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Plain-English guides to how personal injury settlements work, how damages are calculated, and how the negotiation process actually unfolds.

How settlements are calculated

Personal injury settlements add economic damages (medical bills, lost wages) to non-economic damages (pain and suffering), then adjust for fault and policy limits. This is the full calculation framework.

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How to calculate lost wages

Lost wages equal gross income multiplied by days missed. Salaried workers use a different formula than self-employed claimants. Covers the math, the documentation you need, and how permanent earning loss is valued.

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Economic vs. non-economic damages

Economic damages are verifiable financial losses: medical bills, lost wages, future care. Non-economic damages cover pain, suffering, and everything that has no receipt. Covers how both are calculated in a claim.

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How comparative negligence reduces a settlement

Comparative negligence reduces your recovery by your share of fault. A 30% finding on a $100,000 claim leaves $70,000. Covers the four systems states use, including the contributory negligence rule that can bar recovery entirely.

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Do you need a lawyer for a small claim?

Minor claims under $10,000 with clear liability and no permanent injury can sometimes be handled without an attorney. Attorney-represented claimants typically net more, even after fees. Covers the factors that tip the decision.

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How settlement negotiation works

Settlement negotiation starts with a demand letter, moves through counter-offers, and closes with a signed release. Covers the full sequence, realistic timelines, and what to do when the adjuster's first number is low, which it usually is.

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