Updated 2026-07-09
Short answer
Settlement Details
A settlement is really two totals stacked together. Economic damages cover anything with a receipt: medical bills, lost paychecks, future treatment, replacement services. Non-economic damages cover pain, suffering and lost enjoyment of life, harder to price because there is no invoice for any of it.
How is the non-economic amount calculated
Two conventions dominate. The multiplier method takes economic damages and multiplies by a severity factor, usually 1.5 for minor, temporary injuries up toward 5 for severe, permanent ones. The per diem method instead assigns a dollar value to each day of recovery and multiplies by the number of days involved. Insurers lean on the multiplier far more often in practice.
Payment table
| Stage | What happens |
|---|---|
| Demand letter | You or your attorney sends a documented demand with bills, wage loss and a requested figure. |
| Initial offer | The insurer replies, usually below the demand, often citing gaps in treatment or disputed liability. |
| Negotiation | Offers and counteroffers move back and forth until both sides land somewhere workable. |
| Signed release | You sign a release of claims in exchange for the agreed figure. |
| Liens and fees | Medical liens, attorney fees and costs come out before you see a net check. |
| Disbursement | The remaining balance is paid out, typically a few weeks after the release is signed. |
Special claim types
Medical malpractice does not run on the multiplier alone. A plaintiff has to show a provider missed the accepted standard of care, and many states cap non-economic damages outright; the malpractice tool builds that cap into its estimate. Family and medical leave eligibility is not a damages question at all, it is a pass or fail test against three federal criteria, which is what the leave eligibility checker runs.
Things to know
- Comparative fault rules in many states reduce your recovery by your own percentage of blame.
- State caps on non-economic damages apply in some jurisdictions and claim types, malpractice especially.
- Medical liens and attorney fees come out of the total before you see a net number.
- A documented treatment gap is one of the fastest ways to shrink an adjuster's opening offer.
Related calculators and guides
- Run your own numbers on the pain and suffering tool.
- See how claiming age changes a monthly check on the Social Security estimator.
- Browse typical ranges by body part on the by injury breakdown.
- Check the sourcing behind every band in the 2026 factors reference.
FAQs
What two things make up a settlement?
Economic damages, the costs you can document, plus non-economic damages, the pain and disruption a multiplier tries to estimate.
Why 1.5 to 5 as the multiplier range?
It is a long used convention among adjusters and plaintiff attorneys, not a rule written into any statute.
Does every state cap non-economic damages?
No. Caps vary by state and often apply only to specific claim types like medical malpractice.
Do most injury claims end up in a courtroom?
No. The large majority resolve through direct negotiation with the insurer, well before trial.
Can this guide tell me what my case is worth?
No. Treat it as background for a conversation with a licensed personal injury attorney, not a substitute for one.