Insurance companies use statistical information when settling car accident claims, but there is no standard formula that all insurers use in all cases.
How Do Insurance Companies Calculate Settlement Amounts?
In most cases, auto insurance companies collect statistics on various types of car accident claims that have been filed across the United States and use that data to calculate the average settlement amounts for different types of claims. Although that information is useful, most car accident claims do not exactly fit the ones that are used for modeling purposes. Insurers, therefore, use statistical data as a starting point and consider factors specific to each case to calculate an individual’s financial award.
An insurance company will take into account an injured party’s special damages, or financial losses stemming from a crash. Those may include costs for past and future medical treatment and lost income. An insurance adjuster can then use a multiplier to figure out the approximate value of a claim. Using a multiplier helps an insurance company estimate how much money a jury would be likely to award an injured person if the case went to trial.
The size of the multiplier can vary depending on the seriousness of the claimant’s injuries. In a case involving minor injuries, the insurance company will use a small multiplier to provide a modest amount of compensation for pain and suffering.
If a person experienced serious and life-altering injuries that required a lengthy hospital stay or long-term physical therapy or chiropractic treatment, the insurance company will use a larger multiplier. In that type of case, an injured person most likely suffered severe pain for a short period of time or experienced moderate and chronic pain over a longer span of time. An insurance company will also consider whether it believes the treatment received was reasonable and whether the injury was new or whether the collision aggravated a pre-existing injury.
How a Car Accident Lawyer May Be Able to Help You
People who have been injured in car crashes often have no idea how much their case is worth. They may underestimate the severity of their injuries, costs for medical treatment, and ways the accident may affect their quality of life and ability to earn a living.
An attorney who has experience handling car accident cases can discuss the injuries you suffered and how the crash has impacted your life. A lawyer can review your medical records to better understand the scope of your injuries, treatments you have already received, types of care you will need in the future, and whether you are expected to make a full recovery or whether you will continue to suffer from limited mobility, chronic pain, or other problems, as well as any other factors that may be relevant to your case.
An insurance company’s offer is just that. You do not have to accept it. If your attorney believes that the settlement the insurance company offered is unreasonable, he or she can work to negotiate a larger settlement on your behalf. If the two sides are unable to come to an agreement, your attorney may take the case to court to pursue a fair settlement.
Get in Touch with a Car Accident Lawyer
Pintas & Mullins Law Firm has helped people across the United States who were hurt in car crashes stand up to insurance companies and seek justice. Our firm can evaluate any settlement offer you have received and advise you on whether we believe it is appropriate or whether we believe you are entitled to more compensation. We can work to negotiate a fair financial award for you and can take your case to trial if necessary.
The statute of limitations restricts the amount of time you have after a car accident to file a personal injury lawsuit seeking compensation. The amount of time is set by state law and can vary significantly from one state to another. California’s statute of limitations for personal injury claims is two years from the date of the injury. Knowing the statute of limitations where you live is important because you may lose out on your ability to sue if you miss the deadline, no matter how strong your case is.
Seek Legal Help Today
People who have been hurt in car accidents sometimes do not get the compensation they deserve because they are concerned about legal fees and therefore negotiate with an insurance company themselves instead of hiring an attorney. You should not let concerns about legal costs stop you from pursuing a fair amount of compensation.
Pintas & Mullins Law Firm operates on a contingency model. We do not charge clients who seek help with personal injury cases any money upfront. We cover costs ourselves and only collect a fee if we obtain a financial award on behalf of an injured client. Call our offices today at (800) 223-5115 to discuss your case with a member of our team and to learn more about how we may be able to assist you.