Injuries can damage your financial stability. You could incur massive costs without being able to pay them. This economic situation is likely a driving reason you pursued your injury claim.
However, some losses have a greater impact than others. Specifically, out-of-pocket costs take money out of your pocket that you could have otherwise spent on living expenses. A key element of your accident claim includes seeking reimbursement for these costs.
Definition of Out-Of-Pocket Expenses
The losses you suffer after an injury fall into two primary categories. Economic damages include the hard costs associated with an injury, such as the following:
- Ongoing expenses for medical treatment, therapy, and medication
- Lost wages due to missed work
- Reduced earning capacity from long-term or permanent disabilities
Non-economic damages attempt to capture the intangible effects of your injuries on your life. Non-economic damages could include:
- Mental suffering
- Impairments due to dismemberment
- Emotional distress
- Physical pain
- Disfigurement
- Disability
Out-of-pocket costs are a particular category of economic losses. Economic damages encompass all the amounts you paid, will pay in the future, or are legally obligated to pay. Thus, an unpaid doctor’s bill is an economic loss even if you have not yet paid it. Similarly, the cost of the therapy you will need next year is also an economic loss.
By contrast, out-of-pocket expenses are limited to those amounts you have paid out of your pocket. To be recoverable in your injury claim, they must meet the following three requirements:
Caused By The At-Fault Party’s Actions
“Causation” means the costs are a natural and foreseeable result of the other party’s negligence. For example, ambulance costs are a natural and foreseeable result when a distracted driver runs a red light and causes a car accident.
Reasonable
“Reasonable” means the amount of the expense is not outside of the expected range. In other words, an expense is unreasonable if you overpaid for it. Thus, the amount you paid to travel to a doctor’s appointment might be unreasonable if you traveled first-class and stayed at a luxury hotel.
Necessary
“Necessary” does not mean you will die without it. Instead, expenses are necessary when they have a logical connection to your accident and the injuries you suffered.
An expense might be unnecessary if it is duplicative. For example, seeing a chiropractor might be unnecessary if you already see a physical therapist, or vice versa. An expense might also be unnecessary if it is unrelated to your injuries. Thus, plastic surgery might be necessary if you broke facial bones in your accident, but it might be unnecessary if you broke your leg in an accident.
Out-Of-Pocket Cost Examples
Out-of-pocket costs can cover a wide range of expenses, including:
Medical Costs
You can recover the amounts you pay out of pocket for the care and treatment of your injuries. Examples include:
- Health insurance copays
- Supplies for home care and first aid
- Over-the-counter medicine
- Renting or purchasing durable medical equipment like a wheelchair
- Travel expenses if local care is unavailable
Some expenses that might not be recoverable as out-of-pocket expenses include your healthcare premiums or prescription medication for chronic or pre-existing conditions. You would incur these expenses anyway, so they were not caused by the other party’s actions.
Replacement Services Fees
If you cannot perform your home duties, the cost of replacing your services can qualify as a recoverable out-of-pocket expense. Thus, you might be able to include the amounts you pay for the following services:
- Childcare
- Cleaning
- Cooking
- Home delivery of groceries and other necessities
- Transportation, such as rideshare or taxi fares
- Home maintenance
For these expenses to meet the reasonable and necessary test, you must have suffered an injury that necessitates these services.
For example, if you had a nanny to care for your children before your accident, you probably cannot include the expense in your injury claim. However, if you normally care for your children but your broken leg prevents you from doing so, you can include the expense in your claim.
Home And Vehicle Modification Expenses
You may need to pay out of pocket for home or vehicle modifications to accommodate your disabilities. The amounts you pay for these modifications will typically qualify as reimbursable out-of-pocket expenses as long as they have a logical relationship to your injuries. Modifications that might meet the reasonable and necessary test include:
- A wheelchair ramp
- Grab bars
- Flattened thresholds
- Vehicle hand controls
Again, the key issue is causation. The expenses for these modifications are justified if the injuries you suffered in your accident triggered the need for them. If the need arises from a pre-existing condition, your lawyer will have difficulty justifying it in your claim.
Tracking and Proving Out-Of-Pocket Expenses
You must document your out-of-pocket expenses to seek reimbursement for them. Documentation could include financial documents such as receipts, bank or credit card statements, and check records.
The Role Of An Accident Lawyer
Your accident lawyer has two roles. First, they will educate you about the types of expenses for which you may pursue reimbursement. Second, they will help you document them so you can include them in your claim. Contact a lawyer from Hammers Car Accident & Personal Injury Lawyers at (770) 900-9000 for additional information about out-of-pocket expenses.