When you win a personal injury settlement, you might be shocked to find out that the amount you actually get in your bank account is much less than what was originally offered. That’s because a bunch of stuff gets taken out before you see the final number.
The final amount you’ll be going home with depends on a few things. Lawyer fees, medical bills, and other costs can take a chunk out of your settlement. And even before that, there are limits on how much you can get.
To get a better idea of how the money is split up, it helps to know about the three kinds of damages that are part of a personal injury case: general, special, and punitive damages. Each type of damage has a role to play in helping the victim get back to their pre-accident life.
This article discusses what’s included in the settlement and what’s taken out, so you know exactly how much you’ll walk away with.
What’s Included
Here are the things that are included in the amount you’ll be going home with.
Medical bills
Medical bills are the costs for treatment related to your injury, like doctor visits, surgeries, or therapy. These costs are included in your settlement, but they can also be deducted from the amount you receive.
Property damage
If your stuff got damaged in the accident, like your phone or clothes, that’s what we call property damage. The cost to replace or fix those things is included in your settlement.
But, just like with medical bills, that money can get taken out before you see it. So, you might not get the full amount for your damaged things.
Wages lost
If you had to miss work because of your injury, you can get some of that lost money back. This is called lost wages. The settlement will cover the money you would’ve earned if you hadn’t been hurt.
But just like everything else, that money can be taken out before you get your final payout, so you might not see all of it.
Pain and suffering
Pain and suffering is the part of your settlement that helps cover the physical and emotional pain you went through because of the injury. However, keep in mind that this amount can be reduced or even deducted, depending on other factors in your case.
Depending on where you live, state law or local legal culture may influence the amount of pain and suffering compensation. Some states have caps on non-economic damages, while others are more flexible in awarding compensation for emotional and psychological distress.
Also, the more severe and life-altering your injury, the higher the pain and suffering component is likely to be.
What’s Deducted
Now, here’s what’s deducted from the overall amount:
Lawyers’ cut
If you have a lawyer, they’ll take a percentage of your settlement as payment. Usually, it’s about 33%, but it can change depending on your agreement with them. So, if you get a big settlement, remember that the lawyer will take their cut first, which means the amount you get to keep will be a little less.
Court fees
If your case went to court, there might be some court fees to pay. These are just costs for things like filing papers and other legal stuff that happens during the trial. If that’s the case, those fees will be taken out of your settlement before you get your final amount. Just something to keep in mind when you’re thinking about what you’ll actually get.
Medical lien
Sometimes, if your treatment was paid for by your health insurance or Medicaid, they might want some of that money back. This is called a medical lien. It means that before you get your full settlement, they can take some of it to cover what they paid for your treatment.
So, if you’ve been using insurance or Medicaid, this is something to be aware of because it can reduce the amount of money you end up with.
