What Does ‘Full Compensation’ Really Mean in a Claim?

Defining ‘Full Compensation’ in a Car Accident Claim

“Full compensation” refers to receiving the total amount of money necessary to cover all of the economic and non-economic damages you have suffered due to a car accident. In theory, it means putting you in the position you were in before the accident, at least financially.

However, full compensation isn’t always straightforward. It depends on the circumstances of your accident, the nature of your injuries, and how thoroughly damages are identified and calculated. Insurance companies often have their definition of what they think constitutes “full compensation,” which may be far less than what you deserve.

How Is Full Compensation Determined?

Assessing Economic Damages

Economic damages are often straightforward to calculate because they involve tangible expenses with receipts, invoices, or pay stubs as evidence. However, challenges arise when projecting future costs, such as ongoing medical treatment or future lost wages. For instance:

• If you suffer a spinal injury, you might need lifelong physical therapy or even future surgeries.
• If you cannot return to your job, a vocational expert may need to evaluate your ability to work and calculate your lost earning capacity.

Calculating Non-Economic Damages

Non-economic damages are more complex because they lack a precise dollar value. Courts and insurance companies often use one of two methods to calculate these damages:

• Multiplier Method: Your total economic damages are multiplied by a number (typically 1.5 to 5) based on the severity of your injuries.
• Per Diem Method: A daily monetary amount is assigned to your pain and suffering, multiplied by the number of days you’ve been affected.

These methods can be subjective and open to negotiation, making it critical to have an experienced attorney who can effectively argue the value of your non-economic damages.

Common Misconceptions About Full Compensation

• It’s Only About Medical Bills
  • Many accident victims mistakenly believe full compensation only covers their medical expenses. It should also include lost wages, property damage, and non-economic damages.
• The Insurance Company Will Automatically Offer Full Compensation
  • Insurance companies are in the business of making money, not ensuring accident victims are fully compensated. Their initial offer is often far less than what you’re entitled to.
• Minor Injuries Don’t Warrant Full Compensation
  • Even “minor” injuries can have long-term consequences or lead to chronic conditions. Full compensation should account for all current and future impacts of the injury.

Challenges to Receiving Full Compensation

Several factors can complicate your ability to receive full compensation:

• Comparative Negligence: In Missouri, if you are found partially at fault for the accident, your compensation will be reduced by your percentage of fault.
• Disputes Over Liability: If the other driver or their insurance company disputes fault, it can delay or reduce your compensation.
• Insurance Policy Limits: If the at-fault driver’s insurance policy has low coverage limits, it may not fully cover your damages. In such cases, you may need to explore other sources of compensation, such as underinsured motorist coverage or pursuing a personal injury lawsuit.

Why Hiring an Attorney Is Key to Securing Full Compensation

Hiring an experienced car accident attorney is often the best way to ensure you receive the full compensation you deserve. Here’s how an attorney can help:

• Conduct a Thorough Evaluation of Damages: An attorney will work with medical experts, vocational experts, and accident reconstruction specialists to fully assess your claim’s value.
• Handle Insurance Negotiations: Insurance companies often use tactics to minimize payouts. An attorney can counter these tactics and negotiate for a fair settlement.
• File a Lawsuit if Necessary: If the insurance company refuses fair compensation, an attorney can take the case to court to fight for your rights.
• Maximize Non-Economic Damages: Lawyers have experience valuing intangible damages like pain and suffering and can ensure they are adequately accounted for in your claim.

What Does Full Compensation Mean for You?

Full compensation in a car accident claim covers all your economic and non-economic damages, including medical bills, lost wages, pain, and suffering. Achieving full compensation requires careful evaluation, negotiation, and sometimes litigation.

At The Hoffmann Law Firm, L.L.C., we’ve been helping car accident victims in St. Louis recover full compensation for over 25 years. We understand insurance companies’ tactics to undervalue claims and have the experience and resources to fight for what you deserve.

If you’ve been injured in a car accident, don’t settle for less than full compensation. Contact The Hoffmann Law Firm, L.L.C. today for a free consultation, and let us help you get the justice you deserve.