Out-of-pocket expenses are a type of compensatory damage awarded to a plaintiff in a personal injury that does not fall under the typical categories of medical expenses, lost wages non-economic damages and punitive damages.
Out-of-pocket expenses are a type of economic damage, or the compensation you receive as reimbursement for the financial losses you sustained because of your injuries. There are typically three aspects of economic damages in a personal injury case:
- Property damage — Any damage to your car, home, or even smaller expenses such as a destroyed cell phone or laptop.
- Medical expenses — Medical expenses are all of the medical-related bills related to your injury. They can include:
- Emergency room or urgent care costs
- Ambulance bills
- X-rays, tests and lab work
- Surgeries
- Physical therapy or chiropractic
- Over-the-counter or prescription medication
- Follow-up appointments with your general practitioner or a specialist
- Lost wages and lost earning capacity — Most personal injury cases result in the plaintiff missing anywhere from a few days to several months while recovering from their injuries, and any wages you missed out on will be repaid to you. In more severe cases where the injury resulted in some form of permanent disability, you can also seek compensation for your lost future income. That amount will be based on your age, previous income level, life expectancy, skills and training.
Out-of-Pocket Expenses in a Personal Injury Case
Out-of-pocket expenses are any other expenses you had to pay yourself as a direct result of your injuries. They can include:
Transportation Costs
The costs of going to and from medical and physical therapy appointments can add up. Whether you used a ridesharing service such as Uber, public transportation, or your own car, keep a record of all your receipts and expenses, including mileage and gas used and parking fees if you drove yourself. If your medical needs forced you to seek a specialist in a different town, you can also make a recovery for your hotel stay and meals.
Day-to-Day Tasks
An injury can disrupt our daily lives, and you might need to pay for professional assistance just to get chores or other daily tasks done. Some household expenses you can make a claim for include:
- In-home nursing care
- Cleaning services or help with other household or gardening chores
- An affordable daycare or nanny for your children
Home and Vehicle Modifications
If your injury results in disability, you may have to make a variety of modifications to your home and your family's vehicle in order to function as normally as possible. This can include special guardrails in the bathroom or wheelchair ramps or lifts to your home and vehicle.
Mitigating Damages
It is important to remember that as the injured party you are expected to mitigate your damages, or not incur unreasonable fees. While you can easily recover compensation for help with household chores, having someone remodel the kitchen and claiming it is part of your accident expenses is unlikely to work. Likewise, you cannot go to a simple physical therapy appointment in Paris, France, stay at the Ritz-Carlton and claim it is all part of your out-of-pocket expenses.
Getting Compensation for Out-of-Pocket Expenses
The insurance company may initially say that your expenses were unreasonable or unnecessary. In order to make a successful claim for out-of-pockets expenses, you will need to have complete records of every dollar you spent, including:
- Receipt or proof of purchase or services
- The date of the expense
- Itemized bills for household services
- A clear reason why the expense was necessary and related to your injuries.
As long as you kept detailed records, a personal injury attorney will be able to calculate the full extent of your damages and negotiate with the insurance adjuster on your behalf.