pocket Expenses

Economic damages are typically easier to document and calculate because they are backed by bills, receipts, and employment records.

Noneconomic Damages

Noneconomic damages are more subjective and compensate for losses that do not have a direct monetary value. These damages address how an injury has affected the victim’s quality of life. 

They include:

  • Pain and Suffering
  • Emotional/Mental Distress
  • Loss of Enjoyment of Life
  • Loss of Consortium
  • Disfigurement or Physical Impairment

Because noneconomic damages are not tied to invoices or pay stubs, insurance adjusters, judges, and juries rely on testimony, medical records, and expert evaluations to determine a fair amount.

Punitive Damages

Punitive damages are different from compensatory damages – economic and noneconomic. Their primary purpose is to punish the wrongdoer for especially reckless or intentional misconduct and to deter similar behavior in the future. These damages come into play when the at-fault party’s conduct was especially egregious, for example, in cases involving drunk driving, gross negligence, or intentional harm.

Punitive damages are awarded in addition to economic and noneconomic damages, and the amount can vary greatly based on the specific facts and applicable state law. Some states place caps on punitive damages or set specific requirements that must be met before they are granted.

Average Settlement for Personal Injury Damages

There is no universal dollar amount for an average settlement, as the value of personal injury damages depends on several key factors, including:

  • Severity of Injuries: More severe or permanent injuries typically result in higher compensation.
  • Medical Costs: The amount already spent on medical care and the projected cost of future treatment directly influence the total settlement.
  • Lost Wages and Future Earning Capacity: The longer someone is unable to work or if they suffer a permanent loss of income, the higher the settlement value.
  • Insurance Policy Limits: The defendant’s insurance coverage can limit how much compensation is available.
  • Shared Fault: Some states follow “comparative negligence” rules that may reduce a settlement if the injured party is found partially responsible for the incident.

For example, in Utah, the median jury award for personal injury claims can range from $15,000 to $100,000, depending on the circumstances. More serious cases, such as those involving traumatic brain injuries or permanent disability, can result in much higher verdicts or settlements. In states with higher costs of living or where juries tend to award larger amounts, such as Washington or Colorado, settlement figures can be even higher.

Personal injury damages can range from a few thousand dollars for minor injuries to hundreds of thousands or even millions for catastrophic harm. It is essential to work with a personal injury attorney who can accurately evaluate the value of your claim and advocate for the full compensation you deserve.

How Do You Calculate the Value of Personal Injury Damages?

Calculating the value of personal injury damages involves a thorough analysis of both tangible financial losses and more subjective harms. 

Here’s how damages in personal injury cases are typically calculated:

Calculating Economic Damages

Economic damages are totaled by gathering all evidence of expenses and losses, such as:

  • Medical bills and receipts
  • Documentation of lost income from employers
  • Estimates for future medical care (often provided by medical experts)
  • Property repair or replacement estimates
  • The total sum forms the basis for the economic damages claim.

Calculating Noneconomic Damages

Because these damages are not tied to specific numbers, insurers, attorneys, and courts use several approaches:

  • Multiplier Method: This approach multiplies the total economic damages by a factor, typically between 1.5 and 5, depending on the severity of the injury, level of pain, and long-term effects. For instance, a moderate injury might use a multiplier of 2, while a catastrophic injury may justify a multiplier of 5.
  • Per Diem Method: This approach assigns a daily value to the victim’s pain and suffering and multiplies it by the number of days the individual has suffered or is expected to suffer.

Calculating Punitive Damages

Punitive damages are not directly calculated based on losses. Instead, the amount is determined by the egregiousness of the defendant’s conduct and state laws. Courts may look at the defendant’s intent, history of misconduct, and financial status, as well as the ratio between punitive damages and compensatory damages.

  • The value of damages in personal injury cases is influenced by:
  • Medical prognosis and expected recovery time
  • Evidence supporting claims of pain and suffering
  • The strength of the evidence showing the other party’s fault
  • The impact of the injury on daily life and future opportunities

A skilled personal injury attorney will gather documentation, work with experts, and build a compelling case for maximum compensation.

Are Payments for Personal Injury Damages Taxable?

Under the Internal Revenue Code, most personal injury damages awarded for physical injuries or physical sickness are not taxable. This means compensation for medical expenses, lost wages, pain and suffering, and other related damages resulting from a physical injury or sickness is generally excluded from federal income tax.

But there are important exceptions to be aware of:

  • Emotional Distress Without Physical Injury: If damages are awarded solely for emotional distress and are not linked to a physical injury, they may be taxable.
  • Punitive Damages: These are typically taxable and must be reported as “Other Income” on your tax return.
  • Interest on the Judgment: If the court awards interest on the settlement amount, that portion is taxable.
  • Previously Deducted Medical Expenses: If you previously claimed a deduction for medical expenses related to the injury, that portion of the settlement may be taxable.

While federal law provides general rules, state tax laws can vary. Some states may treat certain damages differently, so it’s important to consult with a tax advisor after resolving a personal injury claim.

How Do You Recover Damages for Personal Injury?

Recovering damages in personal injury cases involves several steps. Here’s an overview of the typical process:

  • Seek Medical Attention: Getting prompt medical care not only protects your health but also creates essential documentation to support your claim for personal injury damages.
  • Notify the At-Fault Party and Their Insurer: Most claims begin with notifying the responsible party (or their insurance company) of your intention to pursue compensation. This is typically done through a demand letter that outlines your injuries, damages, and the compensation you seek.
  • Gather Evidence: Strong evidence is essential for recovering damages. This includes medical records and bills, police reports, witness statements, photographs of injuries and the accident scene, etc.
  • Negotiate with the Insurance Company: The next step often involves negotiations with the at-fault party’s insurer. The insurance adjuster will review your claim and may offer a settlement. This process may include several rounds of negotiation, and your personal injury attorney can play a crucial role in advocating for your interests.
  • File a Lawsuit: If negotiations do not result in a fair settlement, your attorney may file a lawsuit. The case may proceed through discovery, depositions, mediation, and possibly a trial. In court, a judge or jury will determine the damages to be awarded.

After a successful settlement or verdict, the final step is collecting your damages, either through a lump-sum payment or a structured settlement.

Statute of Limitations to Recover Personal Injury Damages

Each state sets a statute of limitations, a legal deadline for filing a claim to recover personal injury damages. Missing this deadline can result in the loss of your right to pursue compensation. 

Here are the general time limits for the states our firm serves:

  • Utah: 4 years 
  • Idaho: 2 years 
  • Washington: 3 years 
  • Montana: 3 years 
  • Oregon: 2 years 
  • Wyoming: 4 years 
  • Colorado: 2 years 
  • Arizona: 2 years 

These time limits can vary based on the circumstances, such as when the injury was discovered or if a government entity is involved. It is essential to act promptly and consult a personal injury law firm to preserve your rights.

Can You Recover Damages Even for Minor Personal Injury Claims?

Yes. Even minor injuries can result in recoverable damages, especially if they lead to medical expenses, lost wages, or pain and suffering. 

Many people hesitate to seek compensation for minor injuries, but those costs can add up quickly. Insurance companies may try to minimize claims involving “minor” injuries, so it is important to gather documentation and advocate for your full rights.

Keep in mind:

  • Medical bills, even for minor injuries, are compensable.
  • Missed work or other expenses resulting from the injury can be included in your claim.
  • Pain and suffering damages may be available, even for injuries that resolve quickly.

Consulting with a personal injury attorney ensures that your claim is fully evaluated and all available damages are pursued.

How Can Personal Injury Attorneys Help Recover Damages?

Working with a qualified attorney makes a significant difference in the outcome of a claim for personal injury damages. 

A personal injury attorney can assist in:

  • Investigating the accident and gathering all evidence needed to support your case.
  • Calculating personal injury damages to ensure nothing is overlooked.
  • Negotiating with insurance companies to fight for a fair settlement.
  • Filing a lawsuit and representing you in court, if necessary.
  • Guiding you through the legal process, answering questions, and advising you every step of the way.

At Craig Swapp & Associates, our team of personal injury attorneys is dedicated to helping clients across Utah, Idaho, Washington, Montana, Oregon, Wyoming, Colorado, and Arizona recover the damages they deserve after an injury. If you or a loved one has been harmed due to someone else’s actions, don’t delay in hiring a personal injury attorney who can help protect your rights and secure the compensation you need to move forward.

Call us today at (866) 316-5293 or fill out our contact form to schedule your free consultation. We won’t charge you until we have successfully secured a settlement for your personal injury case.

Written By: Ryan Swapp     Legal Review By: Craig Swapp