You will incur two types of losses when you suffer an injury. Economic losses represent the financial costs of your injury, from the money you pay for treatment to the money you cannot earn while injured. Non-economic losses encompass the intangible ways your injuries affect your life. They include pain, suffering, and disability.
Out-of-pocket expenses are particularly difficult to deal with. You cannot delay paying these expenses until your case ends. Instead, you pay these expenses when incurred. As a result, you must prioritize these expenses so you do not risk running out of money.
At the end of your case, the at-fault party reimburses you for these expenses if they meet certain criteria.
What Out-Of-Pocket Expenses Can My Claim Include?
Your personal injury claim can include out-of-pocket expenses with other economic losses. To qualify as out-of-pocket expenses, you must have paid for the expense rather than being billed for it.
For example, suppose that you visit the doctor after your accident. The doctor charges you a $40 copayment and refers you for an X-ray. The copay is an out-of-pocket expense because you paid it. The bill for the X-ray is not an out-of-pocket expense; it only becomes an out-of-pocket expense if you pay for the X-ray.
If you intend to pursue injury compensation, you should try to pay as few out-of-pocket expenses as possible because your accident claim could take several months or longer to resolve. If you pay out-of-pocket for all your costs, your money might not last until you win or settle your case.
For example, your lawyer can try to work out a deal with your medical providers where they impose a medical lien on your case and refrain from collecting the bill. As a result, you can delay payment without ruining your credit. When you receive a settlement or jury award, you and your lawyer pay the medical providers with liens first.
However, you cannot avoid some out-of-pocket expenses. For example, the drug store will probably not defer the cost of ibuprofen for aches and pains after a car accident.
Out-of-pocket costs must meet the following three criteria for you to seek reimbursement:
Reasonable
The expense’s amount must fall in line with the expected costs for such goods or services. Thus, you should probably shop around to make sure you do not overpay and risk getting under-reimbursed.
Necessary
“Necessary” does not mean you will die without it. Instead, it means it is logically tied to your injuries. In many cases, you can prove necessity by having your doctor testify or using your doctor’s instructions from your medical records.
Thus, travel expenses to visit an out-of-town specialist might be necessary if your doctor referred you because of a specific issue your injuries caused. Your doctor’s instructions will connect the trip to your injuries, justifying the out-of-pocket costs you incurred.
Caused By The Other Party’s Actions
Causation has two elements. First, the loss must flow naturally from the other party’s actions. Thus, a driver running over you in a pedestrian accident will naturally lead to expenses to treat broken bones and soft tissue injuries.
Second, the loss must be a foreseeable consequence of the other party’s actions. This test aims to ensure courts do not hold people responsible for remote or disconnected losses.
However, this element does not require that the other party predict the exact costs their actions would produce. Instead, it simply means that a reasonable person would have known the expenses were a likely result of the other party’s negligent or wrongful act.
Examples Of Out-Of-Pocket Expenses
Out-of-pocket expenses can take many forms as long as they meet the three criteria. Examples of out-of-pocket expenses you may recover include the following:
Medical Care
You can seek reimbursement for any reasonable and necessary expenses incurred to access medical care, including:
- Insurance copayments
- Insurance deductibles
- Out-of-pocket medical expenses if you are uninsured
- Medical supplies
- Over-the-counter medication
- Durable medical equipment, such as a wheelchair
- Parking
- Transportation, such as Uber or taxi fares
- Travel, particularly if your doctor recommends traveling to a specialist
After your accident, you should keep records of all the treatment-related expenses you incur because you might be entitled to seek reimbursement for them.
Replacement Services
When you suffer an injury, you may experience difficulties performing necessary tasks, such as the following:
- Childcare
- Driving
- Home repair
- Shopping
- Cleaning
- Cooking
- Vehicle maintenance
Any reasonable and necessary sums you pay to replace these services may qualify as out-of-pocket expenses.
Documenting Your Out-Of-Pocket Costs
You must have evidence to prove the amount of your out-of-pocket costs and the reason you paid them. Under the California Rules of Evidence, this evidence can include business records, such as the following:
- Receipts
- Bank or credit card statements
- Canceled checks
The insurance company or jury will use the evidence to calculate your out-of-pocket expenses so they can be included with the other economic losses you suffered.
Recovering Out-Of-Pocket Expenses
You can seek reimbursement for expenses you paid out of pocket due to losses caused by the other party’s actions. The most common involve medical care, but you can include any reasonable and necessary costs. To learn more about recovering out-of-pocket expenses, contact a Pines Salomon Personal Injury Lawyers attorney today at (858) 551-2090.
