When you’re involved in a personal injury accident, there’s more to your financial recovery than just medical bills and lost wages. One often overlooked category is out-of-pocket expenses. These costs might not fit neatly into other categories like medical bills, but they’re just as essential in your economic damages.
What Are Out-of-Pocket Expenses?
Out-of-pocket expenses are the costs you’ve personally covered as a result of your injury. They’re expenses you wouldn’t have had to pay if the injury hadn’t occurred, and while they may seem minor at first, they can add up. These costs fall under the broader umbrella of economic damages, meaning they are quantifiable and directly tied to your financial losses.
Examples of Out-of-Pocket Expenses
Common examples of out-of-pocket expenses include the following:
- Transportation costs: Whether you’re driving to doctor’s appointments or paying for rideshares, transportation can become a significant expense.
- Prescription medication: Out-of-pocket payments for over-the-counter or prescription medication are a common cost.
- Medical devices: Items like crutches, wheelchairs, or even special bedding required for your recovery are included.
- Home modifications: If your injury requires changes to your home, like installing ramps or widening doorways, these may be considered out-of-pocket expenses.
- Childcare or pet care: Injuries can make it difficult to care for dependents or pets, leading to expenses for babysitters, daycare, or boarding.
- Hiring help: If you need assistance with daily tasks—like cooking, cleaning, or running errands—these costs can also be reimbursed if they are necessary and reasonable.
Each of these costs may seem small on its own, but when combined, they can significantly impact your finances.
Why Are Out-of-Pocket Expenses Important?
Medical bills and lost wages are often the first things people think of as damages, but the smaller, more nuanced expenses can add up to hundreds or even thousands of dollars.
For example, if you’ve spent months driving back and forth for physical therapy, those mileage costs can be reimbursed. Likewise, if you had to pay for home health care or household help while recovering, that’s money you shouldn’t be losing out on.
How to Document Out-of-Pocket Expenses
Documenting out-of-pocket expenses is crucial to receiving full compensation.
Here’s how you can stay on top of it:
- Save receipts: Whether it’s a prescription or a piece of medical equipment, keep every receipt. This is concrete proof.
- Log mileage: If you’re driving to and from appointments, keep a record of your mileage, dates, and destinations. Apps or a simple notebook can help.
- Record payments for services: If you’ve paid for childcare, home care, or any other service because of your injury, bank statements, Venmo, PayPal or invoices can serve as proof.
- Keep a journal: Keeping a log of your expenses and how they directly relate to your injury can also be useful.
Documenting your out-of-pocket expenses as they arise can help strengthen your claim and further establish the losses you’ve sustained due to your accident or injury.
How Are Out-of-Pocket Expenses Recovered?
Once you’ve documented your out-of-pocket expenses, how do you actually recover that money? The answer lies in your personal injury settlement or court award. Out-of-pocket costs are calculated as part of your economic damages (financial losses directly resulting from the injury).
When negotiating your settlement, your attorney will include these expenses as part of the claim.
Out-of-Pocket vs. Other Economic Damages
It’s important to remember that out-of-pocket expenses are just one part of your overall economic damages. While medical bills and lost wages are often more substantial, out-of-pocket costs can represent a significant portion of your total losses.
Here’s a quick breakdown of how out-of-pocket expenses fit into the larger picture:
- Medical bills: Includes hospital stays, surgeries, and treatments.
- Lost wages: Compensates for any income lost due to time off work.
- Property damage: If any of your property was damaged in the incident, these costs are also part of your economic damages.
- Out-of-pocket expenses: This covers all the other costs you’ve had to pay out of pocket as a result of the accident, including the cost of medications, repairs, treatment, and more.
Together, these categories help ensure that your compensation reflects the true impact of the financial losses resulting from your injury.
A Personal Injury Lawyer Can Help You Pursue Compensation for Out-of-Pocket Expenses
Out-of-pocket expenses may seem like a small part of your personal injury case, but they’re crucial for ensuring that you’re fully compensated. From transportation costs to medical devices and even hiring help at home, these expenses can add up quickly. Don’t overlook them when you consider the harm you’ve endured due to your injury.
By keeping detailed records and working with your attorney to document every expense, you can make sure you’re reimbursed for everything you’ve had to pay out of pocket due to your injury.
If you’re ready to take the next step and learn more about how to recover out-of-pocket expenses, Mani Ellis & Layne Accident & Injury Lawyers can help. Call us today at (614) 587 8423 for a free consultation.
