The Myth of Injury Settlements Being 3x Medical Bills

Who made up the lie that personal injury cases are worth three times the medical bills?

It’s one of the most persistent myths in personal injury law, and I hear it all the time—from clients, defense attorneys, and even some adjusters.

Of course, then you have insurance companies like State Farm who operate on the opposite extreme, often valuing cases at half the medical bills—and if you’re lucky, maybe a little more than the medical bills.

The reality? Personal injury case valuation is far more complex than these formulas.

Here’s what I think are some important factors to consider when evaluating damages:

  • Liability Strength: Is liability clear, or will there be arguments about who’s at fault? Will there be apportionment.
  • Aggravating Factors: Was the defendant drunk, distracted, or otherwise reckless? Are there a lot of prior incidents in a product liability or premises case?
  • The Plaintiff: Are they likable and credible, or will a jury struggle to connect with them?
  • The Defendant: Is the defendant unsympathetic, or could they evoke jury sympathy?
  • Extent of Medical Treatment: What was the nature of medical treatment? How long were they receiving medical treatment? Do they have the sort of injury that can’t be treated and so the treatment doesn’t accurately reflect the extent of injury?
  • Severity and Duration of Pain: How severe is the pain and how long did it last? A few months of intense pain may not be worth as much as a lifetime of low-level pain or permanent limitations.
  • Before and After: How has their enjoyment of life been impacted? What life did the person have before and how has the injury affected them mentally, emotionally, and physically? What activities can they no longer do, or they can do but not enjoy as much? Are there good witnesses to support this?
  • Past and Future Economic Damages: Medical bills and lost wages are important to consider, but they aren’t always an accurate reflection of the value of pain and suffering damages and the overall case value.
  • Causation Issues: Are there going to be disputes about whether the incident actually caused the injuries you are claiming?
  • Venue: Some jurisdictions are more plaintiff-friendly, while others are notoriously tough. Some people on both sides put too much weight on venue but it is certainly a factor to consider.

Reducing case valuation to a simplistic formula not only ignores these critical factors but also does a disservice to clients and the process of justice.

What myths or oversimplifications have you encountered in your practice? Join the conversation with me on LinkedIn.

About the Author

Darl Champion is an award-winning personal injury lawyer serving the greater Metro Atlanta area. He is passionate about ensuring his clients are fully compensated when they are harmed by someone’s negligence. Learn more about Darl here.