Basic Ocala Personal Injury Settlement Breakdown: How Much Goes in My Pocket?
Bill Allen | March 17, 2022 | Personal Injury
A common question many people ask when pursuing a personal injury claim is how much money will they receive. For most individuals, the real question they should ask is how much money goes into their pocket. The total amount of your personal injury settlement and the amount of the check you receive are different amounts.
Damages Recovered for an Ocala Personal Injury Claim
In most cases, accident victims recover several types of damages. Their damages include economic damages or financial losses. Examples of economic damages include, but are not limited to:
- The cost of medical treatment and care
- Medical bills for physical therapy and occupational therapy
- Expenses related to personal care and nursing care
- Loss of income, including lost wages and benefits
- Future reductions in earning potential because of permanent impairments and disabilities
- Out-of-pocket expenses related to the accident, your injuries, and your recovery
They also include impairments, scarring, and disabilities. You could also receive compensation for loss of enjoyment of life and decreased quality of life.
For illustration, let’s assume that your medical bills totaled $80,000. You were out of work for a few months and lost $35,000 in income.
The at-fault party has maximum liability insurance of $300,000. Therefore, we demand the full policy limits of $300,000 to settle the claim.
You Were Partly to Blame for the Cause of the Accident
Through the negotiation process, we limit your liability for the cause of the crash to 10 percent. The insurance company agrees to pay $270,000. The full policy limits of $300,000 less 10 percent, resulting in this amount.
What is Removed from Your Settlement Proceeds?
Before you receive any money for your claim, medical bills, attorney’s fees, costs of the case, and subrogation claims must be deducted from the settlement proceeds.
Medical Bills and Subrogation Claims
All outstanding medical bills must be paid from the settlement proceeds. Of the $80,000 billed for medical treatment, your health insurance company paid $50,000. You owe the remaining $30,000 to your doctors, the hospital, therapists, and other medical providers.
A subrogation claim is the legal right of your health insurance company to reimbursement for the medical bills it paid related to the accident claim. Your personal injury lawyers negotiate a settlement of the subrogation claim of $40,000. The hospital and other medical providers agree to accept $27,000.
Therefore, you must pay $67,000 for medical bills and expenses. Health insurance companies and medical providers are not required to negotiate their claims.
Expenses of the Case
Because in this hypothetical the law firm settled the personal injury claim without filing a lawsuit, the costs related to your case are minimal. Examples of costs for a personal injury case include, but are not limited to:
- Filing fees
- Deposition costs
- Travel expenses
- Expert witness fees
- Postage and copies
- Witness fees
- Investigation costs
The total cost of your case was $500. That amount is deducted from the settlement proceeds.
Contingency Fee for the Attorneys’ Fees
Most personal injury lawyers charge a contingency fee for their services. You pay a percentage of the settlement amount or jury verdict to the lawyer for his attorneys’ fees. If you do not get paid, the lawyer does not get paid.
Let’s assume the contingency fee is 33% because your case did not need to go to court. Therefore, your law firm deducts $89,100 from the settlement proceeds for its attorneys’ fees.
The contingency fee charged may depend on several factors depending on your contingency fee agreement.
How Much Money Do You Take Home for a Personal Injury Case?
Let’s review. According to our example above, the personal injury settlement breakdown would be:
Settlement Amount $270,000
- LESS Medical bills and subrogation $67,000
- LESS Costs of the case $500
- LESS Attorneys’ fees $89,100
Total settlement proceeds to you $113,400
You would go home with a check for $113,400. That is the settlement amount less all costs and fees.
The above amounts are part of our example. An attorney cannot guarantee a specific outcome for your case. Each case is unique. The facts and circumstances of your case determine how much money your personal injury claim is worth. Most injury lawyers offer free consultations. Therefore, the best way to know whether you have a personal injury case and how much you might receive for your claim is to talk with a personal injury lawyer in Ocala, Florida.
Contact Our Personal Injury Law Firm in North Central Florida
If you need legal assistance, contact the Ocala personal injury lawyers at Allen Law Firm at your nearest location to schedule a free consultation today.
We have two convenient locations in North Central Florida: