Out-of-Pocket Expenses
After an accident, injury victims often focus on major damages like medical bills, lost income, and pain and suffering. However, out-of-pocket expenses can also have a significant financial impact. These expenses are often overlooked but are recoverable in North Carolina personal injury claims.
To seek compensation after an accident caused by someone else’s negligence, it’s important to know what out-of-pocket expenses are.
What Are Out-of-Pocket Expenses?
Out-of-pocket expenses refer to costs that you personally incur as a direct result of your accident or injuries. These are not automatically billed to your insurance company or employer, meaning you pay them upfront from your funds.
Though they seem small next to medical bills or lost wages, these costs can add up quickly. They are considered compensable economic damages in a personal injury claim.
Common Examples of Out-of-Pocket Expenses
Out-of-pocket expenses vary depending on the nature of the accident and the injuries involved. Common examples include:
- Transportation costs: mileage, rideshare fares, parking fees, and public transportation costs
- Medical supplies: purchases of braces, crutches, bandages, ice packs, or over-the-counter medications
- Home modifications: installing ramps, grab bars, or other accommodations for temporary or permanent disabilities
- Household services: hiring help for cleaning, childcare, lawn care, or other tasks you cannot perform due to your injuries
- Prescriptions and co-pays: costs not reimbursed by insurance, including deductibles and medication co-pays
- Lost personal property: replacement costs for eyeglasses, clothing, or cell phones damaged during the accident
You may be able to recover these expenses if you document and present them correctly.
How to Document Out-of-Pocket Expenses in North Carolina
Proper documentation is key to recovering out-of-pocket expenses. To support your claim, you should:
- Keep all receipts, invoices, and proof of payment related to your accident and injuries.
- Maintain a log or spreadsheet detailing each expense, including the date, amount, and purpose.
- Track mileage and transportation costs using a mileage log or trip receipts.
- Retain records of household services hired, including contracts, receipts, or bank statements.
Organizing these records will help your attorney use them in your settlement demand or trial presentation.
Why Out-of-Pocket Expenses Matter in Personal Injury Claims
Many injury victims underestimate the importance of out-of-pocket expenses. These costs might not be as high as medical bills, but they can still cause real financial strain. This is especially true when lost wages are added to the mix.
Ignoring these expenses can lead to low settlements. Injury victims may end up paying costs that the at-fault party should cover.
Out-of-Pocket Expenses and Settlement Negotiations
Out-of-pocket expenses are an important part of settlement negotiations. Insurers may try to minimize or disregard these costs if they are not well-documented or clearly connected to the accident.
Your attorney can add these costs to your settlement demand package. They should include receipts, logs, and expert opinions if needed. This ensures that these costs are fully considered in the total valuation of your claim.
If the case goes to trial, keeping track of your expenses is key. These records will show the jury the financial strain from the defendant’s negligence.
How North Carolina’s Contributory Negligence Rule Affects Out-of-Pocket Expenses
North Carolina has a strict contributory negligence rule. If you are found even 1% at fault for the accident, you cannot recover anything. This rule applies to all damages, including out-of-pocket expenses.
Insurance companies often use the contributory negligence standard to avoid paying claims. So, it’s important to show strong evidence that the other party was fully at fault. Good records of your out-of-pocket expenses and proof of liability can strengthen your claim and lower the chance of disputes.
Statute of Limitations for Personal Injury Lawsuits in North Carolina
In North Carolina, there is typically a three-year statute of limitations from the date of the accident for personal injury lawsuits. If you fail to file your lawsuit within this timeframe, you won’t be able to recover your out-of-pocket expenses. Working with a lawyer early helps ensure you meet all deadlines and preserve your right to full compensation.
Why You Need an Attorney to Help Recover Out-of-Pocket Expenses
Though you can submit these expenses to the insurance company on your own, an experienced personal injury lawyer can help. They ensure that:
- All expenses are properly documented and supported with evidence
- Costs are included in negotiations and settlement demands
- Insurance companies cannot unfairly reduce or dismiss these damages
We ensure that all our clients’ out-of-pocket expenses and other damages are accounted for in their personal injury claim.
Contact Our Charlotte Personal Injury Lawyers to Learn More About Out-of-Pocket Expenses
If you’re injured in an accident, knowing about out-of-pocket costs is key. These expenses can impact your personal injury claim and your financial security. At Chandler Volta Personal Injury Lawyers, we can help you track your expenses. Contact our Charlotte personal injury attorneys at (704) 980-9999 to schedule a free consultation.