If you’ve been injured in an accident, one of the first questions you probably have
is: “What is my case actually worth?” The honest answer is- it depends. But
understanding what drives value can help you set realistic expectations- and avoid your
case being undervalued by an insurance company. Below, we break down the key
factors that determine the value of a personal injury case in Indiana.
1. Liability:
Before anything else, you have to show the other party was at fault. The clearer
the evidence of fault, the stronger your case becomes. Comparative negligence, where
both parties share responsibility for the incident, can affect the final settlement amount.
Indiana follows a rule of modified comparative fault, where you may recover damages if
you are not more than 50 percent responsible for the accident. However, your
percentage of fault will reduce the amount of compensation you receive. For example,
if your case is worth $100,000 but you are 20% at fault, your recovery is reduced to
$80,000. The clearer the liability, the higher the potential value, and the more leverage
you have in settlement negotiations.
2. The Nature and Permanency of Your Injuries:
The extent and severity of your injuries are critical in determining the value of
your personal injury case. Cases tend to increase significantly in value when they
involve permanent impairments, surgeries or other invasive procedures, chronic pain, or
disfigurement or scarring. Insurance companies evaluate not just what happened, but
how long it will affect you. A soft tissue injury that resolves in 8 weeks is valued very
differently than a lifelong condition.
3. Medical Expenses:
This is an area where Indiana law is especially important. It used to be that the
“gross charges” of the medical bills were considered in valuing cases, which is the
entire amount of the medical bills as charged directly from the providers. This amount is
basically the “sticker price,” in that it does not include contractual write-offs or discounts
given when an individual is covered by health insurance. However, an Indiana case
called Stanley v. Walker held that juries can hear evidence regarding the “gross
charges” amount of the medical bills and the “Stanley v. Walker” amount of the medical
bills. The “Stanley v. Walker” amount, or “Stanley” number, is the discounted amount of
medical bills, meaning it is the total amount actually paid by your health insurance
and/or yourself. In practice, insurance companies largely want to base their offers off
the lower number, and the difference can have a real impact on how cases are valued
and negotiated.
4. Lost Wages and Future Earnings:
If your injuries have caused you to miss work, you can recover those lost wages.
That can include time missed from work, lost bonuses or commissions, and reduced
ability to earn money in the future. In more serious cases, a vocational expert may be
necessary to calculate lifetime earnings losses. This is especially true if you cannot
return to your prior job, you are forced into lower paying work, or you are permanently
disabled.
5. Pain and Suffering:
This is often the most debated factor between insurance companies and
plaintiff’s attorneys, and this is an area where experienced attorneys add value. While
insurance companies use internal formulas, there’s no fixed formula for pain and
suffering and it often represents a substantial portion of your case value. Factors like
how long you’ve been in pain, how severe the pain is, and how the injury has affected
your daily life will all be considered when valuing this part of your claim. Because
insurance companies look at your case based on what they see on paper, it is also
important to understand how the injury has affected you by talking with family and
friends.
6. Insurance Coverage:
You could have a strong case- from both a liability and damages standpoint- and
still be limited in your recovery. The reason is that your case may be limited to the
available insurance of the at-fault party. Unfortunately, the minimum insurance required
for a driver in Indiana is $25,000. If the responsible party is underinsured or uninsured,
it can impact the available compensation. In such cases, your own insurance coverage,
such as underinsured or uninsured motorist coverage, may come into play.
Timing Matters More Than You Think
A lot of people want to know what their case is worth right away. The reality is
that a case usually can’t be fully valued until you reach maximum medical improvement
(MMI)- when your condition has stabilized. At that point, you’ll have a clearer picture of
your total medical bills, whether you have any permanent injury, and whether you’ll need
future treatment. Settling too early can be a mistake. And once a case is settled, it’s
over- even if medical issues come up later.
So, What Is Your Case Worth?
Every case is different. Two cases with similar injuries can have very different
values depending on fault, insurance coverage, and how the injury affects their lives.
If you’ve been injured and want a realistic assessment of your case value, it’s
important to speak with an attorney who handles these claims regularly. Most
attorneys, our firm included, do not charge a consultation fee. Call the attorneys at
Banks & Brower anytime at (317)870-0019 or email us at [email protected] for a free consultation. For every hour, there’s Banks & Brower!
