• May 12, 2025

How Are TBI Settlements Calculated?

Traumatic brain injuries (TBIs) can alter the course of a person’s life in an instant. Whether from a crash on I-94 near Detroit or a workplace fall in Grand Rapids, a severe blow to the head can lead to long-term physical, cognitive, and emotional consequences. These effects ripple into every part of daily life—relationships, careers, independence, and overall well-being.

When someone else’s careless or intentional actions caused the injury, you deserve compensation that reflects the full impact of what you or your loved one has been through. But how are TBI settlements calculated? The answer isn’t simple because no two brain injury cases are exactly alike. That’s why insurance companies often fight so hard to pay less than what’s truly owed.

This article breaks down what goes into determining a fair settlement for a traumatic brain injury. You’ll learn about the factors that influence payout amounts, how attorneys and experts calculate damages, the methods insurers use to lower offers, and why legal representation makes a difference.

If you or someone you care about is recovering from a TBI, a Detroit brain injury lawyer can provide a free consultation and help guide your next steps toward justice and recovery.

What Constitutes a Traumatic Brain Injury?

Traumatic brain injuries occur when a sudden jolt, blow, or penetrating object disrupts the normal function of the brain. TBIs can range from concussions to more serious injuries that cause extended unconsciousness or amnesia. Severe TBIs often result in long-term or permanent damage affecting speech, mobility, behavior, or cognition.

Common causes of TBIs include:

• Motor vehicle crashes (cars, trucks, motorcycles)


• Falls from ladders, stairs, or slippery surfaces


• Workplace accidents involving machinery or tools


• Assaults or violent incidents


• Sports injuries

TBIs often involve legal disputes because their symptoms may not appear immediately, and their effects can last a lifetime. Proving the extent of damage and linking it to another party’s wrongdoing becomes a core part of these cases. Types of Traumatic Brain Injuries—such as concussions, contusions, diffuse axonal injuries, and penetrating head wounds—may vary in severity, but all require careful documentation and medical evaluation to support a legal claim.

Factors That Determine TBI Settlement Values

The value of a traumatic brain injury settlement comes down to how the injury reshapes a person’s life—and the evidence available to prove those changes. TBIs often require extensive medical care, limit the ability to work, and affect everyday routines in unpredictable ways. These elements all influence how much compensation a case may warrant.

Severity and Permanence of the Injury

In general, more serious injuries result in larger settlements. A person who suffers a mild concussion and recovers within a few weeks will typically receive less than someone who sustains a severe TBI that leads to long-term cognitive deficits or physical disability. Whether the injury caused permanent memory loss, speech issues, or the need for assisted living arrangements significantly raises the potential value of the claim.

Medical Expenses (Current and Future)

Emergency room visits, imaging (such as CT scans or MRIs), neurosurgery, hospital stays, medications, physical therapy, and follow-up care all add up quickly. For moderate or severe injuries, ongoing treatment can last for years—or even a lifetime. Future care costs need to be factored in just as carefully as past bills. If your TBI requires multiple follow-ups, rehab sessions, or durable medical equipment, those expenses increase the claim’s value.

Loss of Income and Earning Capacity

Many brain injury victims can’t return to work right away—if ever. Some may go back part-time or to a less demanding job that pays less than they earned before. Calculating lost wages involves reviewing missed paychecks, but estimating diminished earning capacity may require expert input. A 35-year-old skilled worker who can no longer perform their job due to memory lapses or balance issues may lose out on decades of income. That future loss should be reflected in the settlement.

Pain and Suffering

Beyond the physical pain, TBIs often bring emotional distress, mental fatigue, personality changes, and frustration over simple tasks becoming difficult. Someone may feel isolated, anxious, or embarrassed in social settings. While these losses don’t have clear price tags, they’re often the most deeply felt—and they play a large role in determining non-economic damages.

Cost of Rehabilitation and Ongoing Care

Rehabilitation helps a TBI survivor regain function and independence, but it’s rarely quick or cheap. Speech therapy, occupational therapy, physical therapy, counseling, and other services may be needed for months or years. Some individuals require in-home assistance, nursing care, or modifications to their living environment. These expenses are real and measurable and should be included in the claim.

Life Care Planning Considerations

For severe brain injuries, especially those involving permanent disability, a life care planner can estimate all future care needs. These plans include medical treatments, assistive technology, caregiver wages, therapy schedules, and transportation needs. Life care plans provide courts and insurers with a road map for what the injured person will need—and how much that care will cost.

Impact on Quality of Life and Daily Activities

When a TBI limits your ability to drive, cook, read, engage with your kids, or enjoy hobbies, the effect ripples through your everyday experience. You might stop attending community events, stop traveling, or become less active socially. These losses deserve acknowledgment in a settlement. Even subtle impacts—like chronic headaches or sensory issues—can affect quality of life in ways that merit compensation.

Economic vs. Non-Economic Damages

TBI settlements typically cover both economic and non-economic damages. These two categories reflect different types of losses.

Tangible Economic Damages

These are easier to document and quantify, such as:

• Hospital bills and prescriptions


• Surgery or ICU costs


• Physical or cognitive therapy expenses


• Lost paychecks from missed work


• Reduced future income potential

Payroll records, tax returns, and medical invoices help support these numbers.

Non-Economic Damages

Less visible—but no less real—are the emotional and lifestyle impacts. These include:

• Physical pain and discomfort


• Depression, anxiety, or personality changes


• Loss of hobbies or social interaction


• Struggles with memory, concentration, or communication

In Michigan and many other states, non-economic damages may be capped or influenced by case law. Judges and juries often weigh testimony from the injured person, loved ones, and mental health professionals to assess these losses. Most Common Examples of TBI include concussions, contusions, diffuse axonal injuries, and penetrating head injuries—each carrying different symptoms and long-term effects that can shape the outcome of a claim.

The Role of Expert Witnesses

Building a strong TBI settlement case often means going beyond medical records and accident reports. Traumatic brain injuries can be hard to measure with traditional tests, and their effects aren’t always obvious to a claims adjuster or jury. That’s where expert witnesses come in. These professionals help clarify the true scope of the injury, the long-term consequences, and the full financial impact on the injured person’s life.

Medical Experts Who Establish Injury Severity

Neurologists, neuropsychologists, and treating physicians can explain how the injury occurred and what parts of the brain were affected. They interpret imaging results, describe the symptoms the patient experiences, and connect those symptoms to the accident. For example, a neurologist might testify that frontal lobe damage has led to impulsive behavior or difficulty concentrating—issues that wouldn’t show up in a standard CT scan but are very real to the injured person and their family.

Neuropsychological testing is often essential in TBI cases. These tests assess memory, processing speed, attention span, and cognitive flexibility. A neuropsychologist can testify about how the results relate to the person’s ability to work or function independently.

Economic Experts Who Project Lifetime Costs

An injury that affects your ability to work isn’t just about lost wages this month—it’s about decades of missed income. Economic experts review earnings history, job skills, education, and local labor market conditions to estimate what the injured person would have earned over time. They also factor in lost benefits like retirement contributions, bonuses, and health insurance.

By translating career disruption into dollar amounts, these experts provide a clearer picture of the financial loss. That helps justify a higher settlement and reduces the insurance company’s ability to downplay the claim.

Vocational Rehabilitation Specialists

If a brain injury limits your ability to return to your previous job, a vocational rehabilitation specialist can assess what other types of work you could reasonably perform. They consider both your physical and cognitive limitations as well as your training and job history. Their input helps define how much your earning capacity has been reduced.

In some cases, they may determine that the person can’t return to the workforce at all. In others, they may recommend specific retraining or accommodations—and calculate what that transition would cost.

Life Care Planners

For those with long-term or permanent injuries, life care planners map out future medical and personal care needs. Their assessments include:

• Routine doctor visits


• Medications and medical equipment


• Home health aides or nursing care


• Therapy sessions


• Accessible transportation


• Modifications to the home or vehicle

A life care planner works closely with physicians and other experts to estimate how much each item will cost over the person’s expected lifespan. This forecast becomes a powerful tool during settlement negotiations, especially in cases where the injury prevents independence and clearly qualifies as personal injury under applicable state law.

Insurance Company Tactics to Devalue or Deny Claims

Insurance companies have one goal: minimize payouts. TBI claims threaten their bottom line, especially when they involve high-dollar future costs. Some of the tactics adjusters use include:

• Blaming the injury on pre-existing conditions


• Downplaying medical records or MRI findings


• Arguing that symptoms are exaggerated or unrelated to the accident


• Making fast, lowball settlement offers before the full impact is known


• Cherry-picking medical opinions to challenge ongoing treatment

If an insurer denies the claim or offers an amount that doesn’t reflect the long-term consequences, the next step often involves legal action—not because the injured person failed to settle, but because the company refused to do the right thing. Fighting the Insurance Company After a TBI requires persistence, detailed medical evidence, and often, legal support to hold them accountable for downplaying or dismissing the true impact of the injury.

Legal Considerations That Impact Settlement Value

Several legal rules and case-specific circumstances can raise or lower a settlement amount.

Statute of Limitations

In Michigan, the statute of limitations for personal injury claims is generally three years from the date of the injury. Missing this deadline can prevent any recovery, no matter how strong the evidence.

Comparative Negligence

Michigan follows a modified comparative fault rule. If you were partially responsible for the accident, your compensation may be reduced by your percentage of fault. If you're more than 50% at fault, you may not be eligible for non-economic damages.

Jurisdictional Variations

Settlements in urban areas like Detroit may differ from those in rural Michigan due to jury tendencies, court congestion, and regional standards.

Structured Settlements vs. Lump Sums

Some victims prefer structured payouts over time for tax planning or budgeting reasons. Others may need a lump sum for major expenses. Each option has pros and cons that should be reviewed before finalizing any deal.

The Importance of Skilled Legal Representation

Insurance companies don’t make fair offers just because they should. Having a Detroit personal injury lawyer with experience handling TBI claims often leads to stronger outcomes.

A lawyer can:

• Gather medical records and expert opinions


• Calculate long-term damages accurately


• Handle communications and negotiations with the insurer


• Push back on unfair settlement tactics


• File a lawsuit when necessary to compel action

Settlement talks usually start low, and it takes skilled advocacy to bring the number up to where it belongs. If the insurance company refuses to deal in good faith, a jury trial may become the only path forward.

Our Experienced TBI Attorneys in Michigan Can Help

A fair settlement for a traumatic brain injury depends on many moving parts: the severity of the injury, the costs of care, the life changes involved, and the ability to prove them with strong evidence. When the at-fault party’s insurance company refuses to fully cover those damages, legal action becomes the most effective tool for accountability.

At Goodman Acker PC, our Michigan-based attorneys understand how TBI cases affect every part of your life—from lost jobs to changed family roles. We help injury victims recover financial compensation that reflects their real losses, not just what's convenient for an insurance adjuster.

Let our team evaluate your case at no cost to you. Contact us today to set up a free consultation and start the process toward recovering the settlement you deserve.