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How is compensation for car accident claims calculated?

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    How No Win No Fee Works

    With no win no fee agreements (also known as a Conditional Fee Arrangements, or CFAs), there are no upfront legal fees, which means anyone who has been involved in an accident that wasn’t their fault can gain access to justice without any financial risk. Your solicitor only gets a fee if your claim is successful. If your claim isn't successful, you won’t pay your solicitor any legal fees.

    If your case is successful, typically you will pay 25% (including VAT) of your compensation to your solicitor, although they will discuss any fees before starting your case. To ensure your claim is risk free, your solicitor may take out an insurance policy on your behalf. If you terminate the agreement, you may have to pay fees for the time already spent on your claim, or due to: lack of cooperation, misleading your solicitor, missing medical or expert examinations, or not attending court hearings.

    There are some instances where you are not required to use the services of a claims management company, and are able to claim yourself, for free, directly via the relevant ombudsman/compensation scheme. These include:

    - Criminal injuries: The Criminal Injury Compensation Authority (England, Wales, and Scotland) or the Criminal Injury Compensation Scheme (Northern Ireland)

    - Minor road accidents: The Official Injury Claim Portal

    - Accidents involving uninsured drivers: The Motor Insurers' Bureau

    How is compensation for car accident claims calculated?

    Claims for car accidents are calculated by breaking things down into separate sections. When you see sums in hundreds or thousands of pounds, you can assume they have all been calculated using the same set of criteria.

    What are special damages?

    Firstly, there are special damages to consider. These cover your financial losses. They can include any loss of earnings through your inability to work as a result of being injured, as well as things like travel costs and expenses for receiving medical treatment and visiting your doctor.

    What are general damages?

    Secondly, there are general damages. These cover the compensation claim your solicitor will make on your behalf for the injuries you suffered in the accident. Generally speaking, the worse your injuries are and the longer they last, the more compensation you are likely to receive. The compensation is also likely to cover any lengthy treatment you require, including physiotherapy.

    Compensation rates can also vary depending on which part of the body is injured and how badly. For example, a broken finger may not incur as much as a broken hand, but a finger that needs to be amputated will incur more than a broken finger. These are just examples – your solicitor will advise you of the likely compensation you may receive.

    Will my compensation cover any additional costs?

    Expenses to cover legal fees can also be added to the compensation sum. Another type of addition that surprises many people is interest. This is dated from the time your claim began in court in the case of general damages. The special damages interest will be calcuated from the date the accident happened.

    As you can see, the two main areas are the special and general damages. These will make up the bulk of any compensation you are awarded. Your solicitor will work out how much you could get by evaluating your case and comparing the details to similar cases that have already gone through the courts and resulted in compensation being awarded. This is a good benchmark to help work out what could be paid if a compensation claim is successful for your accident. Consult our no win no fee solicitors today for more information.

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