How Does an Insurance Company Calculate my Settlement Amount?

Most of the time, personal injury cases cause a lot of pain and suffering. Whether it is from a car accident, slip and fall, or a defective product, what unites these incidents is that they usually happen because one party was responsible and negligent, meaning that if that party was responsible, the incident would not have happened. When you have filed your personal injury claim, the insurance company will go through all medical records and even billing to calculate a settlement amount for you.

If you have been injured and want to make sure you are getting the fair compensation you deserve, contact Larry D. Ashlock, he is well-versed in personal injury claims and will fight for everything to get the settlement you deserve.

What do Insurance Companies take into account?

When calculating settlements, adjusters have many categories they look at to determine the costs of an injury. They may even consider your life at work, your belongings, everyday life, and treatment. The things they investigate the most are: Medical Expenses, Lost Wages, Loss of Earnings, Property Damage, and Pain and Suffering. These are the most common factors deciding your settlement amount.

Well, how are they calculated?

Property damage, medical expenses, and lost time at work have an exact number, whereas pain and suffering are different because people are trying to assign a numerical value to how poorly an accident injury has made you feel or affected your life. Some calculations may be determined with a multiplier, depending on how severe your injuries are, a multiplier between 1.5 and 5 will be used with how much your damages have cost you. Lower numbers are for less serious injuries whereas severe injuries like a traumatic brain injury or paralysis would have a higher multiplier. Another way of determining pain and suffering is called the per diem method where you receive a certain amount of money per day because you must live with the pain of your injury.  Due to the differentiating factors, it is not easy to determine what someone will make without looking at all the factors in front of you. Insurance companies are not the only party that can determine your settlement amount.
With an experience attorney, like Larry D. Ashlock, your lawyer will do the calculations as well to make sure you are not getting a settlement amount that is not fair and will cover the costs of your entire injury. 

Originally Published on Monday, September 17, 2018