Frequently Asked Questions

Settlements typically include economic damages (medical bills, lost wages, property damage) plus non-economic damages (pain & suffering). The multiplier method applies a factor of 1.5–5× to economic damages to estimate pain & suffering. The per-diem method assigns a daily dollar rate for each day of suffering. Use our Settlement Calculator to run your numbers.

There is no typical amount — it depends on injury severity, liability, jurisdiction, and the insurer. Minor soft-tissue injuries often settle for $5,000–$25,000. Significant injuries with surgery may settle for $100,000–$500,000. Catastrophic or permanent injuries can result in multi-million dollar awards.

A contingency fee is a percentage of your settlement paid to your attorney — only if you win. The standard is 33.3% before a lawsuit is filed, 40% after filing, and up to 45% at trial. If you lose, you owe no attorney fee, though case expenses may still be owed depending on your agreement. Use our Attorney Fee Calculator to see your net payout.

Simple cases with clear liability may settle in 3–6 months. Cases requiring litigation typically take 1–3 years. Cases that go to trial can take 3–5 years. Attorneys often wait until maximum medical improvement (MMI) before negotiating — making sure all medical costs are known before accepting any offer.

Generally, compensation for physical injuries and medical expenses is not taxable under federal law. However, punitive damages, compensation for emotional distress unrelated to physical injury, and settlement interest may be taxable. Consult a tax professional for your specific situation.

Rarely. First offers from insurance companies are almost always below fair value. Adjusters are trained to settle claims quickly and cheaply. Use our calculators to understand a reasonable range, and seriously consider hiring a personal injury attorney — studies show represented claimants typically receive significantly higher settlements even after attorney fees.

A lien is a legal claim against your settlement by a party that paid for your treatment — health insurance, Medicare, Medicaid, or a hospital. These must be repaid from your settlement proceeds. Your attorney can often negotiate lien amounts significantly down, increasing your net payout. Use our Attorney Fee Calculator to include liens in your net payout estimate.